$3b Oceania Healthcare in turnaround, loss turns to profit, expenses cut, Helier 45% empty

Of those sales, 39 were new units, 52 were new care suites, 71 units were resold and 109 care suites were resold.

Liz Coutts chairs Oceania. Photo / NZME

Care occupancy is at 94.7%. Hospital-level care beds and suites generate more than $15,000/bed annually.

“Cost savings of $20.4m were identified, with $4m delivered in 1HY26 and on track to deliver $13.2m in FY26.”

The company cited “cost efficiencies” and a sharper focus on working capital.

The company cited the housing downturn: “The broader housing market has constrained our residents’ ability to sell their family homes over recent times, acting as a handbrake on sales.”

It hopes for an improvement when it says “the demographic drivers will return”, indicating it hopes then for people aged 75+ to be able to sell their homes.

Gearing was cut to within the target range, and the business was well positioned for further sustainable improvement in the second half of its financial year, it said.

Debt is $608.9m, down 3% from $628m. Gearing is at 35%, down 1.5% from March and within the 30-35% target.

Oceania Healthcare’s Green Gables, Nelson. Photo / NZME

Total assets rose 3.3% from $2.9m to $3b, of which $2.9b is in property.

Pre-sales at a new Franklin village stand at 35.5% with 11 of 31 villas available under contract. The company is spending $54m there. By January, 31 villas are due to be built.

The company is making a huge development margin of 35.4% on its projects.

The value of unsold development stock fell from $342m at FY25 to $302m at the end of September.

This happened despite the completion of 40 dementia suites at Meadowbank, adding about $25m of new stock during the half year.

Oceania Healthcare chief executive Suzanne Dvorak. Photo / NZME

The company’s $150m The Helier in St Heliers was last year 69% empty. An investor presentation in August this year ,said it was still half-empty.

But today, the company said The Helier was 54.5% sold or units applied for, leaving it 45.5% empty.

“At The Helier, sales continue to improve, with 54.5% of residences either occupied or under application as at November 20 and targeting full cash recovery, including interest, by March 31, 2026,” Oceania said today.

In August, it said of that property: “Sales momentum improving under revised strategy with over 50% of residences now occupied or under application”.

Still half-empty: The Helier at 28 Waimarie St, St Heliers. Photo / Oceania Healthcare

The company also told in August what went wrong in St Heliers when the apartments were marketed as the housing market turned down sharply.

“Early sales momentum slowed due to initial product positioning,” it said.

Units at the property, which opened in 2023 are not cheap.

Indoor pool at The Helier retirement village in St Heliers. Photo / Oceania Healthcare

Prices for a licence to occupy an apartment in the 111-unit property at 28 Waimarie St started last year from $1.5m to $5m+.

It costs up to $3500/week for higher-needs geriatric care in the care residences.

Extensive views from The Helier retirement complex in St Heliers. Photo / Oceania Healthcare

Oceania was then advertising a “brand new” 80sq m apartment for $1.7m and a never-lived-in 124sq m place for $2.7m.

The Helier is now advertising a two-bedroom unit on the third floor for $2.5m, a two-bedroom unit on the second floor for $1.2m and a sixth-level unit to “soak in the cityscape” for $2.9m

Chief executive Suzanne Dvorak said last November: “The Helier opened last year right on the cusp of the tough economic times so sales were always going to be tricky”.

Of the financial year’s second half, the company said the focus was on accelerating sales, progressing a divestment programme, continuing to cut costs and further improving care profitability.

As at September 30, 2024, Oceania said it:

Provided accommodation for 3400 residents; Had been running 15 years;Employs 2500 staff;Has 2209 care beds and care suites;Owns 1915 units; Has 38 properties.

Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.

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