Would these 5 NZX retirement village stocks shine in October?

Highlights

• Amid the vaccination rollout and emerging Delta cases, retirement villages are under the spotlight.
• Recently, Summerset Group noted a robust third-quarter 2021 both in new and resales.
• Last month, Oceania made 2 new additions to it, which would enhance the Company’s Board to eight members.

Amid the Delta outbreak in New Zealand, with new cases rising to 46 in the last 24 hours, the total active cases stand at 494, as on 12 October.

NZ-domiciled retirement villages that are around 420 have been informed that the staff need not be vaccinated unless they have a high-risk job, as per the legal advice.

However, Ryman Healthcare and Summerset Group want new joinees to be jabbed. 

On the given backdrop, let’s look at the 5 NZX retirement villages in October.

                Image source: © 2021 Kalkine Media New Zealand Ltd, data source- EODHD/Others

Summerset Group Holdings Limited (NZX:SUM; ASX:SNZ)

Retirement village operator Summerset Group Holdings Limited lately revealed sales of occupation rights for the third quarter 2021.

Scott Scoullar, the Chief Executive Officer of the Company, stated that he had noted a robust third-quarter 2021 for new 117 sales and 82 resales.

By the end of the trading session, Summerset Group was down by 1.63% at NZ$15.05, as on 12 October.

Do read; 6 NZX Stocks On Investors’ Radar - AMP, PEB, ANZ, MEE, SUM, ARG

Arvida Group Limited (NZX:ARV)

The Developer, owner, and operator of NZ-based retirement villages Arvida Group Limited recently notified the market on the LTI Plan Vesting.

In another announcement, the Company conveyed the conclusion of a refinance of its bank debt facility with the Bank of New Zealand and ANZ Bank New Zealand.

The total threshold of the bank facilities presently stands at NZ$425 million.

Also, the Company’s weighted average funding tenure (along with retail bond) is presently 4.4 years.

Arvida last traded at NZ$2.10, decreasing by 0.47%, as on 12 October.

Related article; Arvida Delivers Strong Results In Quarterly Report

Oceania Healthcare Limited (NZX:OCA; ASX:OCA)

Provider of an array of retirement village living selections, Oceania Healthcare Limited is domiciled in New Zealand.

Last month, the Company notified the market on the hiring of two independent non-executive directors- Rob Hamilton and Peter Dufaur, who started their tenures 17 September.

These 2 additions would enhance the Company’s Board to eight members.

On 12 October, Oceania last traded at NZ$1.44, increasing by 2.13%.

Do read; Oceania (NZX:OCA) CEO Earl Gasparich Moves to Metlifecare (NZX:MET)

Ryman Healthcare Limited (NZX:RYM)

Functional for almost 35 years now, Ryman Healthcare Limited is one of the most famous New Zealand retirement village operators.

The Company held its annual meeting on 29 July, wherein Chairman of the Company, David Kerr, highlighted he had two major objectives. One was to offer exceptional care to the inhabitants of the retirement villages. The second one was to perform well in financial results for their owners.

In another announcement, the Company mentioned that veteran retail sector leader Richard Umbers was supposed to join as the Group CEO from October.

Also, Ryman’s Chief Development Officer Jeremy Moore has taken up a new part-time position of New Zealand’s land acquisition manager.

On 12 October, Ryman Healthcare last traded at NZ$14.7, rising by 1.03%.

Related read; How many villages does Ryman Healthcare (NZX:RYM) have?

Promisia Healthcare Limited (NZX:PHL)

The operator of elderly care facilities, Promisia Healthcare Limited, provided an update in August about finalising the quarterly covenant reporting.

It said that it had established that Promisia was in violation of one of the two banking covenants for the quarter closed June this year. The agreement pertained to the obligation for the EBITDA/interest cover, which was needed to be a minimum of twice the interest cost.

Promisia has already informed the Bank of New Zealand of the violation and has also asked for a waiver of the covenant.

By the end of the market session, Promisia was flat at NZ$0.001.

Did you miss reading; Are These 4 NZX Stocks Gainers And Losers Of The Day- PHL, GEO, ENS, MEE?

Bottom Line

As per the latest update from one of the biggest retirement village providers in NZ - Metlifecare, around 92% of both staff members and residents of retirement villages have received the jab.

The retirement village sector holds great potential for steady earnings since more and more senior citizens are moving in these well-equipped homes, which helps the booming sector.