OCA - Oceania Group - retirement villages

[bull....]

OCA has a large care based moat which is driven by need not fluctuating property prices, they have a range of affordable Care suites and Apartments for those selling houses with lower values.

we all know theres no money to be made in care , the money to be made is in people exiting and the resales. resales values are affected by property prices. read the aog agm report about there resales in a soft market.

wont go out of business , but clearly only a growth business if roperty is going up.

[couta1]

Maybe its time to be transparent and disclose what roles you and your wife play in OCA. You dont have to be concise but i think you owe it to us as you've played that card twice or more in an insider way (knowledge wise). So some clarity on level of management ,thanks.

I don't owe you anything and perhaps you should be grateful that I take the time to share info from the inside of the industry rather than demanding something which one would be foolish to put on an open forum.

[couta1]

we all know theres no money to be made in care , the money to be made is in people exiting and the resales. resales values are affected by property prices. read the aog agm report about there resales in a soft market.

wont go out of business , but clearly only a growth business if roperty is going up.

There is money in care if the facility is over a certain number of beds(80 beds plus)along with careful capex management coupled with keeping the wages to revenue ratio within a certain level. PS-The care suite model that OCA has greatly assists with this as every facility will eventually have care suites added.

[Joshuatree]

I don't owe you anything and perhaps you should be grateful that I take the time to share info from the inside of the industry rather than demanding something which one would be foolish to put on an open forum.

Correct you owe me nothing , i was thinking of the collective here. Certainly not grateful but appreciate it when you share something useful ,being in the game. My point was you work for the business and i understand your wife does too but higher up. It would give more credibility to what you share for the whole forum,thats all. Can understand the sensitivity involved there though with your positions. I guess we are lucky to have someone sharing their insights in this industry. I accept that you do work there .

[minimoke]

Correct you owe me nothing , i was thinking of the collective here. Certainly not grateful but appreciate it when you share something useful ,being in the game. My point was you work for the business and i understand your wife does too but higher up. It would give more credibility to what you share for the whole forum,thats all. Can understand the sensitivity involved there though with your positions. I guess we are lucky to have someone sharing their insights in this industry. I accept that you do work there .

This is a forum, not an investment statement. There is no need for a poster to declare anything. Responsibility falls solely on the reader to do their own research and from there decide if a post is reliable and therefore useful.

[Maverick]

we all know theres no money to be made in care , the money to be made is in people exiting and the resales.

wont go out of business , but clearly only a growth business if roperty is going up.

Sorry Bull.. cant agree with the money being mostly made in resale.
To me that component of profit is paper only and just keeps the asset up with inflation. A very important investment aspect over the long term.
The companies never actually realise that gain anyway as nothing ever gets sold, just re rented.
I see the bulk and stable income coming from the churn of care suites etc every 3-4 years at 10 % p/a in DMFees. Then let's add on some actual weekly profits from the business of nursing. Couta is saying there "is" profitability with "scale " (I AM grateful to you Couta for bothering to share) and (from a great friend who owns a rest home) "occupancy rates."
What makes the model stunning is that The 10% p/a DMFees are returned on the occupiers money as they pay full price upfront. So that's free leverage. Many of us will know profits ( and losses) magnify a lot when that happens.
As well stated here time and again, the 2 key OCA points of differences is that they are "needs based" and very "affordable".

The only ingredients we need now are a growing ageing population with a few bucks (big tick) and patience. (That's up to each individual)

[percy]

I would like to record my thanks to Couta1 for sharing his "inside the industry" knowledge with us.
I have owned AVN and INA in Australia, and MET [a very long time ago] RYM and SUM in NZ.
A very rewarding sector for me.
I currently only own OCA in this sector.
I know the sector rather well,my mother having lived in a retirement village, but Couta1's posts have been very helpful for me to gain greater understanding of the whole sector.
From his posts I can easily work out he "knows his stuff",and must be "the tea lady."....[lol]

[Maverick]

I would like to record my thanks to Couta1 for sharing his "inside the industry" knowledge with us.
I have owned AVN and INA in Australia, and MET [a very long time ago] RYM and SUM in NZ.
A very rewarding sector for me.
I currently only own OCA in this sector.
I know the sector rather well,my mother having lived in a retirement village, but Couta1's posts have been very helpful for me to gain greater understanding of the whole sector.
From his posts I can easily work out he "knows his stuff."

here here, I second that.

[Beagle]

Sorry Bull.. cant agree with the money being mostly made in resale.
To me that component of profit is paper only and just keeps the asset up with inflation. A very important investment aspect over the long term.
The companies never actually realise that gain anyway as nothing ever gets sold, just re rented.
I see the bulk and stable income coming from the churn of care suites etc every 3-4 years at 10 % p/a in DMFees. Then let's add on some actual weekly profits from the business of nursing. Couta is saying there "is" profitability with "scale " (I AM grateful to you Couta for bothering to share) and (from a great friend who owns a rest home) "occupancy rates."
What makes the model stunning is that The 10% p/a DMFees are returned on the occupiers money as they pay full price upfront. So that's free leverage. Many of us will know profits ( and losses) magnify a lot when that happens.
As well stated here time and again, the 2 key OCA points of differences is that they are "needs based" and very "affordable".

The only ingredients we need now are a growing ageing population with a few bucks (big tick) and patience. (That's up to each individual)

I would like to record my thanks to Couta1 for sharing his "inside the industry" knowledge with us.
I have owned AVN and INA in Australia, and MET [a very long time ago] RYM and SUM in NZ.
A very rewarding sector for me.
I currently only own OCA in this sector.
I know the sector rather well,my mother having lived in a retirement village, but Couta1's posts have been very helpful for me to gain greater understanding of the whole sector.
From his posts I can easily work out he "knows his stuff",and must be "the tea lady."....[lol]

+1 Great posts. Good humour regarding the tea lady comment
Average stay in a care suite is 2.5 years (source Earl Gasparich comments at N.Z. shareholders presentation)
I also only own OCA in this sector as I see them as far more defensive than the other sector participants and with at least as good growth prospects, probably better.
OCA also have the best metrics (lowest PE and I am forecasting north of 5% dividend yield for FY19. They are also trading at just a fraction above NTA).
Purr fect long term hold I reckon.

[RupertBear]

I would like to record my thanks to Couta1 for sharing his "inside the industry" knowledge with us.
I have owned AVN and INA in Australia, and MET [a very long time ago] RYM and SUM in NZ.
A very rewarding sector for me.
I currently only own OCA in this sector.
I know the sector rather well,my mother having lived in a retirement village, but Couta1's posts have been very helpful for me to gain greater understanding of the whole sector.
From his posts I can easily work out he "knows his stuff",and must be "the tea lady."....[lol]

Add me to the greatful list as well, thanks for your insights Couta always much appreciated