OCA - Oceania Group - retirement villages

[Baa_Baa]

OCA 'Drivers' put their own people first, and interestingly the 'customers' don't feature in those 'Drivers' unless customers are lumped in with 'stakeholders', 4th on the list. It seems the combination of those 'Drivers' lead to the 'value Outcomes' which leads to the 'Strategy' and 'Purpose' to achieve the 'Goals'.

It's a bit like trying to read their financial statements, somewhat convoluted and counterintuitive.

Our drivers
- Our people - Highly motivated, passionate and safe staff
- Our expertise - The capability of our people and quality of our systems
- Our villages - The quality of our villages and landbank
- Our relationships - The strength of the relationships we have with our key stakeholders and our brand reputation
- Our financial capital - The combination of shareholder funds, banking facilities and operating cash flow employed to maintain and grow our business
- Our natural capital - The quality of the natural resources we rely on to run our business today and in the future

Our value outcomes
Residents love living in our communities

- We delight our residents with hospitality inspired, customer led services
- We are passionate about the wellbeing of our staff, residents and their families
- We lead the way in how we do things

... leading to the 'Strategy'
We have set our strategy by considering what is important to key stakeholders and which risks and opportunities have the greatest impact on our ability to create value in the short and long term.
This strategy establishes goals and identifies measures to report people, planet and prosperity achievements as we build a better future.

.. and 'Purpose' ...

Our purpose
To reimagine the retirement and aged care living experience in New Zealand

... to achieve the 'Goals' ...

Our goals [abridged]
People:
We delight our residents and staff by caring for them and making a difference to their happiness every day.
Our measure
Employee wellness engagement, resident engagement, health and safety.

[Baa_Baa]

First full year balance date at 31st March reports due in May. They'll already know how well it's going and haven't advised any change in guidance.

[Baa_Baa]

Got a bit high tech waltz and used an electronic ruler and paintbrush ...cool eh ....but baabaa would be a lot more sophisticated than me.

I made 100 to 110 as support / resistance levels ..... and we in that range now.

Chart might be more sophisticated but still comes up with the same result as you re support, most prevalent support band going back years is 1.00 - 1.10.

Agree with Peat as well, RSI divergence to price has been forming for a couple of weeks, signalling a potential bottom reversal.

Anyway, OCA is cheap as chips so making sure I have a few more for the collection.

[winner69]

First full year balance date at 31st March reports due in May. They'll already know how well it's going and haven't advised any change in guidance.

They haven't given any guidance (as far as I know) so no need to advise any change ...... shareholders don't really matter anyway

Al that Drivers,Outcomes blah blah is basically what I was saying earlier

[Beagle]

Methinks Oceania have a hierarchy - primary focus on residents being looked after then next comes ensuring staff are happy as and they're looked after as well ….and let’s not forget the environment as that’s important as well.

All commendable stuff but I get the impression that shareholders are an after thought. Can’t say they don’t consider them because they’ve borrowed $70m to dish out as dividends (which the shareholders have had to pay $20m tax on). One does tend think we are a pain in the butt but an necessary evil as one day they will be asking for more cash…..more capital raises

I can’t see that hierarchy / culture changing. Shareholders will always be disappointed and frustrated.

Oceania do a great job for the community but investing in them seems to be a rather altruistic activity ……without much satisfaction (warm fuzzies or thanks) in return.

Will pop in at small aged care place up the road (do so regularly) to see if they want a bit of help around the place …..even if it’s mowing their lawn. All covid precautions of course. That probably be more satisfying than being an Oceania benefactor.

Bingo !! I think very few people are aware that many of OCA's facilities were originally acquired from Presbyterian Support Services when they were run as not for profit care facilities. Its not something OCA talk about much, but certainly came out in Q & A when Earl Gasparich presented at the Auckland branch of the shareholders association meeting a few years ago. More often than not the culture never changes.

Sure we're past the previously much hyped, but never talked about these days, point of inflection where we can now enjoy more than 50% of their facilities being either premium rooms, or care suites / independent living units where we hope that the occupation right agreement model gives us a decent return on capital but the way I see it is that currently more than 40% of their business model is ostensibly little different than the not for profit Presbyterian Support services style care facilities that they took over and for all intents and purposes more than 40% of OCA is currently a charity. (I hope my Dad would be proud of me supporting large parts of this business that ostensibly run as a charity).

One thing is for sure, Covid and all the extra costs that come with that is not going away any time soon.

Share price. Back into the $1.00 - $1.10 support zone. Nice chart mate. Objectively, it could be suggested that with no growth whatsoever in earnings per share in the 5 years since they listed maybe that's where the share price belongs until they can prove their business model actually works for shareholders ?, (rather than just delivering all the gains to residents, staff and management).

Until they can prove they can grow earnings I find it difficult to make a convincing case to the contrary. I feel like we've heard them cry wolf for so many years now that the business transformation will deliver gains to shareholders that unless I actually see it, I won't believe it.

How come we never here about the so called magic point of inflection now ? Could it be that the business model is so non commercial all and any gains are eaten away by residents, staff and management and this is likely to be the case going forward as well ? Surely not !...but maybe so...

Isn't philanthropy such fun

[Habits]

"because they’ve borrowed $70m to dish out as dividends (which the shareholders have had to pay $20m tax on"

Is that the reval gains distributed to shds with no imp creds. The dividends from retirement companies are pretty low to start with before finding you lose Rwt

[Poolboy]

The reason I bought into OCA is because they actually have some assets - anything goes wrong "I'll have an acre of land and a couple of units thank you." . And from what I've heard they run the operation in a friendly and sensible manner. Much better than a bunch of dickhead directors and managers patting themselves on the back with big bonuses and expensive lunches.

I'm a reasonably long term investor. Not a trader.

[winner69]

One hopes that Oceania’s F22 underlying earnings will be higher than F21 ……they can then say they are a growth company.

[Beagle]

One hopes that Oceania’s F22 underlying earnings will be higher than F21 ……they can then say they are a growth company.

Yep, bet they'll have a few different ways of saying they're growing and what's the bet underlying earnings per share does not even rate a mention. Probably learned that trick from Arvida lol

[BlackPeter]

"If you give people what they want,you will get what you want."
ie The customer [resident] should always come first,then staff.
Just excellent business practice.Think MFT,EBO etc..

I agree - this is the secret of the most successful companies. Obviously - they still need to make some money, but otherwise - if they look after their customers, their customers will look after them. I like to be invested in companies like that.