This article is from the Australian Property Journal archive
NEW Zealand retirement village operator Oceania Healthcare posted a net loss of $17.1 million, after carrying out a $45 million divestment campaign of seven properties.
For the six months to 30 September 2024, Oceania reported an underlying EBITDA at $38.6 million, up 2.7% over the period.
With total comprehensive income at $11.8 million, down from $61.7 million in 1H24.
Oceania’s total assets increased to $2.82 billion, a $38.9m increase from FY24. With NTA at $1.03 billion or $1.43 per share.
“We are clear about near term priorities and elements of operational execution we need to fix or improve. The first is to lift sales, focusing on unsold stock which will support debt reduction,” said Suzanne Dvorak, who stepped in as CEO of the group in July.
“The establishment of a new role at our Executive table of Chief Sales and Marketing Officer recognises that improved performance in this area is a core issue for the business that we need to urgently and structurally address.”
The group’s unsold stock levels were down 13.5% from FY24 to $305 million.
Resales of independent living units were at 59 units sold with 110 care suites sold and 51 new care suites sales during the period.
Since March 2023, Oceania has undertaken a circa $45 million divestment program, with seven assets sold and one under contract.
Over HY25, four divestments were settled for a combined circa $25 million in proceeds, with the remaining $20 million in proceeds from FY24.
“The second priority is streamlining our development programme, completing our brownfield developments, and undertaking broadacre greenfield development, including our Franklin development, to support our portfolio rebalancing,” added Dvorak.
224 independent living units and care suites will be delivered over FY25, with 106 care suites at Elmwood in Auckland delivered in 1H24.
“Thirdly, while care will remain a critical differentiator for Oceania, we need to get our delivery model right so that earnings and profitability are sustainable, which is proving challenging right across the sector. We are fortunate to have skills and experience to tackle the detail of our operations and execution to improve efficiency,” said Dvorak.
