Strange scenario. Bond Interest rates down, and all the SPs are down. It's War on the horizon. You would think NZ is just about as far as you can get from the effects of war, that money would be pouring into NZ.
Not the most exciting announcement for holders but the main positive for me is that the strategy of divesting facilities which provide only care beds or are signifiicantly overweight with care beds and lack future development opportunity continues to be implemented, even if in three instances settlement will occur in the current quarter (Q1 FY25).
NZ's economic circumstances are clearly such that spending on the aged care bed subsidy will be significantly constrained for the foreseeable future and as the Herald article today confirms will not provide a realistic return on capital invested. And, dare I say it, nurses are being "rerated" in terms of remuneration entitlement but that exascerbates the problem for sector operators. So the approach by the listed RV entities is sensible/pragmatic in context. But the pivot away takes time, incurs costs, and is sensitive to manage. I think the FY25 financial statements will better disclose the net benefits of such actions to OCA.
We will have to wait until May to find out how it has really been in FY24.
Strange scenario. Bond Interest rates down, and all the SPs are down. It's War on the horizon. You would think NZ is just about as far as you can get from the effects of war, that money would be pouring into NZ.
The small NZ sharemarket is a frontier market, not a safe haven. And OCA is a frontier stock, that has legacy “public care” beds, with a right wing government with a policy of reducing taxes; constraining public spending. So OCA would have to produce a Very good update just to stand still. Even under the previous leftist govt, public care beds were a liability.
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Originally Posted by ValueNZ
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