Re sults Pr e se ntation for the Six Months E nde d 30 Nove mbe - - PowerPoint PPT Presentation
Re sults Pr e se ntation for the Six Months E nde d 30 Nove mbe r 2017 2 5 Ja n u a ry 2 0 1 8 Age nda SE CT ION PAGE 01 Hig hlig hts o f the six mo nths e nde d 30 No ve mb e r 2017 2 02 Busine ss Ove rvie w a nd Stra te g y 7
2 5 Ja n u a ry 2 0 1 8
for the Six Months E nde d 30 Nove mbe r 2017
1
01 Hig hlig hts o f the six mo nths e nde d 30 No ve mb e r 2017 2 02 Busine ss Ove rvie w a nd Stra te g y 7 03 Upda te o n De ve lo pme nts 13 04 F ina nc ia l Re sults 19 05 Appe ndic e s 33
SE CT ION PAGE
2 ST RI CT L Y CONF I DE NT I AL
SEC TIO N 1
1
3
is a no n-GAAP me a sure use d b y Oc e a nia to mo nito r b usine ss pe rfo rma nc e a nd is a c o nside ra tio n in de te rmining divide nd distrib utio ns. Re fe r to pa g e 41 in the Appe ndic e s fo r a de finitio n o f Unde rlying NPAT . Unde rlying NPAT is re po rte d in the o pe ra ting se g me nt no te o f Oc e a nia 's a udite d c o nso lida te d fina nc ia l sta te me nts. T he pro fo rma a djustme nts a re re c o nc ile d o n pa g e 21 o f this pre se nta tio n. Re fe r to pa g e 42 in the Appe ndic e s fo r a n e xpla na tio n o f the pro fo rma a djustme nts ma de .
We ha ve d e live re d a stro ng inte rim fina nc ia l re sult a s we ll a s c o ntinuing to e xe c ute o ur ke y d e ve lo pme nts a nd
PO F
BI T DA o f $25.3m, inc re a se d 9% fro m $23.3m in the pc p
lmwo o d in No ve mb e r 2017 (o n time a nd o n fo re c a st c o st)
Me a d o wb a nk (o n time a nd fo re c a st c o st)
he Sa nd s (fo rme rly Ma ure e n Plo wma n), Me lro se , Me a d o wb a nk a nd T re ve llyn
4
We ha ve d e live re d a stro ng inte rim fina nc ia l re sult a s we ll a s c o ntinuing to e xe c ute o ur ke y d e ve lo pme nts a nd
PO F
xc e lle nc e in Ca re Awa rd fo r the third c o nse c utive ye a r fo r inno va tive “I L
Music ” pro g ra mme
4 ye a rs a s a t Ma y-17)
nte rim d ivid e nd pe r sha re a nno unc e d o f 2.10 c e nts pe r sha re (no t impute d 1), in line with I PO fo re c a sts
e b rua ry 2018. Pa yme nt d a te o f 20 F e b rua ry 2018
he divide nds a re no t impute d due to the a va ila b ility o f e xisting ta x lo sse s.
5
Re po rte d NPAT a nd Pro F
BI T DA a re a he a d o f the pc p. T
Re porte d NPAT T
Ope rating Cash F low Pro forma Unde rlying E BIT DA
0.7 0.8 0.8 0.9
1.0
0.0 0.2 0.4 0.6 0.8 1.0 1.2
1HY2016 2HY2016 1HY2017 2HY2017 1HY2018
NZD $B's
19.4 20.2 12.8 26.1
17.1
0.0 5.0 10.0 15.0 20.0 25.0 30.0
1HY2016 2HY2016 1HY2017 2HY2017 1HY2018
NZD $M's
23.6 23.4 23.3 21.7
25.3
0.0 5.0 10.0 15.0 20.0 25.0 30.0
1HY2016 2HY2016 1HY2017 2HY2017 1HY2018
NZD $M’ s 27.1 21.6 22.0 22.9
42.5
0.0 10.0 20.0 30.0 40.0 50.0
1HY2016 2HY2016 1HY2017 2HY2017 1HY2018
NZD $M's
6
l
Winne r o f the Ne w Ze a la nd Ag e d Ca re Asso c ia tio n
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Co ntinue d o ur e xc e lle nt Mo H a ud it re sults with 25% o f fa c ilitie s a t 4 ye a rs, a ll o the rs a t 3 ye a rs (up fro m 20% a t 4 ye a rs a s a t Ma y-17)
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Afte r a suc c e ssful tria l a t o ur L a d y Allum site in Milfo rd , we a re ro lling o ut the Oc e a nia “I L
pro g ra mme a c ro ss a ll o ur site s
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Imple me nta tio n o f o ur ne w c linic a l info rma tio n syste m ha s c o mme nc e d
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Winne r o f the Se nio r L ife style Cuisine Awa rd (third ye a r in a ro w)
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Co ntinua tio n o f c o nve rsio ns o f c a re b e d s to c a re suite s, with 9 c a re b e d s c o nve rte d to 7 c a re suite s a t Wo o d la nd s a nd Ad d ing to n L ife style a nd 39 se rvic e d a pa rtme nts c o nve rte d to c a re suite s a t E lmwo o d a nd He re ta ung a
l
L a unc he d ne w mo ving a nd ha nd ling tra ining pro g ra mme a c ro ss a ll fa c ilitie s to re d uc e injury ra te s whe n tra nsfe rring re sid e nts
E nha nc ing o ur c linic a l c a re pla tfo rm, re c e iving ind ustry re c o g nitio n a nd stro ng Mo H c e rtific a tio n re sults
2015, 2016 & 2017
7 ST RI CT L Y CONF I DE NT I AL
SEC TIO N 2
2
8
Ca re Be ds Ca re Suite s Units
T
No rth Isla nd 1,976 170 741
2,887
So uth Isla nd 593 118 295
1,006 T
xisting 1 2,569 288 1,036 3,893
De ve lo p me nt Pip e line 3 665 1,117
1,782
L e ss d e c o mmissio ns (311) (78)
(389) Ne t De ve lopme nt Pipe line 2 (311) 665 1,039 1,393 T
2,258 953 2,075 5,286
a c ility numb e rs a s a t 30 No ve mb e r 2017. 2. Curre nt a nd pla nne d d e ve lo pme nts. 3. Inc lude s 378 Ca re Stud io s whic h ma y b e initia lly so ld with a PAC, a nd ma y sub se q ue ntly b e so ld und e r a n ORA. Me a d o wb a nk sta g e 3 (30 c a re suite s a nd 62 units) a nd Sto ke (10 units) a re inc lud e d in the d e ve lo pme nt pipe line . T he se we re sub sta ntia lly c o mple te a s a t 30 No v 2017 4. F uture c o mpo sitio n a ssume s e xe c utio n o f c urre nt pla nne d d e ve lo pme nt o f Oc e a nia ’ s Bro wnfie ld De ve lo pme nt la nd b a nk. Re fe r to Appe nd ic e s fo r mo ve me nts in the po rtfo lio fro m 31 Ma y 2017.
Cur r e nt a nd futur e por tfolio c omposition4 – Re ma ining “ne e ds” foc use d Cur r e nt a nd futur e por tfolio c omposition4 – Re ma ining “ne e ds” foc use d
We a re a la rg e na tio na l o pe ra to r with a po rtfo lio o f 51 site s
Ha wke ’s Ba y Auc kla nd Ha milton T a ur a ng a We lling ton Ne lson Chr istc hur c h
L
De ve lo pme nt L a nd Ba nk L
De ve lo pme nt L a nd Ba nk
Oc e a nia ’s site loc a tions
66% 43% 7% 18% 27% 39% Curre nt Co mpo sitio n Po st De ve lo pme nt Co mp o sitio n
Ca re Be ds Ca re Suite s Units
9
Our b usine ss mo d e l suppo rts a c o mb ina tio n o f d ivid e nd yie ld with lo ng te rm g ro wth po te ntia l
Ag e d c a r e Villa g e De ve lopme nt
Stable re ve nue from “ne e ds- base d” c are se rvic e and gove rnme nt funding…. Re gular DMF e arnings stre am… . … with growth through pre mium c harging and c are suite mode l … and re sale margins from e xisting e mbe dde d value De ve lopme nts drive future DMF and c are e arnings stre ams… … as we ll as upfront de ve lopme nt c ashflow
10 So urc e : Re sults pre se nta tio ns o f o the r o pe ra to rs
Compar ison to othe r liste d ope r ator s
Our foc us is age d c ar
e with a g ro wing re tire me nt villa g e b usine ss
F utur e po r tfo lio c o mpo sition E xisting po r tfo lio c o mpo sition
7% 20% 35% 50%
66%
0.3%
7%
11% 12% 19% 19% 82% 68% 45% 30%
27%
Me tlife c a re Summe rse t Ryma n Arvida Oc e a nia
Ca re Be d s Ca re Suite s Se rvic e d Units I nd e p e nd e nt Units 11% 17% 33% 39%
43%
4%
18%
8% 16% 19% 15% 81% 67% 48% 42%
39%
11
T he c a re suite mo d e l is inte g ra l to us me e ting the ne e d s o f c usto me rs
E stimate d population gr
489,800 227,800
200,000 300,000 400,000 500,000 600,000 700,000 800,000
1995 2000 2005 2010 2015 2019 2024 2029 2034 2039
Popula tion Ag e d 75 to 84 Popula tion Ag e d 85+
Car e Str ate gy
Ze a la nd po pula tio n is e xpe c te d to sig nific antly
inc r e a se de ma nd for a g e d c a r e o ve r the ne xt 20
ye a rs
unde r the tra ditio na l funding mo de l, the re ha s b e e n a lo w le ve l o f ne t a g e d Ca re Be d a dditio ns2
b e e n suppo rte d, prima rily invo lving inc r
e a se d pr iva te c ha r g ing for a g e d c a r e se r vic e s
suite pro duc t (a pplying the ORA mo de l o ve r c a re b e ds) a nd inc re a sing PACs Be ne fits of the c ar e suite mode l Ab ility to r
e c yc le c a pita l, impro ving re turns
fo r the de ve lo pme nt o f a g e d c a re b e ds Re g ula r DMF e a rning s stre a m inc r
e a se s e a r ning s pe r be d
12
T r e ve llyn – Ha milton
We a re tra nsfo rming o ur c a re o ffe ring a s we e xe c ute o ur b ro wnfie ld s d e ve lo pme nt pipe line . T he c urre nt pro je c ts und e r c o nstruc tio n will d o ub le o ur numb e r o f c a re suite s o ve r the ne xt two ye a rs
his inc lude s 81 a t Me lro se , 90 a t T re ve llyn, 44 a t T he Sa nd s a nd 62 a t Me a d o wb a nk (inc lud ing the 30 tha t we re c o mple te d a fte r 30 No ve mb e r 2017).
10%
Sta nda rd Be ds As a t 30 Nov 17
Ne w c a re suite s und e r c o nstruc tio n
Ne a r te r m F ully built-
De c o mmissio ne d c a re b e d s De c o mmissio ne d c a re b e d s Ne w c a re suite s in pipe line
20% 30% Me lr
a ur a ng a
Ca re Suite s/ Studio s
re ve llyn, T he Sa nd s (fo rme rly Ma ure e n Plo wma n) a nd Me a d o wb a nk1. T his will a lmo st d o ub le the a mo unt o f c a re suite s a nd lift this to 20% o f o ur to ta l b e d s
13 ST RI CT L Y CONF I DE NT I AL
SEC TIO N 3
3 3
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Me a dowba nk – Comple te d Ja nua ry 2018 (30 c a re suite s, 62 a pa rtme nts)
We will d e live r o ur ke y d e ve lo pme nts d uring the I PO F
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25 Villa s c o mple te d a t E lmwo o d in No ve mb e r 2017. 10 villa s c o mple te d a t Sto ke in De c e mb e r 2017
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30 c a re suite s a t Me a d o wb a nk a re c o mple te with MOH c e rtific a tio n with the 62 a pa rtme nts pra c tic a lly c o mple te . CPU re c e ive d a nd first re sid e nts mo ving in d uring Fe b rua ry
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Sta g e 4 a t Me a d o wb a nk c o mme nc e d in Oc to b e r 2017 (32 c a re suite s, 49 a pa rtme nts)
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T he Sa nd s (fo rme rly Ma ure e n Plo wma n) is “o ut o f the g ro und”. On tra c k fo r c o mple tio n in F Y2019
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Me lro se d e ve lo pme nt (81 c a re suite s) c o mme nc e d in July 17
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T re ve llyn (90 c a re Suite s) c o mme nc e d in Ja nua ry 2018
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Re so urc e c o nse nt issue d fo r Wind e rme re in Aug ust 2017
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Wa ima rie Stre e t, in St He lie rs, Auc kla nd , la nd und e r c o ntra c t (66 units a nd c a re suite s pla nne d )
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Vie w Ro a d (a d jo ining E d e n Villa g e ) und e r c o ntra c t (30 units pla nne d )
Ke y c ha ng e s sinc e Ma y- 17
E lmwood – Comple te d Oc tobe r 2017 (25 villa s) Stoke – Comple te d De c e mbe r 2017 (10 villa s)
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We ha ve a pipe line o f 1,782 units. Of this 1,057 units, o r 59%, is e ithe r und e r c o nstruc tio n o r c o nse nte d
Sta g e 2- 3 Chr istc hur c h Conse nte d 53 Sta g e 1 T a ur a ng a Unde r Constr uc tion 81 Winde r me r e Sta g e 1 Chr istc hur c h Conse nte d 75 Wha r e r a ng i T a upo Unde r Constr uc tion 4 Sta g e 2- 3 Ha milton Conse nte d 133 Sta g e 1 Ha milton Unde r Constr uc tion 90 T r e ve llyn Sta g e 2 - 5 T a ur a ng a Conse nte d 216 Gr e e n Ga ble s Ne lson Conse nte d 88 Me lr
Constr uc tion pe r iod Sta g e 4 Auc kla nd Unde r Constr uc tion 81 Me a dowba nk Sta g e 3 Auc kla nd Substa ntially Comple te 92 Sta g e 5 Auc kla nd Conse nte d 26 T he Sa nds Auc kla nd Unde r Constr uc tion 108 Stoke Ne lson Comple te 10 T
Unde r Constr uc tion 1057 Gr
Re side nc e s L
Sta tus
Ma y 17 Nov 17 Ma y 18 Nov 18 F utur e
F a c ility
16
T he c a re fa c ility ha s b e e n c e rtifie d a nd 26 o f the 62 a pa rtme nts a re und e r pre sa le a pplic a tio n
Stage 3 pr ac tic ally c omple te de live r ing
c e rtifie d), a nd
Ce rtific a te fo r pub lic use re c e ive d. Stage 4 unde r c onstr uc tion with a fur the r :
26 a pa rtme nts unde r pre sa le s a pplic a tio n a s o f the 23 o f Ja nua ry 2018 in line with the IPO F
pric ing . T he IPO F
ye a r to 31 Ma y 2018
Auc kla nd
17
Co nstruc tio n o f T he Sa nd s (fo rme rly Ma ure e n Plo wma n) is “o ut o f the g ro und ” with stro ng le ve ls o f pre sa le s inte re st
he Sa nds (fo rme rly Ma ure e n Plo wma n) in Bro wns Ba y, Auc kla nd will pro vide 64 a pa rtme nts a nd 44 c a re suite s
2017 with the first flo o r sla b to b e po ure d in Ja nua ry 2018
with pre sa le s to c o mme nc e in Ma rc h 2018
Bro wns Ba y, Auc kla nd
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In De c e mb e r 2017 we e nte re d into a c o ntra c t fo r the purc ha se o f a 8,945m 2 site in the pre mium sub urb o f St He lie rs, Auc kla nd
Gr e e nfie ld site unde r c ontr ac t in the Auc kland subur b of St He lie r s
re tire me nt villa g e pla nne d
pipe line
St He lie rs, Auc kla nd
19 19
01 Inc o me sta te me nt a nd se g me nta l pe rfo rma nc e 02 Ba la nc e she e t a nd drive rs o f Inve stme nt Pro pe rty va lua tio n 03 Ca shflo w sta te me nt a nd a na lysis o f o pe ra ting c a shflo w 04 Ca pita l struc ture
4
20
Re po rte d ne t pro fit a fte r ta x o f $42.5m wa s $20.5m (93%) a b o ve the pc p re sult a nd a b o ve the full ye a r F Y2017 re sult
Y2017 a nnua l fina nc ia l sta te me nts the 1HY2017 inc o me sta te me nt ha s b e e n re sta te d fo r a n a djustme nt to the de fe rre d ta x e xpe nse o f $4.3m. All o the r inc o me sta te me nt ite ms b e fo re ta x a re unc ha ng e d. T he re is no impa c t o n c a shflo w o r no n-GAAP Unde rlying Pro fit.
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$92.1m o pe ra ting re ve nue - inc lude s c a re re ve nue ($79.9m), villa g e we e kly fe e s ($2.7m) a nd villa g e de fe rre d ma na g e me nt fe e s ($7.8m), a nd re fle c ts the e q ua l pa y se ttle me nt fo r he a lth c a re a ssista nts tha t c a me into e ffe c t in July 2017
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F a ir va lue mo ve me nt in IP a nd PPE drive n b y:
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Re va lua tio n o f e xisting villa g e a sse ts ($7.3m);
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Uplift fro m ne w Me a do wb a nk a pa rtme nts ($11.7m)
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Uplift fro m ne w E lmwo o d villa s ($9.8m)
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Uplift fro m sa le s o f L a dy Allum a pa rtme nts ($5.2m)
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E xisting c a re a sse ts a nd de ve lo pme nt la nd no t re va lue d fo r the se inte rim a c c o unts
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1HY2018 o pe ra ting e xpe nse s re fle c t the e q ua l pa y se ttle me nt fo r he a lth c a re a ssista nts
Comme nta ry Summa ry of Inc ome Sta te me nt for the six months e nde d 30 Nove mbe r
NZDm 1HY2018 1HY20171 F Y2017
Op e ra ting re ve nue 92.1 89.2 174.8 Cha ng e in fa ir va lue o f inve stme nt p ro p e rty 34.1 32.6 57.2
T
126.3 121.9 232.0
Op e ra ting e xp e nse s (77.5) (73.0) (146.9) Imp a irme nt o f g o o d will a nd lo ss o n d isp o sa l o f c ha tte ls 0.0 0.0 (1.0) Imp a irme nt o f p ro p e rty, p la nt a nd e q uip me nt 1.1 (3.2) (4.3)
T
xpe nse s (76.3) (76.2) (152.2) Ope ra ting Profit 49.9 45.7 79.8
T ra nsa c tio n e xp e nse s 0.0 (0.9) (4.4) F ina nc e c o sts (1.4) (10.1) (20.1) De p re c ia tio n a nd a mo rtisa tio n (4.1) (3.8) (7.9)
Profit be fore Inc ome ta x 44.4 30.9 47.4
T a xa tio n b e ne fit/ (e xp e nse ) (1.9) (9.0) (2.5)
Re porte d Ne t Profit a fte r T a x 42.5 22.0 44.9
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Und e rlying NPAT wa s $10.9m a he a d o f the pc p d ue to inc re a se d d e ve lo pme nt ma rg ins a nd the po st I PO c a pita l struc ture
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Pro fo rma unde rlying E BIT DA wa s $2.0m a b o ve the pc p
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Re duc tio n in c a re se g me nt drive n b y lo we r
de ve lo pme nt site s. E a rning s pe r o c c upie d b e d in line with the pc p
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Re sa le s ma rg in a b o ve 1HY2017 with a ve ra g e re sa le g a in up to $96.6k pe r unit/ suite , 25.0% a b o ve the pc p a ve ra g e o f $77.5k
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De ve lo pme nt ma rg in o f $4.1m unde rpinne d b y sa le s o f ne w L a dy Allum a pa rtme nts a nd E lmwo o d villa s
Comme nta ry Re c onc ilia tion of Unde rlying Adjustme nts
By se gme nt 1HY2018 1HY2017 F Y2017
Ag e d Ca re 16.4 18.4 31.9 Re tire me nt Villa g e 16.3 12.1 26.8 Othe r/ Co rp o ra te (7.4) (7.2) (13.7)
Pro forma Unde rlying E BIT DA 25.3 23.3 45.0 NZDm 1HY2018 1HY2017 F Y2017 Re porte d Ne t profit a fte r ta x 42.5 22.0 44.9
le ss: Cha ng e in fa ir va lue o f inve stme nt p ro p e rty a nd PP&E (35.3) (29.5) (52.8) a d d : Imp a irme nt o f g o o d will 0.0 0.2 0.5 a d d : L
0.0 0.0 0.5 a d d : Re a lise d g a ins o n re sa le s 6.7 6.4 12.7 a d d : Re a lise d d e ve lo p me nt ma rg in 4.1 0.9 5.2 Ad d : De fe rre d ta x 1.9 9.0 2.5
Unde rlying NPAT 19.9 9.0 13.4
Pro fo rma adjustme nts: No n-re c urring o r infre q ue nt ite ms T ra nsa c tio n a nd Offe r c o sts 0.0 0.9 4.4 Struc tural c hang e s L iste d c o mp a ny c o sts 0.0 (0.4) (0.7) L iste d c a pita l struc ture 0.0 8.5 17.0
Pro forma Unde rlying NPAT 19.9 18.0 34.0
a d d : De p re c ia tio n a nd a mo rtisa tio n 4.1 3.8 7.9 a d d : Pro fo rma fina nc e c o sts 1.4 1.5 3.0
Pro forma Unde rlying E BIT DA 25.3 23.3 45.0
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E BI T DA pe r o c c upie d b e d , e xc lud ing d e c o mmissio ne d a nd d e ve lo pme nt site s, is b ro a d ly in line with pc p. Pre mium c ha rg e s (c a re suite DMF a nd PAC re ve nue ) inc re a se d 26% fro m the pc p
re ve llyn b o th ha ve ne w c a re fa c ilitie s unde r c o nstruc tio n. NZ$m 1HY2018 1HY2017 F Y2017
Da ily c a re fe e s 75.9 74.3 145.7 PAC re ve nue 1.6 1.3 2.7 Ca re suite DMF 1.8 1.4 3.0 Othe r re ve nue 0.7 1.1 1.4
T
e ope r a ting r e ve nue 79.9 78.1 152.8
Sta ff a nd re side nt e xpe nse s (55.6) (52.5) (105.8) Oc c upa nc y a nd site o ve rhe a d e xpe nse s (7.9) (7.2) (15.1)
T
e e xpe nse s (63.5) (59.7) (120.9) Ag e d c a r e pr
ma Unde r lying E BIT DA 16.4 18.4 31.9 E BIT DA pe r Ca r e Be d / Suite (e xc l. de c ommissione d a nd de ve lopme nt site s) $13,814 $14,390 $12,797
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Oc c upa nc y wa s a he a d o f the na tio na l a ve ra g e o f 86.9%1
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Ca re suite DMF re ve nue inc re a se d 28.5% fro m the pc p
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Pre mium c ha rg ing (PAC a nd DMF ) a he a d o f the pc p. Ave ra g e PAC o f $13.49 vs $10.88 in the pc p
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A numb e r o f site s ha ve b e e n de c o mmissio ne d
site 2
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T he ye a r o n ye a r impa c t o n e a rning s a t the se site s is $0.8m
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Oc c upa nc y e xc luding the de c o mmissio ne d a nd de ve lo pme nt site s is 89.0%
Comme nta ry Oc c upa nc y ra te s ve rsus na tiona l a ve ra g e Pre mium c a re re ve nue
86.9% 85.2% 87.9% 86.7% 86.9% 90.9% 91.2% 92.0% 90.8% 88.6%
80.0% 84.0% 88.0% 92.0% 96.0% 1HY2014 1HY2015 1HY2016 1HY2017 1HY2018 Na tio na l Oc c upa nc y Oc e a nia Oc c upa nc y
1.1 1.3 1.3 1.6 0.6 1.7 1.4 1.8 0.0 1.0 2.0 3.0 4.0 1HY2015 1HY2016 1HY2017 1HY2018 NZD $M's PAC Re ve nue Ca re Suite DMF
CAGR o f 26.0% o ve r la st 3 ye a rs
23
Pro F
BI T DA wa s $3.8m a he a d o f the pc p
NZ$m 1HY2018 1HY2017 F Y2017
Villa a nd Apa rtme nt DMF 7.8 6.6 13.3 Re tire me nt villa g e se rvic e fe e s 2.7 2.7 5.3 Othe r re ve nue 1.1 1.2 2.1
T
e tir e me nt village ope r a ting r e ve nue 11.5 10.5 20.6
Re a lise d g a ins o n re sa le s 6.7 6.4 12.7 Re a lise d de ve lo pme nt ma rg in 4.1 0.9 5.2 Villa g e site o pe ra ting e xpe nse s (5.4) (5.0) (9.5) Re side nt sha re o f c a pita l g a ins (0.5) (0.7) (2.2)
T
e tir e me nt village e xpe nse s (6.0) (5.7) (11.7) Re tir e me nt village pr
ma Unde r lying E BIT DA 16.3 12.1 26.8
De ve lopme nt Sa le s Volume a nd Ma rg in Re sa le s Volume a nd Ma rg in
75 65 48 71 90 83 69
10.3% 15.9% 18.3% 22.1% 24.7% 25.4% 28.4%
0% 5% 10% 15% 20% 25% 30% 20 40 60 80 100 1HY2012 1HY2013 1HY2014 1HY2015 1HY2016 1HY2017 1HY2018
18 21 30 54 41 25 23
9.9% 7.5% 12.6% 10.3% 18.4% 15.1% 36.4%
0% 5% 10% 15% 20% 25% 30% 35% 40% 10 20 30 40 50 60 1HY2012 1HY2013 1HY2014 1HY2015 1HY2016 1HY2017 1HY2018 l
De fe rre d Ma na g e me nt F e e s c o ntinue to g ro w (18.2% c .f the p c p ) a s ne w d e ve lo p me nts a re c o mp le te d a nd re sa le s o c c ur a t hig he r p ric e s
l
Ga ins o n re sa le we re a b o ve the p c p d e sp ite lo we r vo lume s a s ma rg ins imp ro ve d fro m 25.4% in the p c p to 28.4% in 1HY2018. T his wa s d rive n b y a n 11.8% inc re a se in re sa le p ric e s
l
L
l
De ve lo p me nt ma rg in re fle c ts the sa le s o f the ne w L a d y Allum a pa rtme nts in Milfo rd , Auc kla nd with p ric e s in line with IPO F
Comme nta ry
24
Re sa le pric e s a nd ma rg ins we re a b o ve the pc p
Re sa le s Pric e s Closing Stoc k (inc l stoc k unde r a pplic a tion) - Re sa le s 33 31 37 17 22 36 15 9 20 5 10 15 20 25 30 35 40 No v-16 Ma y-17 No v-17
Villa s Apa rtme nts Ca re Suite s
l
Ave ra g e re sa le ma rg in inc re a se d fro m 25.4% in the pc p to 28.4%, hig he r tha n a ny o the r c o mpa ra b le pe rio d
l
T his wa s, in pa rt, d ue to a ma te ria l inc re a se in the a ve ra g e re sa le pric e fo r c a re suite s (up 33% to $250k)
l
Re sa le s pric e s a c hie ve d in 1HY2018 we re , o n a ve ra g e , 5.9% hig he r tha n the Ma y 2017 CBRE va lua tio n. T he c ha rt d e pic ts the va ria nc e to the prio r a nnua l va lua tio n.
l
Afte r 12 mo nths o f re la tive ly lo w sto c k le ve ls, va c a nc ie s a rising in Oc to b e r a nd No ve mb e r inc re a se d sto c k b y 29% c o mpa re d to 30 No ve mb e r 2016. T his will und e rpin re sa le s vo lume s thro ug h the se c o nd ha lf o f F Y2018
l
Of the 93 units a va ila b le fo r re sa le a t 30 No v 17, 36 we re und e r a pplic a tio n
Re sa le s Pric e s vs CBRE Va lua tion Assumption
246 250 263 299 318 372 376 252 313 314 326 331 386 435 132 163 173 156 158 188 250
100 200 300 400 500 1HY2012 1HY2013 1HY2014 1HY2015 1HY2016 1HY2017 1HY2018 NZD $000’ s
Villa Apa rtme nt Ca re Suite
7.3% 12.0% 9.5% 16.5% 5.9% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 1HY2016 2HY2016 1HY2017 2HY2017 1HY2018
25
T he e mbe dde d value in Oc e ania’s por
tfolio has inc r e ase d signific antly o ve r the la st fo ur ye a rs to $188.5m a nd will
und e rpin o ng o ing DMF c a sh flo ws a nd re sa le g a ins
. No te , the va lua tio n o f c a re suite s he ld a s PPE ha ve b e e n e stima te d using the Ma y-17 va lua tio n a s
nve stme nt Pro pe rtie s wa s va lue d b y CBRE in No v-17. 2. T he va lue o f unso ld sto c k re pre se nts the sa le s pric e s o f units/ c a re suite s whic h a re no t unde r c o ntra c t, a s the y e ithe r ne wly c o nstruc te d o r ha ve b e e n b o ug ht-b a c k fro m the pre vio us o utg o ing re side nts.
E mbe dde d va lue pe r unit1
37.2 42.6 48.8 54.9 56.2 31.0 38.0 66.8 86.4 89.3
68.1 80.5 115.5 141.3 145.5
40 60 80 100 120 140 160 FY2014 FY2015 FY2016 FY2017 1HY2018 DMF Re sa le g a ins
Comme ntary l
E mb e dde d va lue in Oc e a nia ’ s po rtfo lio is $188.5m
l
T his is a n indic a to r o f DMF a nd re sa le g a ins to b e re a lise d in future pe rio ds a nd unde rpins o ur o pe ra ting c a sh flo w fo re c a sts
l
E mb e dde d va lue pe r unit in 1HY2018 o f c . $145,500 inc lude s:
̶
~$56,200 o f DMF c a sh flo ws pe r unit to b e re a lise d; a nd
̶
~$89,300 o f re sa le g a ins pe r unit a nd suite
Summa ry of E mbe dde d Va lue Ca lc ula tion NZ$m F Y2014 F Y2015 F Y2016 F Y2017 1HY2018
E stima te d sa le / re sa le pric e o f a ll Units1 322.4 350.2 402.7 499.0 595.8 le ss: Unso ld sto c k2 (32.4) (25.3) (14.3) (33.8) (125.1) le ss: Re side nt lia b ilitie s (c o ntra c tua l) (206.2) (223.3) (243.4) (282.1) (282.2)
e qua ls: E mbe dde d va lue 83.8 101.6 145.0 183.1 188.5 E mbe dde d va lue pe r Unit (NZ$) 68,119 80,531 115,545 141,298 145,461
26
288 291 196 311 341 286 368 200 469 477 440 683 943 98 85 140 188 211 154 186
200 400 600 800 1,000 1HY2012 1HY2013 1HY2014 1HY2015 1HY2016 1HY2017 1HY2018
NZD $000’ s Villa Ap a rtme nt Ca re Suite
De ve lo pme nt ma rg in o f 36.4% wa s sig nific a ntly a b o ve the pc p, with stro ng sa le s pric e s a c hie ve d a t ke y d e ve lo pme nts. We a re br
inging to mar ke t a high quality pr
ate c onside r able uplift in DMF in future pe rio d s
Sa le s Pric e s De ve lopme nt Volume s a nd Ma rg ins Gross Units De live re d
F Y2014 F Y2015 F Y2016 F Y2017 1HY2018
Villa s 42 24 11 2 25 Ap a rtme nts 40 14 44
T
82 38 11 46 25
l
De ve lo pme nt ma rg ins ha ve inc re a se d fro m 15.1% in the pc p to 36.4% in 1HY2018 with pric e s in line with IPO F
l
Ave ra g e sa le s pric e s ha ve inc re a se d fro m $233.0k (pe r unit/ c a re suite ) in the pc p to $487.7k in 1HY2018
l
25 units (e xc luding de c o mmissio ns) de live re d in 1HY2018 a t E lmwo o d
l
62 units a nd 30 c a re suite s de live re d a t Me a do wb a nk in Ja nua ry. 10 villa s c o mple te d a t Sto ke in De c e mb e r
l
A furthe r 113 units a nd 247 c a re suite s c urre ntly unde r c o nstruc tio n
11 10 6 27 12 15 9 1 8 17 14 14 7 6 3 7 13 15 10 7
9.9% 7.5% 12.6% 10.3% 18.4% 15.1% 36.4%
0% 5% 10% 15% 20% 25% 30% 35% 40% 10 20 30 40 50 60 1HY2012 1HY2013 1HY2014 1HY2015 1HY2016 1HY2017 1HY2018 Villa Ap a rtme nt Ca re Suite De ve lo pme nt Ma rg in
27
T
to No ve mb e r 2017 a nd re va lua tio ns re fle c ting impro ve d tra d ing pe rfo rma nc e a nd the c o mple tio n o f ke y d e ve lo pme nts
plus WIP le ss de b t) wa s $1.01 pe r sha re a s a t 30 No v 2017
his re pre se nts the va lue o f e xisting site s a nd the WIP a t de ve lo pme nt site s b ut e xc lude s the pre se nt va lue o f ne t de ve lo pme nt c a shflo ws a nd e a rning s a t b o th c urre nt a nd future de ve lo pme nts (inc luding T he Sa nds a nd Me a do wb a nk Sta g e 4 whic h a re unde r c o nstruc tio n)
NZ$m 1HY2018 1HY2017 F Y2017 Asse ts
Ca sh a nd tra d e re c e iva b le s 21.4 13.8 22.2 Pro p e rty, p la nt a nd e q uip me nt 279.2 244.5 268.0 Inve stme nt p ro p e rtie s 681.3 562.9 611.0 Inta ng ib le a sse ts 17.3 17.3 17.1
T
999.1 838.6 918.2 L ia bilitie s
T ra d e , o the r p a ya b le s a nd p ro visio ns 28.1 23.6 27.8 De fe rre d ma na g e me nt fe e s 18.8 18.9 19.5 Re fund a b le o c c up a tio n rig ht a g re e me nts 290.8 266.7 282.9 Bo rro wing s 123.8 275.8 95.2 De fe rre d ta x lia b ility 26.7 29.7 24.8
T
488.2 614.6 450.3 E quity
Co ntrib ute d E q uity 579.5 372.6 579.5 Re ta ine d De fic it (153.4) (218.9) (196.0) Re se rve s 84.8 70.3 84.4
T
510.9 224.0 468.0 Ne t ta ng ible a sse ts 493.6 206.6 450.9 NZ$m 1HY2018 F Y2017
PP&E (inc WIP) 279.2 268.0 IP (inc l WIP) 681.3 611.0
Sub T
960.4 879.0 le ss ORA Gro ss Up (309.6) (302.4) a d d : Ad j fo r CBRE – Cha tte ls 9.5 7.9 a d d : Ad j fo r CBRE – Ca re Go o d will 61.0 59.0 a d d : Othe r 10.9 4.5
CBRE plus WIP 732.1 647.9
le ss: Ne t De b t (117.6) (84.4)
Ne t Adjuste d Va lue 614.5 563.5
Sha re s o n Issue 610.3 610.3
Ne t Adjuste d Va lue pe r Sha re 1.01 0.92
28
Sig nific a nt uplifts in I P thro ug h d e ve lo pme nt c a pita l e xpe nd iture a nd re va lua tio ns
he CBRE va lua tio n wa s da te d 31 Oc to b e r 2017. Ma na g e me nt pe rfo rme d a ro ll fo rwa rd fo r se ttle me nts in the mo nth o f No ve mb e r.
Inve stme nt Prope rty CBRE Va lua tion Assumptions - IP l
A d e skto p po rtfo lio va lua tio n wa s c o mple te d b y CBRE to d e te rmine the fa ir va lue o f Inve stme nt Pro pe rty a s a t No ve mb e r 20171
l
PPE (Ca re Se g me nt) a nd d e ve lo pme nt la nd we re he ld a t the Ma y-17 va lua tio n plus a d d itio ns
l
Ma te ria l inc re a se in the a ve ra g e inc o ming villa a nd a pa rtme nts pric e d ue to the inc lusio n o f Me a d o wb a nk a nd E lmwo o d d e ve lo pme nts
NZD $000’ s Dr ive r 1HY2018 F Y2017
PPGR – L
e rm (lo w-hig h) 2.50% 3.50% 2.50% 3.50% PPGR – Sho rt T e rm (lo w-hig h) 0.00% 3.00% 0.0% 3.00% Disc o unt Ra te s (lo w-hig h) 14.00% 22.00% 14.00% 22.00% Ave ra g e Inc o ming Pric e - Villa s $378,013 $359,350 Ave ra g e Inc o ming Pric e – Apa rtme nts $653,011 $570,291
611,016 681,261 186 11,748 9,761 5,185 35,723 376 7,266 550,000 570,000 590,000 610,000 630,000 650,000 670,000 690,000 710,000 Ma y-17 Site re me d ia tio n wo rk Me a d o wb a nk Elmwo o d L a d y Allum Ca pe x T ra nsfe r fro m PP&E Existing villa g e re va l No v-17
29
We ha ve sig nific a ntly inc re a se d o ur g ro wth c a pita l e xpe nd iture fo llo wing the I PO
Gr
xpe nditur e (IP and PPE )
Our g ro wth c a pita l e xpe nd iture will c re a te inc re me nta l d e ve lo pme nt c a shflo ws a s we ll a s inc re a se d c a re e a rning s a nd d e fe rre d ma na g e me nt fe e s
10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 1HY2015 2HY2015 1HY2016 2HY2016 1HY2017 2HY2017 1HY2018
NZD $M's
G ro wth Ca pe x
T a ura ng a
30
Sta te me nt of c a sh flows
Ope ra ting c a sh flo ws, a he a d o f the pc p, d ue to the re d uc e d g e a ring o f the b usine ss
l Gove r nme nt funding of c a r e fe e s
(c .80% o f a g e d c a re re ve nue , pa id fo rtnig htly) unde rpin the g e ne r
a tion
b usine ss
l
In a dditio n, o ur ma ture a nd g ro wing re tire me nt villa g e po rtfo lio pro vide s
r e c ur r ing DMF r e ve nue a nd r e sa le g a ins, whic h suppo rt c a sh
g e ne ra tio n
l
Our E mb e dde d Va lue o f $188.5m unde rpins the ne xt 5-7 ye a rs o f re tire me nt villa g e c a sh flo ws
l
No te – Re po rte d Ope ra ting Ca shflo w inc lude s $3.8m o f ORA b uy b a c ks fo r ne w de ve lo pme nts a nd $2.7m fo r de po sits fo r la nd a c q uisitio ns.
Comme nta ry
NZD $m’s 1HY2018 1HY2017 F Y2017
Re c e ip ts fro m c usto me rs 78.5 81.5 159.3 Pa yme nts to sup p lie rs a nd e mp lo ye e s (76.1) (74.6) (141.1) Re c e ip ts fro m ne w Oc c up a tio na l Rig hts Ag re e me nts 34.4 31.3 68.8 Pa yme nts fo r o utg o ing Oc c up a tio na l Rig hts Ag re e me nts (18.6) (16.7) (30.9) Inte re st re c e ive d 0.1 0.1 0.1 Inte re st p a id (1.3) (8.8) (17.3) T a x p a id 0.0 0.0 0.0
Ne t c a sh inflow from ope ra ting a c tivitie s 17.1 12.8 38.9
Pro c e e d s fro m sa le o f p ro p e rty, p la nt a nd e q uip me nt 0.2 0.0 0.0 Pro c e e d s fro m sa le o f b usine ss 0.0 0.0 0.0 Pa yme nts fo r PPE a nd inta ng ib le a sse ts (14.3) (8.7) (33.5) Pa yme nts fo r inve stme nt p ro p e rty a nd inve stme nt p ro p e rty und e r d e ve lo p me nt (34.6) (21.0) (47.6)
Ne t c a sh outflow from inve sting a c tivitie s (48.8) (29.7) (81.1)
Pro c e e d s fro m b o rro wing s 44.8 31.6 145.0 Re p a yme nt o f b o rro wing s (17.7) (16.7) (285.4) T ra nsa c tio n c o sts 0.0 0.0 (10.7) Pro c e e d s fro m issue o f sha re s 0.0 0.0 200.0 Divid e nd p a id 0.0 0.0 0.0
Ne t c a sh inflow from fina nc ing a c tivitie s 27.1 15.0 48.9 Ne t inc re a se in c a sh a nd c a sh e quiva le nts (4.6) (2.0) 6.8 Ca sh a nd c a sh e quiva le nts a t be g inning of the pe riod 10.9 4.1 4.1 Ca sh a nd c a sh e quiva le nts a t e nd of the pe riod 6.2 2.1 10.9
31
l
A ma id e n d ivid e nd o f 2.1 c e nts pe r sha re (no t impute d ) ha s b e e n d e c la re d
l
T his is in line with the I PO fo re c a st
l
Re c o rd d a te o f 13 F e b rua ry 2018. Pa yme nt d a te o f 20 F e b rua ry 2018
l
Sub je c t to a ra ng e o f fa c to rs, inc lud ing ma rke t c o nd itio ns a nd future fund ing re q uire me nts, o ur d ivid e nd po lic y is to ta rg e t a n a nnua l d ivid e nd o f b e twe e n 50-60% o f Und e rlying NPAT
l
T he I PO fo re c a st d ivid e nd d e c la re d o f $28.3m fo r F Y2018 is b a se d o n a ppro xima te ly 55% o f F Y2018F Und e rlying NPAT a nd re pre se nts a g ro ss yie ld o f 4.61% b a se d o n a 30 d a y VWAP to 16 Ja nua ry o f $1.0 pe r sha re An inte rim d ivid e nd o f 2.1 c e nts pe r sha re ha s b e e n d e c la re d
32
de n this b e c o me s 22.0% (using the No ve mb e r 2017 e q uity fig ure )
Ne t De bt
Ge a ring o f 18.7% a s a t 30 No ve mb e r 2017 a nd he a d ro o m und e r o ur d e b t fa c ilitie s pro vid e s the fle xib ility to a c c e le ra te o ur e xisting b ro wnfie ld d e ve lo pme nt pipe line a nd / o r und e rta ke furthe r b ro wnfie ld a nd g re e nfie ld a c q uisitio ns
Cr e dit me tr ic s
De bt F a c ilitie s F a c ility limit Dr a wn Amount (30/ 11/ 17)
Ge ne ra l / c o rpo ra te
$60m $20.0m
Ca sh
n/a ($6.2m)
F ina nc e le a se s
n/a $5.8m
De ve lo pme nt fa c ility
$175m $98.6m
T
$235m $118.1m
Pe r iod e nding 1HY2018 F Y2017
Ne t de b t $118.1m $84.4m Ne t de b t / (ne t de b t + e q uity) 18.70%1 15.30% L
16.76% 15.79%
33 33
01 Po rtfo lio Summa ry 02 De ve lo pme nt Pipe line 03 Re c o nc ilia tio n o f Po rtfo lio Mo ve me nts 04 Summa ry o f Unit Sa le s 05 Ca pita l E xpe nditure 06 Adjuste d Ope ra ting Ca sh F lo w 07 Re sa le s Ca sh F lo w Re c o nc ilia tio n 08 De finitio n o f Unde rlying NPAT 09 Pro F
10 Glo ssa ry 11 Disc la ime r
Facility Region Category Care Beds Care Suites Village Units Totara Park Village Rodney Village
Greenvalley Rest Home North Shore Care Beds 50
North Shore Care Beds, Care Suites, Village 128 15 129 Te Mana Rest Home North Shore Care Beds 46
Waitakere Care Beds 67
Auckland Care Suites, Village
40 Everil Orr Specialist Senior Care Centre Auckland Care Beds 67
Auckland Village
Wesley Specialist Senior Care Centre Auckland Care Beds 71
Manukau Care Beds, Care Suites, Village 111 48 129 St Johns Village Manukau Village
Takanini Specialist Senior Care Centre Manukau Care Beds 91
Franklin Care Beds 44
Hamilton Care Beds, Village 106
Raeburn Rest Home Cambridge Care Beds 54
Whitianga Care Beds 53
Tauranga Care Beds 38
Tauranga Care Beds, Village 80
Ohinemuri Rest Home Paeroa Care Beds, Village 68
Victoria Place Tokoroa Care Beds 51
Taupo Care Beds, Care Suites, Village 40 6 33 Wharerangi Rest Home Taupo Care Beds, Village 47
Dunblane Rest Home & Village Gisborne Care Beds, Village 75
Duart Rest Home Hastings Care Beds 66
Hastings Care Beds, Village 50
Gracelands Lifestyle Care & Village Hastings Care Beds, Village 92
Atawhai Lifestyle Care & Village Napier Care Beds, Care Suites, Village 68 14 46 Woburn Resthome Hawke's Bay Care Beds 33
Palmerston North Care Beds 50
Palmerston North Care Beds 48
Paraparaumu Care Beds 128
Upper Hutt Care Beds 124
Upper Hutt Care Beds, Care Suites, Village 30 20
Upper Hutt Village
Marina Cove Village Picton Village
Green Gables Resthome & Village Nelson Village
Otumarama Resthome Nelson Care Beds 43
Nelson Village
Whareama Specialist Senior Care Centre Nelson Care Beds 77
Blenheim Care Beds, Care Suites, Village 65 13 46 Woodlands Resthome & Village Tasman Care Beds, Village 56 5 30 Holmwood Rest Home Christchurch Care Beds 56
Christchurch Care Beds, Care Suites 49 12
Christchurch Care Beds, Care Suites, Village 42 42 32 Resthaven Rest Home Christchurch Care Beds 49
Christchurch Care Beds, Care Suites, Village 69 36 32 Windermere Lifestyle Care & Village Christchurch Village
Addington Lifestyle Care Christchurch Care Beds, Care Suites 87 10
2,569 288 1,036 North Island South Island
35
Site Sta g e Sta tus Gross Units Ne t Units Note s: Me a dowba nk
Sta g e 3 Und e r Co nstruc tio n 92 92 Co nstruc tio n c o mp le te in Ja nua ry 2018 Sta g e 4 Und e r Co nstruc tio n 81 81 Co nstruc tio n b e g a n in Oc t-17. E xp e c te d c o mp le tio n Ma y 2019 Sta g e 5 Co nse nte d 26 26 Sta g e 6 Pla nne d 40 40
T he Sa nds (forme rly Ma ure e n Plowma n)
Und e r Co nstruc tio n 108 108 E xp e c te d c o mp le tio n Ma y 2019
Stoke
Und e r Co nstruc tio n 10 10 Co nstruc tio n c o mp le te in Ja nua ry 2018
Me lrose
Sta g e 1 Und e r Co nstruc tio n 81 81 Co nstruc tio n b e g a n July-17. E xp e c te d c o mp le tio n 2Q2018 Sta g e 2-5 Co nse nte d 216 107
T re ve llyn
Sta g e 1 Und e r Co nstruc tio n 90 87 Co nstruc tio n b e g a n Ja nua ry 18 Sta g e 2-3 Co nse nte d 133 27
Gre e n Ga ble s
Co nse nte d 88 88
Winde rme re
Sta g e 1 Co nse nte d 75 75 Sta g e 2-3 Co nse nte d 53 36
Wha re ra ng i
Co nse nte d 4 (2)
E de n
Pla nne d 30 30
Wa ima rie Stre e t
Pla nne d 66 66
Othe r
Ha wke s Ba y Pla nne d 165 159 Christc hurc h Pla nne d 224 175 Ne lso n Pla nne d 115 22 Va rio us Pla nne d 85 85
T
1,057 816 T
1,782 1,393
36
Move me nts in c a pa c ity a nd pipe line sinc e Ma y- 17
Ma y-17 Cha ng e s in e xisting c a pa c ity Conve rsion of be ds to c a re suite s Conve rsion of units to c a re suite s Ne w units de live re d Cha ng e s in pipe line – g ross units a dde d Cha ng e s in pipe line - de c ommissions Nov-17 E xisting
Ca re b e d s 2,580 (2) (9) 2,569 Ca re Suite s 242 7 39 288 Units 1,054 (4) (39) 25 1,036
Pipe line
Ca re b e d s (354) 43 (311) Ca re Suite s 635 30 665 Units 1,001 (25) 69 (6) 1,039
T
5,158 (6) (2) 99 37 5,286
Move me nts in g r
37
1HY2012 1HY2013 1HY2014 1HY2015 1HY2016 1HY2017 1HY2018
Ca re Suite
10 13 4 28 26 32 25
Ap a rtme nt
23 17 14 16 28 20 12
Villa
42 35 30 27 36 31 32
T
75 65 48 71 90 83 69
Re sa le s Ma rg in
10.27% 15.90% 18.26% 22.11% 24.69% 25.44% 28.36%
1HY2012 1HY2013 1HY2014 1HY2015 1HY2016 1HY2017 1HY2018
Ca re Suite 6 3 7 13 15 10 7 Ap a rtme nt 1 8 17 14 14 7 Villa 11 10 6 27 12 15 9
T
18 21 30 54 41 25 23 De ve lopme nt Ma rg in 9.9% 7.5% 12.6% 10.3% 18.4% 15.1% 36.4%
Ne w Sa le s Re sa le s
1HY2012 1HY2013 1HY2014 1HY2015 1HY2016 1HY2017 1HY2018
Ca re Suite
11,850 13,731 17,500 20,563 22,712 29,818 56,480
Ap a rtme nt
25,522 19,105 32,929 75,994 69,050 99,345 96,542
Villa
25,899 59,111 61,363 78,352 100,190 112,506 127,926
T
23,910 39,572 49,415 55,030 68,119 77,455 96,582
Ave r a g e r e sa le g a in pe r unit/ c a r e suite
38
We inc re a se d o ur d e ve lo pme nt c a pita l e xpe nd iture sig nific a ntly d uring 1HY2018
l
During 1HY2018 we c o mple te d the c o nve rsio n o f 7 c a re b e ds a nd 39 se rvic e a pa rtme nts to c a re suite s a s we ll a s c o ntinue d the re me dia tio n o f He re ta ung a . T his is due to c o mple te in 2HY2018
l
Co st o f re me dia ting the b a la nc e o f site s ide ntifie d in o ur IPO due dilig e nc e re vise d do wnwa rds b y $2.7m fo llo wing mo re de ta ile d inve stig a tio n o f b uilding issue s. T he se e xe rc ise sho uld b e c o mple te b y F Y2018
NZ$m 1HY2018 1HY2017 F Y2017 Ac quisitions
0.0 3.0 23.0
De ve lopme nt c a pita l e xpe nditure
41.5 22.8 48.8
Re me dia tion e xpe nditure
2.0 0.3 1.8 Ca re re furb ishme nt 0.0 0.6 1.1 Ca re c o nve rsio n a nd p re mium ro o m up g ra d e s 0.9 0.4 0.7 Ma inte na nc e c a pita l e xp e nd iture – a g e d c a re 1.4 1.1 2.7 Ma inte na nc e c a pita l e xp e nd iture – re tire me nt villa g e 2.0 1.2 2.2 Ma inte na nc e c a pita l e xp e nd iture – IT a nd o the r 0.5 0.3 0.7
T
4.8 3.6 7.4 Ad justme nt fo r a c c rua ls 0.6 (0.0) 0.0
T
48.9 29.7 81.1
Asse ts unde r fina nc e le a se s
0.3 1.4 3.0
T
fina nc e le a se s)
49.2 31.1 84.1
39
We g e ne ra te d $13.3m o f a d juste d o pe ra ting c a sh flo w (e xc lud e s ne w sa le s pro c e e d s, inc lud e s ne t d e ve lo pme nt c a shflo w) in 1HY2018
Adjuste d ope rating c ash flow
1.T he de po sits pa id fo r the la nd a c q uisitio ns a t Vie w Rd a nd Wa ima rie St a re inc lude d in pa yme nts to supplie rs a nd e mplo ye e s in the c a shflo w sta te me nt in the inte rim fina nc ia l sta te me nts
t e xc lude s b ro wnfie lds la nd. I t c a pture s the inc re me nta l c a shflo w g e ne ra te d fro m a de ve lo pme nt o n a pe r unit b a sis o nc e so ld
NZD $m’s 1HY2018 1HY2017 F Y2017
Op e ra ting Ca sh F lo w 17.1 12.8 38.9 le ss: Ne w Sa le s Pro c e e d s (11.2) (5.8) (22.8) a d d : De ve lo p me nt Buyb a c ks 3.8 1.0 3.2 a d d : L a nd Ac q uisitio n De p o sits1 2.7 0.0 0.0 a d d : Ne t De ve lo p me nt Ca shflo w2 4.8 1.4 6.7
Sub T
17.2 9.4 26.0
le ss: ma inte na nc e c a pe x (3.9) (2.5) (5.6)
Adjuste d Ope ra ting Ca sh F low 13.3 6.8 20.4
l
Our ste a d y o pe ra ting c a shflo ws fund o ur d ivid e nd pa yme nts
l
T he se c a shflo ws a re suppo rte d b y the g o ve rnme nt fund ing o f 80% o f o ur c a re re ve nue s
l
As o ur d e ve lo pme nt pipe line is pre d o mina ntly b ro wnfie ld s we g e ne ra te inc re me nta l ne t d e ve lo pme nt c a shflo ws (inc lud ing re c o ve ring the c o sts o f c o mmunity a me nitie s e tc ). I n 1HY2018 o ur ne t d e ve lo pme nt c a shflo w wa s $4.8m c o mpa re d to
pro fit.
l
F
Y2018 re pre se nts a g ro ss yie ld o f 4.61% b a se d o n a 30 d a y VWAP to 16 Ja nua ry o f $1.0 pe r sha re
12.8 17.1 6.8 13.3 0.0 5.0 10.0 15.0 20.0 1HY2017 1HY2018 NZD $M's Op e ra ting c a sh flo w Ad juste d c a sh flo w
40
he ne t b uyb a c ks c o mprise d $2.8m a t de ve lo pme nt site s a nd $1.0m a t He re ta ung a to fa c ilita te the re me dia tio n wo rk.
NZD $m’s 1HY2018 1HY2017 F Y2017
Re c e ip ts fro m Ne w ORAs 34.4 31.3 68.8 le ss: Pa yme nts fo r Outg o ing ORAs (18.6) (16.7) (30.9) le ss: Ca sh Inflo w F ro m Ne w Sa le s (11.2) (5.8) (22.8)
Ne t Re sa le s Ca sh flow 4.6 8.8 15.1 Ma de up of :
Re sa le Ga ins 6.7 6.4 12.7 DMF Re a lise d o n Re sa le s 2.9 4.1 6.8 le ss: Ne t Buyb a c ks1 (3.8) (1.0) (3.2) le ss: Re sid e nt Sha re o f Ca pita l Ga ins (0.8) (0.6) (1.1) le ss: Othe r Ca sh a mo unts p a id / re c e ive d fro m re sa le s (0.3) (0.1) (0.1)
Ne t Ca sh flows from Re sa le s 4.6 8.8 15.1
Re c onc iliation of re sale s c ash flow
41 Unde rlying Profit (or Unde rlying NPAT )
Und e rlying Pro fit is a no n-GAAP me a sure use d b y the Gro up to mo nito r fina nc ia l pe rfo rma nc e a nd is c o nsid e ra tio n in d e te rmining d ivide nd d istrib utio ns. It is re po rte d in the o pe ra ting se g me nt no te o f the a ud ite d c o nso lida te d fina nc ia l sta te me nts. Und e rlying me a sure s re q uire a me tho d o lo g y a nd a numb e r o f e stima tio ns to b e a ppro ve d b y Dire c to rs in the ir pre pa ra tio n. Bo th the me tho do lo g y a nd the e stima tio ns ma y d iffe r a mo ng c o mpa nie s in the re tire me nt villa g e se c to r tha t re po rt und e rlying fina nc ia l me a sure s. Und e rlying pro fit is a me a sure o f fina nc ia l pe rfo rma nc e a nd d o e s no t re pre se nt b usine ss c a sh flo w g e ne ra te d d uring the pe rio d . Oc e a nia c a lc ula te s Und e rlying Pro fit b y ma king the fo llo wing a d justme nts to Re po rte d Ne t Pro fit a fte r T a x:
pla nt a nd e q uipme nt (fro m the Sta te me nt o f Co mpre he nsive Inc o me );
a nd c a re suite s;
e xisting c a re b e d to a c a re site o r c o nve rsio n o f a re nta l unit to a n ORA Unit; a nd
e xpe nse is re fle c te d .
Re sale Gain
T he Dire c to rs’ e stima te o f re a lise d g a ins o n re sa le s o f ORA is c a lc ula te d a s the ne t c a sh flo w re c e ive d b y the Gro up o n the c a sh se ttle me nt o f the re sa le o f pre -e xisting ORAs (i.e . the d iffe re nc e b e twe e n the ORA lic e nc e pa yme nt re c e ive d fro m the inc o ming re side nt a nd the ORA lic e nc e pa yme nt pre vio usly re c e ive d fro m the o utg o ing re sid e nt).
De ve lopme nt Margin
T he Dire c to rs’ e stima te o f re a lise d d e ve lo pme nt ma rg in is c a lc ula te d a s the c a sh re c e ive d o n se ttle me nt o f the first sa le o f ne w ORA Units a nd c a re suite s le ss the d e ve lo pme nt c o sts a sso c ia te d with d e ve lo ping the ORA Units a nd c a re suite s. T he d e ve lo pme nt c o sts inc lude :
infra struc ture (e .g . ro a d ing ) a nd a me nitie s re la te d to the units (e .g . la nd sc a ping ) a s we ll a s a ny d e mo litio n a nd site pre pa ra tio n c o sts a sso c ia te d with the pro je c t. T he c o sts a re a ppo rtio ne d b e twe e n the ORA units a nd c a re suite s, in a g g re g a te , using e stima te s pro vide d b y the pro je c t q ua ntity surve yo r. T he c o nstruc tio n c o sts fo r the ind ividua l ORA units o r c a re suite s so ld a re d e te rmine d o n a pro -ra te d b a sis using g ro ss flo o r a re a s o f the ORA units a nd c a re suite s;
suite s d e ve lo pe d . T he va lue fo r Bro wnfie ld d e ve lo pme nt la nd is the e stima te d fa ir va lue o f la nd a t the time a c ha ng e o f use o c c urre d (fro m o pe ra ting a s a c a re fa c ility o r re tire me nt villa g e to a d e ve lo pme nt site ), a s a sse sse d b y a n e xte rna l ind e pe nd e nt va lue r. Gre e nfie ld d e ve lo pme nt la nd is va lue d a t histo ric a l c o st; a nd
a re a o f ORA units a nd c a re suite s d e ve lo pe d. De ve lo pme nt c o sts d o no t inc lude :
c o mmo n a re a s a nd a me nitie s o r a ny o pe ra tio na l o r a d ministra tive a re a s. T he Dire c to rs’ e stima te o f d e ve lo pme nt ma rg in fo r c o nve rsio ns o f c a re b e d s to c a re suite s a nd re nta l units to ORAs is c a lc ula te d b a se d o n the d iffe re nc e b e twe e n the ORA lic e nc e pa yme nt re c e ive d o n the se ttle me nt o f sa le s o f ne wly c o nve rte d ORA units a nd c a re suite s a nd the a sso c ia te d c o nve rsio n c o sts. Co nve rsio n c o sts c o mprise :
a nd
a nd the fa ir va lue o f the re nta l unit prio r to c o nve rsio n.
42 T r a nsa c tion a nd offe r c osts
T
a sso c ia te d with the IPO. Of the se $4.4m millio n we re e xpe nse d b y Oc e a nia in F
Oc e a nia ’ s fina nc ia l pe rfo rma nc e in F Y2017 a nd prio r pe rio ds o n a c o nsiste nt b a sis.
L iste d c ompa ny c osts
Oc e a nia ha s inc urre d a dditio na l c o sts a sso c ia te d with the liste d e nviro nme nt inc luding Dire c to rs’ fe e s, a dditio na l a udit a nd ta x c o sts, listing fe e s, sha re re g istry fe e s, inve sto r re la tio ns c o sts, c o mpa ny se c re ta ria l c o sts, a nd a nnua l g e ne ra l me e ting c o sts. T
ha s b e e n ma de to inc lude e stima te d liste d c o mpa ny c o sts re pre se nting Oc e a nia a s if it wa s a liste d c o mpa ny in e a c h o f tho se pe rio ds.
L iste d c ompa ny c a pital str uc tur e
T he pro c e e ds o f the IPO we re use d to sub sta ntia lly re pa y a po rtio n o f Oc e a nia ’ s prio r de b t fa c ilitie s. T his me a ns tha t Oc e a nia ’ s re po rte d NPAT a nd Unde rlying NPAT me a sure s fo r F Y2017 do no t re fle c t Oc e a nia ’ s fina nc ia l pe rfo rma nc e o n a no rma lise d, a nnua l b a sis unde r its c urre nt c a pita l struc ture b e c a use the struc tura l re duc tio n in de b t (a nd inte re st e xpe nse ) tha t a ro se fro m the IPO wa s no t in e ffe c t fo r a ll 12 mo nths o f F
NPAT tha t wo uld ha ve a rise n ha d a liste d c a pita l struc ture b e e n in pla c e fro m the sta rt o f the fina nc ia l ye a r. T his e na b le s the fina nc ia l pe rfo rma nc e fo r F Y2017 to b e mo re e ffe c tive ly a sse sse d a nd c o mpa re d to F Y2018 a nd future pe rio ds. T his pro fo rma a djustme nt inc lude s a n a djustme nt fo r the write -o ff o f pre pa id fa c ility fe e s o n Oc e a nia ’ s histo ric a l de b t fa c ility. T he pre pa id fa c ility fe e s re la ting to the histo ric a l de b t fa c ility we re re q uire d to b e writte n o ff in a c c o rda nc e with a c c o unting sta nda rds a s the IPO o c c urre d prio r to the ma turity da te o f the histo ric a l de b t fa c ility. T his pro fo rma a djustme nt inc lude s a n a djustme nt fo r the a c q uisitio n o f the fre e ho ld la nd a nd b uilding a t the E lde rsle a a g e d c a re fa c ility whic h ha s pre vio usly b e e n re c o g nise d a s a fina nc e le a se in Oc e a nia ’ s histo ric a l fina nc ia l sta te me nts. In a dditio n, a sha re ho lde r lo a n o f $13.4 millio n wa s a dva nc e d to Oc e a nia fro m its imme dia te ho lding c o mpa ny in June 2016 to fa c ilita te the c o nstruc tio n o f the Sta g e 3 de ve lo pme nt a t Me a do wb a nk. T he sha re ho lde r lo a n wa s se ttle d b y wa y o f a sub sc riptio n fo r e q uity in Oc e a nia in Ja nua ry 2017. A pro fo rma a djustme nt ha s b e e n ma de to re mo ve the inte re st c ha rg e s inc urre d o n the sha re ho lde r lo a n in F Y2017.
43
l
Ca re Suite : A ro o m o r studio c e rtifie d fo r the pro visio n o f c a re b y the Ministry o f He a lth whic h ha s b e e n lic e nse d unde r a n ORA
l
DMF : De fe rre d ma na g e me nt fe e s, c ha rg e d unde r a n ORA, whic h a c c rue mo nthly to a spe c ifie d ma ximum a nd a re de duc te d fro m the re fund pa id to the de pa rting re side nt upo n re sa le o f the unit o r c a re suite
l
IP: Inve stme nt Pro pe rty
l
IPO F
ina nc ia l Info rma tio n c o nta ine d in the Pro duc t Disc lo sure Sta te me nt a nd Supple me nta ry F ina nc ia l Info rma tio n da te d 31 Ma rc h 2017
l
Mo H: Ministry o f He a lth
l
ORA: An o c c upa tio n rig ht a g re e me nt tha t c o nfe rs o n a re side nt the rig ht to o c c upa nc y a unit o r c a re suite sub je c t to c e rta in te rms a nd c o nditio ns se t o ut in the a g re e me nt
l
PAC: Pre mium a c c o mmo da tio n c ha rg e o n a c a re b e d fo r a c c o mmo da tio n pro vide d a b o ve the ma nda te d minimum
l
PPE : Pro pe rty, Pla nt a nd E q uipme nt
l
Unit: Inc lude s inde pe nde nt villa s a nd a pa rtme nts
l
WIP: Wo rk in pro g re ss
44
T his pre se nta tio n ha s b e e n pre pa re d so le ly b y Oc e a nia He a lthc a re L imite d ("Oc e a nia"). Yo u must re a d this disc la ime r b e fo re ma king a ny use o f this pre se nta tio n a nd the a c c o mpa nying ma te ria l o r a ny info rma tio n c o nta ine d in it ("Doc ume nt"). T he pre se nta tio n inc lude s no n-GAAP fina nc ia l me a sure s fo r de ve lo pme nt sa le s, re sa le s a nd o c c upa nc y whic h a ssist the re a de r with unde rsta nding the vo lume s o f units se ttle d during the pe rio d a nd the impa c t tha t de ve lo pme nt sa le s a nd re sa le s during the pe rio d ha d o n
T he a dditio n o f to ta ls a nd sub to ta l within ta b le s a nd pe rc e nta g e mo ve me nts ma y diffe r due to ro unding . T he info rma tio n se t o ut in this Do c ume nt is a n o ve rvie w a nd do e s no t c o nta in a ll info rma tio n ne c e ssa ry to ma ke a n inve stme nt de c isio n. It is inte nde d to c o nstitute a summa ry o f c e rta in info rma tio n re la ting to the pe rfo rma nc e o f Oc e a nia fo r the pe rio d e nding 30 No v 2017. Ple a se re fe r to the F ina nc ia l Sta te me nts fo r the pe rio d e nde d 30 No v 2017 tha t ha ve b e e n re le a se d a lo ng with this pre se nta tio n. T he info rma tio n in this pre se nta tio n do e s no t purpo rt to b e a c o mple te de sc riptio n o f Oc e a nia . In ma king inve stme nt de c isio ns, inve sto rs must re ly
in c o nne c tio n with a ny a c q uisitio n o f fina nc ia l pro duc ts. T he info rma tio n c o nta ine d in this pre se nta tio n ha s b e e n pre pa re d in g o o d fa ith b y Oc e a nia . No re pre se nta tio n o r wa rra nty, e xpre sse d o r implie d, is ma de to the a c c ura c y, a de q ua c y o r re lia b ility o f a ny sta te me nts, e stima te s o r o pinio ns o r o the r info rma tio n c o nta ine d in this pre se nta tio n, a ny
lia b ility a nd re spo nsib ility (inc luding witho ut limita tio n a ny lia b ility a rising fro m fa ult o r ne g lig e nc e o n the pa rt o f Oc e a nia , its dire c to rs, o ffic e rs, e mplo ye e s a nd a g e nts) fo r a ny dire c t o r indire c t lo ss o r da ma g e whic h ma y b e suffe re d b y a ny pe rso n thro ug h the use o f o r re lia nc e o n a nything c o nta ine d in, o r o mitte d fro m, this pre se nta tio n. T his pre se nta tio n is no t a pro duc t disc lo sure sta te me nt, pro spe c tus, inve stme nt sta te me nt o r disc lo sure do c ume nt, o r a n o ffe r o f sha re s fo r sub sc riptio n, o r sa le , in a ny jurisdic tio n. Re c e ipt o f this Do c ume nt a nd/ o r a tte nda nc e a t this pre se nta tio n c o nstitute s a c c e pta nc e o f the te rms se t o ut a b o ve in this disc la ime r.