OCA - Oceania Group - retirement villages

[winner69]

brought some more today

Good that OCA being dragged up by positiveness in the sector

Rising tide lifts all boats they say ...even the more doggy ones

[Beagle]

Bond issue - product disclosure statement http://nzx-prod-s7fsd7f98s.s3-websit...397/331561.pdf
Minimum interest rate is not set until 5 October.

[bull....]

Bond issue - product disclosure statement http://nzx-prod-s7fsd7f98s.s3-websit...397/331561.pdf
Minimum interest rate is not set until 5 October.

thats a important thing in the commentary afterwards what rate they set , the better the rate they get the bigger the demand was and means the more people wanted a slice of the company. good result should mean something to stock price

[winner69]

Not many pictures ...but that Liz will sell $50m on her own

[Beagle]

thats a important thing in the commentary afterwards what rate they set , the better the rate they get the bigger the demand was and means the more people wanted a slice of the company. good result should mean something to stock price

It's very good timing for a long 7 year bond issue with interest rates at unprecedented lows.
We can get a heads-up on the likely rate by looking at where similar bonds are trading on the NZDX secondary market.
SUM030 2027 bond last traded 1.95%
MET010 2026 bond bid at 2.05%, no offer.

How good is the timing ? Well it might be useful to compare to SUM's first issue of $100m bonds, SUM010 which were issued with a yield of 4.78% !
If OCA can get the issue away at say 2% that's 2.78% less than SUM's first issue and a quite considerable saving of $2.78 million per annum in interest costs (on a $100m OCA issue) compared to what SUM are paying on their first debt issue. Pretty handy annual saving compared to what SUM is paying !

[winner69]

It's very good timing for a long 7 year bond issue with interest rates at unprecedented lows.
We can get a heads-up on the likely rate by looking at where similar bonds are trading on the NZDX secondary market.
SUM030 2027 bond last traded 1.95%
MET010 2026 bond bid at 2.05%, no offer.

How good is the timing ? Well it might be useful to compare to SUM's first issue of $100m bonds, SUM010 which were issued with a yield of 4.78% !
If OCA can get the issue away at say 2% that's 2.78% less than SUM's first issue and a quite considerable saving of $2.78 million per annum in interest costs (on a $100m OCA issue) compared to what SUM are paying on their first debt issue. Pretty handy annual saving compared to what SUM is paying !

Bit outrageous comments isn’t it mate ...might be factual but rather irrelevant don’t you agree (comparing the time differences and what’s happened to rates since 2017)


OK - I get it ..Oceania is the greatest thing on earth since slice bread and Summerset is a load of the old proverbial.

[Beagle]

Bit outrageous comments isn’t it mate ...might be factual but rather irrelevant don’t you agree (comparing the time differences and what’s happened to rates since 2017)
Absolutely its factual and relevant. Nearly $3m in annual cost savings compared to where another company issued debt confers a material advantage, especially when the other company has 3 debt issues in the market to fund an unusually large land bank. We all know interest rates have dropped since 2017, however nonetheless the advantage is still relevant. SUM did well at the time to get the 4.78% issue done...there... do we feel better now ?

OK - I get it ..Oceania is the greatest thing on earth since slice bread and Summerset is a load of the old proverbial.

Now you're just being argumentative. You seem super sensitive about comparisons between companies in this sector, especially anything to do with SUM.
People have been comparing companies in this sector for many many years and its not going to stop because you're getting all bitter and twisted.

[Cyclical]

Bit outrageous comments isn’t it mate ...might be factual but rather irrelevant don’t you agree (comparing the time differences and what’s happened to rates since 2017)


OK - I get it ..Oceania is the greatest thing on earth since slice bread and Summerset is a load of the old proverbial.

Out of interest, I looked back on my spreadsheet to the 21st of May and see that on that day I sold all of may SUM @ $6.12 and loaded up with OCA @ .78.

Roll forward 4 and a bit months (where did that time go??) and at time of writing we have:

SUM $8.95 (46% gain)
OCA $1.11 (42% gain)

Not a hell of a lot in it and if we look at today's high for both, it would probably be even Stevens. Pretty handy results for both, no matter which way you look at it.

The moral of the story, don't get too caught up in opinions and stories and stay diversified.

[winner69]

One good thing at getting $125m from the bond issue at say 2.1%/2.2% is that it will in the short term replace debt that's costing them 3%-4%. That'll save a few bob.

They say funds for paying down debt and funding growth in due course.

[WAIKEN]

Most real estate analysts are predicting 5-10% gains in residential real estate over the next 12 months
Is it too simplistic to say that there is a one to one correlation between the value of retirement village property assets and the value of residential property
If the residential market increases by say 10% then do our 1.5bill approx property assets increase by 150m
and other associated liabilities remain constant. Thus assuming 610mill shares do we add 0.25 to our NTA