Image source: Getty Images<\/p>\n
The Oceania Healthcare Ltd (ASX: OCA) share price is edging lower today, down 1.5% trading at $1.25 at the time of writing.<\/p>\n
Below we look at the latest results from the aged care facilities company, covering the 10-month period ending 31 March.<\/p>\n
Why a 10-month reporting period this year?Because Oceania changed its balance date from 31 May to 31 March.<\/p>\n
Oceanias share price is moving lower, despite the company reporting an 8% increase in unaudited underlying earnings before interest, tax, depreciation and amortisation (EBITDA).<\/p>\n
Unaudited underlying EBITDA came in at $56.2 million, up from $52.1 million in the previous corresponding 10-month period.<\/p>\n
The company also reported a 26% increase in sales volumes at its independent living apartments, villas and its care suites. Despite the COVID-19 headwinds, occupancy levels increased to 92.4%, up from 91.7% on the prior corresponding period.<\/p>\n
During the 10-month reporting period, Oceania completed 217 units and care suites. The valuation of its total assets increased 22% to $1.9 billion. The company pointed to improved valuations following the initial COVID-related downgrades, as well as capital expenditures, for driving the increase.<\/p>\n
Operating cash flow slipped to $96.0 million for the 10-month period, down from $99.4 million for the 12 months to 31 May 2020.<\/p>\n
Oceania also completed a $100 million capital raise during the reported period, with a $20 million retail offer and an $80 million placement.<\/p>\n
Oceania chair Liz Coutts advised that the board had declared a final dividend of 2.1 cents per share, unfranked. The record date is 8 June, and the dividend will be paid on 22 June. The company advised its dividend reinvestment plan will apply.<\/p>\n
Commenting on the past 10 months of operations and the capital raise, Oceanias CEO Brent Pattison said:<\/p>\n
We increased our investment in the business, demonstrating our commitment to building an even better future for Oceania, our residents, their families and our staff<\/p>\n
Oceania is well positioned to leverage its established platform, with gearing under 25% as at 31 March 2021. We were delighted with the strong support from our existing and new shareholders for our highly successful and oversubscribed $100.0 million capital raise, comprising of a $80.0m placement and a $20.0m retail offer.<\/p>\n
Oceania said it would use the money from the capital raise to acquire Waterford at Hobsonville Point in Auckland, New Zealand. Waterford is a retirement village comprising 64 independent living villas and 36 independent living apartments, and our leasehold site in Franklin (Auckland), together with adjacent bare land.<\/p>\n
Oceania shares have gained 68% over the past 12 months. By comparison, the All Ordinaries Index(ASX: XAO) is up 29% since this time last year.<\/p>\n
So far in 2021, however, the Oceania share price has headed in the other direction and is currently down 4%.<\/p>\n
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Originally posted here: <\/p>\n
Whats going on with the Oceania (ASX:OCA) share price today? - The Motley Fool Australia<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Image source: Getty Images The Oceania Healthcare Ltd (ASX: OCA) share price is edging lower today, down 1.5% trading at $1.25 at the time of writing. Below we look at the latest results from the aged care facilities company, covering the 10-month period ending 31 March Continue reading