How Is Oceania Healthcare Driving Growth Amid Market Headwinds?

Strategic Reset Amid Market Challenges

Oceania Healthcare, a leading New Zealand aged care and retirement living operator, presented its Investor Day update outlining a clear and disciplined strategy to navigate a challenging market environment. With a portfolio of 36 sites and over 2,600 employees, Oceania is focused on strengthening its foundations from FY25 through FY27, setting the stage for sustainable growth through to FY31.

The company’s leadership team, led by CEO Suzanne Dvorak, emphasised a three-pronged approach prioritising sales performance, business excellence, and capital management. This approach responds directly to investor feedback calling for sharper sales execution, tighter cost control, and clearer capital discipline.

Driving Sales and Operational Efficiency

Oceania has revitalised its sales and marketing functions with targeted campaigns, a zoned sales model, and refined pricing strategies to accelerate applications and occupancy. Early results show year-on-year growth in sales applications and steady settlement volumes, despite a subdued residential property market.

Operationally, the company is embedding optimisation initiatives that have already identified $20.4 million in annualised savings, expected to be fully realised by FY27. These include workforce and operating model efficiencies, marketing spend reviews, and supplier consolidations. Site-by-site performance reviews have highlighted opportunities to improve occupancy and pricing cohesion, while divestment of 4–6 underperforming sites is expected to generate $30–50 million in proceeds to support balance sheet flexibility.

Capital Discipline and Growth Pipeline

Capital management remains a cornerstone of Oceania’s strategy, with a targeted gearing ratio of 30–35%. The company plans to reduce debt through disciplined sell-down of development stock, strategic divestments, and growth in operating cash flow. The dividend policy has been updated to align payouts with free cash flow from operations, targeting a 40–60% payout ratio, signaling a prudent balance between shareholder returns and reinvestment.

Oceania’s development pipeline includes a landbank of approximately 1,000 units across key growth regions such as Franklin and Hawke’s Bay. The Franklin greenfield development, Oceania’s first broadacre site, is progressing with 71 units under construction and plans for staged delivery over the next decade. The Gracelands expansion similarly offers low-risk optionality with additional villas planned to meet strong demographic demand.

Enhancing Resident Experience and Service Expansion

At the heart of Oceania’s strategy is a commitment to care quality and resident choice. The company is piloting new in-home care and lifestyle services across flagship sites to meet evolving resident needs and create new revenue streams. Technology integration, including AI-driven clinical dashboards and digital connectivity, is positioned as a key enabler to enhance transparency, efficiency, and personalised care.

Oceania aims to be the first choice for residents and families by delivering seamless care, transparent pricing, and a trusted community experience. Employee engagement and culture are also highlighted as critical enablers of consistent execution and long-term value creation.

Looking Ahead

With a disciplined build rate targeting 100 to 150 units annually post-FY27, and a clear focus on operational excellence and capital discipline, Oceania is positioning itself to capture upside in improving markets while maintaining resilience in tougher conditions. The company’s strategic framework connects purpose, pillars, and performance metrics to track progress and sustain growth through FY31 and beyond.