And now second largest holding after NZ Custodial, so quite possibly the largest shareholder of OCA at 11%.
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Hi Mav - Thanks for your comment above.
I haven't been able to access the Craig's report you reference, nor a recent report on ARV which has been done by Forsyth Barr, but I can say there seem to me to be two recent Government funding adjustments that affect OCA.
Firstly, the initiative to support a move towards pay parity in healthcare by allocating budget funding for allocation to providers to reduce pay disparity for nurses and caregivers, with the providers responsible for passing on pay increases. We know OCA are eligible to receive this support because the AR presentation for FY to 31 March 2023 contains the following statement, namely " Disappointingly the expected pay parity funding for the sector did not eventuate in FY23. Oceania received a payment of $1.4m on 31 March 2023 for the first quarter of FY24. Though this package was lower than anticipated and the substantial gap in pay parity remains this still moves us a step closer to fair funding for our healthcare staff". I believe that payment was excluded from the Financial Statements for FY23 but will have been applied subsequently.
It isn't clear to me how much will be received by OCA from this source going forward (the Government has budgeted $200m annually but that will be spread widely, and not just to aged care providers either but to other healthcare sector participants) but the point is it can't be taken to the bottom line but must be used to increase pay rates. So it is required to be expensed, albeit it will help recruitment.
Secondly the Rest Home Care Subsidy weekly payment, which as you know has been increased from 1 July 2023 (so only 9 months benefit in OCA's current financial year). The increment on this occasion is quite significant but the calculation to determine it is done "in arrear" and is not forward looking to address the ongoing inflation rate and/or recent pay settlements.
The RCS as it is known is not constant throughout NZ but varies according to location. By way of example, rates have been set as follows:-
That’s a fair increase from what simply Wall Street ist showing for black rock reported as of July
BlackRock, Inc.
1.59%
Shares 11,526,076
Value NZ$9.1m
Change % 76.92%
Portfolio % 0%
Last Reported 31 Jul 23
They potentially took over management of some funds that hold OCA.
There's a swag of Blackrock SPH's today, interestingly many of them are property related companies. https://www.nzx.com/markets/NZSX/announcements
Continuing post #16682 :-
Maximum weekly contribution (GST inclusive):- 1 July 2022 1 September 2022 1 July 2023
Auckland City $1298 $1349 $1464
North Shore $1294 $1344 $1459
Waitakere $1267 $1317 $1430
Waikato $1208 $1255 $1365
Hamilton $1239 $1288 $1400
Wellington City $1267 $1317 $1430
Timaru $1208 $1255 $1365
Dunedin $1221 $1269 $1380
So the point to note is that in FY23 OCA had the benefit (for 6 months) of the amended rate paid from 1 September 2022, so the rate of increase now applied from 1 July 2023 is not as sharp a rise as could be anticipated, being about 9% above the former rate. Of course GST is included in the subsidy figure paid so the net receipt is adjusted down. So there has been an element of catch up as you say Mav but just how much will reach the bottom line at year end is somewhat moot. I have been interested in your calculations and agree OCA will benefit but given other cost escalations it's hard to figure the end result. For example, financing costs went from $9.3m in FY22 to 12.6m in FY23 and likely will continue on up in FY24.
One final statistic I gleaned from Cabinet papers since released is that around 21200 people were receiving the RCS in 2021 and that number reduced to around 20000 in 2023, I guess reflecting that increases in asset values caused a reduction in folk eligible?
The listed entities in the retirement sector offer a lot of opportunity for comparatives. For example staff ratios to residents/occupants, given the impact of the wage bill, would be a topic that could be investigated.
[QUOTE=winner69;1015540
But there will be some who will think just part of the plan for BlackRock taking over NZ …..if not the world[/QUOTE]
This is what I was baiting you into.
Most people don't realise that blackrocks ownership of everything is in fact themselves (teacher pensions etc)
All the Blackrock SPH announcements released to NZX today (about 10 of them, including one for OCA) have been retracted and have disappeared from the NZX website. Someone has stuffed up big time!
I'm far from a conspiracy theorist, but do find this strange.