OCA - Oceania Group - retirement villages

[Bjauck]

They raised $100m last year on a bond offer. So can't see it.

At 3.3% which seems like a quite low interest rate now.

SUM issued $150m at the end of 2020 at 2.3% I think.

[Beagle]

$125m fixed for 7 years at 2.30% in October 2020.
$100m fixed for 7 years at 3.30% in September 2021.

As cunning as a hungry Beagle issuing 7 year bonds on those terms !

Disc: Not backing up the truck by any means but I did add a few OCA on the open this morning at 97 cents. Provided one takes a long term view I think with this new acquisition the shares are a pretty good opportunity at below $1.

[bull....]

Realised underlying earnings per share is positive cash flow earnings. Of course they will be investing more capex in the Bream Bay development to generate future growth in realised underlying earnings in the future and they have a $290m war chest for even more acquisitions.

Be a good chap and go onto another thread and write about something you understand

no cashflows are superior to earnings in predicting future profitabilty.

[Beagle]

I think you are completely missing the point here bull.
The acquisition of these two villages with are vastly more orientated toward independent living units indicates a vitally important change in direction for the company.
The lift in the annual build rate to 300 units per annum is also a material change.
We really neded some good news with OCA and we've got some.
This is Brent stamping his mark of leadership on the company and I like what I see so far.
They have another $290m for future acquisitions and this one only cost them $57m. Are you getting the picture now ?
Brent was formerly a director of investment banking at Jarden. Leadership matters and under Brent's leadership we are seeing acquisitions of new villages that are predominantly independent living, (Hobsonville last year was the first example and these two are examples two and three). You see a new pattern emerging here ? I do.
I'm buying more...can't help myself... under $1 is sound long term buying.

This is a game changer, shows Brent is keen on new independent living villages and they have a whopping $290m war chest to execute more deals on attractive terms.

[Gerald]

Why don't they just do buybacks, far more accretive then this acquisition could ever be. I realize the optics might not be fantastic, straight after a raise but who cares. This has always been priced off NTA not cashflows (if any).

[winner69]

That Andrew Buckingham stamping his mark already .... only been there for a short while after they got rid of that old guy who was property and develpment manager

[Beagle]

Why don't they just do buybacks, far more accretive then this acquisition could ever be. I realize the optics might not be fantastic, straight after a raise but who cares. This has always been priced off NTA not cashflows (if any).

You might see a buy-back announced with the annual result very shortly. Wouldn't surprise me at all. Brent a very smart leader.
I believe 5% of issued shares per annum is the maximum buy-back rate, (someone please correct me if my knowledge of the buyback regulations is outdated).

They could do a 5% buy-back spread over 12 months, $35.5m shares), earmark ~ $40m for that and still have quarter of a Billion dollars for more eps accretive acquisitions. Issuing shares over a year ago @ $1.30 and buying some of them back at say ~ $1.15 makes perfect sense for shareholders.

[winner69]

Waterford acquisition has been eps accretive ....so will this one

[Beagle]

That Andrew Buckingham stamping his mark already .... only been there for a short while after they got rid of that old guy who was property and develpment manager

Good they got rid of dead wood. No acquisitions under his & Earl's "leadership", just heaps of cost increases, Earl far too soft.
Waterford and these two acquisitions in very short order under the new team + $290m war chest for more eps acquisitions. Hmmm, this is truly transformational stuff... where did I put the keys to the truck...got to be good buying at anything under $1.15
Rating upgrade announced. BBB Beagle busy buying.

[winner69]

Good they got rid of dead wood. No acquisitions under his & Earl's "leadership", just heaps of cost increases, Earl far too soft.
Waterford and these two acquisitions in very short order under the new team + $290m war chest for more eps acquisitions. Hmmm, this is truly transformational stuff... where did I put the keys to the truck...got to be good buying at anything under $1.15
Rating upgrade announced. BBB Beagle busy buying.

I'm sure they could take on more debt no trouble at all ..... war chest could be said to be over $400m

Wonder whats next on Andrew's shopping list