Oceania Healthcare Highlights Robust Sales Growth Prior to Full-Year Financial Reporting

Oceania Healthcare Ltd (NZX: OCA, ASX: OCA) is a growing New Zealand focused retirement living provider.

The company has delivered strong new sale volumes with around a 20% increase while resale volumes have grown 14% over the 12 month period to 31st March 2024.

The full year financial results will be announced to market on the Friday 24th May 2024.

Oceania is also receiving increased enquiry levels compared to previous periods, as well as welcoming private paying care residents into The Helier.

First half performance

The company noted in its interim financials that strong sales performance and improved property prices favour the future performance of the business.

At the time the balance sheet had $114 million headroom comprising cash and debt facilities.

Gearing was within the target range at 37%, with $1 billion in net assets.

There was also $360 million of unsold new stock available to the market.

Continued development

Oceania has completed a total of 182 development units in the 12 months to 31 March 2024.

In FY2025, the company intends to complete deliveries of a further 224 units at Elmwood in Manurewa, Awatere in Hamilton and Waterford in Hobsonville Point.

Divestments

Oceania has continued progress with its divestment program since the FY2024 interim results in November 2023, when the sale of two Auckland sites was announced.

The company settled the sale of a parcel of land in Nelson, in December 2023, and a further three sites are currently under contract for sale, and are on track to complete in the first quarter of FY2025.

This will bring the total number of sites exited, divested and closed since the start of FY2024 to nine, with aggregate gross sales proceeds of around $40 million which is in line with book value.

 

 

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