Although, I imagine all of the retirement operators are expensing 'maintenance' each year, so if they also counted depreciation as a 'real' cost they would be double counting.
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I am not sure how much of the PPE and amortisation costs in the cashflow statement was used for straight replenishment costs.
But that is ~$280M more than the GAAP depreciation and is real money out the door.Quote:
Payments for Property, Plant, and Equipment and Intangible Assets
2017
- Payments: NZD 33,503,000
2018
- Payments: NZD 33,389,000
2019
- Payments: NZD 72,895,000
2020
- Payments: NZD 40,433,000
2021
- Payments: NZD 36,269,000
2022
- Payments: NZD 56,289,000
2023
- Payments: NZD 55,160,000
2024
- Payments: NZD 53,850,000
Summary of Total Payments for Property, Plant, and Equipment and Intangible Assets
- Total from 2017 to 2024: NZD 381,788,000.
NOTE: this is separate to 'Payments for investment property and investment propertyunder development'.
It is not hard to see how the so-called "float" has all but disappeared over the years.
I guess that is the risk with Ponzi schemes.
Moneyhub has the average income on 50-80k for 25-34yo. So 150k for two people would be getting to be high average household income for that age group.
https://www.moneyhub.co.nz/average-n...ry-by-age.html
Most of it seemed to go on paying wages, repleneshing (not improving!) stock and paying dividends.
So most has disappeared, yes.
The rest seems to have gone towards overpaying for land and escalating build costs.
As I say, none of this means that OCA is doomed to failure. If they get a handle on things and start making better decisions, investors may well take another look.
But there is a lot of clean up (as Brent put it) between now and then.
And anyone saying that the current EV of ~$1B is way undervalued, and everyone else is just stupid/doesn't get it is deluding themselves.
I think OCA is near enough to fair value at the moment, given the various issues and headwinds it faces at the moment.
I thought the DMF fee was intended to cover long-term management and maintenance costs associated with the properties? Is this not the equivalent of replacement cost (repairs and upgrades as you go?) That would mean you are double counting with this comment wouldn't it?.