OCA - Oceania Group - retirement villages

[Maverick]

You only need to look at RYM and SUM share price today. Since inception the SP has continued to increase during periods of little or no capital growth in property values. Certainly nothing like the property increases over the past two years yet SP continued to climb. Its about supply and demand. All healthcare facilities have done their research and it is widely known that there will be a wall of retirement age people wanting and needing their facilities and services in the next decade. OCA’s plan is in place and they are growing their income and asset base. The patient will be rewarded. To much emotion, “game changer, tide has turned” and government bashing. We are seeing knee jerk reaction to recent government actions which will have little impact long term.
Time will tell.

I must say I'm finding the last 4-5 posts by Blue Skies , Curly and Baabaa rather refreshing!
Agree-The Govt NEED retirement companies to build stuff, they are so good at it. They will not be even close to their gun sights. These recent policies are openly not designed as tax grabs, or some sort of tall poppy punishment.
Agree-Retirement villages DO NOT rely on housing prices rising to increase profits. (although I calculate it is necessary to get a CAGR over 15%)

Its been a nearly a week now since the tax changes and its become apparent down here in little olé Wanganui nobody give a rats arse anymore. That stuck boat thingy was far more exciting. The good folk down here have moved on with impressive ambivalence. But lets face it, their opinions do actually count as they are the actual house buyers/owners. I take this as a positive sign that the sky isn't about to fall just yet.
FWIW we had the highest price growth with Gisborne the last couple of years so we have become quite property nutty like the rest of NZ.

So just maybe property doesn't crash for now and maintains from here with just rises inline with wages . A CAGR of 18-22% is still most likely IMO with OCA.

[Waltzing]

Not Selling our small OCA position. Looking to increase if the market settles down profits build. If they dont ....well its market and selling is only a key stroke away.

[justakiwi]

I must say I'm finding the last 4-5 posts by Blue Skies , Curly and Baabaa rather refreshing!

Me too!

Agree-The Govt NEED retirement companies to build stuff, they are so good at it. They will not be even close to their gun sights. These recent policies are openly not designed as tax grabs, or some sort of tall poppy punishment.
Agree-Retirement villages DO NOT rely on housing prices rising to increase profits. (although I personally consider it is necessary to get a CAGR over 15%)

Its been a nearly a week now since the tax changes and its become apparent down here in little olé Wanganui nobody give a rats arse anymore. That stuck boat thingy was far more exciting. The good folk down here have moved on with impressive ambivalence. Lets face it , their opinions do count as they are the actual house buyers/owners. I take this as a positive sign that the sky isn't about to fall just yet.

So just maybe property doesn't crash for now and maintains from here with just rises inline with wages . A CAGR of 18-22% is still most likely IMO with OCA.

Thank you as always for your ‘breath of fresh air’ perspective.

[Antipodean]

That's quite the SPH notice for end of day. Got a bit excited before I took the sales off the purchases.

[Zaphod]

correct beagle people should read this news report on what happened in the UK from similar decisions

In the UK property prices went up less than inflation after the introduction of similar policies
rents never spiked higher
there were the same bunch of people whining in the UK as in NZ that the opposite was to happen

https://www.newshub.co.nz/home/polit...fferently.html

Apparently they didn't go as far as we did.

https://www.msn.com/en-nz/money/home...cid=entnewsntp

[Waltzing]

while the social outcomes may be what the population as a whole wants as of the last election.

The discussions in ACA's offices this morning under 40 years of age was one of WHAT THE ......

Its the precedence it sets for "Out of what field?"

However as we were expecting something like this and thank goodness as anything that might divert money into the share market is what we like.

DISC: dont hold rental property.

Hold some OCA:

[Waltzing]

Stats for years new dwelling which many may already track..

New residential Houses not something we track from NZ Stats but will NOW.

https://www.interest.co.nz/property/...were-consented

[Beagle]

Looks like retail investors might get an advantage over the institutions in the recent placement. Shares issued in the retail offer are at the lower on the institutional placement ($1.30), or a 2.5% discount to the volume weighted average price in the 5 trading days leading up to and including the closing date (12 April). If for example that VWAP price was today's closing price of $1.28 the new shares issued to retail investors would be at 0.975 x $1.28 = $1.248. If my memory serves me correctly NAV (NTA + all work in progress and some other minor stuff) was $1.24 as at the interim report date of 30/11/2020.

I will follow the share price action and volumes as I think they could be fair buying, (notwithstanding the recent tax bomb) for those taking a long term perspective at around NAV of $1.24 and make a decision right on the final deadline date.

[dabsman]

Looks like retail investors might get an advantage over the institutions in the recent placement. Shares issued in the retail offer are at the lower on the institutional placement ($1.30), or a 2.5% discount to the volume weighted average price in the 5 trading days leading up to and including the closing date (12 April). If for example that VWAP price was today's closing price of $1.28 the new shares issued to retail investors would be at 0.975 x $1.28 = $1.248. If my memory serves me correctly NAV (NTA + all work in progress and some other minor stuff) was $1.24 as at the interim report date of 30/11/2020.

I will follow the share price action and volumes as I think they could be fair buying, (notwithstanding the recent tax bomb) for those taking a long term perspective at around NAV of $1.24 and make a decision right on the final deadline date.

Also maybe less jumping on so less scaling I'm in for more

[Cyclical]

Indeed, pointed my mate at London School of Ecomics to this thread (and a couple of others. He’s always after raw material for his Behavioral Ecomics students to study.

He thanked me and commented that our Jacinda seems more hated than their Boris

Lol! There are certainly plenty of pretty upset people out there at the moment, and rightly so if you ask me. Still their policies over the last year have been very accomodating for some of us capitalists out there. I guess we all needed a big reminder that they are supposed to be left, just in case we’d forgotten. Some of us will be looking at old Winnie in a different light after last week’s bombshell.