Just a reminder to everyone that OCA's Annual Report for FY23 contains the following :-
"On 9 May 2023 the Group entered into a sale and purchase agreement with a third party in respect of two sites held for sale, conditional upon Te Whatu Ora approval. The carrying amount of these sites as at 31 March 2023 is $10.2m and the transaction is expected to settle in August 2023."
The implication is that the transaction was an unconditional one, except for approval of the incoming operator as suitable to own and manage the facilities. This would appear to be a straightforward issue so it is surprising that holders continue to await an update outcome for the transaction, and to learn whether the transaction is at a gain or a loss to the carry value in OCA's books which in my view has implications for the underpinning or not of the carry value attributed to other like facilities held by OCA and other listed operators given the dearth of current transactional evidence available to valuers in this context.
These transactions are always announced upon completion even if not truly material, given the public nature of transitioning residents/occupiers (and usually staff) to another operator.
So no news at present is an unusual circumstance just now. Whereas some form of market update as to sales/resales for the half year just expired could not really be anticipated for a while and perhaps only accompanying the November announcement.
Wouldn’t that be nice…but alas they don’t give out stuff like that .
Something to do with not letting out info unless everybody gets a fair suck of the sav.
Thats something I think we all really like about SUM and ARV . Their public updates. It is adequate however these days, to overlay their experiences onto OCA.
Agree - but still wondering whether we should gang together and tell the board at some stage what we think about their attitude to keep shareholders in the dark. Maybe we need as well to start raising that at AGM's and only confirm directors who acknowledged the problems and promised to do something about it.
Admittedly - I should have thought about that earlier, but hey - next year is another AGM ;
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"Prediction is very difficult, especially about the future" (Niels Bohr)
Here's my version of sales trends .....Mav's showed half yearly numbers amd mine shows annual numbers (rolling 2 half years) ..... I think it is less 'lumpy' and shows trends more clearly
Come next report we do really need to see the lines going up again eh
Last edited by winner69; 07-10-2023 at 12:12 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Debt $554m
Equity $962m
Gearing / Debt Ratio 36.6%
That gearing of 36.6% was a lot higher than the 28.6% reported year prior. It is now the highest in the sector.
No doubt debt has increased in H124 …probably at a greater rate than what equity has so expect gearing to be higher as at September ….hope it’s not above 40% …that would be pretty bad.
I’ve assumed the touted disposal sales haven’t bought in much if anything …at least not $100m but then they need to repay a lot of that to residents ( think accounts said assets held for sale ~$100m / residents loans on assets held for sale ~$50m)
Interesting half year results coming up
Last edited by winner69; 09-10-2023 at 02:26 PM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
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