Retirement village operators

[alokdhir]

the aged care side matters little. there property developers mainly and property developers do go bust in a bad cycle

Fully agree ...property is their main stay not aged care ...they thrive on property appreciation as they actually dont sell property only occupation rights thus capital appreciation remains on their books ...

[Balance]

Disagree. His views are welcome, as are anybody else's views.

Why do people get so worked up over posters posting their views?

Imperative on a site like this to know the nature and motivation of any poster before granting them credibility, surely!

[bull....]

Fully agree ...property is their main stay not aged care ...they thrive on property appreciation as they actually dont sell property only occupation rights thus capital appreciation remains on their books ...

exactly its like mcdonald's there not really a burger outfit they are considered more a real estate company

[Balance]

Bull, like so many others who like to fear-monger about this sector (OCA in particular) might understand the property side of things, but they have made it very clear that they do not understand Aged Care. Neither does the general market. All of these major providers are here to stay and all of them will do very well over the long term.

You may know a lot about Aged Care but the RV sector is about property first, property second and aged care third from an investment consideration point of view.

[justakiwi]

I rest my case.

the aged care side matters little. there property developers mainly and property developers do go bust in a bad cycle

[thegreatestben]

I read that as the aged care side matters little in terms of share performance. Obviously it has social value and provides a service and no-one (including bull) is saying it doesn't.

I also value bull's perspective; it provides balance and healthy perspective to bolster your own opinion rather than oppose it.

[justakiwi]

I accept that the RV sector is primarily a property sector - but it is actually a multi-faceted sector. The problem is, you, and others think of Aged Care and only see the extreme end of "care." RV's provide graduated levels of "care". Independent living villas provide site security, assistance with gardening if required, RN call bells for emergencies, and optional extras such as meals. Independent and supported living apartments provide their own specific level of "care." Care suites and care beds are at the higher level of care need, providing personal cares, more intensive nursing cares, and, in the case of care suites - continuity of care for life.

All of this is "Aged Care" - which is what you fail to understand and appreciate. We have already discussed often, the value of a progressive care model - and the disadvantages of a facility such as the Fletcher Building village - with villas only, and very limited care assistance.

I do appreciate that for traders, the RV sector is probably not an attractive option. But for those with a long term investment strategy, the current and future demand for all these levels of Aged Care is huge. I really don't know how many times one needs to say that. No government will ever take on Aged Care themselves. The NGO's and small private facilities are struggling and cutting costs already. Barring a miracle, in 10-15 years, they will no longer be a viable option. Which means the bulk of NZ's aged care services will be provided by the RV sector providers. There ​is no alternative.

It's not rocket science.

You may know a lot about Aged Care but the RV sector is about property first, property second and aged care third from an investment consideration point of view.

[alokdhir]

I accept that the RV sector is primarily a property sector - but it is actually a multi-faceted sector. The problem is, you, and others think of Aged Care and only see the extreme end of "care." RV's provide graduated levels of "care". Independent living villas provide site security, assistance with gardening if required, RN call bells for emergencies, and optional extras such as meals. Independent and supported living apartments provide their own specific level of "care." Care suites and care beds are at the higher level of care need, providing personal cares, more intensive nursing cares, and, in the case of care suites - continuity of care for life.

All of this is "Aged Care" - which is what you fail to understand and appreciate. We have already discussed often, the value of a progressive care model - and the disadvantages of a facility such as the Fletcher Building village - with villas only, and very limited care assistance.

I do appreciate that for traders, the RV sector is probably not an attractive option. But for those with a long term investment strategy, the current and future demand for all these levels of Aged Care is huge. I really don't know how many times one needs to say that. No government will ever take on Aged Care themselves. The NGO's and small private facilities are struggling and cutting costs already. Barring a miracle, in 10-15 years, they will no longer be a viable option. Which means the bulk of NZ's aged care services will be provided by the RV sector providers. There ​is no alternative.

It's not rocket science.

All here including Bull / Balance and me fully understand your points ...but as things stand today RV is mostly valued for the property on their books ...the day they start actually transferring property to buyers ...that day they will be truly valued for aged care services they provide ...and then their market caps will truly represent how good they are in that ....

[Balance]

All here including Bull / Balance and me fully understand your points ...but as things stand today RV is mostly valued for the property on their books ...the day they start actually transferring property to buyers ...that day they will be truly valued for aged care services they provide ...and then their market caps will truly represent how good they are in that ....

As has been written - MacDonalds make its real money from real estate, not from selling hamburgers. The hamburgers are a means to the end.

Likewise, aged care (fortunately) or else as JAK wrote, no investors would put money into the sector as there’s bugger all money to be made from looking after the aged. Sad but true.

[justakiwi]

That is not what I said.

They are already making money out of "care" - you just choose not to recognise that the property side of the business is also aged care.

You people need to get your heads around the fact that care is a spectrum of assistance - not simply the picture in your heads of dribbling old folk, who need help wiping their bum. Your stereotyping is clouding your ability to truly understand what these providers are providing.

Likewise, aged care (fortunately) or else as JAK wrote, no investors would put money into the sector as there’s bugger all money to be made from looking after the aged. Sad but true.