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AOG, AVEO GROUP
nipper
post Posted: Jun 24 2019, 05:38 PM
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QUOTE
Aveo plunged more than 13 per cent in early trade after the retirement village operator issued another warning on earnings and said its dividend is likely to be slashed when it announces its full-year results in August.

The company also updated the market on a potential takeover, confirming it had received a confidential non-binding and conditional indicative proposal.




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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
 
nipper
post Posted: Apr 8 2019, 03:43 PM
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Two bidders are in final due diligence for listed retirement village owner Aveo Group.

Street Talk understands private equity giant Blackstone and another buy-out fund were granted "preferred bidder' status on Monday, indicating they will have more information and more time to finalise binding offers.

It is understood global special situations and deep value investor Lone Star Funds has withdrawn from the process.




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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
 
nipper
post Posted: Mar 29 2019, 11:04 AM
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Buyout funds circling Aveo are thought to be shying away as privatisation by its Malaysian owner Mulpha appears a possibility.

It is understood that the challenge for private equity lining up to buy Aveo is securing funding for the retirement operator, given the nature of its cashflow.

One source suggests that Brookfield could be the only party left in the mix, after Cerberus and Lone Star were also earlier named as suitors. Global buyout fund Blackstone is thought to be no longer in the running. But some say that even Brookfield may be lukewarm on the asset.

The listed retirement operator has a market value of $1.16 billion and has been up for sale through Bank of America Merrill Lynch. First round bids have been received and the competition is now understood to be in its next phase, involving access to a data room.

Aveo has 93 retirement communities but operates just four aged-care facilities, so the royal commission into aged care that unfolds this year is not expected to affect the sale to any great extent. However, a bigger challenge will be a class action looming over the move to change the status of residents’ properties from freehold to leasehold titles.

Mulpha owns a 24.4 per cent stake in the business and its intentions are unclear.

Earlier, Aveo told the market it was encouraged by inquiries by “a significant number of parties” mostly from Asia, North America and Australia.
https://www.theaustralian.com.au/business/d...20174565863c884



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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
 
nipper
post Posted: Mar 24 2019, 11:33 AM
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...https://www.theaustralian.com.au/business/wealth/property-downturn-could-affect-aged-care-costs/news-story/6c30f5787652f05ca79624b341978d72
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QUOTE
..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....
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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
 
nipper
post Posted: Feb 13 2019, 11:51 AM
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In Reply To: nipper's post @ Feb 1 2019, 10:28 AM

QUOTE
Aveo Group has been hit by the slowing residential market, with settlement times on its units blowing out as it deals with offers for its entire operation.

Aveo blamed the “significant downturn” in the housing market over the past 18 months for a plunge in profits and investors sent its shares 4.4 per cent lower to $1.64.

Aveo cited the drop in average weighted auction clearance rates for the four major capital cities in which it operates, which fell from 72 per cent at the end of 2017 to just 42 per cent last week.
- anecdotally, I think this will flow through to the sector. I know of several people wanting to downsize but can't get a sale of current property completed. In some cases, not even getting parties across the door at exhibitions. It's only going to lead to more caution. FoMO not a factor. s



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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
 
nipper
post Posted: Feb 1 2019, 10:28 AM
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Private equity funds Brookfield and Blackstone are believed to be among the parties lining up to acquire the $1 billion retirement operator Aveo that is up for sale through Bank of America Merrill Lynch.

It is understood that TPG Capital may have also been in the mix during the early stages of the sale process.

First round bids were due yesterday and now shortlisted parties will progress to the next stage of the competition, where they will have the opportunity to access more detailed information in a data room.

Aveo has a $970 million market value. It has 93 retirement communities but only operates four aged-care facilities, so the royal commission into aged care that unfolds this year is not expected to impact the sales process to any major extent...
https://www.theaustralian.com.au/business/d...5cb669a5cfe1045



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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
 


hayboys
post Posted: Jan 29 2019, 04:42 AM
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This should start to rebound in the next 3 weeks guessing will get to $2.40 once it can show the NAV on its books is real.

 
blacksheep
post Posted: Nov 15 2018, 10:50 AM
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In Reply To: blacksheep's post @ Aug 3 2017, 01:53 PM

Notable short alert yesterday following the companies AGM - Aveo shares plunge 10 per cent on lack of guidance
https://www.smh.com.au/business/companies/a...114-p50fyb.html
QUOTE
Wed 14th Nov, 2018 5,937,829 580,837,672 1.02% 12,567,037 47.25%


https://www.shortman.com.au/stock?q=AOG

SP currently $1.605 - down another 5.59%

Note - tried to include a chart for AOG but, as with other attempts on other threads, "failed" - have previously notified admin of this problem



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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
 
blacksheep
post Posted: Aug 3 2017, 01:53 PM
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In Reply To: nipper's post @ Jun 24 2017, 08:30 AM

according to article, Aveo will be hit with a Federal Court class action next week - http://www.theage.com.au/business/markets-...802-gxo83p.html

QUOTE
Retirement village operator Aveo will be hit with a Federal Court class action next week, based on claims its contracts with residents were misleading and unconscionable.

Law firm Levitt Robinson has taken expressions of interest from 100 or more residents and families of former residents in Aveo villages after a series of allegations about the operator's questionable business practices were raised in a joint Fairfax Media and Four Corners investigation.

Lawyer Stuart Levitt said the action would be lodged next week in the Federal Court in Melbourne with the backing of New York litigation funder Galactic.

The core of the case will rest on the claims over the complex contracts residents signed that allegedly enabled their freehold property, or property held 99-year leases, to be transformed into leasehold property.

"They effectively set about deliberately converting, without people's full realisation or knowledge, a unit entitlement in a strata establishment into something that was worth considerably less," Mr Levitt said.

"It's case about misleading and deceptive conduct and unconscionable conduct."

Aveo said it was yet to be contacted by Levitt Robinson and has not been advised of the claims against it.

"We have and always will act with the best interests of our residents first and foremost in our minds and actions," said chief executive Geoff Grady.

"We vigorously deny any suggestion to the contrary. Aveo will strenuously defend the matter and we are confident that we can show that we have at all times met our statutory and other obligations and our commitment to residents."

The average loss faced by residents on their property is said to be around $150,000, with the litigation, if successful, potentially worth hundreds of millions of dollars, according to Mr Levitt.

Aveo shares are down 0.8 per cent at $2.35, bringing the year's losses to 30 per cent
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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
 
nipper
post Posted: Jun 24 2017, 08:30 AM
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A joint Four Corners and Fairfax Media investigation into retirement village company Aveo uncovers exorbitant fees and complex contracts, with current and former residents describing the company's model as "financial abuse of the elderly".

http://www.abc.net.au/news/2017-06-24/elde...illages/8645876

QUOTE
Residents of the multi-billion-dollar retirement village industry have described buying into a retirement village as a "financial sinkhole". ... One former resident describes Aveo's business practices as "totally rapacious, I don't know how they get away with it".

Fairfax Media and Four Corners spoke to current and former residents, their children, lawyers, former Aveo staff and lobby groups and found several alarming business practices at Aveo — including safety issues, misleading marketing and advertising and property sales.

The joint investigation obtained numerous Aveo contracts, which included clauses some lawyers described as complex and draconian. Chief executive of the Consumer Action Law Centre Gerard Brody described some of Aveo's contracts as among the worst he had seen. "Not only are they over 120 pages in length, they're dense, they're hard to understand, they're legalistic," Mr Brody said.....

The company is rolling out two new contracts, the Aveo Way — which has exit fees of 35 per cent after three years — and Freedom Aged Care — which charge exit fees of 40 per cent after two years.




--------------------
"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

Said 'Thanks' for this post: crooky  
 
 


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