OCA - Oceania Group - retirement villages

[SailorRob]

wonder if this true for oca

Aged residential care providers are losing up to $15 per resident per day

https://www.stuff.co.nz/national/hea...resident-a-day

results wont look good ?

Solid analysis, one step ahead of the herd.

[Bjauck]

wonder if this true for oca

Aged residential care providers are losing up to $15 per resident per day

https://www.stuff.co.nz/national/hea...resident-a-day

results wont look good ?

I doubt that a National Party govt will increase funding as they will be struggling to support their tax cuts. Will we end up with multiple bed dormitories for those who rely on government subsidies?

[bull....]

I doubt that a National Party govt will increase funding as they will be struggling to support their tax cuts. Will we end up with multiple bed dormitories for those who rely on government subsidies?

one suggestion was too pay people the subsidy to use there homes instead of going to a bed care facilty


lower revenue for RV stocks

[Bjauck]

one suggestion was too pay people the subsidy to use there homes instead of going to a bed care facilty


lower revenue for RV stocks

Lower revenue, yet higher profit as the provision of rest home care has often been loss making.

Over the years the age on admission to a rest home has been creeping up. There are already quite a few supports in place for those who stay in their own homes. The leeway for increasing those supports must already be slim before it is neither cost effective nor safe for people to remain at home.

[ronaldson]

Just a reminder to everyone that OCA's Annual Report for FY23 contains the following :-

"On 9 May 2023 the Group entered into a sale and purchase agreement with a third party in respect of two sites held for sale, conditional upon Te Whatu Ora approval. The carrying amount of these sites as at 31 March 2023 is $10.2m and the transaction is expected to settle in August 2023."

The implication is that the transaction was an unconditional one, except for approval of the incoming operator as suitable to own and manage the facilities. This would appear to be a straightforward issue so it is surprising that holders continue to await an update outcome for the transaction, and to learn whether the transaction is at a gain or a loss to the carry value in OCA's books which in my view has implications for the underpinning or not of the carry value attributed to other like facilities held by OCA and other listed operators given the dearth of current transactional evidence available to valuers in this context.

These transactions are always announced upon completion even if not truly material, given the public nature of transitioning residents/occupiers (and usually staff) to another operator.

So no news at present is an unusual circumstance just now. Whereas some form of market update as to sales/resales for the half year just expired could not really be anticipated for a while and perhaps only accompanying the November announcement.

Another fortnight has passed and we are no better informed. This is perhaps the clearest indication of all that basic aged care facilities are virtually unsaleable. I know RAD recently announced the (conditional) sale of Arran Court in Auckland to (hopefully) settle in January but it has not confirmed settlement of another small facility sale previously announced, which was to be at a loss of over $1m to book value.

And remember OCA has ten facilities recorded as "held for sale" under the accounting rules. On a wider perspective this is not pretty, and the situation doesn't seem to have changed despite the increase in care/bed subsidy from 1 July 2023.

I might keep reposting the above message every fortnight in the hope Brent gets motivated to at least keep shareholders in the picture.

[Valiant]

Another fortnight has passed and we are no better informed. This is perhaps the clearest indication of all that basic aged care facilities are virtually unsaleable. I know RAD recently announced the (conditional) sale of Arran Court in Auckland to (hopefully) settle in January but it has not confirmed settlement of another small facility sale previously announced, which was to be at a loss of over $1m to book value.

And remember OCA has ten facilities recorded as "held for sale" under the accounting rules. On a wider perspective this is not pretty, and the situation doesn't seem to have changed despite the increase in care/bed subsidy from 1 July 2023.

I might keep reposting the above message every fortnight in the hope Brent gets motivated to at least keep shareholders in the picture.

Is anyone informed as to what 'approval' is required of Te Whatu Ora to complete the sale?

[BlackPeter]

Another fortnight has passed and we are no better informed. This is perhaps the clearest indication of all that basic aged care facilities are virtually unsaleable. I know RAD recently announced the (conditional) sale of Arran Court in Auckland to (hopefully) settle in January but it has not confirmed settlement of another small facility sale previously announced, which was to be at a loss of over $1m to book value.

And remember OCA has ten facilities recorded as "held for sale" under the accounting rules. On a wider perspective this is not pretty, and the situation doesn't seem to have changed despite the increase in care/bed subsidy from 1 July 2023.

I might keep reposting the above message every fortnight in the hope Brent gets motivated to at least keep shareholders in the picture.

Cheers for keeping this in our minds. And you are right - Oceanias information policy sucks.

I used this opportunity and contacted them today (as share holder) directly by email and inquired about the status of the deal you referred to. Will report back in case I get any substantial response (but - I don't hold my breath ;.

Anyway - maybe we share holders just need to educate them about our needs .. and maybe ask (starting with the next AGM) any director up for renewal, whether (s)he realises that Oceanias information policy is lacking ... and what they plan to do to improve it - and obviously only confirm directors with a satisfactory response.

Sort of annoyed I missed this opportunity this year. My excuse? - well - sorry, was too distracted by personal stuff, but I really think we need to do in future more to change Oceanias lacking communication strategy then just complain in an anonymous forum about them.

If anybody else wants to express now their dissatisfaction (in a polite but firm message) directly to them - you could start using this email address: enquiry@oceaniahealthcare.co.nz

Next time I intend to escalate ;

[winner69]

BP …if she is still there ask Anna anna.thorburn@oceaniahealthcare.co.nz

You will get ‘thanks for your enquiry Peter but unfortunately but we cannot share this information with you at this time’

[Baa_Baa]

If you're a shareholder and want to contact them, this is a better email than the general 'enquires' ... investor@oceaniahealthcare.co.nz "you can contact Computershare with any shareholder queries."​

[winner69]

Instead of enquiry@ email use investor@oceaniahealthcare.co.nz

Least shows you are an ‘investor’ and not looking to move in

But bear in mind Oceania treat shareholders like a pain in the proverbial and show them little respect ….a bloody nuisance they are …until the begging bowl comes out