OCA - Oceania Group - retirement villages

[Beagle]

Although this article does not mention OCA it just needs a few stories like this to muddy the waters for retirement home investors.

https://www.newsroom.co.nz/2018/12/3.../diana-clement

While I think such shares still have their place in a balanced portfolio, make sure you are not over exposed and DYOR. Take Care.

Thanks for sharing. Its nice to know there are still some villages that are happy to accept 60 year olds. (I might retire earlier lol). The Peninsula club on the Whangaparaoa is a very nice facility for those that want to live independently. It was originally a timeshare resort and has very spacious grounds and most units are single level with nice gardens. I helped my parents in the selection process and Mum has been very happy there for over 9 years now. Its independent living only but a nice place. Feel free to pm me if anyone wants more info.

I think there's a number of reasons MET are now trading at a significant discount to NTA...their company culture doesn't look especially healthy to me and then there's the fact that many of their older facilities have moisture ingress problems and the vast majority of their villages are independent living only...they really aren't making an effort to understand that increasingly the public want the full continuum of care model...I think MET is one company to seriously avoid in this sector despite it being an apparent bargain on a discount to NTA basis.

[minimoke]

...they really aren't making an effort to understand that increasingly the public want the full continuum of care model....

End -to-end is the way to go. As folk get older they find it harder to move. And they are less inclined to drive distances. They are also becoming more realistic about potential end of life type options, especially if one partner goes down hill faster than the other. Having one in care and just down the road within the same community is a perfect option

[dobby41]

the vast majority of their villages are independent living only...they really aren't making an effort to understand that increasingly the public want the full continuum of care model...

I understand that the 'continuum of care' model is what makes Ryman a standout and very popular in Aus.

[Beagle]

I understand that the 'continuum of care' model is what makes Ryman a standout and very popular in Aus.

Yes absolutely but they are swimming against an outgoing tide in Australia with Melbourne real estate declining at pace. One of the further reasons I like OCA is they are sticking to N.Z.

[percy]

Not from what they are reporting.
Going gangbusters in Melbourne.

[Beagle]

Talk is cheap Percy. Let the numbers do the talking. Gangbusters growth is 50% underlying profit growth for OCA not 13% like RYM get !

[Leftfield]

Yes absolutely but they are swimming against an outgoing tide in Australia with Melbourne real estate declining at pace. One of the further reasons I like OCA is they are sticking to N.Z.

I have it on good authority that OCA have been looking v hard at entering the Aus market...... more likely NSW. Hopefully they can find some bargains in the lower Aus real estate values.

[100101]

I guess that when people realise that they will have lost $7000.00 a month off their capital at the 3 year point they will realise that there are other alternatives to these cash cows.
The certainly dont seem to be the answer to a comfortable retirement now.

[winner69]

Closed last year at 105 and closes this year at 107

Obviously not living up to the hype ......zillions of shares changed hand over the year and the price has hardly moved.

The only dog in my holdings

Hope 2019 is better, but my gut feel it’s going to be another year of going nowhere for OCA

How long do I hang in and hope ...but hope is not a strategy I’m told

[percy]

Closed last year at 105 and closes this year at 107

Obviously not living up to the hype ......zillions of shares changed hand over the year and the price has hardly moved.

The only dog in my holdings

Hope 2019 is better, but my gut feel it’s going to be another year of going nowhere for OCA

How long do I hang in and hope ...but hope is not a strategy I’m told

If in doubt,sell out.