OCA - Oceania Group - retirement villages

[winner69]

Looking at DMF for F23

In revenues there is $70.2m of DFM (accrued). Add care fees, village fees and other stuff total revenue was $247m (including DMF)

Underlying NPAT was $58.5m which included realised gains on sales/resales of $59.3m.

This implies that day to day operations ran at a small loss

Which also implies that all DMF was consumed ……all gone to help pay for looking after and caring for people and contributing to HQ overheads. Nothing left over. It was a fee after all (paid advance);and not really an ‘asset’.

That’s how I see it anyway…in simple abbreviated way

This is how i still see things

[Daytr]

This is how i still see things

Yep makes sense.
And if margins on new sales are also being squeezed that will dent the overall profit.

[Habits]

"Underlying NPAT was $58.5m which included realised gains on sales/resales of $59.3m."

Without the sales and resales there would have been nothing left. The 2022/23 FY was a tough time for housing and property in general

[Baa_Baa]

"Underlying NPAT was $58.5m which included realised gains on sales/resales of $59.3m."

Without the sales and resales there would have been nothing left. The 2022/23 FY was a tough time for housing and property in general

Finally, the realisation is dawning that it's all about sales sales sales, and yes, H2 is a big disappointment, but overall +20% is encouraging. And I don't care about the excuses, there are RV's that are proving that the 'market' is there for RV sales, it's just that OCA aren't getting their share of it lately. And they need it, with such a large backlog of saleable property and a development pipeline that will just add to the backlog.

Something has to change, not just the CEO. The Board has a few very large investor shareholders, surely they must be wondering when the strategy will turn into ROI on their investment? None of the RV's pay even barely respectable ROI (dividends), let alone capital growth. All of them need to realise the market has changed and growth at all costs to investors, is not sustainable anymore. It's time for payback. And it's easy, relatively, to make that happen. The levers to produce investor/owner/shareholder returns are very simple to implement, albeit they take some time to take effect.

What this company doesn't seem to get, and maybe the whole sector doesn't get yet, is who they're working for. It's it's the owners that they work for, the shareholders, and it's not at all unreasonable IMO to expect a decent ROI, EPS, which none of them provide, none of them.