mistaTea - DMF income is there to pay for expenses. And DMF income is funded from ORA receipts. Paying for opex using DMF income funded from ORA receipts is not the issue you make it out to be. In addition, where profits are derived from DMF, such profits are ultimately funded from ORA receipts......again, where is the issue with paying dividends from that?
Summary of cashflows from FY17-FY23 (all in NZ$m):
Receipts from residents for fees $1,550
+ Nett ORA Receipts $906
- Payments to suppliers/employees* ($1,618)
- Leases/ROU payments** ($52)
- Nett Interest ($95)
= Operating Cashflows +$693
Add:
Listing/CR Proceeds $289
+ Debts Raised $364
- Dividends Paid ($118)
=Finance Cashflows** +$536
Less:
- Capex, Acquisitions less Site Sales ($1,226)
=Total Cash Flows FY17-FY23 +$3m
*less nett GST and insurance proceeds
** ROU payments reclassified as operating cash outflow
So in summary OCA over the period FY17 to FY24 have invested $1.23b in facilities which was funded by:
- clients to the tune of $693m
- debts of $364m
- shareholders $171m (CR less dividends)