# Findings Report — Prompt 7: Oceania Developments **Run Date:** 8 June 2026, 08:00 NZST **Prompt:** #7 — Oceania Developments (Provider Watch) **Category:** Provider Watch — 11_Market_and_Industry_Reports --- ## What Was Searched 1. `Oceania Healthcare announcement OR investor OR quarterly 2026 site:oceaniahealthcare.co.nz` — company investor centre 2. `Oceania Healthcare NZX announcement 2026 site:nzx.com` — NZX regulated announcements 3. `Oceania Healthcare 2026 news OR results OR quarterly OR village OR opening` — general news 4. NZX OCA announcements page extracted for full chronology 5. FY26 Market Release PDF extracted and analysed 6. FY26 Investor Presentation PDF extracted and analysed --- ## What Was Found ### 1. FY26 Full Year Results — Released 22 May 2026 ✅ Annual Report PDF Already in KB Oceania Healthcare (NZX/ASX: OCA) released its audited full year results for the 12 months ended 31 March 2026. The FY26 Annual Report PDF is already captured in the KB at: - `11_Market_and_Industry_Reports/2026 - Oceania Healthcare - FY26 Annual Report.pdf` No source brief/summary currently exists for this document. ### 2. Key Financial & Operational Highlights (FY26 vs FY25) | Metric | FY26 | Change | | ---------------------------------- | ---------------- | ---------------------------------------- | | **Total Comprehensive Income** | $75.0m | flat | | **Statutory Net Profit after Tax** | $0.1m | ↓ from $30.4m | | **Proforma Underlying EBITDA** | **$97.7m** | **+20%** | | **Proforma Underlying NPAT** | $64.1m | +34% | | **Free Cash Flow from Operations** | ($15.0m) outflow | +64% improvement | | **Total Sales Volumes** | **603 units** | **+16%** | | **Gross Value of Settled Sales** | $375m | +20% | | **Care EBITDA per occupied bed** | **$27k** | **+40%** | | **Net Debt** | **$506.7m** | **↓ $121.4m** | | **Gearing** | **30.1%** | ↓ from ~37% (lower end of 30-35% target) | | **Total Assets** | $3.1bn | +4.6% | | **Net Tangible Assets per share** | $1.62 | +7.3% | | **Unsold Development Stock** | $227m | ↓ 34% from $342m | **Key narratives:** - Record sales performance achieved despite subdued residential property market - Bottom-line net profit collapsed to $119K due to accounting adjustments (lower property revaluations, closure of Wesley Institute of Nursing Education) - No dividend declared for FY26 — Board prioritising balance sheet repair; policy is 40-60% of operating FCF - Free cash flow expected to turn positive in FY27 - Strategic reset already delivered $13.2m cost savings; targeting $20.4m annualised in FY27 - Support office staff cost reduced ~20% through right-sizing and automation **Sources:** - https://api.oceaniahealthcare.co.nz/wp-content/uploads/2026/05/FY26-Market-Release.pdf (accessed 8 Jun 2026) - https://api.oceaniahealthcare.co.nz/wp-content/uploads/2026/05/FY26-Investor-Presentation.pdf (accessed 8 Jun 2026) - https://www.nzx.com/announcements/473127 (accessed 8 Jun 2026) ### 3. Sales & Development Pipeline | Detail | Figure | | ----------------------------------------- | ----------------------------------------------------------------------------------------- | | **Total units settled** | 603 (+16%) | | **Resales** | 402 units (+20%), delivering $37m gains | | **New sales** | 201 units (record, +9%) | | **Average unit price** | +4% (mix shift to independent units) | | **The Helier (Auckland premium village)** | 74% sold/under application; development recovery at 97%; adjacent land for 16 apartments | | **Franklin Village (Pukekohe)** | Stage 1 (31 villas) opened Jan 2026; 80% sold; Stage 2 enabling works started (28 villas) | | **New units delivered in FY26** | 71 (31 villas, 40 care suites) | | **FY27 build target** | 81 units across 3 sites | | **Unsold stock reduction** | $115m net reduction to $227m (net of $79m new stock added) | **Sources:** - https://api.oceaniahealthcare.co.nz/wp-content/uploads/2026/05/FY26-Investor-Presentation.pdf (accessed 8 Jun 2026) - https://www.nzx.com/announcements/473127 (accessed 8 Jun 2026) ### 4. Divestments Update — 2 March 2026 ⚠️ NEW CONTEXT Oceania completed **six divestments totalling ~$50m** by 31 March 2026 — exceeding prior targets for both quantum and timing. This was an 18-month objective achieved in 6 months. **Divested sites:** | Site | Type | |------|------| | Ohinemuri (Paeroa) | 46 units | | Whitianga | 76 units | | Te Mana (Auckland) | — | | Elmswood (Tauranga) | 109 units | | Eldon (Wellington) | 46 units | | Hutt Gables (Wellington) | — | | **Total: 299 care beds, 46 ILUs, 14 care suites** | - All sites sold at or around carrying value - Acquired by reputable operators committed to ongoing care - Contributed <$5m underlying earnings in FY26 **Source:** https://www.nzx.com/announcements/468413 (accessed 8 Jun 2026) ### 5. New Director Appointed — Sarah Ottrey (5 Feb 2026) Sarah Ottrey appointed as independent non-executive director, effective 5 February 2026. Brings additional governance expertise to the Board. **Source:** https://oceaniahealthcare.co.nz/investor-centre/esg-platform/ (accessed 8 Jun 2026) ### 6. Annual Meeting & Director Nominations — 2 June 2026 ⚠️ NEW - **Annual Shareholder Meeting:** Thursday 30 July 2026, 2:00pm NZST - **Location:** Park Hyatt Auckland (in-person + virtual) - **Director nomination period:** Opens 2 June 2026, closes 5:00pm 16 June 2026 - Nominations must be made by eligible shareholders to company secretary **Source:** https://www.nzx.com/announcements/473673 (accessed 8 Jun 2026) ### 7. OCA010 Bond Interest Payment Date Change — 14 Jan 2026 Oceania announced a change to the interest payment date for OCA010 bonds. This was an administrative/technical adjustment. **Source:** https://www.nzx.com/announcements/465857 (accessed 8 Jun 2026) ### 8. Media & Analyst Reaction - **Share price** jumped ~9% on results day (22 May 2026) - Still down ~12% over past six months amid broader sector pressure - **RNZ coverage:** Headline profit collapse to $119K, but underlying performance strong (record sales, debt reduction) - **Newswire analysis:** "Oceania Healthcare delivers record FY26 sales but no dividend as net debt falls $121 million" - **Yahoo Finance / Investing.com:** Earnings call transcript and analyst reaction recorded - Broader sector context: elevated interest rates, subdued housing market affecting retirement village sales across the sector - Demographic tailwind continues: 75+ is fastest growing cohort in NZ **Sources:** - https://www.rnz.co.nz/news/business/596013/oceania-healthcare-records-record-full-year-results (accessed 8 Jun 2026) - https://newswire.co.nz/2026/05/oceania-healthcare-record-fy26-no-dividend/ (accessed 8 Jun 2026) - https://finance.yahoo.com/markets/stocks/articles/oceania-healthcare-ltd-asx-oca-070025412.html (accessed 8 Jun 2026) ### 9. Key Upcoming Dates | Date | Event | | -------------- | ---------------------------------------------------------- | | 16 Jun 2026 | Director nominations close | | 30 Jul 2026 | **2026 Annual Shareholder Meeting** (Park Hyatt, Auckland) | | By 31 May 2026 | FY26 Annual Report filed (already done) | | By 31 Jul 2026 | Climate-related disclosures expected | --- ## Value Assessment 🟠 HIGH FY26 results represent a **pivotal year** for Oceania Healthcare. The key strategic narrative: 1. **Debt reduction is working** — net debt down $121m to $507m, gearing at lower end of target 2. **Sales execution improving** — record sales volumes despite subdued property market 3. **Care profitability surging** — EBITDA per bed up 40% to $27k 4. **Portfolio streamlined** — 7 non-core sites divested for $51m 5. **No dividend** — signals continuing balance sheet discipline 6. **Positive FCF targeted for FY27** — key milestone to watch This is valuable context for the KB's provider profiles, especially for understanding the financial health of a major retirement village and aged care operator. --- ## KB ACTION ### Files to Create: 1. **CREATE** `11_Market_and_Industry_Reports/2026 - Oceania Healthcare - Source Brief - FY26 Annual Report.md` - Comprehensive analysis of the FY26 Annual Report, including: - Financial performance and underlying metrics - Sales and development pipeline - Divestments and portfolio strategy - Care profitability improvement - Balance sheet and capital management - Board composition and governance - Post-report developments (AGM notice, director nominations) - Key upcoming dates ### Files Already in KB: - `11_Market_and_Industry_Reports/2026 - Oceania Healthcare - FY26 Annual Report.pdf` ✅ - `11_Market_and_Industry_Reports/2024 - Oceania Healthcare - Annual Report.pdf` ✅ ### No Other KB Files Need Updating: - Oceania is not covered in any other KB trackers currently - The provider profile in the Market folder will be covered by the new source brief --- ## Cross-References - Existing KB file: `11_Market_and_Industry_Reports/2026 - Oceania Healthcare - FY26 Annual Report.pdf` - Existing KB file: `11_Market_and_Industry_Reports/2024 - Oceania Healthcare - Annual Report.pdf` - Related prompts: Prompt 5 (Ryman), Prompt 6 (Summerset), Prompt 8 (Radius Care), Prompt 9 (Arvida) — provider watch series - Related KB area: `02_Aged_Residential_Care` (aged care facilities operated by Oceania) - Related KB area: `03_Retirement_Villages` (retirement village market) --- _Report generated automatically by Hermes Agent research cron job, 8 June 2026._