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Highlights
- NZ’s baby boom population is approaching the retirement age, which could drive the retirement village industry further ahead.
- Radius Residential, of late provided an update on purchasing a Waikiwi-based retirement village and care facility, Clare House.
- Summerset Group had last month notified on sales of occupation rights for the 3Q21 period.
NZ’s baby boom population is approaching the retirement age, which could drive the retirement village industry further ahead. As per market reports, retirement villages in last one decade have fetched the best returns in terms of dividend and price yield.
On the given backdrop, let’s walk you through a few prominent names in the retirement village sector.
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Radius Residential Care Limited (NZX:RAD)
Specialist health and aged care provider, Radius Residential Care Limited, of late provided an update on purchasing a Waikiwi-based retirement village and care facility, Clare House.
The Company stated that the purchase of Clare House was finalised on 1 November at a value/consideration of NZ$14.5 million. It received funding from the new ASB NZ$62-million debt facility.
On 11 November, Radius Residential last traded flat at NZ$0.52.
Also read; Radius Residential (NZX:RAD): What are its new banking facilities?
Summerset Group Holdings Limited (NZX:SUM; ASX:SNZ)
NZ retirement village operator and developer Summerset Group Holdings Limited had last month notified on sales of occupation rights for the 3Q21 period.
In the three months duration until September, the Company noted 199 sales (new sales-117; resales-82)
The Company experienced a solid third-quarter results for sales and resales, with 744 sales were attained in the nine months period ended September this year.
On 11 November, Summerset Group last traded at NZ$13.88, up by 0.14%.
Do read; How is Summerset (NZX:SUM) moving ahead with latest village plan?
Arvida Group Limited (NZX:ARV)
Retirement villages and rest homes owner and operator Arvida Group Limited conveyed the market about concluding rights offer last month.
The Company stated that NZ$175-million 100% underwritten 1 for 6.57 pro rata renounceable rights offer was finalised. The offer obtained solid stakeholder backing with NZ$131 million of applications from authorised stakeholders.
These securities would have an issue cost of NZ$1.85/share, indicative of 12.2% lower to the 5 days volume-weighted average price before 15 October this year and a 9.2% price cut to the theoretic ex-rights and placement adjusted rate.
On 11 November, Arvida Group last traded at NZ$1.97, declining by 1.50%.
Did you miss reading; Arvida Group (NZX:ARV) completes its Rights Offer
Oceania Healthcare Limited (NZX:OCA; ASX:OCA)
With the aim of altering retirement and aged care experience for the elderly population, Oceania Healthcare Limited, notified last month of its upcoming interim results declaration.
The Company would release its six months results for the period closed September this year on 29 November. The presentation related to the same would be on the Company’s website, and both, on the ASX and the NZX.
On 10 November, Oceania Healthcare last traded flat at NZ$1.35.
Two minute read; Why Oceania (ASX:OCA) shares might be on the move today
Promisia Healthcare Limited (NZX:PHL)
Provider of tailored aged care empowering residents, Promisia Healthcare Limited, gave an update related to banking covenant.
The Company settled a positive discussion with BNZ with regards to banking covenants.
As informed earlier, Promisia had violated its EBITDA/Interest covenant for the June quarter period. The BNZ gave in writing that the EBITDA/Interest would persist in place, at the same level and Promisia has violated the EBITDA/Interest covenant for the September quarter.
BNZ further added that it would not be taking any action against a violation for the June or September quarter but has all the rights and respect to the violation.
On 10 November, Promisia Healthcare last traded unchanged at NZ$0.001.
Did you read; FY21 Results: TAH, PHL & GEN Show Growth Despite COVID-19 Pandemic
Bottom Line
The Retirement village is one of the swiftest developing industries currently driven by an ageing population and aspiration of leading quality retirement life. Reflecting steady growth, the industry holds the potential to enhance further in next three decades.