The Dog wags his tail...finally !
Thanks for the link JAK.
Finally something to be positive about. First of all some guidance on the future build rate that to the best of my knowledge hasn't been shared before...keep in mind their previous build rate has been a lot lower than this.
"We have 545 units under construction...we are going to continue to build sort of 300-350 units every year"
If I remember correctly the target was previously 200-250 units per annum under Earl's leadership and if I recall correctly they never got close to 250 ? (I may be mistaken here and am simply going off memory).
The second thing that gives me some much needed reason to be more positive is "we've started to increasingly move into Greenfield development" Over the next 5 years they have 821 care suites and 1140 independent living units planned for development and this will somewhat shift the unit mix. This isn't new info but is certainly worth taking note of.
I think with the rapid growth in development over the years ahead the opportunity is there to bring some economies of scale with head office costs and high level management salaries in particular being amortized over a much bigger business. This might being some relief to the rate at which human resource costs are increasing. They run their own training school for Nurses so they get first dibs on the best graduates.
I think when you compare the current development workload (545 units) and the future plan to build about 300-350 units per annum which is well up on previous build rates, the increasing focus on independent living units and greenfield development there are some grounds for optimism so with them closing on Friday at about 12 cents below the fair value adjusted NAV they are "Probably a pretty good Hold", (I am not upgrading to accumulate yet until they get more momentum in the business).
Lots and lots and lots of patience will be required here. Beagle is not very good at waiting a long, long time for a feed so I hope I can keep hanging in there.