Oceania Healthcare increases interim profit by 22 pc: Covid slows Auckland sales and construction


Last year when Oceania was developing Nelson’s Green Gables. Photo / provided

Listed retirement villages company Oceania Healthcare made underlying after-tax interim net profit of $ 27.5 million, up 22% from the previous $ 22.5 million, but Covid caused disruption , especially in Auckland.

Sales increased 10 percent for the interim period through September 30, 2021, and the occupancy rate for its properties stands at 92.5 percent, down from 91.1 percent previously.

The company reported half-year operating income of $ 36.5 million, up 19.7% or $ 6 million from the previous figure.

The results were complicated by the change from its break-even date to March 31.

Its income statement shows after-tax net income of $ 36.9 million, which it compares to its 10-month after-tax net income of $ 85.5 million.

Total assets now stand at $ 2.1 billion, an increase of 9.7% since March 31, 2021.

Shareholders will receive an interim dividend of 2.1 cps on December 20.

“The elderly care sector continued to perform well throughout the period despite the disruptions from Covid-19,” the company’s comment said today, although its boss went on to explain how business had become more difficult because of the pandemic.

Brent Pattison, Managing Director, said: “Prior to the Alert Level 4 lockdown announcement on August 17, sales volumes were strong and development activity was progressing well. Extended lockdowns, particularly in the region of ‘Auckland, temporarily affected Oceania sales, delayed construction work and added direct costs associated with Covid-19.’

Brent Pattison from Oceania.  Photo / provided
Brent Pattison from Oceania. Photo / provided

The company has raised substantial funds lately.

“Total Oceania Funding Positions the Company Well for Future Growth – $ 100 Million Heavily Oversubscribed Seven-Year Retail Bond Issue in September, Following a $ 100 Million Capital Raise Company” in March / April and the inaugural Oceania seven-year retail bond issue in October 2020, “he said.

Oceania has 545 new retirement village units under construction.

“The level 4 Covid-19 alert blockages in Auckland have delayed Lady Allum who was previously scheduled to deliver in March 2022,” the company said of its village of Milford on the north Auckland coast.

One of his most significant new projects is on a high ridge above the seafront at St Heliers’ Waimarie St, where he is building 79 units and 32 treatment suites.

Half of its existing portfolio is now made up of premium units and care suites “as we progress to 70% premium and 30% standard at the end of our current pipeline,” said the investor presentation of the society today.

Rob Hamilton, former COO of SkyCity Entertainment Group, joined the board with Peter Dafaur, who led the development of Goodman Property Trust for a decade.

Both are independent directors.

In annual results released in May, the company made after-tax net income of $ 85.5 million for the 10 months ended March 31, following the loss of $ 13.6 million last year.

The company achieved operating revenue of $ 175.4 million and changed its break-even date from May 31, 2020 to March 31, 2021, so that it only reported on this shorter period. today because of this swap-over.

On March 21, Pattison succeeded Earl Gasparich as CEO. He describes the company as “the smallest operator” in the sector. It has nearly 3,700 inhabitants spread over 44 villages.

Oceania stocks are trading around $ 1.29, up from $ 1.60 in February. The company has a market capitalization of $ 910 million.

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