Can Oceania Healthcare Sustain Growth Amid Rising Costs and Regulatory Changes?

A Year of Solid Progress

In her inaugural address to shareholders, Oceania Healthcare’s Chief Executive Officer painted a picture of steady growth and operational discipline in the 2025 financial year. Since taking the helm last July, she has focused on improving sales performance and operational efficiency, delivering tangible results that have strengthened the company’s market position.

New sales volumes surged by over 17%, with resales also climbing 5%. Notably, the second half of the year saw a 7% uplift in new sales compared to the first half, driven by enhanced leadership in sales, refined pricing strategies, and targeted marketing efforts. Several villages stood out, including Auckland’s Helier, which boosted occupancy from a mere 14% to 41%, and Christchurch’s Bellevue, which sold out its apartments within two years.

Operational Efficiency and Financial Discipline

Alongside sales growth, Oceania Healthcare has made strides in operational efficiency. A cost reduction program has already saved $5 million, with a broader initiative aiming for $10 to $15 million in savings over time. The company also successfully refinanced its banking facilities, extending debt maturities and securing competitive pricing, which helped reduce stock levels from $353 million to $342 million despite adding $120 million in new development stock.

Transparency remains a priority, with accounting policies and disclosures independently verified by Ernst and Young, biannual property valuations, and consistent fee structures aligned with New Zealand superannuation.

Portfolio Growth and Future Development

Oceania Healthcare continues to modernize and expand its portfolio. Key milestones in FY25 include the completion of 68 apartments at Awatere Village, 50 at Waterford Village, and the opening of a 106-suite care building at Elmwood Village. Additionally, 40 new dementia suites were introduced at Meadowbank Village.

Looking ahead, the company is preparing for further growth with new villas and a community centre at Franklin, land acquisition near Gracelands in Hastings, and redevelopment plans at Lady Allum. The sale of six older sites has helped reduce debt and improve overall portfolio quality.

Strategic Refresh and Commitment to Care

Central to the CEO’s address was the unveiling of Oceania’s refreshed purpose – “Supporting and empowering people to live well as they age.” This is supported by four strategic pillars; Connected Care, Inspired Living, Empowered People, and Purposeful Impact; that will guide the company’s priorities over the next five years.

The company is also advancing clinical leadership and care quality, introducing technology platforms like SafetyHub to enhance health and safety, and actively engaging in regulatory reform discussions around the Retirement Villages Act to promote transparency and sustainability.

Sustainability and Climate Transition

Oceania Healthcare is preparing for a climate-resilient future through its recently released Climate Transition Plan. The plan focuses on adapting villages and buildings, lowering emissions, and supporting staff as part of a broader commitment to environmental and social responsibility.

With a strong leadership team and a clear strategic direction, Oceania Healthcare appears well positioned to navigate the evolving aged care landscape while delivering value to residents, employees, and shareholders alike.