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24-09-2020, 10:29 AM
#6511
Originally Posted by iceman
Not directly related to Oceania but I can tell a story of a couple that visited several retirement & lifestyle villages here in Nelson 3-4 weeks ago. Found the one they liked which was at the high end and expensive. Put their home on the market and sold within a week. Went back to retirement village to sign a contract only to find the price had gone up $ 100,000. Yes that's right, + $ 100,000, from $750k to $850k in a lifestyle (+55 yo) village.
That would have done that retirement companies development margin / resale profit a massive power of good !!
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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24-09-2020, 11:52 AM
#6512
Originally Posted by iceman
Not directly related to Oceania but I can tell a story of a couple that visited several retirement & lifestyle villages here in Nelson 3-4 weeks ago. Found the one they liked which was at the high end and expensive. Put their home on the market and sold within a week. Went back to retirement village to sign a contract only to find the price had gone up $ 100,000. Yes that's right, + $ 100,000, from $750k to $850k in a lifestyle (+55 yo) village.
Quite ironic I guess when at the beginning of the coronavirus recession many were expecting the retirement sector in general to be the worst hit. Now it seems the villages are hot property - perhaps one of the hottest sectors in housing? Can people buying an ORA make their purchase conditional on selling their house - is that the usual practice?
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24-09-2020, 12:39 PM
#6513
http://nzx-prod-s7fsd7f98s.s3-websit...346/331468.pdf
Slide 4 looks a bit blank, not alot of highlights I suppose.
Not too sure what makes it price sensitive either?
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24-09-2020, 12:47 PM
#6514
Once the restrictions on sales eased in Alert Level Two, we recommenced sales activity and have
recorded strong sales levels through June, July and August – 26% higher than the same months last
year. We have seen particularly good levels of sales at both Meadowbank and The Sands over the last
few months. We have now sold 54 independent living apartments and 29 care suites at The Sands (with
a further 12 care suites occupied by residents paying a premium accommodation charge). At
Meadowbank, we have now sold 34 of the 64 independent living apartments in Stage Four and seven of
the 26 independent living apartments in Stage Five, as well as 38 care suites (with a further three care
suites occupied by residents paying a premium accommodation charge).
Many new residents who have submitted ORA applications since lockdown have commented to us about
how the lockdown period gave them an opportunity to reflect on their wellbeing and security, with the
benefits of retirement villages – including stronger communities, security and peace of mind - being more
prevalent over this period.
Extract from CEO's address. Looks pretty solid to me.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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24-09-2020, 12:47 PM
#6515
Originally Posted by trader_jackson
I like Slide 6 - SUSTAINABILITY
If it was in pink could have been lifted from another companys preso
At the top of every bubble, everyone is convinced it's not yet a bubble.
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24-09-2020, 01:01 PM
#6516
Had a look at your favorite slide Winner. I reckon they have the ESG balance about right for a company in this sector looking after elderly vulnerable people.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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24-09-2020, 01:15 PM
#6517
Originally Posted by Beagle
Had a look at your favorite slide Winner. I reckon they have the ESG balance about right for a company in this sector looking after elderly vulnerable people.
Pretty good but could do more
Milton wouldnt be impressed though ...not maximising shareholder profits by doing this.
At the top of every bubble, everyone is convinced it's not yet a bubble.
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24-09-2020, 01:21 PM
#6518
Okay now for some analysis that might mean something in terms of FY21's profitability.
First up one should note the increased sales rate noted above and given it takes time for people to sell their homes the extremely buoyant market augers well for the rest of the year both in terms of pricing and volumes sold.
Then there's this
Brent Pattison was appointed as Chief Financial Officer in January 2020. Since joining Oceania
Healthcare, Brent has been heavily involved in preparing the aged care industry’s funding claim from the
Government for additional costs incurred by the industry as a result of COVID-19
Its clear the industry is looking to get recompense for the extra Covid 19 costs incurred in their care operations.
Looking through Earl's address it would appear there were 176 apartments and care suites delivered last year and they are on track to deliver 217 in the ten months to 31 March 2020, 23% more but on an annualized basis 217 x 12/10 = 260 / 176 = 48% more.
With sales rates lifting nicely and them being at the point of inflection with their care income I can see a solid life in underling EBITDA for FY21.
Looks like a sound long term hold to me.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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24-09-2020, 01:30 PM
#6519
Originally Posted by winner69
Pretty good but could do more
Milton wouldn’t be impressed though ...not maximising shareholder profits by doing this.
A company that specializes in care must put the highest case standards as its primary objective to maximize profits...I think Milton would realize that. The carbon neutrality by 2030 looks good for the company and makes residents feel the company cares about the environment which conveys the right "feel good environmental sensitivity factor" so residents feel attracted to live there and the net result is the company can sell more units. All makes sense to me.
Now its sausage roll time
Last edited by Beagle; 24-09-2020 at 01:31 PM.
Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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24-09-2020, 02:01 PM
#6520
Whats the Username & Password thing on the online meeting?
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