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Aged Care Services
nipper
post Posted: Apr 20 2020, 02:24 PM
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In Reply To: nipper's post @ Oct 10 2019, 10:33 AM

A fundie holding EGH has a view that independent living is coping OK, even if the shareprice hasn't picked up since Covid-19 impact hit
QUOTE
• EGH have seen no changes in occupancy levels to date.
• Systems and processes have been put in place to minimise risk across all EGH villages.
• Total asset value is $0.34 per share with net debt of circa 40% as at 31 December 2019.
• >90% of cash flows are through contracted rental accommodation agreements.

Got to 40c but now hovering around 28c, with little rebound




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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early birds
post Posted: Mar 10 2020, 01:11 PM
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In Reply To: mullokintyre's post @ Mar 10 2020, 12:27 PM

remembering ” wall street" ??
GREED---lack of better words--is good! lmaosmiley.gif

joke aside. there is balance between provide basic care and save unnecessary cost for those homes.
that is most of share holders wish for the manege team to do the job. i guess reality is another story, that is why we RC moved into this sector
but with egging population growing explosively , i see the demands . to be ownest with you Asian or not , no one likes live with the odies but a lot of people do respect and love them.
a good quality age care home might be able to solve issue. if some can afford it. i guess a lot of oldies do have property that worth good mount of $$$.....
that is why i jumped into this sectors. but the virus thingy.................. i can only give my self a bitter laugh.... wink.gif

when i did study on both of them i do see they owns a lot of land. esp JHC . at my calculation it sell all land at current price they can pay off their debt and return big mount of cash to share holders
that is why i kinda think that market seems blind to see these valuation at current chaos..............




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mullokintyre
post Posted: Mar 10 2020, 12:27 PM
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In Reply To: early birds's post @ Mar 10 2020, 10:17 AM

Howdy Eb,
Unlike most Asian families, older people are seen as a bit of a burden.
The kids/ grandkids are waiting for the old folks to pass on so they get their oldies assets passed on.
For every hard luck story on Tv where family members complain about lack of care, there are a hundred others where the family bicker over the costs of what little service is provided.
When my wife owned a pharmacy, she did a lot of webster packs and home medication reviews, she cane across the greedy side of people.
There were descendants who would argue over a pack of tissues provided for the residents.
So while there is continual pressure on the homes by the uncaring greedy bastards, nothing will change.
Mick



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early birds
post Posted: Mar 10 2020, 10:17 AM
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In Reply To: nipper's post @ Mar 10 2020, 06:34 AM

do you have any more infos nipper??

currently i sit on a big loss { nearly 20%] on both EHE JHC. bought them too early after i did deep check on their balance sheets and assets backing .
at their current price if someone jump in for a take over, that would be huge bargain given the assets they've got .
i thought by 2023 23% of australian population will be over 60's that would be a huge tail win for these stocks, but that freaking virus seems ruined my { smarty pants] weirdsmiley.gif

if you know bit more inside news please share it here nipper or any other readers.



 
nipper
post Posted: Mar 10 2020, 06:34 AM
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QUOTE
According to an industry benchmarking report to be released next week by leading aged care consultancy StewartBrown, a staggering 56 per cent of the 1100 individual homes surveyed are already losing money at an operational level.

Experts suggest that if the coronavirus hits Australia as hard as some models predict, and occupancy falls further, then some community aged care and smaller for-profit operators will be pushed to the brink – at a time when everything needs to go right in Australia’s health system.


QUOTE
"Inside one of Australia’s big listed aged care firms, the attitude is to prepare for the worst and hope for the best."




--------------------
"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

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beancount
post Posted: Oct 11 2019, 05:34 AM
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In Reply To: nipper's post @ Oct 10 2019, 10:33 AM

i agree. EHG has figured out the traditional village model. The rental income is stable at $15.8 Mn, with 91% occupancy.

They are looking at four new acquisition targets to recreate this village model: Terranora, Wynnum, Gympie, and Townsville.

I like the solidity and the plan for growth. It's everything the existing management team can handle.

https://www.eurekagroupholdings.com.au/wp-c...-30-08-2019.pdf

 

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nipper
post Posted: Oct 10 2019, 10:33 AM
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QUOTE
Eureka Group Holdings Limited (EGH) is a property asset manager of senior independent living communities in Australia.

EGH focuses on flexible guest and care services with 32 owned villages and 9 villages under management representing 2,182 units.

- EGH seems to have stabilised after the widespread selloff across the sector 2017-18
QUOTE
Eureka Business Model
✓ Owner/Operator of independent rental accommodation with a focus on independent retirees who are completely or primarily supported by the Australian Government pension
✓ Target market represents a significant portion of the growing retirement population
✓ Objective to grow and scale the business, through acquisition of traditional villages and development of existing assets. Portfolio and greenfield developments to follow at a later stage




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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
blacksheep
post Posted: Mar 24 2019, 02:20 PM
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Killing it: Australian Unity takes its elderly Home Care customers to the cleaners
Mar 24, 2019 | Business, Featured
extract
QUOTE
“Thanks for your enquiry. Australian Unity declines to comment to (sic) your enquiry or respond to the report you refer to (sic)”.

That’s a pity because it would appear that Australian Unity has been exploiting frail and elderly Australians and the government’s home care system as well. Of course, a “no comment” does not constitute proof of guilt; but it surely gives rise to suspicion.

Australian Unity is a large private health insurer. It also runs retirement villages and has burst onto the Home Care scene, profiteering from its elderly customers and, like the banks in the Royal Commission, charging for services which were never provided.

Not just overcharging a little either. According to sources, Australian Unity charged one elderly customer “over $600 per month for case management during the period (18 months) when the client had no case manager”.

Another client was charged more in “administration” and “case management” fees ($1,276.50) than the cost of providing the actual home care service ($1,251.46).

These, amid a litany of other things. Australian Unity is believed to be Provider M in this report to the Aged Care Royal Commission from Dr Sarah Russell of Aged Care Matters.


read more - https://www.michaelwest.com.au/killing-it-a...o-the-cleaners/



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The herd instinct among forecasters makes sheep look like independent thinkers. Edgar Fiedler

If the freedom of speech is taken away then dumb and silent we may be led, like sheep to the slaughter. George Washington

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nipper
post Posted: Mar 24 2019, 11:29 AM
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QUOTE
As the aged care royal commission rolls on across the country, the troubled sector has received a rare positive signal. The unmistakeable trend of falling property prices, which are down 10-20 per cent Australia-wide, is set to affect costs in aged care.

Many people have to sell their family home to pay the infamous Refundable Accommodation Deposits, so it stands to reason that if the family home is worth 20 per cent less than it was last year, RADs become commensurately more expensive.

The range of RADs is enormous, varying between different facilities, aged-care providers, locations, even between different rooms within the same facility. So far, RADs have not changed to reflect falling house prices, but we can expect changes soon.

Since July 2014, the Minister for Aged Care has had the power to set the RAD threshold under the Aged Care Act. That threshold is currently $550,000. When an aged-care provider wishes to set the RAD above this threshold, it must apply to the Aged Care Pricing Commissioner for approval. (No approval is required if the proposed RAD is less than $550,000).

Once a higher RAD has been approved by the commissioner, it remains valid and can’t be changed (except for annual CPI increases) for four years, after which it lapses. The aged-care provider must then reapply for a further approval.

A wide range of factors determine how much an aged-care facility wishes to charge as a RAD.

In their application to the commissioner, providers are required to include details such as quality, condition, size, and amenity of rooms and common areas, business case supporting the proposed pricing, and the cost and value of the facility. Part of the calculation is assessing median house prices and historical bond levels by locality and comparing the proposed RADs to historical bond levels.

In theory at least, the commissioner has the power to demand a lowering of RADs in times of falling house prices.

Perhaps the most encouraging sign came from listed retirement accommodation provider Aveo, whose business includes mainly retirement villages but an increasing proportion of aged-care services.

Aveo management recently acknowledged that the residential property market is posing challenges for its business, including a longer gap between clients signing for rooms, selling their homes and moving in.

Aveo is one of the smaller listed aged care operators. When the royal commission was announced last September, shares in the three largest listed companies — Regis, Estia and Japara — were smashed. All fell at least 20 per cent.

All have recovered a little since these lows, but they are still well below the performance of the All Ordinaries index. All reported their interim results last month and all were largely uninspiring.

The drop in share prices does not mean that the companies are now cheap. Regis and Japara shares are now on 18 times earnings while Estia’s shares are on 15 times earnings.

Of course there are two sides to the story. Retirees looking to enter a retirement village must now factor in lower expected proceeds from the sale of a house and possibly longer times to sell those houses.

Hopefully, the Aged Care Pricing Commissioner will do the right thing and lower RADs.

While the process for entering residential aged care is different to entering a retirement village, the property market downgrades will put pressure on both types of aged-care providers, as well as those entering both types of facility.

One effect of lower house prices will be that families will look at lower-priced rooms or different quality facilities.

In addition, people are delaying their entry into aged care for as long as possible, and more of them are opting for home care as an alternative to aged care. The government is happy about the latter trend, as it means a smaller funding requirement. Regis recently offered to waive the basic daily care fee for anyone moving into its facilities before June 30.

One thing’s for sure, people and their families looking at aged care should negotiate very hard with the aged-care providers on the RAD, which is, after all, a maximum advertised price that can be negotiated down. If the facility is keen to fill beds, they are often willing to come to the party and agree to a reduction in the RAD.

Sooner or later, falling property prices will affect RADs, whether aged-care providers like it or not.

https://www.theaustralian.com.au/business/w...79624b341978d72



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
early birds
post Posted: Sep 18 2018, 10:02 AM
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my two bobs on this things

ageing issue is like ticking bomb for most of country not just aussies.
Govt. needs private money to help them to tackle this problem
the rc is try to gives bit of knock to those whom abuse the system badly, but no way Govt will intent to destroy it---they simply can not for it. lib or lab.
it's only my view though.

i'm little biased as i hold little bit of EHE .



 
 


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