Oceania today announced unaudited Underlying Earnings before interest, tax, depreciation and amortisation (EBITDA) of
$56.2m for the 10 month period ended 31 March 2021, an 8% ($4.1m) increase on the ten month period ended 31 March 2020.Highlights:Sales volumes (for both independent living apartments and villas, as well as care suites) 26% ahead of the 10 month
period ended 31 March 2020.Aged care business continued to perform well throughout the period despite COVID-19 disruptions, with occupancy
increasing to 92.4% for the 10 months to 31 March 2021 compared to 91.7% for the 10 months to 31 March 2020.The completion of 217 units and care suites during the 10 month period to 31 March 2021.Operating cash flow of $96.0m for the 10 month period to 31 March 2021 compared to $99.4m for the 12 months to 31 May
2020, as a result of continued strong sales volumes.Total assets increased to $1.9 billion, up 22% ($335.0m) on 31 May 2020, primarily due to significant capital
expenditure and reversal of COVID-19 related property valuation assumptions.Completion of a $100.0m capital raise, comprising a $80.0m placement and a $20.0m retail offer.Acquisition of Waterford and Franklin sites.Final dividend of 2.1 cents per share (not imputed) announced. This will have a record date of 8 June 2021 and will be
paid on 22 June 2021. The Dividend Reinvestment Plan will apply to this dividend.
Oceania has changed its balance date from 31 May to 31 March. The financial performance outlined below is reported on
the basis of the 10 month period to 31 March 2021:31 March 2021 unaudited non-GAAP trading measures 10 months vs 10 months$m10 months to
31 March10 months to
31 MarchGrowthUnaudited20212020$m%Underlying EBITDA56.252.14.17.9%Underlying NPAT41.840.01.84.5%Sales3883097925.6%Occupancy92.4%91.7%0.64%0.7%31 March 2021 audited GAAP statutory measures 10 months vs 12 months$m10 months to
31 March12 months to
31 MarchAudited20212020Operating Revenue175.4193.6Reported NPAT85.5(13.6)Operating Cashflow96.099.4Total Assets 1,883.71,548.7
Oceania CEO Brent Pattison advised that “we have observed strong volumes of sales across both independent living
apartments and villas, as well as our care suite products. Our team has worked hard to ensure that we deliver growth and
performance to our investor community against the challenging backdrop of COVID-19. We increased our investment in the
business, demonstrating our commitment to building an even better future for Oceania, our residents, their families and
our staff.”
Oceania is continuing to focus on its premium care strategy. Premium care revenue is driven by increased deferred
management fee capture. Mr Pattison explained that “the execution of our premiumisation strategy is a critical driver of
underlying performance. Approximately 55% of our care portfolio is now premium beds or care suites, compared to 34% at
the time of our IPO in 2017. For the 10 months to 31 March 2021, Oceania generated premium care revenue which is 12%
higher than premium revenue for the full 12 month period to 31 May 2020.”
Operating cashflow of $96.0m for the 10 month period to 31 March 2021 was particularly strong, compared to $99.4m for
the 12 months to 31 May 2020, as a result of continued strong sales volumes. Total assets increased to $1.9 billion, up
22% ($335.0m) on 31 May 2020, primarily due to significant capital expenditure and the reversal of COVID-19 related
property valuation assumptions.
Following the lifting of COVID-19 restrictions, Oceania delivered 217 units and care suites across three sites in the 10
month period to 31 March 2021, with guidance unchanged despite the change in balance date. The development of 28
independent living apartments and 61 care suites at Green Gables (Nelson) was completed in September 2020 and sales at
this site are progressing well. In addition, the development of 35 independent living apartments at The BayView
(Tauranga) and 22 independent living apartments and 71 care suites at The Bellevue (Christchurch) were completed during
the period. Since 31 March 2021, Oceania has also completed the development of 49 independent living apartments at Eden
(Auckland). Looking ahead, Oceania has resource consents in place for 75% of its development pipeline comprising
approximately 2,000 units and care suites.
“Oceania is well positioned to leverage its established platform, with gearing under 25% as at 31 March 2021. We were
delighted with the strong support from our existing and new shareholders for our highly successful and oversubscribed
$100.0m capital raise, comprising of a $80.0m placement and a $20.0m retail offer“ said Mr Pattison. Oceania has
utilised the proceeds of the capital raise to acquire Waterford (Hobsonville Point, Auckland), a retirement village
comprising 64 independent living villas and 36 independent living apartments, and our leasehold site in Franklin
(Auckland), together with adjacent bare land.
Oceania has further invested in clinical training and development this year as part of its commitment to provide career
development for its staff. Oceania remains focused on delivering outstanding clinical care to its residents. Clinical
leadership and education are key to the delivery of quality care, improving overall skill levels and surveillance
abilities.
Oceania Chair Liz Coutts advises the Board declared a final dividend of 2.1 cents per share (unimputed), bringing the
total dividend for the 10 month period to 31 March 2021 to 3.4 cents per share (unimputed). The record date for the
dividend is 8 June 2021 and the payment date is 22 June 2021. The Dividend Reinvestment Plan will apply to the dividend
payable on 22 June 2021 at a discount of 2.5% to the volume weighted average price of shares sold on the NZX Main Board
over the period of the five trading days starting on 4 June 2021.