OCA - Oceania Group - retirement villages

[Louloubell]

I don't know if this is an ad, but it reads beautiful.

[winner69]

I don't know if this is an ad, but it reads beautiful.

Hope you read it listening to Lean on Me to get the full experience

[winner69]

Warriors had a bye this week and in the NRL this counts as a win and they get competition points. The Wahs finished the year 13th on the table. There were 4 teams worse than them. Definitely not a ‘this is our year’ for the Wahs but the fans getting ready for next season hoping that will a ‘this is our year’ one

Oceania share price lost 1 cent to close at 80 cents which is about where it was just over a year ago. Followers have been rather quiet lately and possibly getting a bit titchy about the share price not going up. They have been consoling themselves by referring to proverbs about trees and the sitting in the shade they give, in other words think long term and not what the share price is today. In saying that it seems most are relieved the share price is higher than a month or so ago, even though about the same as a year ago. The Oceania chant seems to have evolved into ‘One year sometime will be our year’

A casual Observer agrees a bad year for the Warriors but feels that Oceania supporters hanging out for a better end to the year annd if that doesn’t eventuate hoping the share price is still around 80 cents come Christmas.

[Ferg]

You really are reaching to make this connection aren't you? All I can say is thank God the season is over.

[Greekwatchdog]

You really are reaching to make this connection aren't you? All I can say is thank God the season is over.

I couldn't agree more. God help us what gets written after the half year result which is likely to be ho hum at best. Anyway lets let the CEO get her fingers into this as she what she has for us over the next while.

I am off on holiday to Greece's largest city outside of her homeland. Have a great week to you all. OPA

[limmy]

OCA will benefit from a possible interest rate cut, OCR cut ?

[Ferg]

OCA will benefit from a possible interest rate cut, OCR cut ?

Short answer = yes.

All business with floating debt should benefit from a cut to the OCR and floating rates - not just OCA or other retirement villages. Keep in mind listed companies tend to run a treasury policy which requires a certain percentage of debts to have fixed interest rates. Whether this is achieved via fixed interest rate bonds or interest rate swap agreements is up to each company. And the percentage to be fixed can sit between an upper and lower limit which gives the Board & Management some degree of flexibility on choosing how much, or how little, to fix and when. So interest cost savings may not benefit such businesses straight away - the effect may be partial in earlier periods and more in later periods. However, for property businesses that use capitalisation rates, interest costs are a component of the capitalisation rate and as those rates fall, the asset values increase. So property companies get a double benefit - increased asset values and less cash paid for interest costs.

[limmy]

Short answer = yes.

All business with floating debt should benefit from a cut to the OCR and floating rates - not just OCA or other retirement villages. Keep in mind listed companies tend to run a treasury policy which requires a certain percentage of debts to have fixed interest rates. Whether this is achieved via fixed interest rate bonds or interest rate swap agreements is up to each company. And the percentage to be fixed can sit between an upper and lower limit which gives the Board & Management some degree of flexibility on choosing how much, or how little, to fix and when. So interest cost savings may not benefit such businesses straight away - the effect may be partial in earlier periods and more in later periods. However, for property businesses that use capitalisation rates, interest costs are a component of the capitalisation rate and as those rates fall, the asset values increase. So property companies get a double benefit - increased asset values and less cash paid for interest costs.

Thanks for your detailed explanation, Ferg