OCA - Oceania Group - retirement villages

[Baa_Baa]

No you don't, nobody does. The liabilities are far superior to equity, so you gotta add billion odd to the assets.

Well not 'nobody', there's a few who get it.

Unfortunately current accounting principles and practices fail to recognise that the accumulated revenue is only repayable in a lessor percentage (the remains are float), and are repeatable and grow, ad infinitum, and ergo the withholdings or retained revenues are assets (albeit held as liabilities on the balance sheet under current accounting practices), that can be and are leveraged, interest free, into growth of the asset base.

Really, the fundamental value proposition of these RV's seems to be largely misunderstood which imo is surprising as the business model has been in play for decades. It must be imo because accounting practices do not or fail to account, for the value of the withholdings (retained earnings) and put them on the opposite side of the balance sheet ledger than where they in reality belong.

Like you say, there's circa a billion dollar of assets (cash) that is withheld and retained, but perversely, reported as a liability. WTF, it's insane. And people get upset about SP ratio to NTA, without realising NTA is, under current accounting practices devalued by ~a billion $

If they added those withheld/retained earnings, as assets, which they should, then the SP is massively below NTA/NAV, way more than the current 50% discount or thereabouts. Which makes the SP massively underpriced.

Go figure. It makes no sense. The beanies have control of the narrative when reality is far from it.

[bull....]

Dividends paid out are not expenses and don't impact the bottom line.

lost me on this statement. cause they affect the bottom line , why because if you pay out dividends that mean less assets and less money to invest and grow earnings which effects the bottom line.

[Habits]

Well not 'nobody', there's a few who get it.

Unfortunately current accounting principles and practices fail to recognise that the accumulated revenue is only repayable in a lessor percentage (the remains are float), and are repeatable and grow, ad infinitum, and ergo the withholdings or retained revenues are assets (albeit held as liabilities on the balance sheet under current accounting practices), that can be and are leveraged, interest free, into growth of the asset base.

Really, the fundamental value proposition of these RV's seems to be largely misunderstood which imo is surprising as the business model has been in play for decades. It must be imo because accounting practices do not or fail to account, for the value of the withholdings (retained earnings) and put them on the opposite side of the balance sheet ledger than where they in reality belong.

Like you say, there's circa a billion dollar of assets (cash) that is withheld and retained, but perversely, reported as a liability. WTF, it's insane. And people get upset about SP ratio to NTA, without realising NTA is, under current accounting practices devalued by ~a billion $

If they added those withheld/retained earnings, as assets, which they should, then the SP is massively below NTA/NAV, way more than the current 50% discount or thereabouts. Which makes the SP massively underpriced.

Go figure. It makes no sense. The beanies have control of the narrative when reality is far from it.

NTA Net Tangibles. I think you are telling half the story for a beat up. The cash handed over for the occupation rights is recorded as well. Netting out in the accounts.

[SailorRob]

And people get upset about SP ratio to NTA, without realising NTA is, under current accounting practices devalued by ~a billion $

If they added those withheld/retained earnings, as assets, which they should, then the SP is massively below NTA/NAV, way more than the current 50% discount or thereabouts. Which makes the SP massively underpriced.

Yep I've been banging on about this for a long time, but even with excruciatingly detailed explanations over a period of maybe 2 years, still very few get it.

Of the wider shareholder base and commentariat possibly one in a thousand understand.

[SailorRob]

NTA Net Tangibles. I think you are telling half the story for a beat up. The cash handed over for the occupation rights is recorded as well. Netting out in the accounts.

Oh man here we go!!!

See this is why I say nobody gets it.

There are about 4 of us that do... even when you explain it some folk cannot get it through their skull!

Without this supreme ignorance we as investors would have a hard time of it.


So far over the head it's not funny.

[bull....]

Well not 'nobody', there's a few who get it.

Unfortunately current accounting principles and practices fail to recognise that the accumulated revenue is only repayable in a lessor percentage (the remains are float), and are repeatable and grow, ad infinitum, and ergo the withholdings or retained revenues are assets (albeit held as liabilities on the balance sheet under current accounting practices), that can be and are leveraged, interest free, into growth of the asset base.

Really, the fundamental value proposition of these RV's seems to be largely misunderstood which imo is surprising as the business model has been in play for decades. It must be imo because accounting practices do not or fail to account, for the value of the withholdings (retained earnings) and put them on the opposite side of the balance sheet ledger than where they in reality belong.

Like you say, there's circa a billion dollar of assets (cash) that is withheld and retained, but perversely, reported as a liability. WTF, it's insane. And people get upset about SP ratio to NTA, without realising NTA is, under current accounting practices devalued by ~a billion $

If they added those withheld/retained earnings, as assets, which they should, then the SP is massively below NTA/NAV, way more than the current 50% discount or thereabouts. Which makes the SP massively underpriced.

Go figure. It makes no sense. The beanies have control of the narrative when reality is far from it.

cause there recorded as a liability. cause you owe the residents back most of the float as some point in time.

[SailorRob]

cause there recorded as a liability. cause you owe the residents back most of the float as some point in time.

Thanks for the clarification here Bull, I knew you would understand.

[bull....]

NTA Net Tangibles. I think you are telling half the story for a beat up. The cash handed over for the occupation rights is recorded as well. Netting out in the accounts.

yep in accounting there is always a match off some where.

[bull....]

Thanks for the clarification here Bull, I knew you would understand.

exactly. you should be able to explaiun to us why it is sensible RV's are pulling back on expanding the float at the moment.

[SailorRob]

yep in accounting there is always a match off some where.

Taken me a while to get it, but you really are one step ahead of the herd.