In the nearly 16 years ( 'anniversary' is 15-Jul, that will be a better excuse to share a bottle of wine than 610 years since
The Battle of Grunwald ) that I have frequented this board the subject of how these healthcare/retirement village companies actually make (or don't make in MET's case) their money has come up on a pretty regular basis.
So, very generally:
You make a little money, or at least do not lose too much doing the care & added services bit:
You make a bit on money reselling (the right to occupy) an existing unit at a higher price than last time:
You make most money selling a new unit for more than it cost to build.
Each of these involves cash-flow and the value of the properties is related to the 'expected future cash-flow they will generate', but in reality means the state of the residential property market.
Underlying all this the value is dependent upon the premise that in the long run they company can build more and more new units every year ( on a long term basis ) which leads one to consider the possible parallels with the 'Shoe Event Horizon'. [If necessary Google It, Think About It & DO NOT Dismiss It]
Should you think you have all that sorted before I get back from the wine cellar then you can ponder the industries insistence that the "underlying profit" thing is a better measure of performance than the old NPAT/Comprehensive Income.
Anyway good night or good morning or whatever to you depending on your time-zone.
Disc: Mostly harmless