OCA - Oceania Group - retirement villages

[bull....]

I don't disagree on the buy backs, that would be a phenomenal capital allocation, would it be better than continued development is a more difficult question to answer.

Specifically on the 'silly approach' developing properties - I never EVER want my managers to change their business decisions (aside from buybacks or equity raisings) based on the share price. That would be idiocy. There is no value being destroyed due to the marking down of asset values in the share price. The only way value is destroyed is if the future cash flows of the business are impaired due to current decisions.

Some bespectacled fund manager waking up in Auckland and realising he has wet the bed again should not affect the build rate that OCA management have decided on as the best course of generating future cash flows.

I'm going to repeat this as there are so many here that don't get this - There is no value being destroyed due to the marking down of asset values in the share price.

lol only investors capital being destroyed ..... but that alright eh haha as you say you can just keep buying more as it gets cheaper lol cause your getting a bargain

[SailorRob]

lol only investors capital being destroyed ..... but that alright eh haha as you say you can just keep buying more as it gets cheaper lol cause your getting a bargain

It all depends on what your 12 screens tell you at the end of the day.

[SailorRob]

another nail in the coffin

New retirement village model shares capital gains with residents

https://www.stuff.co.nz/life-style/h...with-residents

fletcher building going to disrupt the sector big time

Its Vivid Living villages would have a 15% deferred management fee, which was lower than most traditional villages. Ryman had a fee of 20%, and the sector average was 30%, according to analysts.
Fletchers would pay back 10% of the residents’ advance within five days of an ORA ending, not charge weekly fees after the resident had left, and would buy back the home within four months.

oca cashflows

Like comparing a Kindergarden with OCA... A totally different business.

[Beau]

another nail in the coffin

New retirement village model shares capital gains with residents

https://www.stuff.co.nz/life-style/h...with-residents

fletcher building going to disrupt the sector big time

Its Vivid Living villages would have a 15% deferred management fee, which was lower than most traditional villages. Ryman had a fee of 20%, and the sector average was 30%, according to analysts.
Fletchers would pay back 10% of the residents’ advance within five days of an ORA ending, not charge weekly fees after the resident had left, and would buy back the home within four months.

oca cashflows

No amenities you might well buy into a council flat.

[Antipodean]

another nail in the coffin

New retirement village model shares capital gains with residents

https://www.stuff.co.nz/life-style/h...with-residents

fletcher building going to disrupt the sector big time

Its Vivid Living villages would have a 15% deferred management fee, which was lower than most traditional villages. Ryman had a fee of 20%, and the sector average was 30%, according to analysts.
Fletchers would pay back 10% of the residents’ advance within five days of an ORA ending, not charge weekly fees after the resident had left, and would buy back the home within four months.

oca cashflows

Higher initial prices and far fewer facilities or care means this is more of a niche product.

[bull....]

think your all missing the point

as the retirement commission said the other day over 50% of retiree's will be classified as poor in the next 10 yrs in NZ ( inflation cost of living may well speed this up )
So in effect less people will be able to afford the other retirement villages ie market % will decline and all these existing villages will be fighting over a smaller pool of people
FBU is moving in to fill the gap where the most retiree's will sit in the future and i see them eventually offering cheap accomdation options as well

[justakiwi]

Nope. As I said in the other thread, people in that category want the option of care if and when they need it. They do not want to have to move elsewhere if they need rest home or hospital level care at some point. There is not even an indication that this village will provide nursing coverage/oversight. It seems to me that it is a village of units, and nothing more. I will be in your "poor" category down the track. I'd far rather have a standard care bed at OCA than one of these units with no onsite support. Besides which, you are missing the point. Poor people are not going to have the money to get into one of these in the first place. Where are they getting their $700,000 from?

Not going to be hugely attractive in my opinion.

think your all missing the point

as the retirement commission said the other day over 50% of retiree's will be classified as poor in the next 10 yrs in NZ ( inflation cost of living may well speed this up )
So in effect less people will be able to afford the other retirement villages ie market % will decline ,
FBU is moving in to fill the gap where the most retiree's will sit in the future

[Rawz]

think your all missing the point

as the retirement commission said the other day over 50% of retiree's will be classified as poor in the next 10 yrs in NZ ( inflation cost of living may well speed this up )
So in effect less people will be able to afford the other retirement villages ie market % will decline and all these existing villages will be fighting over a smaller pool of people
FBU is moving in to fill the gap where the most retiree's will sit in the future

so doesnt really sound like it competes with OCA then?

Like does Mercedes compete with Honda?

[SailorRob]

think your all missing the point

as the retirement commission said the other day over 50% of retiree's will be classified as poor in the next 10 yrs in NZ ( inflation cost of living may well speed this up )
So in effect less people will be able to afford the other retirement villages ie market % will decline ,
FBU is moving in to fill the gap where the most retiree's will sit in the future

*You're

Ok everyone start allocating your capital based off what the retirement commission has supposedly said. With that insight and 12 screens working for you, it would be hard to mess it up.

[bull....]

*You're

Ok everyone start allocating your capital based off what the retirement commission has supposedly said. With that insight and 12 screens working for you, it would be hard to mess it up.

yes i have started allocating funds to FBU