Annual Report
Inspiring better.
Annual Report 2024
Consistent innovation to deliver the ultimate
resident-focused experience.
Back in 2014, we asked a question: What if there’s a
better way to provide retirement and aged care living?
What if what was currently offered was only a fraction
of what it could be — the ultimate resident-focused
experience?
These past few years have been tough for everyone.
But as long as we keep asking questions and continue
our pursuit of better, we can be confident of sustainable
growth for a long time to come.
We set about curating a uniquely premium offer built around
higher quality, sustainable accommodation, and a totally
fresh approach to personalised service and care. The result
is a reimagining of the retirement living and aged care
experience, and a transformation of the business we were
a decade ago.
Inspiring better.
Contents.
Timeline1
Letter from the Chair2
Trading highlights5
At a glance6
Letter from the CEO7
Integrated reporting11
Our value creation model12
Our sustainability framework15
Our offer16
Our resident experience23
Our people capability30
Our growth37
Board of directors42
Three year summary46
Consolidated financial statements47
Independent auditor’s report81
Corporate governance83
Risk management92
OCEANIA ANNUAL REPORT 2024
Transformation
through innovation.
TIMELINE
Pre-FY17
$
2.8bn
$
8 5.4m
FY18FY19FY20FY21FY22FY23FY24FY17
NZX listing
Homestar
certification
Adopting NZ
Green Building
Council’s criteria
for environmental
sustainability
and living quality
into our designs.
495 units delivered
since inception.
Page 20
Assets
Assets
Operating cash flow
Operating cash flow
Nurse Practitioner
Model
Nurse led primary care
service introduced.
Now operating in
21 care centres across
NZ, allowing residents
access to high-quality,
individualised healthcare.
Page 25
Five Ways
to Wellbeing
Programme
Oceania is the only
aged care operator
to adopt the Mental
Health Foundation’s
approach to
positive social
and environmental
outcomes.
Page 28
Sustainability
Linked Loan
Oceania establishes a
five-year, $500m loan
linking over two-thirds
of its debt funding
to three sustainability
performance targets.
Page 37
Couples Care
Suites
Offering the comfort
of having loved ones
stay close during
later-life living.
Page 27
Luxury Private
Care: The Helier
Oceania is the first
NZ retirement village
operator to offer fully-
funded, private and
personal care services.
Page 17
Together App Pilot
Integrating Alexa,
offering information
and assistance
at fingertips and
voice command.
Page 27
Wesley Institute of
Nursing Education
Addressing NZ’s nursing
shortage through
intensive training.
Page 33
Care Suites
One of Oceania’s first innovations,
this applies the approach of
independent living units to
care, creating a more premium
experience and greater certainty
for residents. Tested in Auckland,
care suites now form part of our
offering nationwide.
Long before our NZX listing we’ve been
reimagining what retirement living looks
like. We’ve achieved a lot in the past
seven years, and there’s more to come.
$
3 8 .9m
$
918m
+205
%
+119
%
1
OCEANIA ANNUAL REPORT fffiff1
Ready for the future.
LETTER FROM THE CHAIR
I am pleased to present the Oceania
Annual Report for the year ended
31 March 2024.
Oceania has delivered a favourable financial
performance, increased sales volumes,
seen strong capital gains and continued its
construction activities to support future growth.
Financial Performance
Oceania’s Total Comprehensive Income of
$70.5m for the 12 months ending 31 March 2024,
is up 104.3% from the prior corresponding period
and Net Profit after Tax of $31.5m, is up 104.5%
on pcp.
Total assets increased to $2.8b and Net Assets
increased to $1.0b at 31 March 2024, up 9.3%
and 6.7% respectively. This increase is largely
due to the continued development across 10 sites
during the period.
Total sales volumes were also up 16.7% on pcp
including a 22.7% uplift in new sale volumes to
157 independent living units (ILU) and care suites.
For the year ended 31 March 2024, operating
cashflow was $85.4m, 21.7% up compared to
$70.2m for the year ending 31 March 2023.
The uplift includes increased total cash receipts
from occupation right agreements of $226.3m,
up 26.6% on pcp.
As at 31 March 2024, Oceania had undrawn net
debt headroom of $88.5m increasing to circa
$100.0m as at 23 May 2024.
Underlying NPAT is $62.1m for the 12 months
ending 31 March 2024, up 6.0% on pcp.
This included total capital gains of $67.9m
an increase of $8.5m or 14.4% from the prior
corresponding period.
During the reporting period, as part of the
divestment programme, six sites were exited or
closed, with aggregate gross sales proceeds
received of $21.0m. Post balance date, Oceania
has settled the sale of two further sites for gross
sale proceeds of $16.2m, and a further site is
currently under conditional contract for sale.
Pleasingly, post balance date, full and final
agreement was reached with insurers in relation
to all insurance claims arising from the Auckland
Floods and Cyclone Gabrielle from early 2023.
Final Dividend
The Directors approved a change on 24 May
2023 to the dividend policy to a pay out ratio
of 30% to 50% of Underlying Net Profit After
Tax in order to provide for ongoing and future
investment in growth.
Consistent with the approach taken at the time
of the interim results, the Directors have resolved
not to pay a final dividend to provide for ongoing
investment in Oceania’s growth and portfolio
transformation after taking into consideration
cash flow, market conditions and growth
opportunities.
“Oceania will continue to be an innovator
in the sector and focus on its care and village
strategy to improve resident experience, capital
management, sustainability and position
itself for future growth.”
2
OCEANIA ANNUAL REPORT fffiff1
LETTER FROM THE CHAIR
Portfolio
As part of the execution of Oceania’s greenfield
development strategy, there will be an increase
in independent living villas being built rather
than apartments or care suites (which were
suitable products for building in the centrally
located brownfield sites) and therefore there
will be a reweighting of the property portfolio.
As at 31 March 2024, Oceania’s independent
living unit portfolio comprises 51% villas and
49% apartments, with most of these apartments
having been completed in the last four years.
As completion dates approach for current site
developments, Oceania will be looking to acquire
land which would be suitable for villa product
to extend the pipeline. This will also increase the
proportion of villa products in Oceania’s portfolio.
Regulation
Over the last 12 months the industry has been
subject to a review by the Ministry of Housing
and Urban Development of the Retirement
Villages Act (the Act). The public were asked
to comment on changes to the Act and Oceania
supports any requirements which may be
imposed on operators as a result of the review
which will raise overall industry standards for
the benefit of residents.
In addition to the Ministry’s review, the Retirement
Village Residents Association has been focussed
on potentially unfair practices under the
Act. Most of the practices identified by the
Association are not used by larger operators,
nor are they widespread. Oceania’s position is
that weekly fees cease on vacation, the capital
sum is repaid when a new resident moves into
a villa or apartment and the DMF does not
continue to accrue after the resident leaves.
Where the resident does not share capital gains,
there is no capital loss clause. Call bell and
medical services information for each village
are in disclosure statements. A codified and
robust complaints policy is in place and meets
or, in most cases, betters the timeframes required
by the code of practice.
Risk Management
In recognition of the increasingly complex
and, at times, uncertain, environment in which
Oceania operates, Board and Management
have embarked on a programme of work to uplift
and mature the company’s approach to risk
management. This includes deeper consideration
and resilience measures for emerging and
escalating risks such as climate, cyber-threats,
and use of generative AI technologies, as well as
continued focus on the more traditional and core
business risks such as care for people, residents,
development and offer. Management have
increased resources and attention to elevate risk
practices throughout the organisation to ensure
risk practices are effectively and sustainably
embedded to support safe and successful
operation of the business.
Integrated thinking and sustainability
Oceania is evolving its reporting practices
and this year marks a significant step in the
journey towards integrated reporting, deepening
Oceania’s commitment to transparency and
sustainable value creation. Management has
introduced an updated value creation model
(see pages 12–13) that aligns with Oceania’s
strategic pillars and demonstrates effective
utilisation of different capitals (or inputs) in
business activities to foster long term value
creation. As part of this journey, Oceania has
incorporated enhanced metrics in this report,
to measure progress against the Sustainability
Framework introduced last year. Oceania’s
Sustainability Framework was designed
to address the material impacts identified
and reported in FY2023 through extensive
stakeholder engagement and throughout this
report is evidence of progress to address those
material impacts.
5
M04 Streetscape
3
OCEANIA ANNUAL REPORT 2024
LETTER FROM THE CHAIR
Climate reporting
As an NZX listed company, Oceania is
designated as a Climate Reporting Entity (CRE)
under the New Zealand mandatory Climate-
Related Disclosures (CRDs) regime. During the
reporting period, Oceania has made significant
progress in identifying and understanding the
risks and opportunities associated with climate
change and has invested considerable effort in
enhancing its knowledge of potential climate
impacts. Oceania is set to publish its first
mandatory CRD for FY2024 shortly.
Governance
During the year, Directors have continued to
meet with residents at many of Oceania’s sites
around the country. It is a privilege to meet
Oceania’s residents and team onsite and observe
the culture and day to day operations. The
Board always enjoy the opportunity to meet
with residents and receive their feedback which
is then incorporated into Oceania’s continuous
improvement processes.
I would like to thank Directors for their dedication,
commitment and wisdom and support that they
have provided to the executive team during the
last 12 months.
Looking ahead
It has been an absolute pleasure having Brent
Pattison at the helm over the last three years.
He has demonstrated resilience and tenacity in
the execution of the strategy, including leading
the sector to deliver new forms of innovation.
Brent has always had the residents at the heart
of everything he does and has set the business
up well to benefit from the positive momentum
in the market and for his successor to build upon
this success and Oceania’s continued growth.
Oceania will continue to be an innovator in
the sector and focus on its care and village
strategy to improve resident experience, capital
management, sustainability and position itself
for future growth.
On behalf of the Board, I would like to thank
our people for their enthusiasm and dedication
throughout the year.
Yours sincerely,
Elizabeth Coutts
Chair
4
OCEANIA ANNUAL REPORT 2024
Aligned for better outcomes.
TRADING HIGHLIGHTS — MARCH 2024
Financial
31 March 2024
Operational
31 March 2024
Developments
31 March 2024
ESG
31 March 2024
Total assets
As at 31 March 2024
$
2.8bn
higher than 31 March 2023
total assets of $2.5bn
9.3%3.2%
Construction waste diverted from landfill
Units and care suites substantially
completed in FY2024
Employee NPS (eNPS) (+/-100)
Units and care suites expected
to be completed in FY2025
Care resident NPS (+/-100)
79.0
%
62.9
%
182
24
224
5 9,9 0 0
3,591
Units and care suites under construction
as at 31 March 2024
264
• Waterford Stage 1 (Hobsonville, Auckland)
• Elmwood Stage 1 (Manurewa, Auckland)
• Awatere Stage 3 (Hamilton)
• Meadowbank Stage 6 (Auckland)
• The Helier (St. Heliers, Auckland)
• The Bellevue Stage 2 (Christchurch)
• Redwood (Blenheim)
• Stoke (Nelson)
• The Bayview Stage 3 (Tauranga)
• Awatere Stage 3 (Christchurch)
• Elmwood Stage 1 (Manurewa)
• Waterford Stage 1 (Hobsonville, Auckland)
Underlying Earnings Before Interest,
Tax, Depreciation and Amortisation
31 March 2024
GHG emissions (t CO2e)
$
82.6m
ahead of 31 March 2023 earnings
Before Interest, Tax, Depreciation and
Amortisation of $80.0m
Reported Total
Comprehensive Income
31 March 2024
$
70.5m
compared to 31 March 2023 reported
total comprehensive income of $34.5m
Operating Cash Flow
31 March 2024
$
85.4m
compared to 31 March 2023 reported
operating cash flow of $70.2m
Compared to 31 March 2023
scope 1+2 emissions of 4,442
Compared to 31 March 2023
total emissions of 43,029
Compared to 31 March 2023 construction
waste diverted from landfill of 58.2%
Compared to 31 March 2023 construction
waste diverted from landfill of 77%
Compared to 31 March 2023
eNPS of 16
41
Compared to 31 March 2023
care resident NPS of 35
Resale unitsResale care suites
129190
Total sales
Total
Scope 1 + 2
476
higher than total sales for the year
to 31 March 2023 of 40816.7%
68
89
New care suites
Auckland
Non-Auckland
New units
5
OCEANIA ANNUAL REPORT fffiff1
Delivering better.
AT A GLANCE
In our quest to reimagine the aged care and
retirement living experience we constantly
challenge ourselves to deliver better.
17
Existing sites with
current and planned
developments
26
Existing sites with
mature operations
As at 31 March 2024
Staff
3,000
Residents
4,100
Care beds and care suites
2,467
Units
1,915
43
Total sites
6
OCEANIA ANNUAL REPORT fffiff1
Set for success.
“I am proud that Oceania provides
a rewarding and sustainable investment
proposition because of our premium, resident
centred, service led business model.”
LETTER FROM THE CEO
Oceania has made significant
progress with the embedding
of its five year strategy that we
have outlined in the previous
two Annual Reports, and despite
continued pressures placed on our
residents, teams and portfolio, we
are confidently implementing our
strategy and fulfilling our purpose
to reimagine the retirement living and
aged care experience in New Zealand.
I am proud that Oceania provides a
rewarding and sustainable investment
proposition because of our premium,
resident centred, service led
business model.
We are embedding our five year strategy
When we considered our future in 2021 we
planned for the eventuality that Oceania’s
brownfield development pipeline was coming
to a natural end, after successfully developing
these held sites with great resident communities,
bespoke and boutique living. We planned that
our future pipeline would be complemented
with greenfield developments, representing
the next opportunity to develop larger format
resident communities, with an independent
resident focus including villa and townhouse
design. Three years later, we have executed
two greenfield land acquisitions and completed a
further 13 development stages of our pipeline. In
2021, we knew that apartments and care suites
needed to be part of an integrated village to be
viable. Since 2021, we have brought to market
over 586 more ILUs and care suites. We knew in
2021 that we needed to pioneer a new approach
to aged care, reducing reliance on government
funding and targeting a new resident need for
quality, personalised care building upon our
leading model of care reputation. The welcoming
of our first care suite residents at The Helier is a
proof point that our pivot to private paying care
was an important component of our continued
innovation in the broader retirement and aged
care sector.
Value creation and business model
Our point of difference is that we offer bespoke
and innovative premium care to our residents
which offers returns for our shareholders while
improving the overall experience for our residents.
We recognise that value extends well beyond
purely financial performance and that social and
environmental performance is equally important
to our stakeholders.
7
OCEANIA ANNUAL REPORT fffiff1
To achieve our purpose of reimagining the
retirement living and aged care experience in
New Zealand, our value drivers are our people,
our expertise, our villages, our relationships, our
financial capital and our natural capital. It is
these value drivers which create value outcomes
such as improved resident experience, improved
well being of people, residents and their families
and Oceania’s pioneering and innovative spirit.
Offer
A cornerstone of Oceania’s business is our
“Offer” strategic pillar which designs, develops,
builds and then sells premium properties to our
residents of the future. We believe our bespoke
approach when undertaking new developments
has led to the premiumisation of Oceania’s
built form.
Oceania contracts out its construction to a small
number of trusted high quality and capable
partners. This has served us well and has allowed
us to focus our attention on the replenishment
of the development pipeline. This approach has
also allowed us to take a disciplined approach to
our design and development activities in order to
protect development margins (which in a tougher
property market are moderating).
LETTER FROM THE CEO
As we foreshadowed in last year’s Annual Report,
we have been developing greenfield sites.
Oceania has sites around New Zealand and has
intentionally designed smaller boutique villages.
Most of our villages have a resident population
of well below 200 and we have built recent new
developments on less than one hectare of land.
These smaller developments enable us to recycle
cash more efficiently than large scale, multi
year developments.
Despite the headwinds facing the construction
sector, we successfully delivered 95 independent
living units and 87 care suites across five sites
throughout FY2024. This included Stage Two
of The Helier (Auckland) which comprises 17
apartments and 32 care suites, 46 apartments
at The Bellevue (Christchurch), 55 care suites
at Redwood (Blenheim) and 28 apartments at
The BayView (Tauranga).
Private paying care
Oceania has long been regarded as the leader
in the provision of high quality residential
care services to ageing New Zealanders and
FY2024 saw the opening of The Helier and the
first premium private paying care facility in
New Zealand. Oceania has a higher weighting
of care beds relative to its peers, and was the
pioneer of care suites, as a premium model of
care, back in 2008. Oceania has invested heavily
in the care suite model to offset the inadequate
funding, relative to expected services, received
from the Government and maintain acceptable
returns on capital. Since the inception of its
care suite product, Oceania has capitalised
on premium care earnings when margins on
traditional care beds are difficult to achieve.
As at 31 March 2024, 43.4% of Oceania’s total
care residences are care suites, licensed to
residents under an occupation right agreement
model. Care suites deliver additional capital and
deferred management fee income (DMF) to the
business and improve free cash flow growth as
DMF for care suites is realised faster than DMF
for villas and apartments. Care suite DMF has
grown from $7.0m in FY2020 to $16.0m in FY2024
and this will continue to grow as the pipeline of
care suite developments is completed.
The care suite model is now well accepted by
the market and we are continuing to see high
levels of demand for our care suites, with 258
care suites sold in the year ended 31 March 2024
(up from 256 in the year ended 31 March 2023).
“Oceania has long been regarded as the
leader in the provision of high quality residential
care services to older New Zealanders.”
8
OCEANIA ANNUAL REPORT 2024
Resident Experience
While one of Oceania’s points of difference
is the premiumisation of its physical building,
landscapes and assets, we recognise that our
service offering needs to be tailored to match
the physical build.
Oceania is therefore continuing to reimagine
retirement living through its service offering,
focusing on resident health and wellbeing,
recreation and convenience.
In providing premium care services to our
residents, Oceania continues to have a relatively
high ratio of nurses to residents. This level of
investment is required in order to provide the
highest standard of resident experience and
deliver the level of care expected by our current,
and future, residents.
People Capability
Oceania is, and has always been, a people
business. We have approximately 3,000 staff
delivering outstanding resident experience and
service to our 4,100 residents every single day.
Oceania is dedicated to becoming an employer
of choice and fostering a “Believe in Better”
culture among its employees. It was encouraging
to witness active participation from our people in
our Employee Share Scheme once again in 2023,
with over two thirds of our workforce signed up
for the 2023 offer.
We have recently completed our annual
employee engagement survey and we are very
pleased to see not only a much higher level of
participation but also an increased employer
Net Promoter Score across the business. We are
reviewing the feedback that we received from
the survey and looking at ways we can provide
other financial and non-financial benefits to
our people in order to appropriately reward
and recognise them.
Oceania is committed to growing the capability
of its people and providing a positive workplace
environment and we are pleased with the
successful move of our Corporate Office
to 188 Quay Street, Auckland in February.
Growth
Oceania’s fourth strategic pillar is to deliver
outstanding financial performance and
sustainable Growth. Oceania is a disciplined,
prudent investor of its capital and we are
taking a long term approach with respect
to creating value.
We are seeing a good level of enquiry for sales
across our 43 sites as the sector continues to be
supported by a growing population of ageing
New Zealanders who are seeking improved
security, lifestyle and health outcomes while
remaining part of their local community. We are
continuing to observe moderate development
margins and resale capital gains from these sales
of our independent living villas and apartments
and care suites.
Part of Oceania’s successful portfolio
transformation is a divestment programme which
has progressed well over the last 12 months.
During the reporting period we announced the
sale of two Auckland sites in August 2023 and
the completion of the sale of a parcel of land in
Nelson, in December 2023. Since 31 March 2024
we are pleased to announce the settlement of
two further sites, one in Auckland and one in
Christchurch and one further site is currently
under contract for sale and on track to close in
the first half of FY2025. This will bring the total
number of sites exited, divested or closed since
the start of the divestment process to nine, with
aggregate gross sales proceeds of circa $40m
and in line with book value.
LETTER FROM THE CEO
(From left to right,
back row to front row)
Kathryn Waugh, Brent
Pattison, Anita Hawthorne,
Claire Fisher, Tracey Taylor,
Andrew Buckingham
9
OCEANIA ANNUAL REPORT 2024
Oceania is Innovating Better
As we continue to Believe in Better, our innovative
approach to premium care is paying off. This
year, we delivered the jewel in the crown of our
portfolio, The Helier by Oceania. The Helier
offers unparalleled luxury retirement and aged
care living and is the first premium offer that is
fully operational in New Zealand. Located in the
heart of St Heliers, Auckland, and with intentional
property orientation design, it fits seamlessly into
the local surroundings. Offering panoramic views
over the Waitemata Harbour and Auckland CBD,
The Helier hosts 79 premium apartments and
32 private care residences.
This unique property has been designed for
a discerning resident first and foremost —
combining beautifully curated spaces, 5-star
hotel like services and a level of amenities second
to none. Foundation retirement living and care
residents have moved in and are delighted with
their new homes and the experience on offer. The
Helier is a true demonstration of how Oceania
is reimagining retirement and aged care living
in New Zealand with intentional resident first
design around both building and services. We
have paved the way for further developments
of this kind, truly shaping not only the Oceania
portfolio, but also the broader sector.
Looking ahead
Although I love this business, I have signalled
my plans to step down as CEO later this year
after repositioning Oceania and successfully
implementing a five-year growth strategy.
It has been a privilege to lead Oceania. Our
team of 3,000 are the most dedicated, driven,
and enthusiastic individuals and every day
they work tirelessly to deliver to our promise
of ‘Believe in Better’.
The business has invested in the
professionalisation of the culture and
attracted new talent, including two new
executive members in FY2024, as well as
developing career growth opportunities
for our existing, highly capable team.
I have appreciated the Board’s support
during my leadership.
Brent Pattison
Chief Executive Officer
“As we continue to Believe in Better, our innovative approach
to premium care is paying off. This year, we delivered the jewel
in the crown of our portfolio, The Helier by Oceania.”
LETTER FROM THE CEO
10
OCEANIA ANNUAL REPORT 2024
Beyond the numbers.
INTEGRATED REPORTING
At Oceania, we Believe in Better, and that means more than the numbers on our
balance sheet. We have a joint responsibility to our shareholders, our residents,
our people, the natural environment and wider society. For our organisation to
thrive in the long term, we will weave these responsibilities through the fabric
of everything we do.
Our approach is guided by the principles of the Integrated Reporting
Framework and the Global Reporting Initiative (GRI), which offer
comprehensive frameworks for organisations to assess their impact on
the environment, society and the economy and integrate these broader
perspectives into their reporting practices.
This has also reshaped our strategic approach in recent years, to focus
on four core pillars that serve as the foundation of our strategic decision-
making processes, supported by our Sustainability Framework (see
page 15). As part of our journey toward Integrated Reporting, we have
adopted the Six Capitals framework to enhance our assessment of value
creation and overall performance over time. This report introduces our
updated Value Creation Model, outlined on pages 12–13.
This is a new approach for us and we are embracing the learning
process involved. The Six Capitals framework identifies six key “capitals”
(in alphabetical order): Financial, Human, Intellectual, Manufactured,
Natural and Social. Oceania’s leadership team has engaged with this
framework to consider the inputs and outputs involved in our value-creation
processes, as well as the impacts of our activities on these capitals. We are
exploring ways to generate value across these capitals within our strategic
pillars. Our first step is to share our value creation model with you and
explain how our strategic choices have both positive and, at times, negative
impacts on the various capitals, affecting not only our organisation but
also the broader system in which we operate.
Offer
To design, develop, build and sell premium
properties for our customers of the future.
Resident Experience
To be the leader in the delivery of resident
experience in retirement villages and aged care
centres in New Zealand.
People Capability
To build capability and develop a culture that
enables our people to perform their life’s best
work at Oceania.
Growth
To deliver outstanding financial performance
and sustainable growth.
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How we create value.
OUR VALUE CREATION MODEL
Our Purpose — We are reimagining the retirement and aged care living experience in New Zealand
Our Capitals
Our team
Our people are our greatest asset. Their dedication
and expertise drive our ability to enrich the lives of our
residents daily and deliver outstanding care.
Our expertise
We use resident insights to drive innovation and remain at
the forefront of retirement and aged care living and seek
to invest in global best practices, systems and processes,
including our nurse led model of care.
Our retirement villages and care centres
We are dedicated to developing high-quality,
environmentally sustainable villages, equipped with
quality amenities.
Our relationships
We are a people business. Building strong relationships
with our residents, their families, our people, suppliers
and stakeholders, is pivotal to everything we do.
Our natural capital
We recognise the environment’s fundamental role in
shaping and sustaining our retirement and aged cared
villages and communities. By adopting sustainable
practices, we are committed to minimising our
environmental impact.
Our financial capital
We employ a combination of shareholder funds, banking
facilities and operating cashflow to maintain and grow
our business.
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12
OCEANIA ANNUAL REPORT fffiff1
OUR VALUE CREATION MODEL
Our Material ImpactsThe Value for our StakeholdersAspirational Value Outcomes
The pursuit of better
Resident wellbeing
Resident safety and security, provision of quality care, social
connectedness, health equity of ageing Māori and Pacific peoples
and the capacity and capability of our people.
Employee practices
The health and wellbeing of our people can be affected by issues
such as national workforce shortages, pay equity, health and
safety and opportunities for professional development, and
diversity and inclusion.
Community and social wellbeing
Accessibility and affordability of aged residential care
options for older New Zealanders, supporting the public
health system by helping to free up public hospital beds,
impacting the cultural significance of land, and training
NZ and internationally qualified nurses.
GHG emissions and climate
GHG emissions from corporate, village and aged care centre
operations and embodied carbon.
Waste and environmental impact
The impact we have on the environment including waste
going to landfill, biodiversity and ecosystems, emissions
and pollution from operations, water, and the opportunity
to support a circular economy.
Economic contribution
Through economic activity and job creation and adding
to housing supply.
Sustainable supply chain
Environmental and social impacts of procurement choices
and supply chain practices.
Ethics, trust and governance
Trust levels with residents and their whānau through the
provision of services to residents and ethical business conduct.
Our team
We grow and develop our team members through
fostering an inclusive culture and training.
By doing so, we enable teams to deliver exceptional
services and improved resident-focused experiences.
Our residents
We create vibrant and enjoyable retirement and aged
care living experiences for our residents.
Our society
We seek to create thriving community hubs.
Our retirement villages and care centres go beyond
being residences, as they foster a sense of belonging
and togetherness in the local community.
Our industry
We participate in and advocate for industry-wide issues,
to support better outcomes for NZ’s ageing communities
and the people who care for them.
Our environment
We establish more resilient communities for our ageing
population and by adopting sustainable practices and
minimising our negative impact we not only reduce
our environmental footprint, but aspire to create
opportunities for regeneration.
Our investors
Oceania focuses on the financial performance of its
assets and is committed to long term sustainable growth.
Oceania’s villages are a driving
force of thriving communities
around New Zealand. We use
resources sustainably to build
homes that seamlessly integrate
with, and benefit, the local
community.
Residents thrive in our hospitality
inspired, resident-led villages.
We enable our residents to live
a sustainable and fulfilled life.
As an employer of choice we
enable our teams to perform
their life’s best work at Oceania.
We create long term value for
our stakeholders by integrating
sustainability into our thinking,
strategy and growth initiatives.
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OCEANIA ANNUAL REPORT 2024
We aspire to integrate
our villages with the local
community, making them
more desirable as our
residents can stay part
of the communities
they call home.
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OCEANIA ANNUAL REPORT 2024
Our Sustainability
Framework.
Aspiration
We are an employer
of choice
Goals
We attract, grow and
retain great people.
We provide a safe, diverse,
equitable and inclusive
workplace that fosters
our people’s development
and capability.
People
Capability
Aspiration
We enable our
residents to live
a sustainable
and fulfilled life
Goals
We prioritise resident wellbeing through
conscious design and exceptional services.
We actively engage with our residents, people
and local community to create positive social
and environment outcomes.
Resident Experience
Oceania published its Sustainability Framework
in FY2023, setting out its aspirations and
goals for each of its four strategic pillars.
The metrics and targets we have set help to
bring accountability, focus, monitoring and
transparency to the sustainability journey,
and help Oceania in informed decision-making.
Our Sustainability Framework is enabled by:
• supply chain practices
• partnerships and collaboration
• innovation and technology
• sustainability risk management
• policies and processes
• data and measurement
• transparent reporting
• sustainability capability
• advocacy
Growth
Aspiration
We integrate
sustainability
into our thinking,
strategy
and growth
initiatives
Goals
We adopt a long-term value focus
when making investment decisions
and allocating capital.
We reduce our GHG emissions in line
with our science based target and
integrate climate resilience
into our business.
Aspiration
We use resources
sustainably to build homes
that seamlessly integrate
with, and benefit, the
local community
Goals
We design with a focus on the
local environment, community
needs and cultural values
of each location.
We minimise our
environmental impact and
support a circular economy.
Offer
We are creating
sustainable retirement
and aged care living
experiences for today,
and for our people
of tomorrow
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Key metrics
Greenstar communities
FY25 target
One pilot
development
On track to register first
Greenstar communities project,
Ngā Mara Village, in FY2025
FY24
Water
Water use (000s)
FY24
349m
3
Water use (000s)
FY23
347m
3
At Oceania, we aim to build villages
that become a valued part of
the community.
Our building strategy is about building the right
product, in the right place, at the right time and
in a way that’s sustainable, a strategy which
has led to a targeted approach to development
in recent years. Each design and development
project is driven by the motivation to offer
a premium experience that makes Oceania
the best choice for ageing New Zealanders.
We aspire to integrate our villages with the local
community, making them more desirable as our
residents can stay part of the communities they
call home.
Getting this right starts with understanding the
local environment, community needs and cultural
value of each location, through insights. The aim
here is to ensure that developments contribute
to rather than intrude on the cultural shape and
social fabric of the community that it is entering.
This thinking also applies to the physical
environment. Oceania looks to minimise the
impact on the natural environment and support
a circular economy, both during the construction
process and once residents move in.
Any organisation with a portfolio as large
as Oceania’s will have an impact on the
environment, which is why we are placing
emphasis on understanding our waste
contribution, water and energy use, and
how this can be minimised.
Oceania’s commitment to sustainability is also
reflected in the design choices being made
in respect of new builds.
Increasingly Oceania residences have Homestar
certification from the New Zealand Green
Building Council (NZGBC) (see page 20), which
ensures apartments are warmer and healthier
than a typical home. Not only does this translate
into better living conditions for Oceania residents
and better work environments for Oceania
people, but will become increasingly important
when sourcing financial capital in the future.
Our offer:
A healthy community.
Construction waste
Auckland
Construction waste
to landfill
Construction waste diverted
away from landfill
FY24
327t842t
Non-Auckland
FY24 target 7 7. 5 %
FY24 target 50%
FY27 target 80%
FY27 target 60%
FY23 7 7. 0 %
FY23 58.2%
FY24
7 9.0
%
FY24
6 2 .9
%
Construction waste diverted from landfill
as a percentage of all construction waste
Operational waste
Operational waste
to landfill
Operational waste diverted
away from landfill
FY24
1,640t345t
FY23 21.5%
FY24
1 7.4
%
Operational waste diverted from landfill
as a percentage of all operational waste
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Pam and Cedric Little are
adventurers at heart. And they
haven’t let retirement stand in the
way of adding a few more tales
to their storied lives together.
It was the rhythmic back and forth of a tennis
ball crossing the net that knocked love into the
hearts of Cedric and Pam Little 60 years ago.
The pair grew up in Mount Eden only down the
road from each other and whiled away lazy
weekends on the local tennis courts.
“I was better,” quips Pam, with a cheeky glint
in her eye when asked who had the superior
prowess on the court. After six decades
together, Cedric’s wry smile suggests he
knows better than to disagree and confirms
Pam’s recollection of events.
Despite all their years together, the spark and
feistiness woven through their shared history still
shines through time and time again in a relaxed
discussion with panoramic views of the city
and the water at their apartment in Oceania’s
flagship premium offering The Helier.
Conventional knowledge suggests retirement
is a time to put your feet up, but no one ever
shared that information with Pam or Cedric.
Adventurers at heart, their relationship has been
typified by trips in and out of New Zealand over
the years. They only recently sold a motorhome
that had taken them up and down the country
and were keen yachties in their earlier years.
Now, both in their 80s that adventurous spirit is
still there but it’s simply taking a slightly different
– some would say more luxurious – form. The
pair recently took a cruise to Patagonia and
had the rare opportunity to go under the surface
in a small submarine off the Chilean coast.
“I normally get claustrophobic, but I was so
excited about the whole experience that I was
fine,” says Pam, battling to contain the residual
excitement still bubbling to the surface.
Cedric was equally moved by the experience,
pointing to the details that made this such
a special experience.
“This was actually a submarine,” he says.
“It’s not a bathysphere, which is still attached
by a line to the mothership. This was completely
self-contained and it only had radio contact
with the ship up above. This was by definition
a submarine and we are now, in actual fact,
submariners.”
OUR OFFER
Adventurous spirits
at The Helier.
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OCEANIA ANNUAL REPORT 2024
their retirement years. As Cedric points out, he
doesn’t need an onsite library or lawn bowls at
his retirement establishment because he’s more
than capable of getting himself to those places
within the community.
The boutique living environment also means that
Cedric and Pam know all their neighbours by
name and often hang out with them during the
cocktail and canapé events put on by The Helier
team every evening.
“We have ‘Helier Hour’ every night here with
drinks and canapés,” says Pam, smiling.“But you
can’t go every night. You’ve got to be resilient.
It’s too tempting. It’s just too tempting.”
Cedric and Pam both laugh in joint appreciation
of the good fortune they’ve found in sharing their
golden years at The Helier.
“I see this as our reward for working long and
hard over the years,” says Pam, reflecting on
decades the pair spent building a successful
funeral business together.
Cedric attributes the freedom to board
a submersible vessel in his 80s to their decision
to become the first couple to call The Helier home.
“That’s part of the advantage of being in a place
like this: it’s secure; it’s looked after,” he says,
pointing out that it’s incredible to have the peace
of mind that everything will still be in place once
they return home from whatever adventure they
have on the itinerary.
For Cedric and Pam, the decision to move into
The Helier came quickly.
“When we saw this was being built, it just ticked
all the boxes,” says Cedric. “It was local and
it was part of the community. We didn’t muck
around too much. We just decided and moved
in. That’s probably how we’ve always led our lives
to some degree. We’ve made big decisions and
we haven’t backed out.”
The Helier was appealing to the Littles because
it wasn’t a sprawling facility on the outskirts of
the city. It was a part of a community they knew
and loved. It was part of their community.
The pair are touching here on an aspect of
retirement living that is so often overlooked.
Kiwis are living longer and healthier than they
ever have in the past, which means they are able
to participate in their communities deep into
“When we saw this was being built, it just
ticked all the boxes,” says Cedric. “It was local
and it was part of the community.”
OUR OFFER
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OCEANIA ANNUAL REPORT 2024
The Helier is the epitome
of luxury later-life living.
Offering 79 retirement residences and 32 private
care residences built to the New Zealand Green
Building Council’s Homestar 6 certification, The Helier
reimagines what retirement looks like in New Zealand.
The amenities on-site include, but are not limited to:
• State-of-the-art gym and spa
• Indoor swimming pool
• Day spa, offering a range
of holistic treatments
• All-day dining including
café and bar
• Executive chef
• In-room dining
• Exclusive wine library
• Concierge
• Chauffeur service
(Jaguar EVs)
The boutique design of The Helier means it is part
of the St Heliers landscape. Residents regularly enjoy
an excellent range of dining and entertainment in the
vicinity and they’re only a short chauffeur drive
from everything the city offers.
In February 2024, The Helier also opened 32 state-
of-the-art care residences, giving residents added
certainty that they will still be close to loved ones when
they need additional care.
Residents also benefit from conscious design through
certification to Homestar 6, including solar PV
installations on the roof, low E-glazing throughout the
building, energy-efficient hydronic underfloor heating
in the communal lounges, continuous air extraction
in bathrooms, heat pumps for heating and cooling
requirements, EV charging capability and LED lighting.
The Helier offers a carefully curated glimpse at the
enormous potential of luxury retirement living in
New Zealand.
Cedric decided to retire as soon as he hit 65 and
he had absolutely no regret about handing over
the reins when he did.
In the years that followed Cedric’s retirement,
the pair lived in an apartment not far from
The Helier but they have no regret about making
the transition. They admit the initial decision is
always confronting when it comes to moving into
a retirement village, but in conversations with
friends over the years, they’ve heard a common
refrain repeated more often than not.
“As you get closer to the age and you talk to
people, you often hear that line, ‘I wish I’d done it
earlier,’” reflects Cedric. “You can only enjoy this
standard of living if your health is good enough
and you’re self-sufficient enough to enjoy the
experience. And that’s the big plus of living at
The Helier because you can really enjoy your
time here while still being part of the community.”
While people generally don’t like to talk about
these things, Pam and Cedric also take comfort
from the fact that they know they’ll still be close
together should either require additional care.
The Helier has just opened a state-of-the-art
care offer that gives couples the security of
knowing they’ll still be close together even if
their partner falls ill.
“To be able to see each other every day would
be huge,” says Cedric.
Even after 60 years of marriage and travels
around the world, it’s still the small things
that matter at the end of every day.
OUR OFFER
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OCEANIA ANNUAL REPORT 2024
We design with a focus on the local environment,
community needs and cultural values of each location.
How Oceania implements Homestar
Oceania has been designing and building to the
New Zealand Green Building Council (NZGBC)
Homestar certification since 2018. Homestar
certification applies to residential buildings,
so for Oceania this covers independent living
apartments and villas. To date, Oceania has
delivered 10 projects to Homestar 6 “As Built”
rating, equating to 495 independent living units
and 26% of its total independent living units.
A further 210 units are under construction (or
awaiting “As Built” certification). Oceania has
previously built to Homestar 6, and with its new
development at Ngā Mara are aspiring to reach
a Homestar 7 certification.
How Oceania implements Greenstar
We previously reported that we were
investigating the feasibility of Greenstar and
are pleased to announce that Oceania has
registered the first Greenstar project for the
care and community buildings at the Ngā Mara
development. Greenstar certification differs from
Homestar in that it applies to commercial and
other non-residential buildings, and still has a
broad focus on assessing environmental design
and performance.
What is Homestar?
The New Zealand Green Building Council’s Homestar
system rates homes on a 6-to-10-star scale for
environmental sustainability and living quality.
It evaluates energy and water efficiency, waste
management, ventilation, and material selection.
Higher ratings indicate superior design and
construction for sustainability and occupant health.
What is Greenstar?
The New Zealand Green Building Council’s Greenstar
system rates commercial and public buildings on
a 4-to-6-star scale, evaluating design, construction,
and operations. It focuses on energy efficiency, water
usage, materials, indoor quality, and innovation. Higher
ratings signify excellence in sustainable practices,
reducing environmental impacts and boosting
occupant health.
What is Greenstar Communities?
New Zealand Green Building Council’s Greenstar
Communities tool is a comprehensive framework that
assesses the sustainability of large-scale developments.
It evaluates the planning, design, and construction
phases on criteria including liveability, economic
prosperity, environment, and innovation.
How Oceania implements
Greenstar Communities
Oceania is currently working towards registering
its first Greenstar Communities project for
Ngā Mara. Acknowledging that every place
is different and has its own set of cultural,
environmental, community and social factors
that shape its identity and character, we have
used the Greenstar Communities tool to guide
us in designing a community for Ngā Mara that
is not only sustainable and environmentally
friendly, but also healthy, resilient, and inclusive
for our future residents. This is an important step
for us as we seek to design with a focus on the
local environment, community needs and cultural
values of each location. Oceania has worked with
cultural advisors to assist with aspects such as
naming the village. Oceania has also undertaken
consultation with key stakeholders and governing
bodies within Auckland, including Mana Whenua
groups and adjoining neighbours.
We recognise we have more work to do in this
area, including strengthening our application
of the engagement and cultural heritage
and identity process within the Greenstar
Communities tool. However, the experience
we have gained through this latest project has
been valuable for Oceania and we will apply
the learnings to improve our approach in
future development.
Our FY24 journey.
12
M11 Villa Back Exterior
OUR OFFER
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Waste
Oceania is committed to reducing its key
operational and construction waste.
In FY2024 we completed updated waste audits.
Notably, incontinence products represent over
half of our operational landfill waste. We will use
these insights to establish a target to decrease
operational waste to landfill.
In FY2024, we collaborated with suppliers
to explore more sustainable materials for
incontinence products, recognising the limited
options of viable biodegradable alternatives
that meet our durability needs. Concurrently,
we are trialling methods to reduce single-use
plastic bags in incontinence waste handling
and have made modifications to onsite disposal
to enhance this effort. Our ongoing initiatives
reflect a broader industry challenge, and we
continue to engage with peers in our industry
and learn from international best practice
regarding incontinence waste reduction.
Food waste
Oceania has implemented food waste diversion
practices in the majority of its villages and care
centres, utilising composting, collections, offsite
piggeries, and other methods to minimise landfill
contributions. Despite these efforts, our audits
indicate ongoing challenges with food waste
entering general waste streams, and we are
developing solutions for sites currently lacking
diversion measures. In FY2024, we partnered
with the University of Otago on a Food Waste
Minimisation project funded by the Ministry for
the Environment’s Waste Minimisation Fund for
the retirement village industry, with three of
our villages set to participate starting
in FY2025.
Construction waste
As Oceania expands its portfolio, we remain
committed to minimising our environmental
impact by managing construction waste
effectively. In FY2024, we successfully met our
waste diversion targets. Specifically, we diverted
79.0% of construction waste from landfill in
our Auckland projects, surpassing our target
of 77.5%, and achieved a 62.9% diversion rate
outside of Auckland, exceeding the 50% target.
These variations reflect the more developed waste
diversion infrastructure in Auckland compared to
the less mature systems in other regions.
In total, Oceania diverted 842 tonnes of
construction waste from landfill in FY2024,
preventing 132 tonnes of CO2e emissions.
We collaborate closely with our construction
partners and their waste providers to enhance
waste diversion efforts. Waste management
is a critical component of our Site Waste
Management Plans (SWMP) and is consistently
addressed in Planning & Coordination meetings.
In addition, our project managers’ personal
performance metrics are directly linked to
achieving these construction waste targets.
We minimise our environmental impact
and support a circular economy.
The Bayview
The Bayview village achieved a Gold rating in Tauranga
City Council’s Resource Wise Programme. This five-year
initiative, in collaboration with the Council, focuses on
enhancing waste management through audits, training,
and resource sharing. In FY2024, The Bayview diverted
92% of food scraps and 75% of paper and cardboard
from landfill.
Marina Cove
The onsite worm farm at Marina Cove, established by
residents and employees with support from the local
Envirohub group, shows the residents’ commitment
to sustainability. Constructed entirely from recycled
materials, including the kitchen fork used to lock it, the
worm farm transforms organic waste into compost for
resident gardening projects. This initiative also serves
as an educational tool, inspiring a local kindergarten
to start its own farm using worms from Marina Cove.
OUR OFFER
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Healthy homes and
sustainable refurbishments
Following the establishment of Oceania’s Impact
Partnership with All Heart NZ in FY2023, Oceania
has enhanced its refurbishment process to
incorporate more sustainable practices. This
includes appointing and working with main
regional contractors to integrate sustainability
more effectively throughout its refurbishments,
which already voluntarily meet the Healthy
Homes standards for heating, ventilation, and
insulation. In addition, we are upgrading to
double-glazing where necessary.
We are working to adopt a circular economy
approach and prioritise repurposing materials.
Our pilot in Auckland at sites Totara Park,
Meadowbank and Lady Allum involved donating
appliances and fixtures through All Heart NZ
and community groups like the Assemblies of
God Congregation. We are now evaluating the
outcomes and planning a nationwide rollout with
our contractors. This revised process will improve
data capture, reporting, and contractor training
in sustainable deconstruction, while providing
valuable feedback to our design teams for
future projects.
Water efficiency
Oceania’s water use across its portfolio has
remained fairly constant (FY2024 vs FY2023).
In the reporting period Oceania has sought
to understand water usage with more accurate
and timely data and is currently looking at
smart metering options for its portfolio. We
continue to roll out more efficient tapware
and showerheads as part of our designs and
refurbishment programme and the new design
for our greenfield development, Ngā Mara,
incorporates rainwater harvesting.
Oceania is enhancing its refurbishment
process to incorporate more
sustainable practices.
OUR OFFER
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OCEANIA ANNUAL REPORT 2024
Our resident experience:
Space to thrive.
New Zealand’s relationship with
retirement is evolving. We are living
longer and healthier lives, so we want
to stay active, continue engaging
in social events and keep our minds
sharp by learning.
As a provider of retirement living, Oceania must
ensure that it responds to the shifting needs
of its residents to create an experience in line
with societal trends. While building innovative
properties is integral to Oceania’s strategy, more
is needed to deliver on the promise to provide a
resident experience that reimagines retirement
living in line with resident expectations.
Last year, Oceania aspired to build a culture
focused on wellbeing to enable residents to
live a fulfilled life and set a goal within the
Sustainability Framework to “prioritise resident
wellbeing through conscious design and
exceptional services.”
Whilst this is our aspiration, there are external
factors influencing our mid to long-term strategy,
including but not limited to the GP shortage
crisis, inequities in the healthcare system and
the relationship between technology and older
New Zealanders.
This requires creative thinking, and we have
rolled out innovations to deliver on our goals,
including the Nurse Practitioner model, the
Oceania Together App and Couples Care
Suites. The process of innovation allows us
to anticipate the needs of residents and
develop structured solutions to improve their
daily experience. Oceania’s approach isn’t
only about innovation but ensuring that our
residents across the country feel fulfilled. In
our Sustainability Framework, we have set a
goal to actively engage with our residents and
local community, to create positive social and
environmental outcomes.
One way to achieve this ambition has been
through the adoption of the evidence-led ‘Five
Ways to Wellbeing’ programme, which is rolling
out nationwide through employee training.
The training aims to provide insight into how
to develop initiatives that bring the pillars of
the programme to life: connect, get active,
take notice, learn and give.
Oceania understands its responsibility to New
Zealand’s indigenous people, who face inequities
in healthcare outcomes. To support our ageing
Māori and Pasifika peoples, we have developed a
comprehensive Māori Health Plan that promotes
an understanding of Te Tiriti o Waitangi and the
Ngā Paerewa Health and Disability standards,
ensuring we are better placed to respond to their
specific needs.
Improving the resident experience will require
continued financial investment, expertise, and
dedication of our people alongside a healthy
environment and community. These inputs
will continue to create value through improved
competencies within our team, better community
relationships across our villages and the
development of organisational systems.
Key metrics
FY30 target
All new designs incorporate
7 Homestar
On track
FY24
7 Homestar certification
New ILUs designed and built
to 7 Homestar
ExceededExceeded
FY24 FY23
Care resident wellbeing
FY27 target
78 .9 %
1
Number of care residents who improve
or maintain an optimum level of health
Care resident satisfaction
FY24 FY23
4135
Net promoter score (+/- 100)
1 The methodology for this care resident wellbeing metric is bespoke to Oceania for the purposes of
establishing a social metric under our sustainability linked loan. The methodology was created using six
years’ of historical Oceania interRAI data.
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OCEANIA ANNUAL REPORT fffiff1
Improving wellbeing
through innovation.
What is private care?
Private care refers to a healthcare model where
residents receive personalised care without Oceania
having a contractual obligation to Te Whatu Ora /
Health New Zealand. While certified by the Ministry
of Health, The Helier’s private care offers flexibility in
the delivery of services, allowing residents to select and
pay for their desired level of service and care. Oversight
by an experienced Head of Care and Nurse Practitioner
ensures clinical needs are met, with a pre-entry home
visit facilitating accurate assessments and a smooth
transition into The Helier.
As the needs of our residents evolve,
it is incumbent on Oceania to adapt
its offering to ensure that the resident
experience remains positive.
We already have a strong track record of
innovation, which has driven resident experience.
That work has been ongoing over the last year
as evidenced in the continued success of our
care suite model, which delivered 258 sales in
the year ended 31 March 2024 (up from 256 sold
during the comparative period the previous year).
We have also recently launched fully funded
private care at The Helier, the first retirement
village operator to do so in New Zealand. This
delivers 32 care residences that boast state-
of-the-art facilities. These include an onsite
physiotherapist, equipped gymnasium, and
a heated indoor pool for therapeutic activities.
Each resident is assigned a registered nurse
supported by care associates and overseen
by a nurse practitioner.
While this is a significant step for Oceania in
the premium space, not all New Zealanders can
afford private care or care suites. As the demand
for aged care continues to rise in the coming
years, Oceania is aware this will have a social
impact across socio-economic brackets and will
require careful consideration as we continue to
expand our offering. Oceania continues to offer
873 standard beds, equating to 35% of its total
care portfolio.
Oceania remains cognisant of long-term
challenges facing the entire healthcare sector,
including the shortage of general practitioners.
The Royal New Zealand College of General
Practitioners estimates that within the
next 10 years, New Zealand will be short
300 GPs, a challenge that shows no signs
of abatement amid strong international
competition for doctors.
Given the impact this will have on residents,
Oceania has since 2020 employed the Nurse
Practitioner Model to improve the quality,
responsiveness and continuity of care to
our residents.
Nurse Practitioners (NP) are highly skilled health
practitioners with extensive clinical experience
and advanced education (a minimum of
a Master’s degree), clinical training and
competence. Their scope of practice extends
beyond that of a registered nurse in that they
assess, diagnose, and treat health problems for
common and complex health conditions. This
includes requesting and interpreting diagnostic
testing, prescribing medications and other
medical devices or treatments, and referring
patients to specialist care. The presence of NPs
at our care centres reduces the demand for
GPs, while also alleviating strain on the public
health sector.
OUR RESIDENT EXPERIENCE
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OCEANIA ANNUAL REPORT fffiff1
Nurse Practitioner evaluation shows
the benefit of a nurse-led model
First implemented in 2020, alongside the introduction
of our first NP at Oceania, we recently celebrated and
shared the innovative nurse-led primary care services
model. An evaluation of this model was completed in
2023, which found that there was a very high level
of satisfaction with the new model of care from
staff and NPs.
In a survey completed by Facility Managers, Clinical
Managers and Registered Nurses, we found that 96%
of participants trusted NPs clinical decision-making all
or most of the time. Further to this, 92% of respondents
were satisfied or very satisfied with the total coverage
of the primary care service. Oceania is proud to
demonstrate that employing NPs based in care centres
is an effective and efficient way to provide quality care
and relieve the pressure on primary care providers in
the community.
Oceania has implemented this model across
21 of its facilities thus far. We currently have
12 NPs working for Oceania and plan to expand
this approach across the country to eventually
roll out across both residential and care suites
so that every resident that chooses Oceania
has access to high-quality individualised and
holistic healthcare.
To support this objective, Oceania has created
career pathways for registered nurses on our
team to upskill and become NPs.
Oceania’s commitment to innovation doesn’t
end there. We developed Couples Care Suites
to ensure that loved ones don’t have to be
separated when one or both of their health
deteriorates. Initiatives like these greatly improve
the resident experience by ensuring that couples
don’t have to face the added anxiety of being
separated from their partners.
Oceania is also innovating in technology
through piloting apps and the use of voice-
activated media to provide residents with a more
connected living experience. Technology offers
a significant opportunity for residents to stay
connected to family members enhancing the
resident experience.
We will continue to invest in innovation and our
model of care, and this will play a significant
role in improving the resident experience and
Oceania’s internal expertise.
Shirley Ross, Clinical Director at
Oceania (right), with Nurse Practitioner
Heather, receiving an award from
Auckland PHO for second place in
achieving flu vaccinations for an
over 65 age group
OUR RESIDENT EXPERIENCE
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OCEANIA ANNUAL REPORT 2024
Enhancing care resident wellbeing
and satisfaction
Oceania is committed to enhancing care
resident wellbeing through its model of care
excellence, which emphasises person-centred
care and resident engagement. To effectively
measure our performance, we employ a
bespoke methodology using interRAI
1
data
that assesses the proportion of residents
experiencing improvements (or remaining at an
optimum level) in their wellbeing. We do this by
measuring inputs that cover physical, social and
psychological wellbeing that contribute to the
overall care resident wellbeing score. For FY2024
Oceania scored 79% for care resident wellbeing,
successfully meeting the target against its
sustainability linked loan.
Oceania measures Net Promoter Score (NPS)
for care residents, and their satisfaction across
various services including care, meal service and
cleanliness. In FY2024, care resident NPS was
improved to 41, up from 35 in the previous year.
We recognise the importance of continuous
feedback from our residents to drive service
improvements. We are looking to implement a
resident satisfaction survey for our independent
living residents and are actively exploring ways
to capture the feedback from specialised areas
such as residents living with dementia.
Improving clinical care through the
Fundamentals of Care framework
In collaboration with the International Learning
Collaborative (ILC), Oceania has implemented
the Fundamentals of Care framework, which
emphasises essential aspects of healthcare that
are critical to resident wellbeing. This approach
enhances the therapeutic relationships with
residents, addressing physical, psychosocial,
and spiritual needs. The ILC aims to globally
transform care by emphasising person-centred
fundamental care, supported by education,
research, advocacy, and policy. It incorporates
whanaungatanga, the Māori concept of building
and nurturing relationships, emphasising a
sense of family, and belonging. It also enables
the healing relationship with the resident, and
whānau is at the centre of the nursing care plan.
Addressing antimicrobial resistance
Oceania is actively participating in national
efforts to steward antibiotics use and combat
antimicrobial resistance (AMR), a growing public
health concern, based in both hospitals and
communities. Guided by the Health Quality and
Safety Commission (HQSC) and their Quality
Improvement methodology, we are enhancing
antimicrobial use across our facilities. In 2023,
The Sands care centre in Auckland successfully
piloted an Antimicrobial Stewardship (AMS)
project, leading to its expansion across all our
care centres. This initiative aligns with national
AMS goals and demonstrates our commitment
to improving healthcare quality and safety.
The Māori Health Plan
All management teams across our villages and
care centres have completed training in The
Māori Health Plan, enhancing their capability
to uphold Te Tiriti o Waitangi principles and
meet Ngā Paerewa Health and Disability
standards. This training focuses on recognising
and addressing the unique health and cultural
needs of older Māori and Pacific peoples in
our care. From admission, our approach is to
understand each resident individually, tailoring
care plans that incorporate specific needs and
preferences, with significant family involvement.
Employees receive ongoing training in cultural
practices, including tikanga. We assess our
impact by monitoring key clinical indicators
across different ethnic backgrounds, ensuring
our services remain equitable and responsive.
Our commitment to The Māori Health Plan
underscores our dedication to health equity and
culturally responsive care, fostering an inclusive
environment where all residents can thrive.
Our FY24 journey.
We prioritise resident wellbeing through
conscious design and exceptional services.
1 InterRAI is an internationally recognised clinical assessment tool
developed by the interRAI consortium and licensed in New Zealand by
interRAI Services, a division of TAS. InterRAI data provides Oceania with
a validated third party source.
OUR RESIDENT EXPERIENCE
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OCEANIA ANNUAL REPORT 2024
Evidence-led dementia design
at Meadowbank
We’ve leveraged both internal expertise and
external partnerships with organisations like
Dementia Auckland, Alzheimer’s NZ, and the
National Dementia Foundation to enhance the
design of our dementia care centres. Our focus
is on creating home-like environments tailored
to residents’ social, cultural, and cognitive needs.
Our Meadowbank Dementia centre is currently
under development, and the building features
will include clear signage, and intentional use
of colours for safety and ease of use for the
cognitively impaired. Our specialised design
elements will stimulate residents’ senses and
promote a calm atmosphere.
Innovation in technology
In addition to our continued focus on services
and design aimed at enhancing resident
experience, Oceania remains dedicated to
advancing technological innovation. Notably,
we have implemented two key pilots in FY2024:
a mobile application, the “Together” App, and
the integration of Alexa software into our nurse
call system at The Helier.
The Together App
Our Together App represents a significant
step forward in resident engagement and
convenience. Serving as an interactive platform,
the pilot offers residents a wide array of services
and information at their fingertips. Through the
Together App, our residents can directly interact
with the Oceania team, access our newsfeed
and events calendar, request services such as
chauffeur bookings or self-drive car reservations
and make activity reservations. Residents can
use the Together App to submit maintenance
requests and notify the team of things that
require extra attention, thereby streamlining
communication and enhancing overall
resident satisfaction.
Alexa integration
The pilot to integrate Alexa software into our
nurse call system adds an extra layer of comfort
and peace of mind for residents. Residents
can quickly and easily summon assistance in
emergency situations simply by using voice
commands. This integration means that help is
always within reach, even where a resident isn’t
anywhere near an emergency trigger.
As these innovations have only been recently
introduced to our flagship site, The Helier, and
are still undergoing development, we look forward
to integrating these offerings in both new and
existing villages and care centres in the future.
I Love Music programme
Oceania’s ‘I Love Music’ program, now in its sixth
year, continues to enrich our residents’ lives by
providing personalised musical experiences.
Currently, 24% of our care residents are actively
enrolled, enjoying tailored playlists on their
personal mp3 players. This initiative taps into the
power of music to unlock cherished memories
and improve mood, with research indicating
that familiar tunes can enhance sociability and
evoke long-term memories. Our Aged Care Living
team leverages online music libraries and audio
books to offer residents innovative and intuitive
entertainment options, further enhancing their
sense of comfort and nostalgia.
Couples Care Suites
Anitha Mogilicharla is the Regional Clinical Manager
for Oceania’s Northern Region. She has a long-standing
relationship with Oceania, having initially worked as
a Healthcare Assistant while studying Nursing and
eventually becoming a Registered Nurse at one of
Oceania’s facilities in Auckland. Prior to her current
role, Anitha worked as Clinical Manager at The Sands.
“I love the fact that no two days are the same in my
job,” she says. “It’s so rewarding to support and provide
reassurance to both residents and staff.”
During her time at The Sands, Anitha saw firsthand the
benefits of Oceania’s Couples Care Suite offering.
“The care suite provides a home environment away from
home, fostering a sense of familiarity and ease with
safety features. They ensure that each partner has their
own area while still being close enough to support and
interact with each other,” she says.
Mimicking a home environment, the Couples Care
Suites are slightly more spacious and offer an
additional lounge and dining space.
“The comfort of having a partner in the same space
offers advantages from sharing meals with a dining-
in experience to engaging in leisure activities with one
another. The larger space also provides a protected
area for residents to spend time with visitors and family
members,” says Anitha.
On top of this, Anitha highlights that the care team
members play a vital role in enhancing the couple’s
experience. Through interacting with couples every day,
they get to know them on a personal level, allowing
them to provide tailored support and companionship.
OUR RESIDENT EXPERIENCE
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OCEANIA ANNUAL REPORT 2024
Five ways to wellbeing
Oceania recognises that with over 4,000 residents and 3,000
employees, it has a real opportunity to enable residents and
employees to help create positive social and environmental
outcomes for the community, and one way we deliver on this
is through the ‘Five Ways to Wellbeing’ programme.
Oceania is the only aged care or retirement village operator
in New Zealand to actively adopt the ‘Five Ways to Wellbeing’
approach in its operations. The strategy is contingent on
promoting and facilitating participation in the five pillars of the
programme (connect, get active, take notice, learn and give)
across Oceania residences.
Research has shown this approach to be effective, with a 2019
study of over 10,000 adults finding that those who engaged in
multiple pillars had higher levels of personal wellbeing.
1
The study
also found that wellbeing levels increased as more of the pillars
were practised (in any combination).
Higher wellbeing is associated with better health, greater longevity,
the ability to cope with adversity, increased productivity and
stronger personal relationships.
The application of the ‘Five Ways to Wellbeing’ programme at
Oceania is informed by a local framework developed by The NZ
Mental Health Foundation. Thus far, more than 50 employees
across Oceania have been trained in the ‘Five Ways to Wellbeing’
framework and those numbers will increase as further training
is rolled out in the coming year.
The approach is already delivering results, with our teams around
the country incorporating this thinking into event calendars and
weekly activities.
Every unique experience enjoyed by residents around the country
has the potential to become a compelling narrative on what sets
Oceania apart.
1. Keep moving (get active)
In 2023, hundreds of Oceania residents and
employees collectively walked the length of
New Zealand to raise funds for the Mental
Health Foundation New Zealand (MHFNZ).
An initial target of walking for 14,100 minutes
was surpassed employees, with participants
collectively walking for over 150,000 minutes.
After seeing the physical and mental wellbeing
benefits, many residents plan to continue their
walking routines. Over $20,000 was raised for
the MHFNZ.
2. Brainy Beanies (give)
Residents around the country have shown
their support for Brain Tumour Support NZ’s
Brainy Beanies initiative. This project invites
New Zealander’s to knit bespoke beanies, which
are donated to Brain Tumour Support NZ and
auctioned to raise funds for this important cause.
Residents at Totara Park village have already
contributed around 60 hand-knitted beanies,
exemplifying the ‘Give’ pillar from our ‘Five Ways
to Wellbeing’ programme.
3. Making learning fun (keep learning)
Our Eversley Care Centre is dedicated to
stimulating lifelong learning and inspiration
among our residents. A recent educational trip
to the local Planetarium enabled residents to
explore the night sky and our solar system. This
experience was complemented by a creative
session where residents in the dementia wing
painted the planets, learning through art.
4. Bream Bay beekeepers (connect)
Residents at Bream Bay have embraced the
“Connect” pillar through their venture ‘Bream Bay
Village Honey’. This initiative involves maintaining
village beehives, harvesting batches of honey,
and connecting with the broader community. To
date, 70 kg of honey has been produced, which is
shared as gifts and with the local community.
5. Showing gratitude (take notice)
The Woburn Care Centre embraces the ‘Take
Notice’ pillar through meaningful initiatives.
A gratitude board allows residents and staff
to express their appreciation for one another,
while bespoke events provide opportunities to
appreciate the small things. During Matariki,
the team spent the evening observing and
appreciating the constellations. These simple
initiatives contribute to the ‘Five Ways to
Wellbeing’ by encouraging people to practice
mindfulness in daily life.
OUR RESIDENT EXPERIENCE
We actively engage with our residents, people
and local community to create positive social
and environment outcomes.
1 Mackay, L, Egli, V, Booker, L-J, Prendergast, K: “New Zealand’s engagement with the Five Ways to
Wellbeing: evidence from a large cross-sectional survey”, School of Language, Social & Political
Sciences, University of Canterbury, pages 230-244
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OCEANIA ANNUAL REPORT 2024
Community engagement
Oceania is expanding its reach and support of
the community through strategic partnerships.
In FY2024, Oceania formed a partnership with
the National Foundation for the Deaf and Hard
of Hearing (NFDHH), who support and advocate
for the deaf and hard of hearing community.
In line with our ‘Believe in Better’ ethos, we are
committed to being more accessible for residents
with hearing loss and for improving hearing
health outcomes for the Oceania community.
We became the first retirement and aged care
provider in New Zealand to become a Hearing
Accredited Workplace, during the reporting
period. All of our independent retirement living
villages in Auckland have hosted a hearing
awareness event, and there are plans underway
to expand these events into the Canterbury,
Hawkes Bay and Taupo regions.
Natasha Gallardo, Chief Executive of NFDHH
has said “We are incredibly grateful for the
partnership with Oceania and their commitment
to improving the hearing health of their residents.
We are also appreciative of Oceania recognising
the value of their team undertaking hearing
aware education workshops to ensure their
staff can better support their deaf and hard
of hearing residents.”
OUR RESIDENT EXPERIENCE
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OCEANIA ANNUAL REPORT 2024
Our people capability:
Giving our team room to grow.
At Oceania, our people are the
driving force behind our purpose
to reimagine retirement and aged
care living in New Zealand. We
recognise that an engaged, capable,
and diverse workforce is central
to delivering exceptional care and
enriching the lives of our residents.
Oceania aspires to be an employer of choice,
to attract, grow and retain great people.
Our people capability strategy is deeply linked
to our overall value creation process. We invest
in our team’s professional development and
wellbeing and foster a diverse and inclusive
culture. This commitment helps to strengthen
our teams, our expertise, and our relationships
and this drives operational excellence and
our ability to continue to deliver high-quality
services. Motivated and stable teams also help
us mitigate risks related to workforce shortages
and employee turnover.
Our commitment to people capability
is underpinned by integrated thinking,
considering the interdependencies and trade-
offs between different priorities. We aim to
balance our financial investments in training
with improvements to our processes and
relationships. This approach helps ensure we
deliver benefits to our stakeholders, including
residents, employees, and the wider community.
Key metrics
Employee net promoter score (eNPS) (+/- 100)
FY24
24
FY23
16
Employee retention (all employees)
FY24
67%
FY23
56%
Employee retention (clinical employees)
FY24
69%
FY23
59%
Gender diversity (CEO-3) (% female)
FY24
52%
FY23
57%
Long term injury frequency rate
1
FY24
7.4 7
FY23
10.30
1 LTIFR is a health & safety metric that measures the number of lost time
injuries (work-related injuries resulting in time away from work).
OCEANIA ANNUAL REPORT 2024
30
Kylie Hill, Village Manager Awatere
OUR PEOPLE CAPABILITY
The modern employee is eager to
learn and develop their skills to ensure
they remain relevant in a changing
world. It has become incumbent on
employers to answer that call for
growth by giving their team members
the opportunities to develop skills
that will give them an edge.
Oceania believes in fostering and building talent
within its team, and prides itself on identifying
skill gaps and giving employees the opportunity
to train and upskill.
To see this in play, look no further than Kylie Hill.
Joining the company in 2002 as a part-time
office administrator, it didn’t take long for Kylie’s
talent to be noticed. Within just six weeks, she
was taken on as a full-time employee and she
hasn’t looked back since.
Kylie’s ongoing dedication and talent caught
the team’s attention and a series of
promotions followed.
Fostering and building
talent within our team.
“I did some cover for the Facility Manager,
served as a part-time Regional Administrator,
and eventually became the full-time Business
Care Manager (BCM) at Whitianga,” she
recounts, humbly. Kylie was one of the first
administrators that Oceania supported into
a BCM role and has since worked as a Sales
Manager at Awatere in Hamilton and is now
Village Manager there.
Kylie has continued to grow within Oceania
and became part of the first cohort of BCMs to
undertake a dedicated leadership programme,
before going on to complete an additional
certificate in management.
“Oceania has invested in my journey and
supported me on a career pathway that I truly
love. It’s a pretty special place to work. I believe
in the brand and the Believe in Better ethos -
and that’s what I aspire to give and to support
our village community and team.”
“Oceania has invested in my journey and
supported me on a career pathway that I truly
love. It’s a pretty special place to work.”
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OCEANIA ANNUAL REPORT 2024
There’s no shortage of exceptional talent
throughout the Oceania team. Another team
member that we’re incredibly proud of is Anitha
Moglicharla, the Regional Clinical Manager for
the Northern Region at Oceania.
Her decade-long tenure with Oceania traces
back to her early years in the country. Arriving
in New Zealand from India in 2008, Anitha
initially worked at a vineyard before deciding
to study nursing. This decision would prove
pivotal, as she would go on to join Oceania
as a Healthcare Assistant in 2011.
Oceania supported Anitha’s transition to
a Registered Nurse at Everil Orr care home,
delivering high-quality service and expertise.
She snapped up every learning opportunity
offered by Oceania and steadily augmented
her skills to become a brilliant manager.
“From my early days as a healthcare assistant
to my current role, each step has been marked
by continuous learning and growth. My journey
with Oceania has been instrumental in shaping
my nursing career. The clinical competencies,
comprehension sessions and study day
opportunities provided within the organisation
have been invaluable”, says Anitha.
Anitha’s on-the-job training included specialist
training in restraint minimisation and palliative
care pathways, a post-graduate certificate
in advanced nursing, a further postgraduate
diploma, and additional training in infection
prevention and control through a Post Graduate
Certificate course – all supported by Oceania.
By 2019, Anitha’s talent and commitment saw her
appointed the Clinical Manager for The Sands.
Her strong leadership skills and dedication to
the team saw her quickly progress, and in less
than a year she now holds a role as the Regional
Clinical Manager alongside the responsibility
of being a National Infection Prevention and
Control Coordinator.
Anitha believes the supportive environment
Oceania has provided has been crucial in
her career development.
“A supportive environment helps foster growth,
provides encouragement, and acts as a safety
net during times of uncertainty. I am very
fortunate in this domain, with the unconditional
support from my family and the Oceania
management team helping me in every aspect
of my success.”
Anitha and Kylie are two rising stars within the
Oceania team, but they aren’t the only ones.
Throughout our organisation, we have team
members who are equally passionate. Through
our various training programmes, we are taking
steps to ensure these team members are given
the tools they need to bring fruition to their
career objectives while doing meaningful work
at Oceania.
“A supportive environment helps foster
growth, provides encouragement,
and acts as a safety net during times
of uncertainty.”
OUR PEOPLE CAPABILITY
Anitha Moglicharla, Regional Clinical Manager
Northern Region
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OCEANIA ANNUAL REPORT 2024
Appointment of new Chief People Officer
To deliver on Oceania’s aspiration to be an
employer of choice, as set out in its sustainability
framework, Oceania appointed a new Chief
People Officer in February 2024. The CPO
is responsible for the People and Culture
plan, which will initially focus on building the
foundations for a strong people and culture
such as the successful implementation of
a new HR Information System (HRIS).
Nurse Training
Recognising the critical importance of nursing
professionals in delivering exceptional care,
Oceania extends its impact beyond its immediate
operations by training nurses for the wider
New Zealand community. Oceania’s Wesley
Institute of Nursing Education helps contribute
to addressing the national nursing shortage
by providing intensive training programs for
individuals seeking to become registered nurses
in New Zealand. Through the Competence
Assessment Programme (CAP) and the Return
to Nursing Programme, Oceania assisted over
1,000 individuals in becoming registered nurses
in FY2024. Through the Wesley Institute of
Nursing Education, Oceania can contribute to
the wellbeing of communities across the country.
Oceania is mindful that the regulatory framework
is subject to change and may affect certification
requirements and the CAP programme in future.
Developing our teams
Oceania aims to foster an environment that
develops its team members’ capabilities
while encouraging long-term engagement
and retention.
Capabilities and competencies
In the reporting period, Oceania broadened its
learning and development programs to include
non-clinical roles. It developed a capabilities
and competencies framework to ensure site
managers are given the opportunity for future
development, and provides training across
areas such as business operations, clinical
responsibilities, hospitality training real estate/
property market insights, legal and regulatory
frameworks, sales and CRM utilisation, and
leadership development.
Underpinning this framework is the Future
Fluent Programme. Launched in FY2024, the
programme offers modules to help develop
specific skillsets, enabling team members
to upskill and become proficient in their
respective roles.
Career development
In FY2024, Oceania formalised a new Senior
Leadership Team to provide support to the
Executive team, empowering these senior leaders
with opportunities for growth and decision-
making, with dedicated executive support.
OUR PEOPLE CAPABILITY
We attract, grow and retain great people.
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OCEANIA ANNUAL REPORT 2024
An employer of choice
In FY2024, Oceania’s employee Net Promoter Score
(eNPS) improved to 24 up from 16 in FY2023 and
8 in FY2022, and there was improvement in all scores
across the survey. While a score of 24 suggests
a positive employee sentiment overall, there is
room to improve to reach higher levels of employee
satisfaction and advocacy, as Oceania aspires
to be an employer of choice.
OUR PEOPLE CAPABILITY
Fostering engagement and retention
Oceania’s focus on developing its team
members is intrinsically linked to its efforts in
fostering long term engagement and retention.
By recognising outstanding contributions,
celebrating achievements, and providing a great
resident experience, we create an environment
that motivates our workforce and encourages
loyalty to the organisation.
With sector-wide challenges including clinical
workforce shortages, engagement and retention
are paramount. In FY2024, Oceania’s retention
rate was 67% (all employees) and 69% (for clinical
roles), both seeing an uplift on prior years.
Listening to our people
Central to our people strategy is actively listening
to our employees’ voices and being adaptive
and responsive. We conduct yearly employee
engagement surveys to gather feedback
on various aspects of employee experience,
including culture and environment, wellbeing,
fairness, and inclusion. This input directly informs
our initiatives and decision-making processes,
ensuring that our strategies align with the
evolving needs of our workforce.
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OCEANIA ANNUAL REPORT 2024
Employee benefits
One example of our responsiveness to employee
feedback is the introduction of “birthday leave”
in the reporting period. This benefit allows
employees to take a day off work on or around
their birthday, promoting work life balance.
This leave benefit builds on Oceania’s existing
employee benefits, including its industry-leading
parental leave policy that tops up the amount
employees receive from the government to their
usual daily pay for the period they receive the
government grant.
“Oceania made me feel supported while on
maternity leave. The top-up ensured I could focus
on my family and really enjoy time with my little
boy.” Katie Adams, Executive Assistant, and mum
to 11-month-old Teddy.
Rewards and recognising excellence
Oceania believes in celebrating and rewarding
the hard work and dedication of employees.
Oceania’s annual conference serves as a platform
for celebrating the team’s achievements throughout
the year. While incorporating elements of strategy
and professional development, the conference
primarily focuses on fostering a sense of community,
recognising outstanding contributions, and
expressing appreciation for the village and care
centre managers who attend. The ‘Believe in Better’
Awards at the annual conference sees employees
recognised across leadership, teamwork, hard work,
and resident experience.
In FY2024, Oceania invested in creating a modern
and collaborative work environment with the
relocation of its corporate office. This move aimed
to enhance employee wellbeing, productivity
and foster greater cross-functional collaboration,
reflecting Oceania’s commitment to provide its
team with a rewarding and engaging workplace
experience. We saw a 32% increase in respondents
saying the office contributed to a sense of
community for employees (from 43% to 75%), and
an increase from 68% to 83% of employees rating
their health and wellbeing as “good’ or “excellent”
after moving into the new office.
Te Mana Award
Te Mana winner of inaugural Oceania “Environmental
Sustainability” Believe in Better Award
Sharon Chatterton, Village Business and
Care Manager at Te Mana Care Centre
and Totara Park Village
Executive Assistant,
Katie Adams and
her son Teddy
OUR PEOPLE CAPABILITY
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OCEANIA ANNUAL REPORT 2024
OUR PEOPLE CAPABILITY
Creating an inclusive, safe, and rewarding
workplace culture is essential for nurturing
a high-performing and engaged team. We are
committed to promoting diversity, ensuring the
wellbeing of our employees, and recognising
their contributions to our success.
Fostering culture and diversity
To enable a great diversity and inclusion
strategy, we’re focussed on putting the
foundations in place and are introducing a
new HR Information System – HRIS. The HRIS
will provide better insights into our workforce
composition, enabling us to identify areas for
improvement and develop targeted strategies
to promote inclusivity. Additionally, Oceania is
committed to addressing gender pay gaps and
equitable compensation practices and is working
to create a new benefits framework.
We organise cultural days that honour and
showcase the traditions, heritage, and customs
of various communities. These events serve as
platforms for learning, understanding, and
fostering a sense of belonging among our
diverse workforce and residents.
Initiatives such as Diwali, Chinese New Year,
St. Patrick’s Day, and Matariki celebrations
not only promote cultural awareness but also
provide opportunities for meaningful connections
and shared experiences. By celebrating our
differences, we strengthen the bonds within
our community and cultivate an environment
of mutual respect and appreciation.
Health, safety and wellbeing
The health, safety, and wellbeing of our
employees are of utmost importance to
Oceania. Oceania has a dedicated focus
on incident reporting, risk mitigation, and
proactive measures to ensure a safe working
environment. In FY024, Oceania saw a
considerable improvement in its long term
injury frequency rate (LTIFR) being 7.47 (down
from 10.30 in FY2023). Oceania’s Health and
Safety Representatives (HSRs) are important
voices across the organisation, championing
employee health and safety and playing a
crucial role by leading proactive Health and
Safety Committee meetings.
We also recognise the importance of mental
health and wellbeing. Through initiatives such as
Mental Health Awareness Week and our Wellness
Portal, Te Whare Tapa Whā, we aim to promote
a holistic approach to employee wellbeing,
encouraging a healthy work-life balance
and providing resources for personal growth
and development.
Through our focus on diversity and inclusion,
health and safety, wellbeing initiatives,
and rewards and recognition programs, we
cultivate an environment that empowers our
employees to thrive, contributes to our purpose,
and embodies our Believe in Better ethos,
in service of our residents.
We provide a safe, diverse, equitable and inclusive workplace
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OCEANIA ANNUAL REPORT 2024
Oceania is pleased to have continued
its positive contributions to investors,
stakeholders and residents during the
reporting period.
Our capability for growth has been
demonstrated through premium living
experiences, our development pipeline and
through leading resident experiences.
Demand for Oceania’s services is projected to
grow as demographics shift and New Zealand’s
population ages.
In the last financial year, Oceania delivered
182 units and care suites. Meeting the
growing demand for independent living and
care residences will require a comprehensive
development pipeline.
Therefore, as we execute our growth strategy,
we are mindful of integrating sustainability into
our building, operations and thinking. This is
about taking a long term view and ensuring that
investment decisions and capital allocations are
in line with where we want the business to be
in the future.
Climate change will impact organisations across
New Zealand and Oceania must work to ensure
climate resilience across its portfolio. We have a
goal to reduce our GHG emissions and integrate
climate resilience into our business.
Embedding sustainability into our growth
strategy will play a key role in continuing to
position Oceania as a business that offers
a premium, modern living environment.
In FY2023 we established our $500m
sustainability linked loan. Now in its second
year of performance, Oceania has met all three
sustainability performance targets for FY2024
across care resident wellbeing, construction
waste diversion, and GHG emissions. This
achievement not only demonstrates Oceania’s
commitment to its ESG objectives but also
positions the company to benefit from lower
borrowing costs under the loan’s terms,
reinforcing the financial advantages of
sustainable practices in long term
value creation.
Embedding sustainability into our growth
strategy will play a key role in continuing to
position Oceania as a business that offers
a premium, modern living environment.
Our growth:
Integrated, long term thinking.
Key metrics
Number of units built
1
Independent
living units
Care
units
FY24
FY24
95
87
Independent
living units
Care
units
FY23
FY23
66
167
FY30 target -42%
FY23 +0.5%
FY22
FY24
-19
%2
Reduce absolute scope 1 and 2
emissions by 42% by FY30 below
a FY2022 base year
3,5914,4 42
FY24 FY23
GHG emissions (t CO2e)
Target
Reduction against FY22 base year
(location based emissions)
1 Also refer to Trading Highlights (page 5) and accompanying annual financial statements
2 See our Emissions Report 2024: oceaniahealthcare.co.nz/investor-centre/sustainability
37
OCEANIA ANNUAL REPORT fffiff1
OUR GROWTH
Our growth strategy has prioritised
the development of quality sites that
offer premium services and a more
intimate setting.
While our focus has been on brownfield
development to this point, those opportunities
are coming to a natural end. The next phase of
our growth strategy will be focused on carefully
selected future development projects that
don’t stray away from our promise to provide
villages that are truly part of the community,
both creating jobs for the local community and
stimulating demand for goods and services.
We are aware that with future developments
we will have an impact on the biodiversity
and local ecosystem, which will require
thoughtful consideration.
The coming year will mark a major milestone as
Oceania commences work on its first greenfield
project, Ngā Mara, comprising villas, care suites,
dementia beds, a community building and
apartments. The Ngā Mara development will
be staged over a number of years, marking an
important step in Oceania’s mid to long term
growth strategy.
Greenfield shift with Ngā Mara.
OCEANIA ANNUAL REPORT 2024
38
Our approach allows for more connected
communities within each village, while also
ensuring that those villages are integrated
into the broader community.
Ngā Mara will be part of a growing community
in southwestern Pukekohe. Similarly, for our
Bream Bay village in Ruakaka (Northland), we
have invested in an area subject to a wider plan
change (now approved) that will facilitate the
development of housing and a new Town Centre
on adjacent land.
Oceania is commencing work on greenfield
developments in preparation for the significant
demographic shifts we’ll see in the population in
the coming decades. In the 30 years from 2018
to 2048, the over-75 population in New Zealand
will more than double. That rapid growth in
New Zealand’s retired population will provide
a large target market for our developments
in the coming years.
Our current development pipeline will see
Oceania emerge with one of the best portfolios
in the market. This will strengthen the Oceania
brand, reduce our impact on the environment
and in the longer term ensure a growth trajectory
that’s focused on premium and sustainable
properties that drive better resident experiences.
13
M12 Villa Living Room
7
M05 Bowling Green
Our current development pipeline will see Oceania emerge
with one of the best portfolios in the market.
OUR GROWTH
39
OCEANIA ANNUAL REPORT 2024
Our FY24 journey.
OUR GROWTH
We reduce our GHG emissions in line with our science based
target and integrate climate resilience into our business.
GHG emissions
Oceania recognises the impact its operations
have on the environment by generating
greenhouse gas emissions. The Science
Based Target Initiative (SBTi) has approved
Oceania’s near-term science based emissions
reduction target to reduce absolute scope
1 and scope 2 GHG emissions by 42% by
FY2030 from a FY2022 base year. The SBTi
is the leading standard for corporate climate
targets, which aims to ensure that corporate
emissions reduction targets align with the latest
climate science requirements to limit global
warming to well below 1.5 degrees Celsius
pre-industrial levels.
Absolute reduction targets mandate a direct
decrease in total greenhouse gas emissions,
providing a clear and measurable impact on
mitigating climate change. Oceania recognises
that meeting its absolute reduction target will be
challenging, as it grows. However, it has set an
emissions reduction plan that considers its future
growth based on its development pipeline, which
is updated from time to time.
Please see Oceania’s FY2024 Emissions Report
1
,
available on its website, for its emissions
over time.
Emissions reduction plan
To achieve Oceania’s science based scope
1 and scope 2 absolute emissions reduction
target, Oceania is focused on transitioning away
from gas, transitioning to an EV/hybrid fleet,
improving energy management and efficiency,
and investigating renewable electricity. Oceania
has created a carbon abatement cost curve to
support its emission reduction plan and help
prioritise initiatives.
The use of natural gas and LPG in operating our
villages and care centres is a significant source
of these emissions. Transitioning off gas is a key
pillar of our emissions reduction plan and we
no longer design for gas.
Following our first hot water heat pump install
pilot at our Te Mana care site in Auckland in
FY2023, Oceania completed a further five
business cases for hot water heat pumps to
replace gas boilers for domestic hot water (and
some space heating) in FY2024. We are currently
replacing gas hot water at the Eden Village in
Auckland with a hot water heat pump, and a
diesel burner at the Woburn site in Waipukurau
with air-to-air heat pumps. Both projects are due
for completion at the end of May 2024. Hot water
heat pumps have proven to be significantly more
efficient than electric cylinders or gas and four
further projects for hot water heat pumps are
being progressed in FY2025.
Embodied carbon
Oceania recognises that its emissions from
scopes 1 and 2 are only 6% of total emissions.
Oceania measures its upfront carbon
1
from
new developments (or stages). In the reporting
period, emissions from capital goods (scope 3,
category 2) were Oceania’s largest source of
emissions. As part of achieving NZGBC Greenstar
certification at Ngā Mara, Oceania is focused
on achieving a minimum of 10% reduction
in embodied carbon for the care centre and
community/amenity building through lower
embodied carbon structural steel and concrete,
as well as material substitutions. Oceania also
completed a climate change risk assessment
and adaptation plan for this site, which
includes solutions for the buildings’ design and
construction that specifically address key risks
identified through the risk assessment.
For more information on Oceania’s emissions
reductions and climate resilience action, please
see Oceania’s first mandatory climate risk
disclosure due for publication in June FY2024.
1 See FY2024 Emissions Report, oceaniahealthcare.co.nz/investor-centre/
sustainability, for the measurement methodology.
40
OCEANIA ANNUAL REPORT fffiff1
OUR GROWTH
We adopt a long-term value focus when making
investment decisions and allocating capital.
Operational efficiency
Oceania continues to find ways to improve
operational efficiency across its villages and care
centres. Oceania is underway in transitioning
from incandescent and fluorescent to LED light
fittings, as part of a multi-year programme and
LEDs are now integrated into new area upgrades
and refurbishments. Water conservation
measures such as low-flow showerheads,
improved garden irrigation and hot water
heat pumps are also being implemented. In
the reporting period, Oceania installed its first
solar PV array, at The Helier.
Supplier engagement
Oceania has committed that 72.5% of its
suppliers by spend covering purchased goods
and services and capital goods, will have science
based targets by FY2027. In FY2024, Oceania
engaged with these key suppliers to talk through
Oceania’s sustainability journey, emissions
reduction targets and climate initiatives. This
dialogue provided an opportunity for Oceania
to learn about the sustainability practices
being integrated by these suppliers within their
organisations. Special emphasis was placed
on understanding the measures taken by the
suppliers to quantify and control their emissions,
and plans to introduce emissions targets (if not
already in place). Oceania is pleased to see
that these conversations can result in tangible
changes to improve sustainability outcomes.
For example, our two grounds maintenance
contractors are moving to 100% mulch mowing
to reduce the amount of green waste being
generated as part of the mowing service.
Enhancing supply chain sustainability
and strengthening risk management
Oceania is working to improve its sustainable
supply chain management, and in the year
ahead will be particularly focused on reviewing
its supply chain ESG risks, and improving its
policies and processes.
Oceania has continued to invest in, and elevate,
its approach to managing risk, including building
maturity and deepening resilience for dealing
with risk. This includes establishing a Risk sub-
committee of the Board, investment in risk
framework and resources, and greater focus
on risk culture, to support strategic growth
initiatives and long-term value creation.
41
OCEANIA ANNUAL REPORT 2024
Experienced leadership.
BOARD OF DIRECTORS
Liz Coutts has been a Director of Oceania since 5 November 2014 and was
appointed Chair in 2014. Liz is also the Chair of EBOS Group Limited and
Voyage Digital (NZ) Limited trading as Two Degrees and a Member on the
Advisory Board – Marsh Limited. Liz is a Fellow of Chartered Accountants
Australia and New Zealand. She is a past President of the Institute of Directors
NZ Inc and was made an Officer of the New Zealand Order of Merit in 2016.
Liz has previously been Chief Executive of Caxton Group, Chair of Skellerup
Holdings Limited, Meritec Group Limited, Industrial Research Limited, Life
Pharmacy Limited and Ports of Auckland Limited, Deputy Chair of Public Trust,
and a Commissioner of both the Commerce Commission and Earthquake
Commission. She has been a Director of Sanford Limited, Ravensdown Fertiliser
Cooperative, the Health Funding Authority, PHARMAC, Air New Zealand, Sport
and Recreation New Zealand and Trust Bank New Zealand, and a member
of both the Financial Reporting Standards Board of the New Zealand Institute
of Chartered Accountants and the Monetary Policy Committee of the Reserve
Bank of New Zealand.
Liz is a member of all Board Committees.
Dame Kerry Prendergast has been a Director of Oceania since 22 December
2016. Dame Kerry is a professional director. She was Mayor of Wellington
(2001-2010) and is currently the Chair of Wellington Free Ambulance,
Wellington Opera, Victoria University Foundation, Tourism Industry Association,
Capital Kiwi and Royal New Zealand Ballet. Dame Kerry is also a trustee
of New Zealand Community Trust and the Wellington International Arts
Foundation. For 25 years Dame Kerry was an independent midwife after training
as a general nurse in 1970, and consequently gaining a Diploma in Intensive
Care. She was made a Companion of the New Zealand Order of Merit (CNZM) in
2011 and was promoted to Dame Companion of the New Zealand Order of Merit
in January 2019 for services to governance and the community.
Dame Kerry is Chair of the Clinical and Health & Safety Committee
and a member of the Risk Committee.
Elizabeth Coutts
Chair and Independent Director
ONZM, BMS, FCA
Alan Isaac has been a Director of Oceania since 1 October 2015. Alan is a
professional director with extensive experience in accounting, finance and
governance. He is the past President of the Institute of Directors NZ Inc and
is Chairman of New Zealand Community Trust and Basin Reserve Trust. He
is a former President of the International Cricket Council. Alan is a Director
of Scales Corporation Limited and Skellerup Holdings Limited. He is also Board
member of Wellington Free Ambulance, the Wellington Cricket Foundation and
Community Online Gambling Limited. Alan is also a Member of the NZ Markets
Disciplinary Tribunal.
Alan is a former national Chairman of KPMG, and was made a Companion
of the New Zealand Order of Merit (CNZM) in 2013. He is a Fellow of Chartered
Accountants Australia and New Zealand.
Alan is Chair of the Audit Committee, Chair of the Risk Committee and
is a member of the People and Culture Committee.
Alan Isaac
Independent Director
CNZM, BCA, FCA
Dame Kerry Prendergast
Independent Director
DNZM, CNZM, MBA (VUW), NZRN, NZM
Our Board Skill Set.
Core Strengths
Climate
Markets & Customers
Building & Maintaining Relationships
Delivering Sustainable Growth
Capital Structure & Management
Executive Leadership
Australian Experience
Property & Construction
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OCEANIA ANNUAL REPORT fffiff1
BOARD OF DIRECTORS
Sally Evans has been a Director of Oceania since 23 March 2018. Sally has over
30 years’ experience in the private, government and social enterprise sectors
in Australia, New Zealand, the United Kingdom and Hong Kong.
Sally is a Director of Healius Limited in Australia, Rest (Australian Super Fund),
Allianz Australian Life Insurance Limited and Ingenia Communities. She has
previously held Directorships on the boards of Opal Specialist Aged Care and
Blue Cross Aged Care, was an inaugural member of the Australian Federal
Government’s Aged Care Financing Authority and held executive roles as
Healthcare Director at the FTSE Compass Group PLC and Head of Aged Care
at AMP Capital.
Sally is Chair of the People and Culture Committee and is a member of the
Clinical and Health & Safety Committee and the Sustainability Committee.
Rob has been a Director of Oceania since 17 September 2021. He is a respected
member of the capital markets and finance community in New Zealand, with
more than 30 years’ experience in senior executive roles. Rob is currently
a Director of Westpac New Zealand Limited, a Director of Tourism Holdings
Limited and a Member of the Auckland Grammar School Foundation Trust.
He was previously Chief Financial Officer at SkyCity Entertainment Group
Limited and a Managing Director and Head of Investment Banking at Jarden
(formerly First NZ Capital).
Rob was also previously a member of the Auckland Grammar School Board
of Trustees and a Board member on the New Zealand Olympic Committee.
Rob is Chair of the Sustainability Committee and is a member of the
Audit Committee.
Peter has been a Director of Oceania since 17 September 2021. He has over
25 years’ experience in the New Zealand property market, including 10 years as
Head of Development for Goodman Property Trust. During his time at Goodman
Property Trust, Peter was responsible for all of the Trust’s development activity
and oversaw more than $1.5 billion of successful property development.
Peter also sits on several private enterprise boards, including until recently,
Chair of building products manufacturer Thermakraft. Peter is currently the
Managing Director of Mayfair Group Limited, which is involved in property
development, asset management and funds management across a wide
variety of sectors in the New Zealand property market.
Peter is Chair of the Development Committee and a member of the
Risk Committee.
Greg Tomlinson has been a Director of Oceania since 23 March 2018.
Greg is a Christchurch domiciled businessman and investor with experience
in a variety of New Zealand industries. One of the original pioneers of the
aquaculture industry in Marlborough, he has also established construction
and aged care businesses.
Greg established Qualcare before it was sold into the Oceania Group in early
2008 and he was a director of Oceania from 2008 until 2016. Greg holds
directorships on the boards of a number of New Zealand based companies
and is currently Chair of Heartland Group Holdings Limited.
Greg is a member of the Development Committee.
Sally Evans
Independent Director
BHSc, MSc, FAICD, GAIST
Rob Hamilton
Independent Director
BSc, BCom
Our Board Skill Set.
Peter Dufaur
Independent Director
BProp
Gregory Tomlinson
Independent Director
AME
Core Strengths
Climate
Markets & Customers
Building & Maintaining Relationships
Delivering Sustainable Growth
Capital Structure & Management
Executive Leadership
Australian Experience
Property & Construction
43
OCEANIA ANNUAL REPORT 2024
Our board skill set.
BOARD OF DIRECTORS
• Commitment to the highest standard of governance.
• Board experience (NZX 50 or equivalent) or experience as an advisor
to Boards for at least 5 years.
• An ability to assess effectiveness of senior management.
• Experience and understanding of sales, marketing and brand strategy
and practices.
Governance
Customer Advocacy
Finance and accounting
Aged Care, Hospitality, Customer Service Market Experience
Risk management
Clinical Experience
Capital markets and structure
Regulatory knowledge and experience
Human resources
Health and safety
7/ 7
7/ 7
6/7
7/ 7
7/ 7
4/7
7/ 7
7/ 7
7/ 7
7/ 7
Core Strengths
• Senior executive or board experience in financial accounting and
reporting, corporate finance and internal controls.
• Understanding of business and property valuation principles and their
implications on the financial performance and position.
• Experience and understanding (either at Board, leadership or senior
consulting level) of the dynamics of the international and/or domestic
aged care, hospitality and customer services markets, and opportunities
and challenges within those markets.
• Developing and overseeing an appropriate risk framework and culture.
• Experience evaluating and managing financial and non-financial risks.
• Experience and understanding of the clinical requirements of the
healthcare sector at a governance, leadership and/ or practitioner level.
• Experience with equity and debt markets, capital structuring and
investment analysis.
• An understanding of the regulatory environment in which we operate and
the role that plays in ensuring sustainable custodianship of our assets
and providing benefit to our customers.
• Familiarity with people and best practice development and performance
structures.
• Experience and understanding of health and safety and wellbeing
requirements.
Markets & Customers
• Undertaken climate response training and understand climate risks.
Climate
7/ 7
Climate
44
OCEANIA ANNUAL REPORT fffiff1
• A track record of developing and implementing a successful and
sustainable strategy of growth in business.
• Experience as an investor, leader or adviser in the property
development market.
• Experience as an investor, leader or adviser in the construction industry.
• Experience with a range of capital structures and management of capital
within an organisation.
• Experience in a senior executive leadership position in a large
organisation.
• Experience and understanding (either at Board, leadership or senior
consulting level) of business in Australia.
Growth
Property & Construction
Capital Structure & Management
Executive Leadership
Australian Experience
Strategy
Operational Leverage
Business Model & Technological Disruption
7/ 7
3/7
6/7
7/ 7
4/7
7/ 7
7/ 7
7/ 7
• Ability to think strategically and assess strategic options and
business plans.
• Experience in leading or advising organisational change and creating
value for the benefit of customers and shareholders.
• Understanding of differing business models and the potential for
disruptive models and practices to impact customers and the
supply chain
• Understanding of the opportunity and risks provided by technology
development.
Delivering Sustainable Growth
Property & Construction
Executive Leadership
Capital Structure & Management
Australian Experience
• An understanding of the functioning of Government and experience
developing and maintaining a constructive relationship and interactions
with Government and regulators.
• Experience in and understanding of shareholder and investment
community concerns and developing constructive relationships.
Government Relationships
Shareholder/Investment Community Relationships
7/ 7
Building & Maintaining Relationships
6/7
BOARD OF DIRECTORS
45
OCEANIA ANNUAL REPORT 2024
Financial Metrics
$NZm
March 2024
12 Months
March 2023
12 Months
March 2022
12 Months
Underlying Net Profit after Tax
1,2
62.158.656.7
Underlying EBITDA
1,2
82.680.076.2
Profit for the Year 31.515.461.1
Total Comprehensive Income70.534.5114.4
Total Assets 2,782.32,544.92,197.7
Operating Cash Flow 85.470.2105.5
Operating Metrics
March 2024
12 Months
March 2023
12 Months
March 2022
12 Months
Units1,9151,8201,625
Care Suites1,071984854
Care Beds1,3961,6511,725
Total4,3824,4554,204
New Sales157128184
Resales319280266
Total476408450
Occupancy91.1%90.4%92.0%
1 This is a non-GAAP measure, refer to note 2.1 in the consolidated financial statements for further details.
2 On 21 April 2020 the Group claimed, and received payment of, a COVID-19 wage subsidy totalling $1.8m. This amount has
subsequently been repaid in full on 18 May 2021 and as a result has been excluded from the table above. This proforma adjustment
increases underlying EBITDA and underlying earnings in relation to the 12 month period to 31 March 2022 by $1.8m.
Three year summary.
FOR THE YEAR ENDED MARCH 2024
46
OCEANIA ANNUAL REPORT fffiff1
Consolidated
financial statements.
FOR THE YEAR ENDED 31 MARCH 2024
Consolidated Statement of Comprehensive Income48
Consolidated Balance Sheet48
Consolidated Statement of Changes in Equity49
Consolidated Cash Flow Statement49
Notes to the Consolidated Financial Statements50
47
OCEANIA ANNUAL REPORT fffiff1
$NZ000’sNotesMarch 24March 23
Revenue2.2265,463 247,178
Change in fair value of investment property3.160,77919,497
Change in fair value of held for sale assets3.3-1,886
Gain on purchase of business assets1.3(i) - 543
Other income 2.39,16516.866
Total income335,407285,970
Employee benefits and other staff costs2.4 178,786 164,483
Depreciation (buildings and care suites)2.4, 3.2, 3.512,794 11,363
Depreciation and amortisation (chattels, leasehold
improvements and software)
2.4, 3.2, 3.5, 5.26,192 6,561
Impairment of property, plant and equipment
and right of use asset
2.4, 3.29,2696,531
Change in fair value of held for sale assets3.35,088-
Impairment of right of use investment property2.4, 3.5-1,431
Impairment of goodwill2.4, 5.2555 2,347
Rental expenditure in relation to right of use investment property2.4- 158
Finance costs2.416,417 14,315
Other expenses2.477,913 66,781
Total expenses307,014273,970
Profit before income tax28,39312,000
Income tax benefit 5.13,0813,448
Profit for the year31,47415,448
Other comprehensive income
Items that will not be subsequently reclassified to profit or loss
Gain on revaluation of property, plant and equipment for the
year, net of tax
3.2, 5.141,17517,592
Items that may be subsequently reclassified to profit or loss
(Loss) / Gain on cash flow hedges, net of tax
(2,154)1,503
Other comprehensive income for the year, net of tax39,02119,095
Total comprehensive income for the year attributable
to shareholders of the parent
70,49534,543
Basic earnings per share (cents per share) 4.24.42.2
Diluted earnings per share (cents per share) 4.24.32.2
$NZ000’sNotesMarch 24March 23
Assets
Cash and cash equivalents
7,485 7,439
Trade and other receivables5.3124,864108,929
Derivative financial instruments5.6 3,030 6,026
Assets held for sale3.3 44,259 101,652
Investment property3.11,815,3871,597,721
Property, plant and equipment3.2770,877712,169
Right of use assets3.510,783 4,287
Intangible assets5.25,663 6,717
Total assets2,782,348 2,544,940
Liabilities
Trade and other payables
5.452,05752,289
Deferred management fee3.447,33745,334
Refundable occupation right agreements3.4997,190879,578
Refundable occupation right agreements held for sale3.47,58547,092
Lease liabilities3.511,2054,798
Borrowings4.4640,518553,589
Deferred tax liabilities5.1--
Total liabilities1,755,8921,582,680
Net assets1,026,456 962,260
Equity
Contributed equity
4.1715,960 713,374
Retained deficit(34,264) (68,496)
Reserves344,760317,382
Total equity1,026,456962,260
Consolidated Statement of Comprehensive Income
FOR THE YEAR ENDED 31 MARCH 2024
Consolidated Balance Sheet
AS AT 31 MARCH 2024
T
he Board of Directors of the Company authorised these consolidated financial statements
for issue on 24 May 2024.
For and on behalf of the Board
Elizabeth Coutts Alan Isaac
Chair Director
The above Consolidated Balance Sheet should be read in conjunction with the accompanying notes.The above Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
48
OCEANIA ANNUAL REPORT 2024
$NZ000’sNotes
Contributed
equity
Retained
deficit
Asset
revaluation
reserve
Cash flow
hedge
reserveTotal equity
Balance as at 31 March 2022 705,291(54,735)295,4372,850948,843
Profit for the year-15,448--15,448
Other comprehensive income
Revaluation of cash flow hedge
net of tax
---1,5031,503
Revaluation of assets net of tax3.2, 5.1--17,592-17,592
Total comprehensive income-15,448 17,592 1,503 34,543
Transactions with owners
Dividends paid
4.1-(29,889)--(29,889)
Share issue:
dividend reinvestment scheme
4.18,083---8,083
Employee share scheme4.1-680--680
Total transactions with owners8,083(29,209)--(21,126)
Balance as at 31 March 2023 713,374 (68,496) 313,029 4,353 962,260
Profit for the year-31,474--31,474
Other comprehensive income
Revaluation of cash flow hedge
net of tax
---(2,154)(2,154)
Revaluation of assets net of tax3.2, 5.1--41,175-41,175
Transfer of assets net of tax-11,643(11,643)--
Total comprehensive income-43,11729,532(2,154)70,495
Transactions with owners
Dividends paid
4.1-(9,348)--(9,348)
Share issue:
dividend reinvestment scheme
4.12,586---2,586
Employee share scheme4.1-463--463
Total transactions with owners2,586(8,885)--(6,299)
Balance as at 31 March 2024715,960 (34,264)342,5612,1991,026,456
$NZ000’sNotesMarch 24March 23
Cash flows from operating activities
Receipts from residents for village and care fees
207,911 196,601
Payments to suppliers and employees(259,616) (228,926)
Rental payments in relation to right of use investment property - (158)
Receipts from new occupation right agreements 226,313 178,842
Payments for outgoing occupation right agreements (78,780) (79,267)
Net goods and services tax received / (paid) (3,654) 14,608
Receipts from insurance proceeds1.3(iv) 8,6701,113
Interest received 4,543 1,759
Interest paid (19,570) (13,921)
Interest paid in relation to lease liabilities (443) (445)
Net cash inflow from operating activities85,374 70,206
Cash flows from investing activities
Proceeds from sale and / or disposal of property, plant
and equipment, investment property and held for sale assets
20,316 -
Payments for property, plant and equipment and intangible
assets
(52,016) (55,160)
Payments for investment property and investment property
under development
(128,381)(103,626)
Payments for assets held for sale (1,168)(942)
Payments for business assets1.3(i) - (59,873)
Net cash outflow from investing activities(161,249)(219,601)
Cash flows from financing activities
Proceeds from borrowings
138,674 228,161
Repayment of borrowings(53,925) (54,290)
Capitalised borrowing costs- (2,171)
Principal payments for lease liabilities (2,065) (2,805)
Dividends paid (6,763) (21,806)
Net cash inflow from financing activities75,921147,089
Net decrease in cash and cash equivalents46 (2,306)
Cash and cash equivalents at the beginning of the year7,439 9,745
Cash and cash equivalents at end of year7,485 7,439
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 31 MARCH 2024
Consolidated Cash Flow Statement
FOR THE YEAR ENDED 31 MARCH 2024
The above Consolidated Cash Flow Statement should be read in conjunction with the accompanying notes.The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.
49
OCEANIA ANNUAL REPORT 2024
Consolidated Cash Flow Statement (continued)
FOR THE YEAR ENDED 31 MARCH 2024
$NZ000’sNotesMarch 24March 23
Profit for the year31,47415,448
Non cash items included in profit for the year
Deferred management fees accrued but not settled
2.2 (56,595) (70,206)
Depreciation (buildings and care suites)2.4 12,794 11,363
Depreciation and amortisation (chattels, leasehold improvements
and software)
2.4 6,192 6,561
Impairment of goodwill 2.4 555 2,347
Net loss on disposal of property, plant and equipment 670 3,171
Fair value adjustment to investment property3.1 (60,779) (19,497)
Fair value adjustment to right of use investment property
and right of use land and building
3.5 - 1,431
Impairment of property, plant and equipment3.2 9,269 6,531
Fair value adjustment to held for sale assets3.3 5,088 (1,886)
Loss allowance for trade and other receivables 2.4 71 37
Interest accrued but not paid (4,588) (1,009)
Fair value movement on residents’ share of resale gains2.4 715 1,724
Fair value movement on cash flow hedges5.6 4 (6)
Deferred tax benefit5.1 (3,081) (3,448)
Employee share scheme4.3 463 680
Gain on purchase of business assets1.3(i) - (543)
Other non cash items 1,001 962
(88,221)(61,788)
Cash items excluded from profit for the year
Receipts from new occupation right agreements
226,313 178,842
Payments for outgoing occupation right agreements (78,780) (79,267)
147,533 99,575
Increase in operating assets and liabilities
Increase / (Decrease) in trade and other receivables
3,089 5,643
Increase in trade and other payables(8,501) 11,328
Net cash inflow from operating activities85,374 70,206
Notes to the Consolidated
Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
1.General information51
1.1Basis of Preparation51
1.2Accounting Policies51
1.3Significant Events and Transactions52
1 .4Market Capitalisation53
2.Operating Performance53
2.1Operating Segments53
2.2Revenue58
2.3Other Income59
2 .4Expenses59
3.Property Assets60
3.1Village Assets: Investment Property61
3.2Care Assets: Property, Plant and Equipment64
3.3Held for Sale68
3.4Refundable Occupation Right Agreements68
3.5Leases69
4.Shareholder Equity and Funding71
4.1Shareholder Equity and Reserves72
4.2Earnings per Share72
4.3Employee Share Based Payments72
4.4Borrowings73
5.Other Disclosures74
5.1Income Tax74
5.2Intangible Assets76
5.3Trade and Other Receivables77
5.4Trade and Other Payables78
5.5Related Party Transactions78
5.6Financial Risk Management78
5.7Contingencies and Commitments80
5.8Events After Balance Date80
Independent Auditor’s Report81
The above Consolidated Cash Flow Statement should be read in conjunction with the accompanying notes.
50
OCEANIA ANNUAL REPORT fffiff1
1. General Information
1.1 Basis of Preparation
(i) Entities Reporting
The consolidated financial statements of the Group are for the economic entity comprising Oceania
Healthcare Limited (the “Company”) and its subsidiaries (together “the Group”). Refer to note 5.5
for details of the Group structure.
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of
Oceania Healthcare Limited as at 31 March 2024 and the results of all subsidiaries for the year
then ended.
The Group owns and operates various care centres and retirement villages throughout New
Zealand. The Group’s registered office is Level 26, HSBC Tower, 188 Quay Street, Auckland, 1010,
New Zealand.
(ii) Statutory Base
Oceania Healthcare Limited is a limited liability company which is domiciled and incorporated
in New Zealand. It is registered under the Companies Act 1993 and is a FMC Reporting Entity in
terms of Part 7 of the Financial Markets Conduct Act 2013. The Company is also listed on the NZX
Main Board (“NZX”) and the Australian Securities Exchange (“ASX”) as a foreign exempt listing.
The consolidated financial statements have been prepared in accordance with the requirements
of the NZX and ASX listing rules, and Part 7 of the Financial Markets Conduct Act 2013.
The consolidated financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZ GAAP”). They comply with New Zealand equivalents
to International Financial Reporting Standards (“NZ IFRS”), International Financial Reporting
Standards (“IFRS”) and other applicable New Zealand Financial Reporting Standards, as
appropriate for for-profit entities. The Group is a Tier 1 for-profit entity in accordance with XRB A1.
The consolidated financial statements have been prepared in accordance with the going concern
basis of accounting, which assumes that the Group will be able to realise its assets and discharge
its liabilities in the normal course of business as they come due into the foreseeable future.
The Consolidated Balance Sheet has been prepared using a liquidity format.
(iii) Measurement Basis
These consolidated financial statements have been prepared under the historical cost convention,
as modified by the revaluation of certain assets and liabilities, including investment properties,
certain classes of property, plant and equipment, right of use assets and derivatives.
(iv) Key Estimates and Judgements
The preparation of the consolidated financial statements in conformity with NZ IFRS requires the use
of certain critical accounting estimates. It also requires management to exercise their judgement in
the process of applying the Group’s accounting policies.
The Group makes estimates and assumptions concerning the future. The resulting accounting
estimates will, by definition, seldom equal the related actual results. Estimates and judgements
are continually evaluated and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the circumstances.
The areas involving a higher degree of judgement or complexity, or areas where assumptions
and estimates are significant to the consolidated financial statements are disclosed in the
following notes:
• Fair value of assets acquired in business combination (note 1.3(i))
• Classification of accommodation with a care or service offering (note 3)
• Fair value of investment property and investment property under development (note 3.1)
• Fair value of freehold land and buildings (note 3.2)
• Classification and fair value of held for sale facilities (note 3.3)
• Revenue recognition of deferred management fees (note 3.4)
• Fair value of right of use assets (note 3.5)
• Recognition of deferred tax (note 5.1)
1.2 Accounting Policies
(i) New Accounting Standards
No changes to accounting policies have been made during the year and the Group has not
early adopted any standards, amendments or interpretations to existing standards that are
not yet effective.
(ii) Measurement of Fair Value
The Group classifies its fair value measurement using the fair value hierarchy that reflects the
significance of the inputs used in making the measurements. The fair value hierarchy has the
following levels.
Level 1: Quoted prices (unadjusted) in active markets for the identical assets or liabilities.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the
asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
The carrying amount of all financial assets and liabilities is considered to approximate their
fair value.
51
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
1.3 Significant Events and Transactions
(i) Acquisitions
Remuera Rise and Bream Bay
On 6 May 2022 in the comparative period, a number of Sale and Purchase Agreements were
entered into in relation to Remuera Rise and Bream Bay:
a. Oceania Village Company Limited and Oceania Care Company Limited entered into a Sale
and Purchase Agreement with Remuera Rise Limited and Lifecare Residences NZ Limited
to purchase the business assets in relation to Remuera Rise for a value of $38.1m subject to
purchase price adjustments. Remuera Rise is an established village with 58 independent living
apartments and 12 rest home beds. This transaction was settled on 1 July 2022 which is the
date of acquisition.
b. Oceania Village Company Limited entered into a Sale and Purchase Agreement with Private
Health Care (NZ) Limited and PGB Investments Limited to purchase the shares of Bream
Bay Village Limited for a value of $21.9m. Bream Bay Village is an established village with 83
independent living villas, including the eight villas under construction at the time of acquisition.
This transaction was settled on 1 July 2022 which is the date of acquisition.
Purchase consideration and fair value of net assets acquired
The purchase price was linked to the 31 March 2021 CBRE Limited valuation in respect of Remuera
Rise and the 8 December 2021 Colliers valuation of Bream Bay Village Limited and both acquisitions
were settled in cash. The acquisitions were accounted for using the acquisition method which
requires that all identifiable assets and liabilities be assumed at their acquisition date fair value.
Contingent liabilities
No material contingent liabilities with respect to any of the above mentioned transactions were
noted during the due diligence process or since acquisition.
Bream Bay option
On 6 May 2022 Oceania Village Company Limited entered into an option agreement with GNLC
Limited to purchase 6.7 hectares of development land in Bream Bay, adjacent to Bream Bay
Village. The agreement granted Oceania Village Company Limited the option to acquire this land
for a purchase price of $8.4m plus GST. The option was exercised and settlement took place on
11 July 2023.
(ii) Disposal of leasehold interest
Everil Orr
The Group has previously leased the Everil Orr site and assumed the role of Operator of both Care
and Village operations. On 3 March 2023, the Group entered into a Deed with Airedale Property
Trust, the lessor of the Everil Orr leasehold facility to exit the Group from the Everil Orr site. As a
result the care operations were closed on 21 March 2023 and the lease terminated on 31 March
2023. On 31 March 2023 the Group’s operating interest in relation to village operations at Everil
Orr, Mount Albert, Auckland met the definition of held for sale. An amount of $1.1m in respect of
the purchase of the Group’s operational interest was received in full on 3 April 2023.
Wesley
On 31 August 2023 the Group exited the Wesley Care Centre, Mt Eden, Auckland. The site
was leased from the owner Airedale Property Trust and the lease was not extended beyond
the expiry date.
(iii) Disposal of held for sale sites
On 25 March 2022 the Group entered into an agreement in respect of the previous Whareama
site in Nelson. The sale completed on 8 December 2023 and proceeds of $8.4m were received.
On 9 May 2023 the Group entered into an agreement to sell the Amberwood and Greenvalley
care sites in Auckland to a third party operator. The sale was completed on 29 August 2023 and
an amount of $11.5m received resulting in a gain of $1.0m in the village segment on the held for
sale value. This has been recognised in the Consolidated Statement of Comprehensive Income.
On 12 February 2024, the Group entered into a conditional agreement to sell the Takanini care site
in Auckland to a third party operator. The sale was completed on 30 April 2024 and proceeds of
$10.6m were received.
On 15 March 2024, the Group entered into a conditional agreement to sell the Middlepark care site
in Christchurch to a third party operator. The sale was completed on 21 May 2024 and proceeds
of $5.2m were received.
(iv) Weather Events: Auckland Floods and Cyclone Gabrielle
A number of significant weather events occurred in New Zealand during January and February
2023. The Group owns and operates a number of sites in the Auckland and Hawkes Bay regions
which were impacted by these events. Agreement was reached with insurers on 16 May 2024 in
relation to the Auckland Floods and Cyclone Gabrielle.
Accounting policy in relation to insurance proceeds
Insurance proceeds are accounted for as reimbursements under IAS 37 Provisions, Contingent
Liabilities and Contingent Assets. Insurance income, and related assets are recognised when
recovery is virtually certain.
The insurance proceeds and receivable in relation to these events have been included within
the Consolidated Statement of Comprehensive Income and the Consolidated Balance Sheet.
52
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
1.3 Significant Events and Transactions (continued)
(iv) Weather Events: Auckland Floods and Cyclone Gabrielle (continued)
Material Damage
Amounts incurred in respect of remediation in the period to 31 March 2024 have been recognised as
additions to the properties they relate. Affected properties have been valued by CBRE Limited as if
the remediation has been completed and as such, an estimate of remaining costs to be incurred to
fully remediate properties has been calculated based on third party quotations and assessments
and has been recognised as a reduction to the property value as at 31 March 2024. Refer to notes
3.1 and 3.2 for impact on fair value.
Other
In addition to recovery of the expected remediation costs, the Group seeks recovery of additional
costs. These costs include business interruption costs and lost gross profit associated with the
Auckland and Hawkes Bay sites which were impacted by the weather events and remediation.
An amount has been recognised which is equal to the amount agreed with insurers as recovery
of these items. The full amount of lost gross profit has been recognised as revenue during the
year. A portion of this revenue relates to lost gross profit in relation to future periods.
Income in relation to these items is recognised as other revenue when the costs are incurred, and
it is virtually certain that these costs will be reimbursed. The assessment of whether recoverability
of these costs is virtually certain is a key judgement of the Group.
1.4 Market Capitalisation
At balance date, the market capitalisation of the Group (being the 31 March 2024 closing share
price, as quoted on the NZX Main Board, multiplied by the number of shares on issue) was
below the carrying amount of the Group’s net assets and shareholders’ funds. In considering the
difference, the Group notes that over 90% of total assets at 31 March 2024 are property assets
carried at fair value as assessed by CBRE Limited. Colliers Limited were also engaged to perform
a review of the CBRE Limited valuation of certain sites in the portfolio comprising 43% of the total
value of property assets. This review supported the CBRE Limited valuation.
2. Operating Performance
2.1 Operating Segments
The Group’s chief operating decision maker is the Board of Directors.
The operating segments have been determined based on the information reviewed by the Board
of Directors for the purposes of allocating resources and assessing performance. The assets
and liabilities of the Group are reported to the chief operating decision maker in total not by
operating segment.
The Group operates in New Zealand and comprises three segments; care operations, village
operations and other.
Information regarding the operations of each reportable segment is included below. Amongst other
criteria, performance is measured based on segmental underlying earnings before interest, tax,
depreciation and amortisation (“EBITDA”), which is the most relevant measure in evaluating the
performance of segments relative to other entities that operate within the aged care and retirement
village industries.
Additional segmental reporting information
Capital expenditure: Refer to note 3 for details on capital expenditure.
Goodwill: Goodwill is allocated to care cash generating units.
What is Total Comprehensive Income?
Total comprehensive income is a measure of the total performance of all segments under
NZ GAAP. It includes fair value movements relating to the Group’s care centres and cash
flow hedges.
CareVillageOther
ProductIncludes traditional care beds
and care suites.
Includes independent living
and rental properties.
N/A
ServicesThe provision of
accommodation, care and
related services to Oceania’s
aged care residents.
Includes the provision of
services such as meals and
care packages to independent
living residents.
The provision of
accommodation and related
services to independent
residents in the Group’s
retirement villages.
Provision of support services
to the Group (includes
administration, marketing and
operations).
In addition this segment
includes the provision of
training by the Wesley Institute
of Nursing Education.
Recognition
of Operating
Revenue and
Expenses
The Group derives Operating
Revenue from the provision of
care and accommodation. The
daily fee is set annually by the
Ministry of Health.
In relation to the provision
of superior accommodation
above the Government
specification the Group
derives revenue from Premium
Accommodation Charges
(“PACs”) or, in the case of
care suites, through Deferred
Management Fees (“DMF”).
Operating Expenses primarily
include staff costs, resident
welfare expenses and
overheads.
The Group derives Operating
Revenue from weekly service
fees and rental income.
Operating Revenue also
includes DMF accrued over the
expected occupancy period for
the relevant accommodation.
Operating Expenses include
village property maintenance,
sales and marketing, and
administration related
expenses.
Includes corporate office and
corporate expenses.
Finance costs relate to the cost
of bank debt.
Income and expenditure
relating to the Wesley Institute
of Nursing Education is
recognised in this segment.
53
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
2.1 Operating Segments (continued)
CareVillageOther
Recognition
of Fair Value
movements
on New
Developments
Fair value increases or
decreases are recognised in
other comprehensive income
(i.e. not in profit or loss) for the
fair value movement above
historical cost.
Impairments below historical
cost are recognised in
comprehensive income (i.e.
profit or loss).
Fair value movements are
recognised in comprehensive
income (i.e. profit or loss).
N/A
Recognition
of Fair Value
movements on
Existing Care
Centres and
Retirement
Villages
Fair value movements are
treated the same as above.
When sites are
decommissioned for
development this results
in an impairment of the
buildings and chattels which is
recognised in comprehensive
income (i.e. profit or loss).
Fair value movements are
recognised in comprehensive
income (i.e. profit or loss).
N/A
Recognition
in Underlying
Profit (refer
note 2.1
overleaf)
Fair value movements are
removed.
Fair value movements are
removed. Realised gains on
resales and the development
margins from the sale of
independent living units and
care suites are included,
reflective of the ownership
structure of the assets.
No material adjustments.
Asset
Categorisation
Assets used, or, in the case
of developments, to be used,
in the provision of care are
recognised as property, plant
and equipment.
Assets used for village
operations are recognised as
investment property.
Corporate office assets are
recognised as property, plant
and equipment. Assets include
intangibles (e.g. software).
March 2024
$NZ000’s
Care
Operations
Village
OperationsOtherTotal
Revenue 206,34649,9509,167265,463
Change in fair value of investment property-60,779-60,779
Change in fair value of held for sale assets----
Other income 1,8102,6112014,622
Total income208,156113,3409,368330,864
Operating expenses(186,288)(37,027)(33,384)(256,699)
Impairment of goodwill(555)--(555)
Impairment of property, plant and equipment(9,269)--(9,269)
Impairment of held for sale assets-(5,088)-(5,088)
Segment EBITDA12,04471,225(24,016)59,253
Interest income-724,4714,543
Finance costs--(16,417)(16,417)
Depreciation (buildings and care suites)(12,794)--(12,794)
Depreciation and amortisation (chattels,
leasehold improvements and software)
(4,745)-(1,447)(6,192)
(Loss) / Profit before income tax(5,495)71,297(37,409)28,393
Income tax (expense) / benefit(17,069)1,81318,3373,081
(Loss) / Profit for the year attributable
to shareholders
(22,564)73,110(19,072)31,474
Other comprehensive income
Gain on revaluation of property, plant and
equipment for the year, net of tax
41,175 - - 41,175
Gain on cash flow hedges, net of tax - - (2,154) (2,154)
Total comprehensive income / (loss) for the year
attributable to shareholders of the parent
18,61173,110(21,226)70,495
54
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
2.1 Operating Segments (continued)
March 2023
$NZ000’s
Care
Operations
Village
OperationsOtherTotal
Revenue 194,52048,4904,168247,178
Change in fair value of investment property-19,497-19,497
Change in fair value of Held for sale assets-1,886-1,886
Gain on purchase of business assets-543-543
Other income1,32613,7711015,107
Total income195,84684,1874,178284,211
Operating expenses(174,607)(29,185)(27,630)(231,422)
Impairment of goodwill(1,766)(581)-(2,347)
Impairment of property, plant and equipment(6,531)--(6,531)
Impairment of right of use investment property-(1,431)-(1,431)
Segment EBITDA12,94252,990(23,452)42,480
Interest income-4111,3481,759
Finance costs--(14,315)(14,315)
Depreciation (buildings and care suites)(10,659)-(704)(11,363)
Depreciation and amortisation (chattels, leasehold
improvements and software)
(5,024)-(1,537)(6,561)
(Loss) / Profit before income tax(2,741)53,401(38,660)12,000
Income tax benefit / (expense)2,751(18,625)19,3223,448
Profit / (Loss) for the year attributable
to shareholders
1034,776(19,338)15,448
Other comprehensive income
Gain on revaluation of property, plant
and equipment for the year, net of tax
17,592--17,592
Gain on revaluation of right of use asset
for the year, net of tax
----
Gain on cash flow hedges, net of tax--1,5031,503
Total comprehensive income /(loss) for the year
attributable to shareholders of the parent
17,60234,776(17,835)34,543
Underlying net profit after tax (“Underlying Profit”)
Underlying Profit and Underlying EBITDA are non-GAAP measures of financial performance and
considered in the determination of dividends. The calculation of Underlying Profit and Underlying
EBITDA requires a number of estimates to be approved by the Directors in their preparation. Both
the methodology and the estimates may differ among companies in the retirement village sector.
Underlying Profit and Underlying EBITDA do not represent cash flow generated during the year.
The Group calculates Underlying Profit and Underlying EBITDA by making the following
adjustments to reported Net Profit after Tax:
Total comprehensive income / (loss) for the year
attributable to shareholders of the parent
RemoveFair value adjustments for investment property assets, property, plant and equipment,
held for sale assets and cashflow hedges.
Add backImpairment of goodwill
Add backRental expenditure in relation to right of use investment property assets
Add back / removeLoss / gain on sale, decommissioning or purchase of assets and business assets including
associated costs
Add backDepreciation (care suites)
RemoveInsurance income recognised in relation to material damage due to adverse
weather events
Add backDirectors’ estimate of realised gains on the resale of units and care suites sold
under an ORA
Add backDirectors’ estimate of realised development margin on the first sale of new ORA units
or care suites following the development of an ORA unit or care suite, conversion of an
existing care bed to a care suite or conversion of a rental unit to an ORA unit
Add backDeferred taxation component of taxation expense so that only the current tax expense
is reflected
=Underlying Profit
RemoveInterest income
Add backFinance costs (including lease interest under NZ IFRS 16 Leases but excluding hedge
ineffectiveness)
Add backDepreciation and amortisation (including right of use and property, plant and equipment)
Add backCurrent tax expense
=Underlying EBITDA
55
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
2.1 Operating Segments (continued)
Resale gain – Underlying Profit
The Directors’ estimate of realised gains on resales of ORA units and care suites (i.e. the difference
between the incoming resident’s ORA licence payment and the ORA licence payment previously
received from the outgoing resident) is calculated as the net cash flow received, and receivable at
the point that the ORA contract becomes unconditional and has either “cooled off” (the contractual
period in which the resident can cancel the contract) or where the resident is in occupation at
balance date.
Development margin – Underlying Profit
The Directors’ estimate of realised development margin is calculated as the ORA licence payment
received, and receivable, in relation to the first sale of new ORA units and care suites, at the point
that the ORA contract becomes unconditional and has either “cooled off” or where the resident
is in occupation at balance date, less the development costs associated with developing the ORA
units and care suites. Where the development has been acquired in a business combination the
development costs are equal to the purchase price.
The Directors’ estimate of realised development margin for conversions is calculated based on the
difference between the ORA licence payment received, and receivable, in relation to sales of newly
converted ORA units and care suites, at the point that the ORA contract becomes unconditional and
has either “cooled off” or where the resident is in occupation at balance date, and the associated
conversion costs.
The table below describes the composition of development and conversion costs.
IncludedNew builds:
• the construction costs directly attributable to the relevant project, including any
required infrastructure (e.g. roads) and amenities related to the units (e.g. landscaping)
as well as any demolition and site preparation costs associated with the project. The
costs are apportioned between the ORA units and care suites, in aggregate, using
estimates provided by the project quantity surveyor. The construction costs for the
individual ORA units or care suites sold are determined on a prorated basis using gross
floor areas of the ORA units and care suites;
• an apportionment of land value based on the gross floor area of the ORA units and
care suites developed. The value for Brownfield
1
development land is the estimated fair
value of land at the time a change of use occurred
2
(from operating as a care centre
or retirement village to a development site), as assessed by an external independent
valuer. Greenfield
3
development land is valued at historical cost; and
• capitalised interest costs to the date of project completion apportioned using the gross
floor area of ORA units and care suites developed.
Conversions:
• of care beds to care suites - the actual refurbishment costs incurred; and
• of rental units to ORA units - the actual refurbishment costs incurred and the fair
value of the rental unit prior to conversion.
Excluded• Construction, land (apportioned on a gross floor area basis) and interest costs
associated with common areas and amenities or any operational or administrative
areas.
1 Brownfield land refers to land previously utilised by, or part of, an operational aged care centre or retirement village.
2 The timing of a change of use is a Directors’ estimate. It is based on a range of factors including evidence of steps taken to secure a
resource consent and/or building consent for a particular development or stage of a development and the decommissioning of existing
operations (either through the buy-back of existing village ORA units or decommissioning of an existing care centre). Note the cost of
buybacks is not included in the development cost as an independent fair value of the land on an unencumbered basis is used as the
value ascribed to the development land.
3 Greenfield land refers to land not previously utilised by, or as part of, an operational aged care centre or retirement village. Greenfield
land is typically bare (undeveloped) land at the time of purchase.
56
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
2.1 Operating Segments (continued)
March 2024
$NZ000’s
Care
Operations
Village
OperationsOtherTotal
Total comprehensive income / (loss) for the year
attributable to shareholders of the parent
18,61173,110(21,226)70,495
Adjusted for Underlying Profit items
Less: Fair value adjustments for investment
property assets, property, plant and equipment,
held for sale assets and cashflow hedges
1
(31,906)(55,692)2,154(85,444)
Add: Impairment of goodwill555--555
Add: Loss on sale of business assets including
associated costs
-678-678
Add: Depreciation (care suites)10,344--10,344
Less: Gain on purchase of business assets
including associated costs
-252-252
Add: Change in estimate of impairment
in relation to weather event
-419-419
Add: Realised resale gain-32,472-32,472
Add: Realised development margin-35,401-35,401
Underlying net profit before tax(2,396)86,640(19,072)65,172
Less: Deferred tax benefit / (expense) 17,069(1,813)(18,337)(3,081)
Underlying net profit after tax14,67384,827(37,409)62,091
Less: Interest income-(72)(4,471)(4,543)
Add: Finance costs (excluding hedge ineffectiveness) --16,41716,417
Add: Depreciation (buildings)2,450--2,450
Add: Depreciation and amortisation
(chattels, leasehold improvements and software)
4,745-1,4476,192
Underlying EBITDA
2
21,86884,755(24,016)82,607
1 Includes adjustment for material damage insurance in relation to affected properties.
2 Included in Village Operations remains an amount of $2.0m in relation to other insurance income. This insurance income relates
to compensation for business interruption costs and lost gross profits incurred prior to 31 March 2024.
March 2023
$NZ000’s
Care
Operations
Village
OperationsOtherTotal
Total comprehensive income / (loss) for the year
attributable to shareholders of the parent
17,60234,776(17,835)34,543
Adjusted for Underlying Profit items
Less: Fair value adjustments for investment
property assets, property, plant and equipment,
held for sale assets and cashflow hedges
(11,061)(19,952)(1,503)(32,516)
Add: Impairment of goodwill1,766581-2,347
Add: Rental expenditure in relation to right of
use asset
-158-158
Add: Depreciation (care suites)9,040--9,040
Less: Gain on purchase of business assets
including associated costs
(735)(147)-(882)
Less: Insurance income in relation to material
damage due to weather events
-(10,022)-(10,022)
Add: Realised resale gain-26,992-26,992
Add: Realised development margin-32,363-32,363
Underlying net profit before tax16,61264,749(19,338)62,023
Less: Deferred tax (expense) / benefit (2,751)18,625(19,322)(3,448)
Underlying net profit after tax13,86183,374(38,660)58,575
Less: Interest income-(411)(1,348)(1,759)
Add: Finance costs (excluding hedge ineffectiveness) --14,31514,315
Add: Depreciation (buildings)1,619-7042,323
Add: Depreciation and amortisation
(chattels, leasehold improvements and software)
5,024-1,5376,561
Underlying EBITDA20,50482,963(23,452)80,015
57
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
2.2 Revenue
How we earn revenue
CareVillageOther
Daily care fees for long term and
short term rest home, hospital and
dementia residents
Deferred management fees
– independent living
Training income
Premium accommodation chargesVillage service fees
– independent living
Interest income
Deferred management fees
– care suites
Rental income – residents without
a long term occupation right
agreement
Accounting Policy
Revenue is recognised in accordance with NZ IFRS 15 Revenue from Contracts with Customers
(“NZ IFRS 15”). Deferred management fees and rental income are considered leases under NZ IFRS
16 Leases (“NZ IFRS 16”), and are therefore excluded from the scope of NZ IFRS 15. None of the
Group’s revenue, as defined by NZ IFRS 15, contains significant financing components.
Rest Home and Hospital Service Fees
A contract is in place with all care residents by means of an admission agreement. The resident
receives the benefit as the care is administered and each resident incurs a contracted daily
care fee. Rest home and hospital service fees are recognised at the point in time the services are
rendered which is specifically linked to the day the service is delivered. Where applicable these are
recognised net of any associated rebates to residents.
Aged care subsidies received from the Ministry of Health, included in rest home, hospital and
dementia fee revenue within the care segment, for the year ended March 2024 amounted to
$113.9m (March 2023: $110.7m).
Premium Accommodation Charges
Premium accommodation charges are payable by residents who occupy a premium room above
the level specified by the Government. The charge is included in their admission agreement and the
charge is recognised when the accommodation is provided.
Deferred Management Fees
Deferred management fees are considered leases and are payable by residents of the Group’s
units, apartments and care suites under the terms of their ORA or unit title rights. Refer to note 3.4.
Management fees are typically payable on termination of the ORA up to a maximum percentage
of a resident’s occupation licence or unit title rights deposit for the right to share in the use and
enjoyment of common facilities.
The timing of the recognition of deferred management fees is a critical accounting estimate and
judgement. The deferred management fee is recognised on a straight line basis over the longer of
the term specified in a resident’s ORA or the average expected occupancy. The expected periods
of occupancy are based on historical Group averages, for the relevant accommodation they are
estimated to be 7 years for units and premium apartments, 5 years for apartments and 3 years for
care suites from the date of occupation. Estimates of deferred management fee tenure are reviewed
periodically. Where a change is made, it is the Group’s policy to recognise the aggregate impact of
this change in the period in which the change in estimate occurs.
Village Service Fees
Village service fees are charged to residents to recover a portion of village operating costs
associated with services provided including staff wages, rates, and electricity. An ORA is in place
with all village residents who receive the benefit of services throughout their stay. Village service
fees are recognised over time as services are rendered.
Training Income
Training income is received from students attending short term training courses at the Wesley
Institute of Nursing Education. Income is recognised when the course is provided.
Rental Income
Rental agreements are in place with all rental residents and set out the relevant weekly / monthly
rental fee. The resident receives the benefit throughout their stay and revenue is recognised as
it is earned.
$NZ000’sMarch 24March 23
Rest home, hospital, dementia fees 183,806 173,243
Premium accommodation charge6,370 5,490
Deferred management fees – independent living38,639 36,666
Deferred management fees – care suites16,187 14,861
Deferred management fees – leased site- 2,301
Village service fees9,741 8,939
Training income9,155 4,127
Rental income493 608
Other services provided to residents1,072 943
265,463 247,178
58
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
2.3 Other Income
Interest Income
Interest income is recognised on an accruals basis using the effective interest method.
Insurance Income
Insurance income in relation to recent weather events is recognised as per note 1.3(iv).
Other Income
Other income includes administration and legal income derived from the settlement of ORAs.
$NZ000’sMarch 24March 23
Interest income4,5431,759
Insurance income2,69012,025
Change in fair value of ineffective cash flow hedges- 6
Gain on modification/disposal of property, plant and equipment-740
Other income1,932 2,336
9,16516,866
2.4 Expenses
Accounting Policy
All operating expenses are recognised on an accrual basis.
$NZ000’sNotesMarch 24March 23
Profit before income tax includes the following expenses:
Employee benefits and other staff costs
Wages and salaries
174,043160,007
Termination benefits373470
Employee share scheme expense4.3277606
Other staff costs
1
4,0933,400
178,786164,483
Depreciation and amortisation
Depreciation of buildings
3.21,5701,791
Depreciation of care suites3.210,3449,040
Depreciation of right of use assets (buildings)3.5880532
Depreciation of chattels 3.24,4064,354
Depreciation of right of use assets (chattels)3.51,2291,553
Amortisation of software 5.2557654
18,98617,924
Finance costs
Interest on senior debt facilities
27,876 13,680
Interest on Retail Bond6,175 6,175
Agency, commitment and line fees 4,528 4,246
Interest rate swaps - 155
Capitalised interest and line fees(23,757) (11,356)
Amortisation of bank fees988 952
Bank interest160 18
Interest on lease liabilities443445
Change in fair value of ineffective cash flow hedges4-
16,41714,315
Impairment of property, plant and equipment 3.29,2696,531
Change in fair value of held for sale assets3.35,088-
Impairment of right of use investment property-1,431
Rental expenditure in relation to right of use investment property-158
Impairment of goodwill5.25552,347
1 Other staff costs include costs such as staff training, uniforms and recruitment.
59
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
2.4 Expenses (continued)
$NZ000’sNotesMarch 24March 23
Other expenses
Audit fees
1
Audit and review of consolidated financial statements588647
Other assurance services – Trustee reporting77
Other services – agreed upon procedures in respect of proxy
voting at the Annual Shareholder Meeting
2
98
Other non assurance services provided by auditor
3
19-
Other assurance services related to climate related
reporting requirements
9317
Total fees paid to auditor
1
716679
Repairs and maintenance of property, plant and equipment
including leasehold care centres
3,6433,486
Repairs and maintenance of investment property including
leasehold investment property
3,1251,855
Loss on disposal of property, plant and equipment683-
Donations3113
Loss allowance for trade and other receivables5.37137
Resident consumables19,24218,265
Movement of residents’ share of resale gains 7151,724
Insurance6,4174,981
Legal and professional services4,658 4,390
Other expenses (no items of individual significance) 38,612 31,351
77,91366,781
Total Expenses307,014273,970
3. Property Assets
The Group operates care centres and retirement villages. As outlined in section 2.1, village sites are
typically investment property and care sites are typically property, plant and equipment.
What is Investment Property?
Land and buildings are classified as investment property when they are held to generate
revenue either through capital appreciation or through rental income.
As residents occupying our retirement villages live independently, the level of services provided
is seen as secondary to the provision of accommodation. Accordingly, these buildings are
classified as investment property as they are held primarily to generate DMF income.
What is Property, Plant and Equipment?
Land, buildings and chattels are classified as property, plant and equipment when they are
used to generate revenue through the provision of goods and services or for administration
purposes.
As residents occupying our care centres, including care suites, require services including
nursing care, meals and laundry the buildings in which they live are considered to be operated
by the Group to generate this revenue and are classified as property, plant and equipment.
What is a Care Suite?
Care suites are a premium offering for a resident requiring rest home or hospital level
care. The care suite is located within a care centre. Rather than pay a daily premium
accommodation charge for the provision of the premium room the residents enter into
an ORA with a net management fee.
What is Held for Sale?
Assets are classified as held for sale when the carrying amount will be recovered principally
through a sale transaction rather than through continuing use.
1 Auditor for the year ended 31 March 2024: Ernst & Young (31 March 2023: PricewaterhouseCoopers).
2 Paid to previous auditors.
3 Non audit fees in relation to remuneration benchmarking services.
60
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
3. Property Assets (continued)
Classification of Serviced Apartments and Care Suites
Where services are provided to residents who occupy accommodation under an ORA, it is the
Group’s policy to assess their level of significance in the context of the overall income derived from
the serviced apartment or care suite in ascertaining whether the serviced apartment or care suite is
freehold land and buildings (referred to as property, plant and equipment) or investment property.
The Group applies the following principles when ascertaining the appropriate accounting treatment
to be applied:
CLASSIFICATION
CONSIDERATION OF SIGNIFICANCE OF CASH FLOWS
SCENARIO
Additional services
are optional.
Services are
compulsory but an
insignificant portion
of total revenue
from the unit.
Services are
compulsory and a
significant portion
of the total revenue
from the unit.
Full ARRC
1
funded
care is compulsory
for that unit/bed.
Independent living
(villa or apartment)
Care suiteServiced apartmentTraditional care bedPrivate care
Qualitatively the
business model is the
provision of retirement
accommodation.
Quantitatively
insignificant
(a guideline of
under 20% of total
revenue is adopted)
and qualitatively
the business model
is the provision
of retirement
accommodation.
Quantitatively
significant.
Qualitatively the
business model is
the provision of care.
Qualitatively the
business model is
the provision of
care. Quantitative
assessment not
relevant as price
of accommodation
does not change
overall purpose of
the accommodation.
Investment Property
Village Assets
Property, Plant and
Equipment Care Assets
Operating
outside the ARRC
1
with services set by
the operator.
Qualitatively the
business model is
the provision of
care. Quantitative
assessment not
relevant as price
of accommodation
does not change
overall purpose of
the accommodation.
1 ARRC refers to age-related residential care.
3.1 Village Assets: Investment Property
Accounting Policy
Investment property includes both freehold land and buildings and land and buildings under
development, comprising independent units, serviced apartments and common facilities, provided
for use by residents under the terms of an ORA. Investment property is held for long-term yields and
is not occupied by the Group. Investment property is held at fair value.
The fair value of investment property is determined by the Directors having taken into consideration
the valuation conducted by CBRE Limited (March 2023: CBRE Limited and Collier Limited) as
independent registered valuers and the cost of work undertaken in relation to investment property
under development.
The movement in the carrying value of investment property, net of additions, transfers and disposals
is recognised as a fair value movement in the Consolidated Statement of Comprehensive Income.
Fair value measurement on investment property under development is only applied if the fair value
is considered to be reliably measurable. Where the fair value of a property under development
can be determined, it is carried at fair value. Where the fair value of investment property under
development cannot be reliably determined, the carrying amount is considered to be the fair value
of the land plus the cost of work undertaken.
61
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
3.1 Village Assets: Investment Property (continued)
$NZ000’sNotesMarch 24March 23
Investment property under development at fair value
Opening balance
141,738173,899
Impact of change to GST taxable supplies
1
(1,500)(4,397)
Capitalised expenditure (including land acquisitions)61,53992,788
Capitalised interest and line fees13,6262,301
Transfer to completed investment property(27,475)(150,871)
Transfer to held for sale3.3-(5,714)
Change in fair value during the year(5,960)33,732
Closing balance 181,968141,738
Completed investment property at fair value
Opening balance
1,455,9831,204,653
Acquisition1.3(i)-138,010
Impact of change to GST taxable supplies(1,372)(4,080)
Transfer from investment property under development27,475150,871
Transfer to property, plant and equipment3.280(1,552)
Transfer to held for sale3.321,608(29,119)
Capitalised expenditure60,0035,437
Capitalised interest and line fees2,9035,998
Impairment as a result of weather events-(8,917)
Change in fair value during the year - villages66,739(5,318)
Closing balance1,633,4191,455,983
Total investment property1,815,3871,597,721
1 Relates to GST claimed on land purchased in a prior period subject to a change in use adjustment in the current period.
Change in Fair Value Recognised in the Consolidated Statement of Comprehensive Income
$NZ000’sMarch 24March 23
Increase in fair value of investment property217,665219,169
Add / (Less): Transfers to property, plant and equipment,
right of use assets and held for sale during the year
(21,688) 36,385
Less: Capitalised expenditure including capitalised interest(135,198) (98,047)
Less: Resident obligations on acquisition- (138,010)
Change in fair value recognised in Consolidated Statement
of Comprehensive Income
60,77919,497
A reconciliation between the valuation and the amount recognised as investment property
is as follows:
$NZ000’sMarch 24March 23
Investment Property under development
Valuation
181,968141,738
181,968141,738
Completed Investment Property
Valuation
812,698744,733
Add: Refundable occupation licence payments1,003,945884,890
Add: Residents’ share of resale gains5,7305,920
Less: Management fee receivable(170,638)(147,278)
Less: Resident obligations for units not included in valuation (18,316)(32,282)
1,633,4191,455,983
Total investment property at fair value1,815,3871,597,721
62
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
3.1 Village Assets: Investment Property (continued)
Where an incoming resident has an unconditional ORA in respect of a retirement village unit and
the corresponding outgoing resident for that same accommodation has not yet been refunded, the
independent valuation is adjusted for the incoming resident balances only. In certain circumstances
accommodation under an ORA is valued as development land. In these situations the independent
valuation is not adjusted for the refundable amounts and consequently no offsetting “gross up” is
required. An adjustment of $18.3m (March 2023: $32.3m) is included in the above reconciliation to
reflect this.
The valuation of investment property is adjusted for cash flows relating to refundable occupation
licence payments, residents’ share of resale gains and management fee receivable recognised
separately on the Consolidated Balance Sheet and also reflected in the valuation model.
Why do we adjust for the liability to residents?
In the external valuation the fair value of investment property includes an allowance for the
amount that is payable by the Group to residents already in occupation within the property.
However, this liability to existing residents is recognised in the Group’s Consolidated Balance
Sheet (referred to as refundable occupation right agreements – refer to note 3.4). Accordingly,
the Group adds this net liability to residents to the external valuation to “gross up” the fair
value of investment property and avoid double counting the liability to residents.
Valuation Process and Key Inputs
Investment Property under Development
CBRE Limited provided valuations of development land in respect of investment property under
development as at 31 March 2024.
The fair value of investment property is determined by the Directors having taken into consideration
the valuation conducted by the external valuers as independent registered valuers and the cost of
work undertaken in relation to investment property under development.
The Group has applied the following methodology in relation to the measurement of investment
property under development:
Practical completion not achieved
Where the development still requires substantial work such that practical completion is not going to
be achieved, and a reliable estimate of fair value cannot be made, at or close to balance date, the
fair value recognised is the fair value of the development land per the Directors’ valuation plus the
cost of any work in progress. An amount of $85.9m as at 31 March 2024 (March 2023: $53.1m) has
been recognised in relation to these development sites.
Where an individual development is of both investment property and freehold buildings in nature,
the fair value of land and work in progress is apportioned between investment property under
development and freehold land and buildings under development, by applying the estimated gross
floor area for these respective areas of the development based on information obtained from the
project quantity surveyors at the planning and design stages.
Practical completion achieved
Where a development is practically completed, or likely to be completed at, or close to, balance
date the investment property is measured at its completed fair value per the Directors’ valuation
with an adjustment made for any estimated costs, in accordance with the project budget, to be
incurred to complete the development, and is then transferred to completed investment property.
Completed Investment Property
As required by NZ IAS 40 Investment Property, the valuation of investment property is adjusted for
cash flows relating to refundable occupation licence payments, residents’ share of resale gains and
management fees receivable recognised separately on the Consolidated Balance Sheet and also
reflected in the valuation model.
The Group’s interest in all completed investment property was valued on 31 March 2024
by CBRE Limited (March 2023: CBRE Limited and Colliers Limited,) at a total of $812.7m
(March 2023: $744.7m).
Property Specific Assumptions
Seismic Assessments
The external valuations, and accordingly the fair value of investment property, incorporates
an allowance in relation to remediation to properties where seismic strength testing has been
carried out.
Weather Events: Auckland Floods and Cyclone Gabrielle
The fair value of completed investment property has been adjusted downwards for the cost of future
works to be undertaken to remediate damage caused by the Auckland Floods, an amount of $5.2m.
(March 2023: $7.7m on damage caused by the Auckland floods and Cyclone Gabrielle).
Key Accounting Estimates and Judgements
All investment properties have been determined to be Level 3 (March 2023: Level 3) in the fair value
hierarchy as the fair value is determined using inputs that are unobservable.
Significant Unobservable Inputs
The significant unobservable input used in the fair value measurement of the Group’s development
land is the value per m2 assumption. Increases in the value per m2 rate result in the corresponding
increases in the total valuation.
The significant unobservable inputs used in the fair value measurement of the Group’s portfolio of
completed investment property are the discount rate and property price growth rate. There are no
interdependencies or interplays between unobservable inputs.
63
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
3.1 Village Assets: Investment Property (continued)
The following assumptions have been used to determine fair value:
Significant InputDescription20242023
Discount rateThe pre-tax discount rate
14.0% — 20.0 %
(median: 14.9 %)
14.0% — 20.0%
(median: 15.0%)
Property price growth rateAnticipated annual property
price growth over the cash flow
period 0—4 years
0.5 % - 3.0 %0.0% — 3.0%
Property price growth rateAnticipated annual property
price growth over the cash flow
period 5+ years
2.5% — 3.5%2.5% — 3.5%
Sensitivities
At 31 March 2024
Adopted
Value
Discount Rate
+0.5%
Discount Rate
-0.5%
Property
Growth Rate
+50 bp
Property
Growth Rate
-50 bp
Completed investment property
Valuation $NZ000’s
812,698
Difference $NZ000’s
(26,456)28,46148,359(45,872)
Difference %
(3.3%)3.5%6.0%(5.6%)
At 31 March 2023
Adopted
Value
Discount Rate
+0.5%
Discount Rate
-0.5%
Property
Growth Rate
+50 bp
Property
Growth Rate
-50 bp
Completed investment property
Valuation $NZ000’s
744,733
Difference $NZ000’s
(24,447)26,54143,075(20,216)
Difference %
(3.3%)3.6%5.8%(5.4%)
The stabilised occupancy period is a key driver of the CBRE Limited valuation. A significant increase
/ (decrease) in the occupancy period would result in a significantly lower/ (higher) fair value
measurement.
Significant Input20242023
Stabilised Occupancy Period
2.8 yrs – 9.0 yrs (median: 7.4 yrs)2.5yrs – 8.9yrs (median: 7.3yrs)
Current ingoing price, for subsequent resales of ORAs, is a key driver of the valuations. A significant
increase / (decrease) in the ingoing price (as driven by the property growth rates) would result in a
significantly higher / (lower) fair value measurement.
3.2 Care Assets: Property, Plant and Equipment
Accounting Policy
Property, plant and equipment comprises owner-occupied freehold land and buildings and plant
and equipment operated by the Group for the provision of care services, care suites and land and
buildings that are to be developed into care centres in the future.
Following initial recognition at cost, completed owner occupied freehold land and buildings and
land and buildings under development are carried at fair value. Independent valuations are
performed with sufficient regularity to ensure that the carrying amount does not differ materially
from the assets’ fair value at balance date. Any depreciation at the date of valuation is deducted
from the gross carrying value of the asset, and the net amount is restated to the revalued amount
of the asset. In periods where no valuation is carried out, the asset is carried at its revalued amount
plus any additions, less any impairment and less any depreciation incurred since the date of the
last valuation.
All other plant and equipment is stated at historical cost less depreciation and impairment.
Historical cost includes expenditure that is directly attributable to the acquisition of the items.
In relation to land and buildings under development, fair value is determined by the Directors having
taken into consideration the valuation conducted by CBRE Limited as an independent registered
valuer and the cost of work undertaken.
A property under construction is classified as land and buildings within property, plant and
equipment where the completed development will be classified as such and as investment
property where the completed development will be classified as an investment property. Fair value
measurement on property under construction is only applied if the fair value is reliably measurable.
Where the fair value of property under construction cannot be reliably determined the value is the
fair value of the land plus the cost of work undertaken. Property under construction classified as
land and buildings under development is revalued annually and is not depreciated.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future economic benefits associated with the item
will flow to the Group and the cost of the item can be measured reliably. All other repairs and
maintenance are expensed to the Consolidated Statement of Comprehensive Income during the
financial period in which they are incurred.
Increases in the carrying amount arising on revaluation of land and buildings above cost are
credited to the asset revaluation reserve in other comprehensive income; increases that offset
previous decreases taken through profit or loss are recognised in profit or loss. Decreases that
offset previous increases of the same asset are charged against the asset revaluation reserve in
other comprehensive income; all other decreases are charged to profit or loss. When revalued assets
are sold, or held for sale, the amounts included in the reserve are transferred to retained earnings.
64
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
3.2 Care Assets: Property, Plant and Equipment (continued)
Land is not depreciated. Depreciation on other assets is calculated using the straight line method to
allocate their cost, net of their residual values, over their estimated useful lives, as follows:
CategoryUseful Life Range
Weighted Average
Depreciation Rate
Freehold buildings10 – 50 years2.4%
Chattels and leasehold improvements2 – 50 years20%
Motor vehicles5 years22%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each
balance date. No depreciation is charged in the year of sale for all assets other than buildings
in which case depreciation is charged to the earlier of the date of classification to held for sale
or the date of sale.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the net disposal proceeds
with the carrying amount of the asset. These are included in the Consolidated Statement
of Comprehensive Income.
$NZ000’sNotes
Freehold Land
and Buildings
Under
DevelopmentFreehold Land
Freehold
Buildings
Chattels and
Leasehold
ImprovementsTotal
Year ended 31 March 2024
Opening net book amount
89,098109,071496,44817,552712,169
Additions33,509-8,24710,13051,886
Impact of change to GST
taxable supplies
1
(280)---(280)
Capitalised interest and line fees6,015-1,213-7,228
Disposals---(1,299)(1,299)
Depreciation--(11,914)(4,406)(16,320)
Transfer from investment property3.1--(80)-(80)
Transfer from intangible assets3.1---363363
Transfer to held for sale3.3-(4,895)(12,834)(885)(18,614)
Reclassification within Property,
Plant and Equipment
(45,391)-45,391--
Revaluation surplus
Change in fair value recognised
in comprehensive income
(3,922)280(5,627)-(9,269)
Change in fair value recognised
in other comprehensive income
2
(421)11,65533,859-45,093
Closing net book amount 78,608116,111554,70321,455770,877
At 31 March 2024
Cost
---54,89654,896
Valuation 78,608116,111554,703-749,422
Accumulated depreciation ---(33,441)(33,441)
Net book amount78,608116,111554,70321,455770,877
1 Relates to GST claimed on land purchased in a prior period subject to a change in use adjustment in the current period.
2 The revaluation noted in the Statement of Comprehensive Income differs from the above due to deferred tax, refer note 5.1.
65
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
3.2 Care Assets: Property, Plant and Equipment (continued)
$NZ000’sNotes
Freehold Land
and Buildings
Under
DevelopmentFreehold Land
Freehold
Buildings
Chattels and
Leasehold
ImprovementsTotal
Year ended 31 March 2023
Opening net book amount
105,150 113,031 448,426 19,985 686,592
Additions 45,340 1,000 5,345 3,442 55,127
Impact of change to GST taxable
supplies
1
(894)---(894)
Capitalised interest and line fees 2,680 - 381 - 3,061
Disposals - - - (2) (2)
Depreciation - - (10,831) (4,354) (15,185)
Transfer from investment property3.1--1,552 - 1,552
Transfer to held for sale (1,319) (14,740) (14,418) (1,519) (31,996)
Reclassification within Property,
Plant and Equipment
(58,452) 16,035 42,417 - -
Revaluation surplus
Impairment as a result of
weather events
--(1,943) - (1,943)
Change in fair value recognised
in comprehensive income
(2,189) (640) (1,759) - (4,588)
Change in fair value recognised
in other comprehensive income
2
(1,218) (5,615) 27,278 - 20,445
Closing net book amount 89,098 109,071 496,448 17,552 712,169
At 31 March 2023
Cost
- - - 54,548 54,548
Valuation 89,098 109,071 496,448 - 694,617
Accumulated depreciation - - - (36,996) (36,996)
Net book amount 89,098 109,071 496,448 17,552 712,169
Land and Buildings Under Development
A valuation in respect of development land was provided by CBRE Limited as at 31 March 2024.
Any costs incurred to 31 March 2024 on the developments are included in arriving at the fair value
as at 31 March 2024.
The Group has applied the following methodology in relation to the measurement of land and
buildings under development:
Practical completion not achieved
Where the development still requires substantial work such that practical completion is not going to
be achieved, and a reliable estimate of fair value cannot be made, at or close to balance date, the
fair value recognised is the fair value of the development land per the Directors’ valuation plus the
cost of any work in progress. An amount of $61.4m as at 31 March 2024 (March 2023: $63.9m) has
been recognised in relation to these development sites.
Where an individual development is of both investment property and freehold buildings in nature,
the fair value of land and work in progress is apportioned between investment property under
development and freehold land and buildings under development, by applying the estimated gross
floor area for these respective areas of the development based on information obtained from the
project quantity surveyors at the planning and design stages.
Practical completion achieved
Where a development is practically completed, or likely to be completed at, or close to, balance
date the land and buildings are measured at its completed fair value per the Directors’ valuation
with an adjustment made for any estimated costs, in accordance with the project budget, to be
incurred to complete the development, and is then transferred to completed land and buildings.
Completed Land and Buildings
A valuation in respect of completed land and buildings was provided by CBRE Limited as at
31 March 2024.
The valuation of the Group’s care centres was apportioned to land, buildings, chattels and
goodwill. The fair value of land and buildings as calculated by CBRE Limited is based on the level
of rent able to be generated from the maintainable net cash flow of the site subject to average
efficient management. The fair value of the Group’s land and buildings as determined by the
Directors is based on these apportionments. However, chattels are carried at historic cost less
depreciation and the amount apportioned to goodwill by CBRE Limited is not recorded in the
consolidated financial statements.
Care Suites and Serviced Apartments
As discussed earlier in note 3, where services are provided to residents who occupy accommodation
under an ORA, it is the Group’s policy to look at the significance of these services in the context of
the overall revenue derived from the care suite or serviced apartment in ascertaining whether the
care suite or serviced apartment is property, plant and equipment or investment property. Care
suite residents occupying accommodation under an ORA receive a significant level of services.
Hence, they are included in property, plant and equipment. Care suite land and buildings are
held at fair value.
1 Relates to GST claimed on land purchased in a prior period subject to a change in use adjustment in the current period.
2 The revaluation noted in the Statement of Comprehensive Income differs from the above due to deferred tax, refer note 5.1.
66
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
Property Specific Assumptions
Weather Events: Auckland Floods and Cyclone Gabrielle
No adjustments are required in the current reporting period. In the prior reporting period, the fair
value of completed freehold buildings has been adjusted downwards for the cost of future works
to be undertaken to remediate damage caused by the Auckland Floods and Cyclone Gabrielle,
an amount of $1.9m.
Key Accounting Estimates and Judgements
All land and buildings have been determined to be Level 3 (March 2023: Level 3) in the fair value
hierarchy as the fair value is determined using inputs that are unobservable.
Critical Judgements and Estimates in Applying Accounting Policies
Classification of Care Suites
An area of significant judgement is determining the classification of those properties which are
operated as care suites. Refer note 3 for further information.
Valuation of Freehold Land and Buildings
The valuation approach for the freehold land and buildings as at 31 March 2024 was an income
capitalisation approach and/or discounted cash flow analysis supplemented by the direct
comparison approach. The valuation is determined by the capitalisation of net cash flow profit/
earnings before interest, tax, depreciation, amortisation and rent (“EBITDAR”) under the assumption
a positive cash flow will be generated into perpetuity. Capitalisation rates used for the 31 March
2024 valuation range from 12.25% to 17. 5 % with a median value of 13.63% (March 2023: 11.25%
to 16.25% with a median value of 13.63%). The valuation was apportioned between land, buildings,
chattels / plant and equipment and goodwill to determine the fair value of the assets.
The significant unobservable input used in the fair value measurement of the Group’s development
land is the value per m2 assumption. Increases in the value per m2 rate result in corresponding
increases in the total valuation.
The significant unobservable input used in the fair value measurement of the Group’s portfolio
of completed land and buildings is the capitalisation rate applied to earnings. A significant
decrease/ (increase) in the capitalisation rate would result in significantly higher / (lower) fair
value measurement.
Sensitivities
At 31 March 2024
Adopted
Value
Capitalisation Rate
+50 bp
Capitalisation Rate
-50 bp
Freehold land and buildings
Valuation $NZ000’s
670,815
Difference $NZ000’s
(40,406)43,779
Difference %
(6.0%)6.5%
At 31 March 2023
Adopted
Value
Capitalisation Rate
+50 bp
Capitalisation Rate
-50 bp
Freehold land and buildings
Valuation $NZ000’s
605,519
Difference $NZ000’s
(35,120)39,358
Difference %
(5.8%)6.5%
At 31 March 2024
Adopted
Value
Discount Rate
+0.5%
Discount Rate
-0.5%
Property
Growth Rate
+50 bp
Property
Growth Rate
-50 bp
Completed care suite property
Valuation $NZ000’s
253,355
Difference $NZ000’s
(8,248)8,87315,076(14,300)
Difference %
(3.3%)3.5%6.0%(5.6%)
At 31 March 2023
Adopted
Value
Discount Rate
+0.5%
Discount Rate
-0.5%
Property
Growth Rate
+50 bp
Property
Growth Rate
-50 bp
Completed care suite property
Valuation $NZ000’s
188,380
Difference $NZ000’s
(6,184)6,713(10,173)10,896
Difference %
(3.3%)3.6%(5.4%)5.8%
Carrying Value of Assets
The carrying amount at which both land and buildings would have been carried had the assets
been measured under historical cost is as follows:
$NZ000’sFreehold Land
Freehold
Buildings
Freehold
Land and
Buildings Under
DevelopmentTotal
Carrying amount
–
Historical cost 202436,203279,30625,903341,412
Carrying amount
–
Historical cost 202332,161250,77435,813318,748
3.2 Care Assets: Property, Plant and Equipment (continued)
67
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
3.3 Held for Sale
Assets are classified as held for sale when their carrying amount is to be recovered principally
through a sale transaction and a sale is considered highly probable. They are stated at the lower
of carrying amount and fair value less costs to sell, except for investment property assets held for
sale which are carried at fair value.
As at 31 March 2024 seven sites meet the definition of held for sale, four sites are being actively
marketed for sale and three are held under contract, (March 2023: ten sites). These sites and their
respective land, building, investment property and plant and equipment have been reclassified
for reporting purposes. As at 31 March 2023 one Right of Use Investment Property also met the
definition of held for sale, refer to 1.3(ii)
Assets previously classed as Investment Properties and Right of Use Investment Properties are held
on the Consolidated Balance Sheet at their fair value, assets previously classed as Property, Plant
and Equipment are held on the Consolidated Balance Sheet at current valuation, which is the lower
of fair value less costs to sell and the carrying amount.
Changes in fair value from the date of classification to held for sale are recognised in
comprehensive income. See note 3.4 for resident liabilities associated with these held for sale assets.
During the year to 31 March 2024, three sites were disposed of. Refer to Note 1.3(ii) and (iii) for
further details. Two sites classified as held for sale in the prior year no longer meet the definition
of held for sale so have been transferred back to investment property. Included in the held for
sale balance are two sites under contract for sale that had not settled at year end. One of these
sites was settled on 30 April 2024 and the other on 21 May 2024. Refer to Notes 1.3 and 5.8 for
further details.
$NZ000’sNotesMarch 24March 23
Opening balance101,652-
Transfer to investment property3.1(21,608) 34,833
Transfer from property, plant and equipment3.218,614 31,996
Transfer from right of use assets3.5- 31,995
Additions1,168 942
Disposals (50,479)-
Change in fair value during the year(5,088) 1,886
Closing balance44,259 101,652
3.4 Refundable Occupation Right Agreements
What is an ORA?
An ORA is a contract which sets out the terms and conditions of occupation of an independent
living unit or care suite. A new resident is charged a refundable occupation licence payment in
consideration for the right to occupy one of the Group’s units, apartments or care suites. On
termination of the ORA the occupation licence payment is repaid to the exiting resident.
What is DMF?
An amount equal to a capped percentage of the occupation licence payment is charged
by the Group as a management fee for the right of use and enjoy the common areas of the
village. The deferred management fee is payable by the resident on termination of the ORA.
Accounting Policy
The occupation licence payment becomes payable when the ORA is unconditional and has either
“cooled off” or where the resident is in occupation. The Group has a legal right to set-off any
amounts owing to the Group by a resident against that resident’s occupation licence payment.
Such amounts include deferred management fees, recovery of village operating costs and recovery
of outstanding obligations to the village.
The management fee receivable is recognised in accordance with the terms of the resident’s ORA.
The deferred management fee represents the difference between the management fees receivable
under the ORA and the portion of the management fee accrued which is recognised on a straight-
line basis over the longer of the term specified in a resident’s ORA or the average expected
occupancy for the relevant accommodation i.e. 7 years for units and premium apartments, 5 years
for apartments and 3 years for care suites (March 2023: 7yrs, 5yrs, 3yrs).
An additional management fee is payable on premium apartments following termination of the
ORA. This is an amount equal to 1% per annum of the occupation licence payment up to a maximum
of 5%. The fee is recognised on a straight-line basis over the 5 years, and any unpaid is included as
a receivable.
The management fee recognised in the Consolidated Statement of Comprehensive Income
represents income earned in line with the average expected occupancy.
Included in the obligation to residents is an estimate of the amount expected to be paid to those
residents whose ORA or unit title arrangement allows them to participate in the resale gain of the
unit or apartment they occupy.
As the refundable occupation licence payment is repayable to the resident upon termination
(subject to a new ORA being issued to an incoming resident), the fair value is equal to the amortised
cost, being the amount that can be demanded.
68
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
$NZ000’sMarch 24March 23
Village
Refundable occupation licence payments
1,003,945884,890
Residents’ share of resale gains5,7305,920
Less: Management fee receivable (per contract)(217,412)(191,599)
792,263699,211
Care Suites
Refundable occupation licence payments
246,529215,206
Accommodation rebate9583
Less: Management fee receivable (per contract)(41,697)(34,922)
204,927180,367
Total refundable occupation right agreements997,190879,578
Held for Sale
1
Refundable occupation licence payments9,034 58,475
Residents’ share of resale gains-220
Less: Management fee receivable (per contract)(1,955) (15,282)
7,079 43,413
Reconciliation of Management Fees recognised under NZ IFRS and per ORA
$NZ000’sMarch 24March 23
Village
Management fee receivable (per contract, non GAAP)
(217,412) (191,599)
Deferred management fee46,77444,321
Management fee receivable (per NZ IFRS)(170,638) (147,278)
Care Suites
Management fee receivable (per contract, non GAAP)
(41,697) (34,922)
Deferred management fee5631,013
Management fee receivable (per NZ IFRS)(41,134) (33,909)
Held for Sale
Management fee receivable (per contract, non GAAP)
(1,955) (15,282)
Deferred management fee5063,679
Management fee receivable (per NZ IFRS)(1,449) (11,603)
3.5 Leases
What’s a right of use asset?
Right of use assets are assets held under a lease arrangement. It represents the value of
the lessee’s right to use an asset over the life of the lease. There is a corresponding lease
liability on the Consolidated Balance Sheet which represents the present value of the
future lease payments.
Accounting Policy
Right of use assets and lease liabilities arising from a lease are initially measured on a present
value basis. Lease liabilities include the net present value of the remaining lease payments.
Lease payments to be made under reasonably certain extension options are also included
in the measurement of the liabilities.
Right of use assets are initially recognised at cost, comprising of the initial amount of the lease
liability less any lease incentives received. Right of use assets relating to equipment and motor
vehicles, recognised in chattels, are subsequently depreciated using the straight line method from
the commencement date to the end of the lease. Right of use assets relating to care centres are
subsequently measured at fair value as determined by the Directors having taken into consideration
the valuation performed by CBRE Limited. In considering the lease term, the Group applies
judgement in determining whether it is reasonably certain that an extension or termination option
will be exercised.
The lease payments are discounted using the interest rate Implicit in the lease. If that rate cannot
be readily determined the incremental borrowing rate at the commencement of the lease is used.
3.4 Refundable Occupation Right Agreements (continued)
1 The amount on the face of the Balance Sheet in relation to refundable occupation right agreements held for sale includes an amount
of $0.5m (March 2023: $3.7m) in relation to deferred management fees detailed further in this note.
69
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
Right of Use Asset
$NZ000’s
12 months ended 31 March 2024NotesBuildingsChattelsTotal
Opening net book value
940 3,347 4,287
Additions
8,0275648,591
Disposals
-(103)(103)
Modifications
(26)143117
Depreciation
(880)(1,229)(2,109)
Net book value as at 31 March 20248,0612,72210,783
$NZ000’s
12 months ended 31 March 2023Notes
Investment
PropertyBuildingsChattelsTotal
Opening net book value
33,373 4,188 3,578 41,139
Additions
53 439 1,336 1,828
Disposals
(40) (14) (54)
Modifications
(3,772)-(3,772)
Depreciation
(532) (1,553) (2,085)
Transfer to held for sale
(31,995) - - (31,995)
Gain on disposal/ modification
657-657
Revaluation for the year – Comprehensive Income
(1,431) - - (1,431)
Revaluation for the year – Other
Comprehensive Income
- - -
Net book value as at 31 March 2023 –9403,3474,287
$NZ000’s
31 March 2024BuildingsChattelsTotal
Cost
8,4397,01515,454
Valuation
---
Accumulated depreciation
(378)(4,293)(4,671)
Net book value as at 31 March 20248,0612,72210,783
Lease Liabilities
$NZ000’s
Year Ended 31 March 2024NotesBuildingsChattelsTotal
Opening net book value
1,161 3,637 4,798
Additions
7,964 564 8,528
Disposals
(165) (123)(288)
Interest
159 295 454
Modification
232-232
Lease payments made
(1,007) (1,512) (2,519)
Lease liabilities as at 31 March 20248,344 2,861 11,205
$NZ000’s
Year Ended 31 March 2023NotesBuildingsChattelsTotal
Opening net book value
5,986 3,908 9,894
Additions
435 1,321 1,756
Disposals
- (17)(17)
Interest
111 334 445
Modification
(4,029)-(4,029)
Lease payments made
(1,342) (1,909) (3,251)
Net book value as at 31 March 20231,161 3,637 4,798
Lease of Property, Plant and Equipment
On 9 February 2024 the Group exited its leased corporate office building located at 80 Queen
Street, Auckland and commenced a lease at 188 Quay Street, Auckland.
In addition to the corporate office building, the group also leases various equipment and motor
vehicles. In the comparative period the Group also leased one care centre.
1 The revaluation noted in the Statement of Comprehensive Income differs from the above due to deferred tax, refer note 5.1.
3.5 Leases (continued)
70
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
4. Shareholder Equity and Funding
4.1 Shareholder Equity and Reserves
March 2024
$NZ000’s
March 2024
Shares
March 2023
Shares
March 2024
$NZ000’s
March 2023
$NZ000’s
Share capital
Issued and fully paid up capital
724,154,779720,555,185715,960713,374
Total contributed equity724,154,779720,555,185715,960713,374
Movements
Opening balance of ordinary shares issued
720,555,185710,204,500713,374705,291
Shares issued for employee share scheme 53,761 1,174,602--
Shares issued for Long Term Incentive Scheme212,894---
Shares issued for dividend reinvestment plan 3,332,939 9,176,0832,5868,083
Closing balance of ordinary shares issued724,154,779720,555,185715,960713,374
All ordinary shares rank equally with one vote attached to each fully paid ordinary share. The
shares have no par value. The Company incurred no transaction costs issuing shares during
the period (March 2023: nil).
Dividend Reinvestment Plan (“DRP”)
In 2019, the Board approved the implementation of a dividend reinvestment plan for New Zealand
and Australian shareholders. This plan has been effective for all subsequent dividends.
March 2024
value per
share
March 2024
number of
shares
March 2023
value per
share
March 2023
number of
shares
Reinvestment of final dividend for the prior period $0.77543,332,939$0.98753,823,536
Reinvestment of interim dividend for the period --$0.80415,352,547
Long Term Incentive (“LTI”)
On 15 September 2020 the Board approved a new Long Term Incentive Scheme with a vesting
period of 3 years for its senior executives (“LTI Scheme”). The LTI Scheme has been established to:
• provide an incentive to key executives to commit to Oceania for the long term; and
• align these executives’ interests with the interests of Oceania’s shareholders.
Participants in the Scheme will be granted Share Rights from time to time which will, on vesting,
convert into an entitlement to receive ordinary shares. Vesting will depend on achievement of certain
performance hurdles relating to Oceania’s total shareholder return relative to the NZX50 and, for
certain schemes, Oceania’s performance against EBITDA targets.
Share Rights become exercisable if the holder remains employed on the vesting date and
performance hurdles are met over the period from the commencement date to the measurement
date, and in certain other exceptional circumstances. On becoming exercisable, each Share Right
will entitle the holder to receive one fully paid ordinary share in Oceania Healthcare Limited, less an
adjustment for tax paid on the holder’s behalf for the benefit received under the Scheme. The Share
Rights have a nil exercise price.
Performance Hurdles
The Share Rights in the 2020 and 2021 grant are divided between two performance hurdles;
• Share Rights will qualify for vesting on a straight-line basis, from 0%, where the total shareholder
return (TSR) from the commencement date to the measurement date is equal to the 35th
percentile of the NZX50 Group, to 100% where the TSR is equal to or greater than the 75th
percentile of the NZX50 Group; and
• For the second performance hurdle, Share Rights will qualify for vesting if the Group’s annual
growth in underlying earnings (before interest, tax, depreciation and amortisation) per share
(UEPS) from the commencement date to the measurement date is equal to or greater than the
target for growth in UEPS for that period.
The Share Rights for the 2022 grant are subject to one performance hurdle. Share Rights will qualify
for vesting on a straight line basis, from 0%, where the TSR from the commencement date to the
measurement date is equal to the 25th percentile of the NZX50 Group, to 100% where the TSR is
equal to or greater than the 75th percentile of the NZX Group.
Lapse
Share Rights will lapse where the performance hurdles are not met on a relevant measurement date
or, in general, where the participant ceases to be employed by the Group before the vesting date
(except in certain circumstances).
SchemeDateShare rights issuedShare rights lapsedShare rights vested
2020 LTI20 September 20201,948,0611,599,054349,007
2021 LTI10 September 20211,078,125984,87593,250
2022 LTI18 November 20221,430,150761,209n/a
On 11 September 2023 the Board approved a new Share Option Plan. The option plan has been
established to:
a) Reward and retain key employees;
b) Drive longer-term performance and alignment of incentives of participants with the interests
of the groups shareholders; and
c) Encourage longer term decision-making by participants.
71
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
Participants in the Option Plan will be granted options to acquire ordinary shares from time to
time. These options will, subject to those participants’ continued employment by Oceania, be
exercisable by participants during specified exercise periods for a set exercise price. On exercise of
the share options, the Group will facilitate a cashless (net settled) exercise by issuing such number
of shares as is equal to the difference between the then current market value and the exercise price,
multiplied by the number of options being exercised, divided by the then current market value.
SchemeDateShare options issuedShare options forfeitedExercise price
2023 Option Plan11 September 202316,666,6677,142,857$0.82
Dividends
On 24 May 2023, a final dividend of 1.3 cents per share (not imputed) was declared and was paid
on 21 June 2023. The record date for entitlement was 7 June 2023.
March 2024
cents per
share
March 2024
$NZ000’s
March 2023
cents per
share
March 2023
$NZ000’s
Final dividend for the prior period 1.39,3482.316,335
Interim dividend for the period --1.913,589
Total dividends declared during the year
1
9,34829,924
The directors resolved not to pay a final dividend for the year to 31 March 2024 to provide for
ongoing investment in Oceania’s growth and portfolio transformation. The Directors will consider a
resumption of paying dividends at the next reporting date, after taking into consideration cashflow,
market conditions and growth opportunities.
Asset Revaluation Reserve
The asset revaluation reserve is used to record the revaluation of freehold land and buildings and
land and buildings under development. The amounts are recognised in the Consolidated Statement
of Comprehensive Income when it affects profit or loss. Refer to note 3.2.
Cash Flow Hedge Reserve
The cash flow hedge reserve is used to record gains or losses on instruments used as cash flow
hedges. The amounts are recognised in the Consolidated Statement of Comprehensive Income
when the hedged transaction affects profit or loss. Refer to note 5.6.
4.2 Earnings per share
Basic
Basic earnings per share is calculated by dividing the profit after tax of the Group by the weighted
average number of ordinary shares outstanding during the period.
March 24March 23
Profit after tax ($’000)31,47415,448
Weighted average number of ordinary shares outstanding (‘000s)723,320715,333
Basic earnings per share (cents per share)4.42.2
Diluted
Diluted Earnings per share is calculated by adjusting the weighted average number of ordinary
shares outstanding to assume conversion of all dilutive potential ordinary shares. As at
31 March 2024 there were 349,007 shares with a dilutive effect (March 2023: 349,007).
March 24March 23
Profit after tax ($’000)31,47415,448
Weighted average number of ordinary shares outstanding (‘000s)723,669715,683
Diluted earnings per share (cents per share)4.32.2
4.3 Employee Share Based Payments
Employee Share Plan
On 25 September 2023, 53,761 shares were issued as part of an employee share scheme (“ESS”).
All permanent employees as at that date were invited to participate. Full time employee participants
were allocated an equivalent of $800 of shares and part time employee participants were allocated
an equivalent of $400 of shares. The shares are held in trust and will be transferred to the employee
if the employee remains employed by Oceania (or any of its subsidiaries) for the following
three years.
In the comparative year, on 27 September 2022, 1,174,602 shares were issued as part of the ESS.
4.1 Shareholder Equity and Reserves (continued)
1 Total dividends declared during each period differs to dividends paid per the Consolidated Statement of Changes in Equity as a result
of dividends payable on shares held within the Group.
72
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
4.4 Borrowings
Accounting Policy
Borrowings are initially recognised at fair value, including transaction costs incurred. Borrowings are
subsequently measured at amortised cost. Any difference between the proceeds (net of transaction
costs) and the redemption amount is recognised in the Consolidated Statement of Comprehensive
Income over the period of the borrowings using the effective interest method.
Specific borrowing costs directly attributable to the acquisition, construction or production of
qualifying assets, which are assets that necessarily take a substantial period of time to get ready
for their intended use or sale, are added to the cost of those assets, until such a time as the
assets are substantially ready for their intended use. Other borrowing costs are recognised in the
Consolidated Statement of Comprehensive Income in the year in which they are incurred.
$NZ000’sMarch 24March 23
Secured
Bank loans
418,955332,764
Deferred payment on acquisition-250
Capitalised loan costs(1,504)(1,990)
Retail Bond – OCA010125,000125,000
Retail Bond – OCA020100,000100,000
Capitalised bond costs(1,933)(2,435)
Total borrowings640,518553,589
Current-250
Non current643,955557,764
Total borrowings excluding capitalised loan costs643,955558,014
Recognition and Measurement
Bank Loans
Interest is charged using the BKBM Bill rate plus a margin and line fee. Interest rates applicable
in the year to 31 March 2024 ranged from 6.40% to 7.15% (March 2023: 3.23% to 6.53%).
Deferred Payment on Acquisition of Previously Leased Site
Relates to the purchase of a previously leased site. The deferred payment was secured by a first
charge mortgage over the property and repaid in the current period.
Retail Bond
NZDX IDIssue DateNo. of bonds$NZ000’sMaturityFixed Interest
Trading
Interest at
March 24
Trading
Interest at
March 23
OCAO1019 Oct 20125.0m$125,00019 Oct 272.3%7.55%7.4%
OCA02013 Sept 21 100.0m$100,00013 Sept 283.3%7.3%7.3%
The bonds are quoted on the NZX Debt Market and their fair value at balance date is based on their
listed market price as at balance date. Interest on OCA010 is payable quarterly in January, April,
July and October in equal instalments.
Interest on OCA020 is payable quarterly in March, June, September and December in equal
instalments.
Debt Financing
On 9 May 2022, in the comparative period, it was announced an agreement was entered into with
the banking syndicate to increase total debt facility limits from $350m to $500m for a tenure of five
years as follows:
i. General Corporate Facility limit increased to $235m (formerly $85m); and
ii. Development Facility limit remains at $265m
The facilities are held by a banking syndicate comprising ANZ, ASB and ICBC and repayable
on 13 June 2027
The entire debt facility is sustainability-linked for the entire five year period with a penalty in the
event of the Group not satisfying certain ESG targets and an interest discount in the event that
certain targets are met. For the period to 31 March 2024, all three targets were met and a discount
will be received. For the period to 31 March 2023, two targets were met and a third partially met.
A discount was received for one metric and no penalty interest was incurred.
Effective 17 August 2023, the company executed a limit switch. This transferred $50m of available
commitments from the General Corporate Facility to the Development Facility.
Financing Arrangements
At 31 March 2024, the Group held committed bank facilities with drawings as follows:
$NZ000’s March 24 March 23
CommittedDrawnCommittedDrawn
General Corporate Facility185,000110,000235,000111,850
Development Facility315,000308,955265,000220,914
Total500,000418,955500,000332,764
The Group’s revolving Development Facility is utilised to cover costs associated with current
development projects. The revolving General Corporate Facility is used for general corporate
purposes as well as for development land and initial costs for projects not currently funded by
the Development Facility.
Interest on the General Corporate Facility is typically payable quarterly. Interest on the
Development Facility is capitalised and repaid together with principal using the ORA licence
proceeds received upon settlement of initial sales of newly developed units and care suites. Line
fees are payable quarterly on the committed General Corporate Facility and the Committed
Development Facility.
73
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
The financial covenants in the Group’s senior debt facilities, with which the Group must comply
include:
a) Interest Cover Ratio – the ratio of Adjusted EBITDA to Net Interest Charges, where interest
charges relates to the interest and commitment fees in relation to the General Corporate
Facility, is not less than 2.0x;
b) Loan to Value Ratio – the ratio of total bank indebtedness shall not exceed 50% of the total
property value of all Group’s properties (including the “as-complete” valuations for projects
funded under the Development Facility); and
c) Guarantor Group Coverage – at all times the adjusted EBITDA of the Guaranteeing Group
must be at least 90% of the Adjusted EBITDA of the total tangible assets of the Group; and
d) Development – at all times the outstanding principal amount under the Development
Facility shall not exceed the Development Value. Development Value (per the most recent
valuation excluding any settled stock) is the aggregate value of all Residential Facilities in all
Developments that are being funded by the Development Facility less their cost to complete.
The covenants are tested half yearly. All covenants have been complied with during the period.
The Group has agreed with its banks that the calculation of Adjusted EBITDA and Net Interest, for
the purposes of the financial covenants, shall continue to be based on the accounting treatment
in use before the introduction of NZ IFRS 16 Leases.
Assets Pledged as Security
The bank loans and bonds of the Group are secured by mortgages over the Group’s care centre
freehold land and buildings and rank second behind the Statutory Supervisors where the land and
buildings are classified as investment property and investment property under development.
As at 31 March 2024 the balance of the bank loans over which the properties are held as security
is $419.0m (March 2023: $332.8m).
Net Debt Reconciliation
Cash and cash equivalents include cash on hand. The following provides an analysis of net debt
and the movements in net debt for the year.
$NZ000’sMarch 24March 23
Cash and cash equivalents7,4857,439
Debt – repayable within one year(1,331)(2,152)
Debt – repayable after one year(653,829)(560,661)
Net Debt(647,675)(555,374)
Cash and liquid investments7,4857,439
Gross debt – fixed interest rates(236,205)(230,048)
Gross debt – floating interest rates(418,955)(332,764)
Net Debt(647,675)(555,373)
Borrowings
$NZ000’sMarch 24March 23
Borrowings at the start of the year(558,014) (383,345)
Cash drawdowns(153,840) (244,311)
Cash repaid67,899 70,440
Other non cash movements-798
Borrowings at the end of the year(643,955) (558,014)
5. Other Disclosures
5.1 Income Tax
What is Current Tax?
Current tax is an estimate of the tax that is payable to Inland Revenue for the current financial
year.
What is Deferred Tax?
Deferred tax is an estimate of income tax that will be payable or recoverable in respect of
temporary differences relating to the accounting and tax values of the Group’s assets and
liabilities. Deferred tax also includes the value of tax losses that we consider we will use in the
future to meet any income tax obligation.
Accounting Policy
The tax expense or benefit for the year comprises current and deferred tax. Tax is recognised in the
calculation of profit for the year in the Consolidated Statement of Comprehensive Income, except to
the extent that it relates to items recognised in other comprehensive income. In this case the tax is
also recognised in other comprehensive income.
The current income tax charge is calculated on the basis of the tax laws enacted at the balance
date. The Directors periodically evaluate positions taken in tax returns with respect to situations in
which applicable tax regulation is subject to interpretation.
Deferred income tax is recognised, using the liability method, on temporary differences arising
between the tax base of assets and liabilities and their carrying amounts in the consolidated
financial statements. However, the deferred income tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business combination that at the
time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax
is determined using tax rates (and laws) that have been enacted or substantially enacted by the
Balance Sheet date and are expected to apply when the related deferred income tax asset is
realised or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is probable that future taxable
profit will be available against which the temporary differences, and losses can be utilised.
4.4 Borrowings (continued)
74
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
$NZ000’sMarch 24March 23
Income tax benefit
Current tax
--
Deferred tax(3,081)(3,448)
(3,081)(3,448)
Taxation expense is calculated as follows:
Profit before income tax
28,393 12,000
Tax at the New Zealand tax rate of 28% 7,950 3,360
Adjusted by the tax effect of:
Non-taxable gain on purchase of business assets
- (156)
Non-deductible impairment of goodwill 156 657
Non-deductible expenditure 254 683
Capitalised interest deductible for tax (6,765) (3,181)
Taxable deferred management fees (7,941) (9,748)
Non-assessable revaluation of investment property (16,799) (8,519)
Taxable depreciation (10,691) (7,968)
Accounting depreciation 4,863 4,264
Right of use asset 8,771 (179)
Non-deductible impairment of fixed asset 3,801 1,850
Adjustment for timing difference of provisions 384 (532)
Losses generated 16,017 19,469
Current tax expense--
Impact of movements in investment property (1,819)3,068
Impact of movements in property, plant and equipment 17,015 (3,071)
Impact of movements in right of use assets (96)430
Impact of movements in held for sale assets (7,921)8,084
Other adjustments (290)652
Deferred management fee 7,554 8,307
Losses (recognised) / utilised or derecognised (17,524) (20,917)
Deferred tax benefit(3,081)(3,448)
Income tax benefit (3,081)(3,448)
Movement in the Deferred Tax Balance:
$NZ000’s
Balance
1 April 2023
Recognised in
Consolidated
Statement of
Comprehensive
Income
Recognised
in Other
Comprehensive
Income
Balance
31 March 2024
Investment property2,197 1,819 - 4,016
Property, plant and equipment(10,944) (17,015) (3,918) (31,877)
Right of use assets164 96 - 260
Held for sale assets(8,084) 7,921 - (163)
Provisions and other assets / liabilities5,169 290 837 6,296
DMF revenue in advance(13,308) (7,554) - (20,862)
Tax losses24,806 17,524 - 42,330
Deferred tax assets / (liabilities)-3,081(3,081)-
Balance
1 April 2022
Recognised in
Consolidated
Statement of
Comprehensive
Income
Recognised
in Other
Comprehensive
Income
Balance
31 March 2023
Investment property5,265(3,068)-2,197
Property, plant and equipment(11,163)3,071(2,853)(10,944)
Right of use assets594(430)-164
Held for sale assets-(8,084)-(8,084)
Provisions and other assets / liabilities6,416(652)(595)5,169
DMF revenue in advance(5,001)(8,307)-(13,308)
Tax losses3,88920,917-24,806
Deferred tax assets / (liabilities)-3,448(3,448)-
Recognition and Measurement
No income tax was paid or payable during the year (March 2023: nil).
5.1 Income Tax (continued)
75
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
Key Accounting Judgements
Deferred Tax on Investment Property
Deferred tax on investment property is assessed on the basis that the asset value will be realised
through use (“Held for Use”). An initial recognition exemption has been applied to newly developed
village sites in accordance with NZ IAS 12 Income Taxes.
The Group’s ORAs comprise two distinct cash flows (being an ORA deposit upon entering the unit
and the refund of this deposit upon exit). In determining the tax base of investment property, the
Group considered whether taxable cash flows are received at the end of the ORA period (i.e. upon
refund of the ORA deposit by way of set off on exit by a resident) or at the beginning of the ORA
period (i.e. at time of the receipt of the ORA deposit). The Group has carefully evaluated all the
available information and considers it appropriate to recognise and measure the tax base and
associated deferred tax based on the taxable cash flows being receivable at the end of the ORA
period as this best represents the Group’s contractual entitlement.
In calculating deferred tax under the Held for Use methodology, the Group has made significant
judgements to determine taxable temporary differences. The carrying value of the Group’s
investment property is determined on a discounted cash flow basis and includes cash flows that
are both taxable and non-taxable in the future. The Group has recognised deferred tax on the cash
flows with a future tax consequence being DMF and deductible amounts as provided by external
valuers, to the extent that it doesn’t relate to land. The Group uses the external valuers’ valuation of
land and improvements to estimate the apportionment of cash flows arising from the depreciable
(i.e. buildings) and non-depreciable components (i.e. land).
Deferred tax on non-residential buildings
On 28 March 2024, the Government passed the Taxation (Annual Rates for 2023–24, Multinational
Tax, and Remedial Matters) Act, which included tax legislation changes including the removal of
tax deductions for depreciation on non-residential buildings. The change largely reinstates the
policy that was in place between 2012 and 2020. Specifically, the tax depreciation rate will be set
at 0% for all buildings (residential and non-residential) with an estimated useful life of 50 years or
more, from the 2024/25 year onwards. This resulted in an increase in the deferred tax liability in
respect of Property, Plant and Equipment and Investment Property of $28.4m as at 31 March 2024
for the Group, but did not result in any change to the total deferred tax recognised on the balance
sheet of nil due to the recognition of previously unrecognised tax losses.
Recognition of Deferred Tax on Tax Losses
After taking into consideration tax losses generated in the year to 31 March 2024, the Group now
has an estimated $253.7m (March 2023: $201.3m) of available tax losses as at 31 March 2024.
The Group may recognise deferred tax assets to the extent that it is probable that the Group will
generate future economic profits to offset the deferred tax assets or to the extent that they offset
deferred tax liabilities. A deferred tax asset of $42.3m (March 2023: $24.8m) representing tax losses
generated has been recognised as at 31 March 2024 in order to offset the net deferred tax liability
position. All other available losses generated are held off balance sheet. Total available losses are
noted below:
$NZ000’sMarch 24March 23
Opening balance – tax losses201,282130,333
Prior period adjustments: other(4,773)1,169
Losses per Inland Revenue196,509131,502
Losses utilised for the year --
Losses forfeited during the year--
Losses generated during the year57,21169,780
Closing balance – tax losses253,720201,282
5.2 Intangible Assets
Accounting Policy
Goodwill
Goodwill represents the excess of cost of an acquisition over the fair value of the Group’s share of
the net identifiable assets of the acquired subsidiary or business at the date of acquisition. Goodwill
is not amortised. Instead, goodwill is tested at least once annually for impairment at 31 March and
carried at cost less accumulated impairment losses. Impairments are recognised in the Statement
of Comprehensive Income. Gains and losses on the disposal of an entity or cash generating unit
(“CGU”) include the carrying amount of goodwill relating to the entity or CGU sold. Goodwill is
allocated to CGUs and these CGUs are grouped where appropriate for the purpose of impairment
testing. The allocation is made to those CGUs or groups of CGUs that are expected to benefit from
the business combination in which the goodwill arose.
Computer Software
Costs associated with maintaining computer software programmes are recognised as an expense
as incurred. Acquired computer software licenses are capitalised on the basis of the costs incurred
to acquire and bring to use the specified software. Where computer software licences are housed
in the cloud they are capitalised to the extent the Group controls the licence and has rights to
the software beyond rights to access. These costs are amortised on a straight line basis over their
estimated useful lives (2.5 – 8 years).
$NZ000’sGoodwillSoftwareTotal
Year ended 31 March 2024
Opening net book amount
3,1673,5506,717
Additions269197466
Transfer to Property, Plant and Equipment-(363)(363)
Amortisation-(557)(557)
Impairment charge
1
(555)-(555)
Disposal -(45)(45)
Closing net book amount2,8812,7825,663
As at 31 March 2024
At cost
208,2374,978213,215
Accumulated amortisation and impairment(205,356)(2,196)(207,552)
Net book amount2,8812,7825,663
5.1 Income Tax (continued)
1 Impairment charge in the 12 months to 31 March 2024 includes $0.6m (March 2023: $2.3m) in relation to the disposal of goodwill
at leasehold sites.
76
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
$NZ000’sGoodwillSoftwareTotal
Year ended 31 March 2023
Opening net book amount
4,9333,6708,603
Additions5815341,115
Amortisation-(654)(654)
Impairment charge
1
(2,347)-(2,347)
Closing net book amount3,1673,5506,717
As at 31 March 2023
At cost
207,9685,189213,157
Accumulated amortisation and impairment(204,801)(1,639)(206,440)
Net book amount3,1673,5506,717
Impairment Test for Goodwill
The carrying value of goodwill has been assessed on a site by site basis taking into account the sites
results as a whole. An impairment is recognised when the carrying value of goodwill plus chattels is
greater than the CBRE Limited value of goodwill plus chattels.
The carrying amount of goodwill at each site is not significant in comparison to the total amount of
goodwill. All goodwill is allocated to the care CGUs.
Key Judgements in Applying the Accounting Policies
Care CGUs Recoverable Amount
The recoverable amount of the individual care sites has been determined based on an external
valuation of fair value less costs to sell by CBRE Limited as an external valuer. The fair value less
costs to sell is considered level 3 in the fair value hierarchy. This has been used for comparison to
current carrying value. The assumptions used in determining the fair value for care centres are
disclosed in note 3.2.
5.3 Trade and Other Receivables
Accounting Policy
Trade receivables are amounts due from residents and various government agencies in the ordinary
course of business and are recognised initially at fair value, being its transaction price, plus
transaction costs. Trade receivables are held with the objective of collecting the contractual cash
flows and therefore they are subsequently measured at amortised cost using the effective interest
method, less a provision for impairment.
Occupation licence payment receivables are recognised at the point in time that an ORA becomes
unconditional and has either “cooled off” or where the resident is in occupation, and the resident
has not yet made all of the contractual licence payment to the Group. The long term portion of this
receivable has been discounted by $1.9m (March 2023: $0.9m).
$NZ000’sMarch 24March 23
Net trade and other receivables
Trade receivables
21,63221,788
Less: Loss allowance (299)(379)
21,33321,409
Occupation licence payment receivable
2
93,78874,146
Insurance Receivable4,91410,913
Prepayments4,8292,461
Trade and other receivables124,864108,929
Recognition, Measurement and Judgements in Applying Accounting Policies
The Group applies the simplified approach to measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables and requires recognition from initial recognition of
the trade receivable. To measure expected credit losses, trade receivables have been grouped and
reviewed on the basis of the number of days since resident departure and the funding stream and
type of debtor. Judgement is used in selecting the inputs to the impairment calculation and is based
on past history and forward looking assumptions.
The Group has the following financial assets subject to the application of the expected credit
loss model:
• Trade receivables from care operations for the provision of care fees revenue for rest home and
hospital fees. These are split between private amounts owed by residents and amounts due from
agencies such as the Ministry of Health and ACC.
• Trade receivables from village operations for the provision of weekly service fees and occupation
licence payment receivables. These are receivable from residents.
The Group has applied a simplified approach to calculating the expected loss rate expected by
applying a 1.5% allowance to trade receivables from care operations (2023: 2%) and 0% from village
operations (2023: 0%), adjusted for any other known factors with respect to individual debts.
There is no significant concentration of credit risk as trade receivables relate to individual residents
and government agencies.
5.2 Intangible Assets (continued)
1 Impairment charge in the 12 months to 31 March 2024 includes $0.8m in relation to the disposal of goodwill at leasehold sites.
2 Occupation licence receivable includes an amount of $74.0m in relation to short term occupation licence receivables expected to be
recovered in less than 12 months. (March 2023: $64.2m).
77
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
5.4 Trade and Other Payables
Accounting Policy
Trade and other payables represent liabilities for goods and services provided to the Group prior to
the end of financial year which are unpaid. The amounts are unsecured and are usually paid within
30 days of recognition.
Trade payables are recognised initially at fair value less transaction costs and subsequently
measured at amortised cost using the effective interest method.
Wages and Salaries, Annual Leave and Long Service Leave
Liabilities for wages and salaries, including non-monetary benefits and annual leave are recognised
in other payables in respect of employees’ services up to the reporting date and are measured at
the amounts expected to be paid when the liabilities are settled.
The liability for employee entitlements is carried at the present value of the estimated future
cash flow.
The liability for long service leave is recognised in the provision for employee entitlements and
measured as the present value of expected future payments to be made in respect of services
provided by employees up to the reporting date. Consideration is given to expected future wage
and salary levels, experience of employee departures and periods of service.
$NZ000’sMarch 24March 23
Trade payables14,9759,787
Development accruals9,26612,615
Sundry payables and accruals
1
3,1066,990
Accrued interest on external borrowings 1,3551,360
Employee entitlements23,35521,537
Trade and other payables52,05752,289
5.5 Related Party Transactions
The below entities are subsidiaries of Oceania Healthcare Limited.
Name of EntityPrincipal Activities20242023Class of shares
Oceania Group (NZ) Limited Corporate office functions
100%100%Ordinary
Oceania Care Company LimitedOperation of aged care centres
100%100%Ordinary
Oceania Village Company LimitedOwnership and operation
of retirement villages
100%100%Ordinary
OCA Employees Trustee LimitedHold Employee Share Scheme
shares on behalf of employees
100%100%Ordinary
Bream Bay Village Limited
2
Non operating
100%100%Ordinary
All subsidiaries are incorporated in New Zealand and have a balance date of 31 March
(2023: 31 March). There are no significant restrictions on subsidiaries.
Key Management Personnel Compensation
Key management personnel are all executives with the authority for the strategic direction and
management of the Group and exclude those in an Acting capacity.
$NZ000’sMarch 24March 23
Directors’ remuneration and expenses 875879
Directors’ dividends including DRP3951,399
Salaries and other short term employee benefits2,9673,359
Long Term Incentive Scheme164-
Key management personnel dividends including DRP437
Termination benefits
3
338-
4,7435,674
Transactions with Related Parties
There are no outstanding balances with related parties (March 2023: nil).
5.6 Financial Risk Management
The Group’s activities expose it to a variety of financial risks: market risks (including cash flow
interest rate risk), credit risk and liquidity risk. The Group’s overall risk management programme
focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects
on the financial performance of the Group. The Group uses derivative financial instruments such as
interest rate swap contracts to hedge certain interest rate risk exposures. Derivatives are exclusively
used for hedging purposes, i.e. not as trading or other speculative instruments. The Group uses
different methods to measure different types of risk to which it is exposed. These methods include
sensitivity analysis in the case of interest rates to determine market risk and aging analysis for
credit risk.
Classification and measurement
Financial assets are required to be classified into three measurement categories: those measured
at fair value through profit and loss, those measured at fair value through other comprehensive
income and those measured at amortised cost. The determination is made at initial recognition.
The classification depends on the entity’s business model for managing its financial instruments and
the contractual cash flow characteristics of the instrument. Trade receivables are amounts due from
residents and various government agencies held to collect contractual cash flows in the ordinary
course of business. These balances are held at amortised cost less a provision for impairment.
Risk management is carried out centrally by management under policies approved by the Board
of Directors. The Directors provide written principles for overall risk management, as well as policies
covering specific areas, such as interest rate risk, credit risk, use of derivative financial instruments
and non-derivative financial instruments.
1 Sundry payables include $0.1m (March 2023: $0.1m) relating to cash held on behalf of residents.
2 The business operations and assets of Bream Bay Village Limited were sold to Oceania Village Limited on 30 September 2022
at carrying amount. Subsequent to this date the company is dormant.
3 Termination payments are made to employees who met the definition of key management and ceased to be employed by the Group
during the period.
78
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
a) Fair Value Estimation
All financial assets (cash and cash equivalents, trade and other receivables and certain right of use
assets) and financial liabilities (trade and other payables, lease liabilities and bank borrowings),
other than derivatives, are measured at amortised cost, which approximates to fair value.
Financial liabilities measured at amortised cost are fair valued using the contractual cash flows. In
considering the fair value of interest bearing assets and liabilities the estimated future interest rates
approximate the discount rates used in a fair value assessment.
b) Market Risk
Market risk is the risk that changes in market prices such as interest rates will affect the Group’s
income. The objective of market risk management is to manage and control market risk exposures
within acceptable parameters, while optimising the return on risk.
c) Cash Flow Risk
The Group has no significant interest-bearing assets, as such the Group’s income is substantially
independent of changes in market interest rates.
The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable
rates expose the Group to cash flow interest rate risk. The cash flow and interest rate risks are
monitored by the Directors on a monthly basis. The Directors monitor the existing interest rate profile
with reference to the Group’s Treasury Policy and the Group’s underlying interest rate exposure.
Management present interest rate hedging analysis and strategies to the Directors for consideration
and seek Director approval prior to entering into any interest rate swaps.
The following table shows the sensitivity of the Group’s Profit / (Loss) and equity to a movement
in interest rates of +/-1%. This assumes all other variables remain constant.
+1% -1%
$NZ000’sProfit / (Loss)EquityProfit / (Loss)Equity
2024
Interest expense
3,5162,514(3,516)(2,514)
Change in fair value of cash flow hedges-1,147-(1,170)
2023
Interest expense
2,1041,128(2,104)(1,128)
Change in fair value of cash flow hedges-2,012-(2,065)
Interest Rate Swaps
It is the Group’s policy to manage interest rate risk through the use of interest rate swaps to reduce
the impact of changes in interest rates on its floating rate long term debt. The objective of the
interest rate swaps is to protect the Group from the short to medium term impact to cash flows
which arises out of variability in floating interest rates.
Interest rate swaps are initially recognised at fair value on the date a contract is entered into and
are subsequently measured at fair value on each reporting date. The fair values of the interest
rate swaps are determined based on cash flows discounted to present value using current market
interest rates.
Interest swaps are assessed for effectiveness at each reporting period. A retrospective calculation
will be used to determine the amount of any ineffectiveness to recognised in comprehensive income.
The expected causes of ineffectiveness are as follows:
• Credit risk of the bank;
• Insufficient level of floating rate debt;
• Differing interest settlement dates; or
• Inter Bank Offered Rate (“IBOR”) reform if the BKBM rate is replaced with another measure.
When interest rate swaps meet the criteria for cash flow hedge accounting, the effective portion
of the gain or loss on the hedging instrument is recognised in other comprehensive income (loss
of $2.1m, March 2023: gain of $1.5m), while the ineffective portion is recognised in other expenses
in the Consolidated Statement of Comprehensive Income (nil impact, March 2023: nil impact).
Amounts taken to the interest rate reserve are transferred out of the reserve and included in the
measurement of the hedged transaction when the forecast transaction occurs. When interest rate
swaps do not meet the criteria for cash flow hedge accounting, all movements in fair value of the
hedging instruments are recognised in the Consolidated Statement of Comprehensive Income.
Under the interest rate swap agreements, the Group has a right to receive interest at variable rates
and an obligation to pay interest at fixed rates. Of the interest rate swaps in place at 31 March
2024, $100.0m (March 2023: $100m) are being used to cover approximately 23.9% (March 2023:
30.1%) of the loan principal outstanding. Bank loans of the Group currently bear an average fixed
interest rate (including margin and line fees) of 4.2% (March 2023: 4.1%). The fair value of these
agreements at 31 March 2024 is a $3.0m asset (March 2023: $6m asset). The agreements were
entered into in 2019 and cover notional amounts for a period of 3 years, 5 years, and 7 years.
The notional principal amounts and the period of expiry of the interest rate swap contracts are
as follows:
Average contracted
fixed interest rateNotional principal amount
$NZ000’s
March 24
%
March 23
%
March 24
$NZ000’s
March 23
$NZ000’s
Less than 1 year3.25-50,000-
Between 1 and 3 years3.433.1750,00050,000
Between 3 and 5 years-3.3550,000
d) Credit Risk
Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with
banks and financial institutions, as well as credit exposure from trade and other receivables.
In the normal course of business, the Group has no significant concentrations of credit risk. Other
than on a small number of exceptions, the Group requires settlement of the ORA before allowing
occupation of its villas or apartments. Therefore, the Group does not face significant credit risk. The
values attached to each financial asset in the Consolidated Balance Sheet represent the maximum
credit risk. No collateral is held with respect to any financial assets. The Group enters into financial
instruments with various counterparties in accordance with established limits as to credit rating and
dollar limits and does not require collateral or other security to support the financial instruments.
5.6 Financial Risk Management (continued)
79
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
Concentrations
Cash and cash equivalents of the Group are deposited with one of the major trading banks.
Non-performance of obligations by the bank is not expected due to the credit rating of the counter
party considered. The Standard and Poors credit rating of the counter party as at 31 March 2024
is AA- (March 2023: AA-).
The Group’s receivables represent distinct trading relationships with each of the residents. There are
no concentrations of credit risk with residents. Large receivables generally relate to the residential
care subsidies which are received from Health New Zealand Te Whatu Ora and Work and Income
New Zealand. Neither of these entities has demonstrated, or is considered, a credit risk.
e) Liquidity Risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities,
the availability of funding through an adequate amount of committed credit facilities and the
ability to close-out market positions. Due to the dynamic nature of the underlying businesses, the
Directors aim at maintaining flexibility in funding by keeping committed credit lines available.
Cash flow forecasting is regularly performed by management. Management monitors rolling
forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational
needs, while maintaining headroom on its undrawn committed borrowing facilities at all times so
that the Group does not breach borrowing limits or covenants on any of its borrowing facilities. Such
forecasting takes into consideration the Group’s debt financing plans and covenant compliance.
The table below shows the maturity analysis of the Group’s contractual undiscounted cash flows.
$NZ000’sLess than 1 Year
Between 1
and 2 Years
Between 2
and 5 YearsOver 5 Years
2024
Trade and other payables
24,238---
Lease liabilities2,0692,3784,6525,361
Borrowings6,1756,175656,508-
Cash flow hedge - interest rate swaps1,9271,067151-
Refundable occupation right agreements
1
1,004,269---
2023
Trade and other payables
22,367---
Lease liabilities2,6581,8143,2514,230
Borrowings6,1756,175474,852101,650
Cash flow hedge - interest rate swaps3,3001,4821,144-
Refundable occupation right agreements
1
922,991---
Of the derivative financial instruments value of $3.0m on the Consolidated Balance Sheet as at
31 March 2024 $0.3m is classified as current and $2.7m is classified as non-current (March 2023:
balance of $6.0m classified as non-current).
The refundable ORAs are repayable to the resident on vacation of the unit, apartment, care suite or
on the termination of the occupation right agreement and subsequent resale of the unit, apartment
or care suite. The expected maturity of the refundable ORAs is shown in note 3.4.
f) Capital Risk Management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue
as a going concern, to provide returns for shareholders and benefits for other stakeholders and
to maintain an optimal capital structure to reduce the cost of capital. The consolidated financial
statements are prepared on a going concern basis.
5.7 Contingencies and Commitments
At 31 March 2024, the Group had no contingent liabilities (March 2023: nil).
At 31 March 2024, the Group has a number of commitments to develop and construct certain
development sites totalling $45.3m (March 2023: $124.8m).
As at 31 March 2024, the Group had commitments of $nil (March 2023: $10.9m) in relation to the
development of the Everil Orr site.
As at 31 March 2024, the Group has a commitment in relation to the lease of Level 26, 188 Quay
Street, Auckland from February 2024. The commencement date for this lease is 13 March 2024
for a term of 9 years.
There are no significant unrecognised contractual obligations entered into for future repairs and
maintenance at balance date.
5.8 Events After Balance Date
Assets Held for Sale
On 30 April 2024, $10.6m was received in full and final settlement of an asset held for sale at
31 March 2024 located in Auckland.
On 21 May 2024, $5.4m was received in full and final settlement of an asset held for sale at
31 March 2024 located in Christchurch.
Land Acquisition
On 7 November 2023 a sale and purchase agreement was entered into to acquire a parcel of land
adjacent to an existing site for $4.2m. Settlement occurred on 12 April 2024.
Insurance
Prior to signing these financial statements final agreement was reached with insurers in relation
to all insurance claims arising from the Auckland Floods and Cyclone Gabrielle with $1.7m of cash
received between balance date and signing.
There have been no other significant events after balance date.
5.6 Financial Risk Management (continued)
1 Refundable ORAs are classified as being repayable on demand, and therefore fully repayable within 12 months.
80
Notes to the Consolidated Financial Statements
FOR THE YEAR ENDED 31 MARCH 2024
OCEANIA ANNUAL REPORT 2024
A member firm of Ernst & Young Global Limited
IInnddeeppeennddeenntt aauuddiittoorr’’ss rreeppoorrtt ttoo tthhee sshhaarreehhoollddeerrss ooff OOcceeaanniiaa HHeeaalltthhccaarree LLiimmiitteedd
OOppiinniioonn
We have audited the financial statements of Oceania Healthcare Limited (the “Company”) and its subsidiaries (together the “Group”)
on pages 48 to 80, which comprise the consolidated balance sheet of the Group as at 31 March 2024, and the consolidated
statement of comprehensive income, consolidated statement of changes in equity and consolidated cash flow statement for the year
then ended of the Group, and the notes to the consolidated financial statements including material accounting policy information.
In our opinion, the consolidated financial statements on pages 48 to 80 present fairly, in all material respects, the consolidated
financial position of the Group as at 31 March 2024 and its consolidated financial performance and cash flows for the year then
ended in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial
Reporting Standards.
This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken so that we might state to the
Company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s
shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.
BBaassiiss ffoorr ooppiinniioonn
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our responsibilities under those
standards are further described in the
Auditor’s Responsibilities for the audit of the Financial Statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance
Practitioners (including International Independence Standards) (New Zealand)
issued by the New Zealand Auditing and Assurance
Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Ernst & Young provides other assurance and remuneration benchmarking services to the Group. Partners and employees of our firm
may deal with the Group on normal terms within the ordinary course of trading activities of the business of the Group. We have no other
relationship with, or interest in, the Group.
KKeeyy aauuddiitt mmaatttteerrss
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the financial statements section of the
audit report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying
consolidated financial statements.
A member firm of Ernst & Young Global Limited
IInnddeeppeennddeenntt aauuddiittoorr’’ss rreeppoorrtt ttoo tthhee sshhaarreehhoollddeerrss ooff OOcceeaanniiaa HHeeaalltthhccaarree LLiimmiitteedd
OOppiinniioonn
We have audited the financial statements of Oceania Healthcare Limited (the “Company”) and its subsidiaries (together the “Group”)
on pages 48 to 80, which comprise the consolidated balance sheet of the Group as at 31 March 2024, and the consolidated
statement of comprehensive income, consolidated statement of changes in equity and consolidated cash flow statement for the year
then ended of the Group, and the notes to the consolidated financial statements including material accounting policy information.
In our opinion, the consolidated financial statements on pages 48 to 80 present fairly, in all material respects, the consolidated
financial position of the Group as at 31 March 2024 and its consolidated financial performance and cash flows for the year then
ended in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial
Reporting Standards.
This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken so that we might state to the
Company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s
shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.
BBaassiiss ffoorr ooppiinniioonn
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our responsibilities under those
standards are further described in the
Auditor’s Responsibilities for the audit of the Financial Statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance
Practitioners (including International Independence Standards) (New Zealand)
issued by the New Zealand Auditing and Assurance
Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Ernst & Young provides other assurance and remuneration benchmarking services to the Group. Partners and employees of our firm
may deal with the Group on normal terms within the ordinary course of trading activities of the business of the Group. We have no other
relationship with, or interest in, the Group.
KKeeyy aauuddiitt mmaatttteerrss
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the financial statements section of the
audit report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying
consolidated
financial statements.
A member firm of Ernst & Young Global Limited
IInnddeeppeennddeenntt aauuddiittoorr’’ss rreeppoorrtt ttoo tthhee sshhaarreehhoollddeerrss ooff OOcceeaanniiaa HHeeaalltthhccaarree LLiimmiitteedd
OOppiinniioonn
We have audited the financial statements of Oceania Healthcare Limited (the “Company”) and its subsidiaries (together the “Group”)
on pages 48 to 80, which comprise the consolidated balance sheet of the Group as at 31 March 2024, and the consolidated
statement of comprehensive income, consolidated statement of changes in equity and consolidated cash flow statement for the year
then ended of the Group, and the notes to the consolidated financial statements including material accounting policy information.
In our opinion, the consolidated financial statements on pages 48 to 80 present fairly, in all material respects, the consolidated
financial position of the Group as at 31 March 2024 and its consolidated financial performance and cash flows for the year then
ended in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial
Reporting Standards.
This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken so that we might state to the
Company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s
shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.
BBaassiiss ffoorr ooppiinniioonn
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our responsibilities under those
standards are further described in the
Auditor’s Responsibilities for the audit of the Financial Statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance
Practitioners (including International Independence Standards) (New Zealand)
issued by the New Zealand Auditing and Assurance
Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Ernst & Young provides other assurance and remuneration benchmarking services to the Group. Partners and employees of our firm
may deal with the Group on normal terms within the ordinary course of trading activities of the business of the Group. We have no other
relationship with, or interest in, the Group.
KKeeyy aauuddiitt mmaatttteerrss
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the financial statements section of the
audit report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying
consolidated
financial statements.
A member firm of Ernst & Young Global Limited
IInnvveessttmmeenntt pprrooppeerrttyy aanndd ffrreeeehhoolldd llaanndd aanndd bbuuiillddiinnggss vvaalluuaattiioonn
WWhhyy ssiiggnniiffiiccaanntt HHooww oouurr aauuddiitt aaddddrreesssseedd tthhee kkeeyy aauuddiitt mmaatttteerr
As disclosed in notes 3.1 and 3.2 of the consolidated financial statements:
• The Group’s investment property (“village assets”) portfolio was valued at $1.815
billion at 31 March 2024 and included completed investment property and
investment property under development.
• The Group’s freehold land and buildings (“care assets”) were valued at $750
million at 31 March 2024. This included completed care centre land and
buildings operated by the Group for the provision of care services and care centres
under development.
Independent valuations of all village assets and care assets were carried out by a
third party valuer (the Valuer). The valuation of village assets and care assets is
inherently subjective given that there are alternative assumptions and valuation
methods that may result in a range of values.
For village assets, key assumptions are made in respect of:
• discount rate;
• forecast house price inflation;
• the average entry age of residents; and
• the occupancy periods of the units for each village.
For care assets, key assumptions are made in respect of:
• capitalisation rates; and
• earnings per care bed.
Properties which are externally valued are recorded in the consolidated financial
statements at a Directors’ valuation which is generally based on the value
determined by the Valuer as at
31 March 2024.
Village and care asset buildings under development whose value cannot be reliably
determined, generally those which are not substantially progressed, are carried at
cost less any impairment.
Our audit procedures included the following:
• Held discussions with management to understand:
• sales or purchases of the Group’s village and care assets;
• changes in the condition of each property, including from seismic and weather
related events; and
• their internal review of the third party valuation report.
• Held discussions with the Valuer to gain an understanding of the assumptions
and estimates used and the valuation methodologies applied;
• On a sample basis we:
• involved our real estate valuation specialists to assist with our assessment of
the methodologies used and whether the significant valuation assumptions
fell within a reasonable range;
• assessed key inputs of property specific information supplied to the Valuers
by the Group, including resident schedules, Occupational Rights Agreement
(“ORA”) and occupancy data, to the underlying records held by the Group;
• compared occupancy data and earnings per care bed provided to the Valuer in
the current year against the previous year; and
• assessed the significant input assumptions applied by the Valuer compared
to previous period assumptions, taking into account the changing state of the
properties and other market changes.
• Assessed the competence, qualifications and objectivity of the Valuer;
• Examined the allocation of costs from work in progress to completed village units
and other assets;
• Considered the impact of new development work and the completeness of the
assets included in the valuation;
• Assessed the adjustments made between the amounts determined by the Valuer
and the recorded valuation amounts, including those arising from seismic and
weather related events, and tested the quantum of these adjustments; and
• Considered the adequacy of the disclosures in notes 3.1 and 3.2.
IInnffoorrmmaattiioonn ootthheerr tthhaann tthhee ffiinnaanncciiaall ssttaatteemmeennttss aanndd aauuddiittoorr’’ss rreeppoorrtt
The directors of the Company are responsible for the annual report, which includes information other than the consolidated financial
statements and auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge
obtained during the audit, or otherwise appears to be materially misstated.
If, based upon the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
DDiirreeccttoorrss’’ rreessppoonnssiibbiilliittiieess ffoorr tthhee ffiinnaanncciiaall ssttaatteemmeennttss
The directors are responsible, on behalf of the entity, for the preparation and fair presentation of the consolidated financial
statements in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial
Reporting Standards, and for such internal control as the directors determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing on behalf of the entity the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or cease operations, or have no realistic alternative but to do so.
81
OCEANIA ANNUAL REPORT fffiff1
Independent Auditor’s Report
A member firm of Ernst & Young Global Limited
IInnddeeppeennddeenntt aauuddiittoorr’’ss rreeppoorrtt ttoo tthhee sshhaarreehhoollddeerrss ooff OOcceeaanniiaa HHeeaalltthhccaarree LLiimmiitteedd
OOppiinniioonn
We have audited the financial statements of Oceania Healthcare Limited (the “Company”) and its subsidiaries (together the “Group”)
on pages 48 to 80, which comprise the consolidated balance sheet of the Group as at 31 March 2024, and the consolidated
statement of comprehensive income, consolidated statement of changes in equity and consolidated cash flow statement for the year
then ended of the Group, and the notes to the consolidated financial statements including material accounting policy information.
In our opinion, the consolidated financial statements on pages 48 to 80 present fairly, in all material respects, the consolidated
financial position of the Group as at 31 March 2024 and its consolidated financial performance and cash flows for the year then
ended in accordance with New Zealand Equivalents to International Financial Reporting Standards and International Financial
Reporting Standards.
This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken so that we might state to the
Company’s shareholders those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s
shareholders, as a body, for our audit work, for this report, or for the opinions we have formed.
BBaassiiss ffoorr ooppiinniioonn
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our responsibilities under those
standards are further described in the
Auditor’s Responsibilities for the audit of the Financial Statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance
Practitioners (including International Independence Standards) (New Zealand)
issued by the New Zealand Auditing and Assurance
Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Ernst & Young provides other assurance and remuneration benchmarking services to the Group. Partners and employees of our firm
may deal with the Group on normal terms within the ordinary course of trading activities of the business of the Group. We have no other
relationship with, or interest in, the Group.
KKeeyy aauuddiitt mmaatttteerrss
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the financial statements section of the
audit report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying
consolidated
financial statements.
A member firm of Ernst & Young Global Limited
AAuuddiittoorr’’ss rreessppoonnssiibbiilliittiieess ffoorr tthhee aauuddiitt ooff tthhee ffiinnaanncciiaall ssttaatteemmeennttss
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on
Auditing (New Zealand) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is located at the External Reporting
Board’s website: https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/. This
description forms part of our auditor’s report.
The engagement partner on the audit resulting in this independent auditor’s report is Brent Penrose.
Chartered Accountants
Auckland
24 May 2024
82
OCEANIA ANNUAL REPORT fffiff1
Independent Auditor’s Report
This section of the Annual Report provides information on Directors’ independence, diversity and
inclusion policies, remuneration and statutory disclosures.
Oceania’s governance framework is guided by the recommendations set out in the 2023 edition
of the NZX Corporate Governance Code (NZX Code). Oceania has prepared a statement on
the extent to which it has followed the recommendations in the NZX Code. The Corporate
Governance Statement is current as at 31 March 2024. Oceania considers that it has followed
the recommendations in the NZX Code in all respects during FY2024.
For detailed information on Oceania’s corporate governance policies, practices and processes
please refer to the Investors’ section on the Oceania website — oceaniahealthcare.co.nz/
investor-centre/governance. This contains the following documents:
Corporate Governance Statement
Constitution
Charters
• Board Charter
• Audit Committee Charter
• Clinical and Health and Safety Committee Charter
• Development Committee Charter
• People and Culture Committee Charter
• Sustainability Committee Charter
• Risk Committee Charter
Policies
• Code of Values and Conduct
• Continuous Disclosure Policy
• Diversity and Inclusion Policy
• External Auditor Independence Policy
• Fraud Policy
• Health and Safety Policy
• Privacy Policy
• Remuneration Policy
• Trading in Company Securities Policy
• Whistleblowing Policy
Dividend Reinvestment Plan Offer Document
As at 31 March 2024, the Board comprised seven Directors. All of the Directors are non-executive
Directors. The Board has considered which of the Directors are Independent Directors for the
purposes of the NZX Listing Rules, having regard to the rules, including the factors in the NZX Code.
The Board has determined that, as at 31 March 2024, all seven Directors are Independent Directors,
including the Chair and the Chair of the Audit Committee. As at the date of this Annual Report, the
Directors are:
Elizabeth CouttsChair, Independent DirectorAppointed in November 2014
Alan IsaacIndependent DirectorAppointed in October 2015
Dame Kerry PrendergastIndependent DirectorAppointed in December 2016
Sally EvansIndependent DirectorAppointed in March 2018
Gregory TomlinsonIndependent DirectorAppointed in March 2018
Robert HamiltonIndependent DirectorAppointed in September 2021
Peter DufaurIndependent DirectorAppointed in September 2021
Committee Membership
The Board has six standing committees to assist in the execution of the Board’s duties, being
the Audit Committee, the People and Culture Committee, the Clinical and Health and Safety
Committee, the Development Committee, the Sustainability Committee and the Risk Committee.
As at 31 March 2024, membership of the committees was as follows:
Audit Committee – Alan Isaac (Chair), Elizabeth Coutts, Robert Hamilton
People and Culture Committee – Sally Evans (Chair), Elizabeth Coutts, Alan Isaac
Clinical and Health and Safety Committee – Dame Kerry Prendergast (Chair), Elizabeth Coutts,
Sally Evans
Development Committee – Peter Dufaur (Chair), Gregory Tomlinson, Elizabeth Coutts
Sustainability Committee – Robert Hamilton (Chair), Elizabeth Coutts, Sally Evans
Risk Committee – Alan Isaac (Chair), Elizabeth Coutts, Dame Kerry Prendergast, Peter Dufaur
Diversity and Inclusion
Oceania’s Diversity and Inclusion Policy is available on its website at oceaniahealthcare.co.nz/
investor-centre/governance. The Diversity and Inclusion Policy aims to ensure that Oceania has a
focus on diversity throughout the organisation. This recognises that a diverse workforce contributes
to business growth and performance, helping to drive an inclusive, high performance environment.
83
OCEANIA ANNUAL REPORT 2024
Corporate Governance
The Board considers that the Diversity and Inclusion Policy has been successfully implemented
across the business with an excellent balance of gender at Director and officer levels. As at
31 March 2024 (and 31 March 2023 for the prior comparative period), the gender breakdown of the
Directors, officers (as that term is defined in the NZX Listing Rules) and employees is as follows:
31 March 202431 March 2023
GenderMaleFemale
Gender
Diverse
1
MaleFemale
Gender
Diverse
1
Directors430430
Officers240230
Employees4682,49724662,42516
Oceania is introducing internal systems and processes to allow regular and efficient monitoring of
policy objectives.
Remuneration Report
Remuneration Overview
Oceania presents this remuneration overview for the year ended 31 March 2024. This overview
provides details of Oceania’s approach to remuneration including incentive plans for executives
that were in place for the year ended 31 March 2024 and remuneration received by the CEO
and the Directors.
Remuneration Principles
It is recognised that in order to drive sustainable business performance and execute the strategic
plan, Oceania must attract and retain people of a high calibre with requisite expertise. Accordingly,
the Board sets the remuneration of executives with regard to this and other business objectives.
It is Oceania’s policy to align components of executive remuneration with the performance of
Oceania and its shareholders. Executive remuneration therefore comprises both fixed and “at risk”
(or performance-based) elements which are both short and long-term in nature. The purpose of
this policy is to ensure that the interests of the executives, Oceania and its shareholders are aligned
during the period over which the business results are realised.
As a result, the remuneration framework is structured to promote the long-term sustainable growth
of Oceania with a portion of performance-based senior executive remuneration awarded as rights
to equity.
Remuneration Governance
Oceania has established a People and Culture Committee to assist the Board in the conduct of the
Board’s responsibilities with regard to people and culture, including remuneration. The People and
Culture Committee Charter can be found at oceaniahealthcare.co.nz/investor-centre/governance.
The People and Culture Committee is responsible for:
• Reviewing and recommending changes to Oceania’s remuneration structure, people policies,
procedures and practices, objectives and performance;
• Reviewing and recommending changes to the remuneration of the CEO and executives,
having regard to Oceania’s strategy, vision, values, business objectives and performance, the
responsibilities and performance of executives and the general external market; and
• Reviewing and recommending changes to Director fees, taking into account the external market,
work load, succession planning and the need to offer competitive fees to attract and retain non-
executive Directors of a high calibre.
The Board is responsible for:
• Approving changes to Oceania’s remuneration structure, people policies, procedures and
practices, objectives and performance;
• Approving changes to the remuneration of the CEO and executives; and
• Recommending changes to non-executive Director remuneration, for approval by shareholders.
The members of the People and Culture Committee during the year ended 31 March 2024 were
Sally Evans (Chair), Elizabeth Coutts and Alan Isaac.
Executive Remuneration Framework
Oceania’s remuneration structure for executives, including the Chief Executive Officer (“CEO”),
comprises three elements:
• Total fixed remuneration (“TFR”);
• Short term incentive (“STI”); and
• Long term incentive (“LT I”).
The following summarises each component of executive remuneration. A summary of the
remuneration of the CEO, Brent Pattison, is set out below.
a. Total Fixed Remuneration
Fixed remuneration includes base salary, the provision of a carpark, a vehicle allowance (in
some cases) and Kiwisaver contributions. Each executive’s fixed remuneration is set based on
the individual’s position, market relativity, and the individual’s qualifications and experience.
TFR is reviewed annually.
1 Gender diverse is self-identified and includes those who have selected “prefer not to say”.
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b. Short Term Incentive
The STI is currently a cash payment which is dependent on the achievement of a combination of
Oceania and individual performance measures and is capped at a maximum achievement of 100%
of base salary.
The performance measures are set by reference to the executive’s responsibility and particular
projects relevant to that executive and the business or function for which they are responsible.
The purpose of the STI is to reward executives for meeting measurable objectives linked to
a financial year.
The table below sets out the key terms for the STI plan granted to executives during the year ended
31 March 2024.
FeatureApproach
PurposeAlign individual performance with Oceania objectives
Provide individuals with a competitive market position for total reward (i.e. variable
and fixed pay components)
EligibilityThose considered for participation in the STI programme must be able to impact
the performance of their work area or function and also contribute to Oceania’s
overall performance.
InstrumentCash
Performance criteriaThe following criteria must be met before any payments are made:
• Underlying EBITDA target for the financial year
• Targets related to the delivery of strategic pillar initiatives
• Targets focused on delivery key business projects
• Achievement of a health and safety target
• Achievement of a sustainability target (which may include climate-related
metrics and targets)
c. Long Term Incentive
For the year ended 31 March 2024, Oceania introduced a share option plan as its LTI for the
executive team (“Option Plan”). The Option Plan is intended to provide an incentive to executives,
retain key talent within the executive team and align the interests of the executive team and
shareholders through the successful execution of Oceania’s strategy.
The table below sets out the key terms for the grants made to senior managers under the Option
Plan during the year ended 31 March 2024:
FeatureApproach
EligibilityThe Board determines whether an Option Plan will operate and the extent (if any)
to which each executive is invited to participate in an Option Plan each year.
InstrumentParticipants in the Option Plan will be granted options to acquire ordinary shares from
time to time. These options will, subject to those participants’ continued employment
by Oceania, be exercisable by participants approximately three years from the date on
which the relevant share option was granted (or such other date as determined by the
Board) for a set exercise price.
On exercise of the share options, Oceania will facilitate a cashless (net settled) exercise
by issuing such number of shares as is equal to the difference between the then current
market value and the exercise price of $0.82, multiplied by the number of share options
being exercised, divided by the then current market value.
Oceania will pay tax on the participant’s behalf for the taxable benefit received by the
participant under the plan, but there will be a reduction in the number of shares to be
issued to such holder on exercise to the extent the amount of such tax is greater than
the tax savings available to Oceania (or a subsidiary) in relation to such benefit.
Vesting periodApproximately three years, being the date on which the relevant share option is granted
until 10 business days after announcement of the Company’s final results three years
later (or such other date as determined by the Board).
Exercise periodParticipants have 90 days from the date the share options vest to exercise the share
options
Dividends and
voting rights
Share options do not have voting rights or entitlement to dividends.
Exercise period• If a participant ceases to be employed due to an “involuntary event” (such as death,
redundancy or total permanent illness or injury), the Board may, in its absolute
discretion determine whether the participant’s share options may be retained by the
participant as if he or she remained employed by Oceania, or whether the vesting of
such share options may be accelerated. Any share options that are not retained or
vested will lapse.
• If a participant ceases to be employed for any other reason, all of the participant’s
share options will lapse.
In addition to the Option Plan noted directly above, Oceania had a performance share rights plan
as an LTI for the executive team under which it made its final offers in the year ended 31 March 2023
(“PSR Plan”). The value and targets for PSR Plan were determined by the Board and are designed to
provide an incentive to executives, retain key talent within the executive team and align the interests
of the executive team and shareholders through the successful execution of Oceania’s strategy.
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OCEANIA ANNUAL REPORT 2024
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The table below sets out the key terms for the grants made to senior managers under the PSR Plan
during the year ended 31 March 2023:
FeatureApproach
EligibilityThe Board determines whether a PSR Plan will operate and the extent (if any) to which
each executive is invited to participate in a PSR Plan each year.
InstrumentParticipants receive an allocation of Performance Share Rights.
If the performance hurdle is met at the end of a performance period, some or all of the
Performance Share Rights will become Qualifying Share Rights.
If the participant remains employed with Oceania until the vesting date, the Qualifying
Share Rights will vest and be eligible for conversion into ordinary shares in Oceania for
nil consideration.
On conversion, participants will receive one ordinary share per Qualifying Share Right,
less an adjustment for the amount of PAYE tax paid by Oceania on the participant’s
behalf for the benefit which the participant receives from the scheme.
Performance periodThree years from 1 April 2022 to 31 March 2025.
Performance hurdleTSR Performance Hurdle: Oceania’s total shareholder return in the performance period
relative to total shareholder return of the NZX50 group of companies. If Oceania is in the
bottom quartile of TSR performance for the NZX50 group, then no Performance Share
Rights will become Qualifying Share Rights. If Oceania is between 25% and 75% of TSR
performance for the NZX50 group, then Performance Share Rights will become Qualifying
Share Rights on a sliding scale. If Oceania is in the top quartile of TSR performance
for the NZX50 group, then 100% of Performance Share Rights will become Qualifying
Share Rights.
Dividends and
voting rights
Performance Share Rights do not have voting rights or entitlement to dividends.
Cessation of
employment
• If a participant ceases to be employed due to an Involuntary Event (such as death,
redundancy or total permanent illness or injury), the Board may, in its absolute
discretion determine whether the participant’s Qualifying Share Rights and Performance
Share Rights may be retained by the participant as if he or she remained employed
by Oceania, or whether the vesting of such Qualifying Share Rights and Performance
Share Rights may be accelerated. Any Performance Share Rights that are not retained
or vested will lapse.
• If a participant ceases to be employed for any other reason, all of the participant’s
Performance Share Rights and Qualifying Share Rights will lapse.
VestingAlthough Performance Share Rights become Qualifying Share Rights at the end of each
year (subject to meeting the performance hurdle), participants must wait until the vesting
date for the Qualifying Share Rights to become eligible to convert into ordinary shares.
d. Employee Share Scheme
Permanent employees can choose to join Oceania’s employee share scheme. Those employees who
elected to participate received an allocation of $800 per annum (for full time employees) or $400
per annum (for part time employees) of Oceania shares at no cost. Under the scheme, the shares
are held in trust and, in general, only transfer into the employee’s name if the employee remains
employed by Oceania (or any of its subsidiaries) for three years. It is intended that the employee
share scheme will be offered again to all permanent employees as at 31 March 2024.
e. Senior Leaders LTI Scheme
Certain senior leaders may be invited to participate in a Senior Leaders LTI scheme that is approved
by the Board. The purpose of the Senior Leaders LTI scheme is to provide an incentive to emerging
leaders, retain key talent and align the interests of emerging leaders, the Executive Team and
shareholders through the successful execution of Oceania’s strategy. The Senior Leaders LTI scheme
will take the form of a monetary scheme which will build over three years from the commencement
date. Senior leaders will be offered an incentive of a specified amount per year that will be paid
if the performance hurdle is met and the senior leader remains employed by Oceania at the end
of a set period. The Board of Directors is currently considering the structure of the Senior Leaders
LTI scheme.
CEO Remuneration
The remuneration for the CEO for the year ended 31 March 2024 is as follows
1
:
Total fixed remunerationSTISubtotalLTIP PAYE
Remuneration
Total
Base SalaryOther Benefits
Paid in FY2024
1
$754,664$65,947$154,000$974,611$164,015$1,138,626
Earned in FY2024
2
$754,664$65,947$390,000$1,210,611-$1,210,611
The remuneration paid to the CEO for the year ended 31 March 2023 (being the prior comparative
period) was as follows
1
:
Total fixed remunerationSTISubtotalLTIP
Remuneration
Total
Base SalaryOther Benefits
Paid in FY2023$729,240$116,104$292,500$1,137,844$7685$1,145,529
1 The total fixed remuneration and STI figures above include all monetary payments actually paid during the course of the year
ended 31 March 2024, which include performance incentive payments for the year ended 31 March 2023. The table does not
include amounts paid after 31 March 2024 that relate to the year ended 31 March 2024.
2 The total fixed remuneration and STI figures include all monetary amounts earned in respect of the year ended 31 March 2024.
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Fixed remuneration
In the year ended 31 March 2024, the CEO, Mr Pattison received fixed remuneration of
$820,611. This includes a base salary, the provision of a carpark, a vehicle allowance and
Kiwisaver contributions.
STI payment
In the year ended 31 March 2024, Mr Pattison received an STI payment of $154,000 for the
achievement of certain targets in the year ended 31 March 2023. Targets were set with reference
to a 10% increase in underlying EBITDA, sales and resales volumes, occupancy rates, the number
of units under construction, retention of key staff, the number of care centres achieving three
or four year certification, a health and safety target and an acquisition target.
In relation to the STI for the year ended 31 March 2024, targets were set with reference to a
6% increase in underlying EBITDA, sales volumes, occupancy rates, the number of units under
construction, employer NPS, a health and safety target, a sustainability target and other individual
targets. Mr Pattison’s STI entitlement under the STI for the year ended 31 March 2024 is $375k
and it is expected that Mr Pattison will receive 104% of the STI entitlement in respect of the year
ended 31 March 2024. This payment will be made in May 2024.
LTI payment
During the year ended 31 March 2024, Mr Pattison received long term incentive benefits (comprised
of Share Options) of $3.0m value at the time of grant.
The performance conditions for the Share Options granted during the year ended 31 March 2024
are described above.
a) Mr Pattison, together with other executives has been invited participate in a share option plan
in relation to the performance period 1 April 2023 to 31 March 2026 as described under “Long
Term Incentive” above.
Long term incentives in the form of equity instruments received by Mr Pattison to date are:
Grant DateVesting DateInstrumentStatus
LTI2023/20261 April 2023May 2026
7,142,857 Share
OptionsUnvested
LTI2022/20251 April 202231 March 2025
395,922 Performance
Share RightsUnvested
LTI 2021/20241 April 202131 March 2024
375,000 Performance
Share Rights
16.6% vested
83.4% lapsed
LTI 2020/202315 September 202031 March 2023
421,254 Performance
Share Rights
1
50% vested
50% lapsed
Three-year summary – CEO’s remuneration
Name
Total
Remuneration
Percentage STI
against maximum
Percentage
vested LTIs
against maximum
Span of LTI
performance
period
Brent PattisonFY2024$1,138,626104%16.6%
2021-2022
2021-2023; or
2021-2024
2
FY2023$1,145,52955%50%
2020-2021,
2020-2022; or
2020-2023
3
FY2022$1,209,067100%N/AN/A
Breakdown of CEO’s pay for performance (FY2024)
DescriptionPerformance measuresPercentage achieved
STISet at a gross target amount
of 50% of base remuneration
(giving a current target of
$375,000) and is achievable in
each financial year
50% financial performance,
30% strategic business
outcome, 20% individual
performance
104%
LTI – 2020/2023Three-year grant50% based on TSR
performance relative to
NZX50 group
50% based on growth in
underlying earnings per share
being equal to or greater than
the target
0%
16.67%
1 Includes 417,442 Performance Share Rights granted in FY2021 and 3,816 Performance Share Rights granted in FY2023.
2 Performance Share Rights in this grant had a measurement date of either 31 March 2022, 31 March 2023 or 31 March 2024,
on which date performance against the performance hurdles was measured. All vesting occurred at the end of the three year
period, on 31 March 2024.
3 Performance Share Rights in this grant had a measurement date of either 31 March 2021, 31 March 2022 or 31 March 2023,
on which date performance against the performance hurdles was measured. All vesting occurred at the end of the three year
period, on 31 March 2023.
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OCEANIA ANNUAL REPORT 2024
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Total Shareholder Return Performance (Five Year Summary)
Directors’ Fees
Directors’ remuneration is paid in the form of fees. A higher level of fees is paid to the Chair
to reflect the additional time and responsibilities that this position involves. Additional fees are
payable in respect of work carried out by the Chairs of the Audit Committee, People and Culture
Committee, the Clinical and Health and Safety Committee, the Development Committee and the
Sustainability Committee.
Non- executive Directors do not receive performance-based remuneration.
Total remuneration for non-executive Directors is subject to an aggregate fee pool limit. As at
31 March 2024, the maximum fee pool for non-executive Directors was $896,000 (plus GST, if any)
per annum. The pool was last fixed at the Annual Shareholders Meeting on 25 August 2023. This
maximum fee pool comprises total annual fees payable to non-executive Directors of $871,000 as
well as headroom of $25,000 in order to allow for the Board to approve payments to non-executive
Directors for assuming additional responsibilities above and beyond the normal duties of either the
Board or a Committee.
In the year ended 31 March 2024, the amount paid to non-executive Directors was $871,000 (plus
GST and expenses). No payments were made to non-executive Directors for assuming additional
responsibilities above and beyond the normal duties of the Board or a Committee for significant
strategic work or projects.
Director Remuneration paid in the year ended 31 March 2024
DirectorBoard Fees
Audit
Committee
Clinical
and Health
and Safety
Committee
People and
Culture
Committee
Development
Committee
Sustainability
Committee
Total
remuneration
Elizabeth
Coutts (Chair)
$200,000-----$200,000
Alan Isaac$100,000$20,000----$120,000
Dame Kerry
Prendergast
$100,000-$15,000---$115,000
Sally Evans$100,000-
-
$12,000--$112,000
Gregory
Tomlinson
$100,000-
-
-$12,000-$112,000
Robert
Hamilton
$100,000-
-
--$12,000$112,000
Peter Dufaur$100,000-
-
---$100,000
The above fees exclude GST and expenses.
Employees’ Remuneration
Oceania did not employ people directly in the year ended 31 March 2024. All employees are
employed by the subsidiaries of Oceania. The number of employees and former employees
of Oceania’s subsidiaries, not being a Director of Oceania, who received remuneration and
other benefits the value of which was or exceeded $100,000 during the financial year ended
31 March 2024 is set out in the table of remuneration bands below.
The remuneration figures shown in the “Remuneration” column include all monetary payments
actually paid during the course of the year ended 31 March 2024, which include performance
incentive payments for the year ended 31 March 2023. The table does not include amounts paid
after 31 March 2024 that relate to the year ended 31 March 2024.
RemunerationNumber of EmployeesRemunerationNumber of Employees
$100,000 - $109,99983$220,000 - $229,9991
$110,000 - $119,99970$230,000 - $239,9993
$120,000 - $129,99943$240,000 - $249,9994
$130,000 - $139,99916$250,000 - $259,9991
$140,000 - $149,99915$260,000 - $269,9991
$150,000 - $159,99912$270,000 - $279,9992
$160,000 - $169,99916$330,000 - $339,9991
$170,000 - $179,99911$450,000 - $459,9991
$180,000 - $189,9995$610,000 - $619,9991
$190,000 - $199,9992$620,000 - $629,9991
$200,000 - $209,9991$670,000 - $679,9991
$210,000 - $219,9995$1,140,000 - $1,149,9991
50
100
150
200
Mar 23Mar 22Mar 21Mar 20Mar 19Mar 18
Total Shareholder Return (rebased to 100)
OceaniaNZX50
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Corporate Governance
Statutory Disclosures
Disclosure of Directors’ Interests
The following particulars were entered in the Interests Register kept for Oceania and its subsidiaries
during the year ended 31 March 2024:
Alan Isaac: Disclosed the following new position: Member of the NZ Markets Disciplinary Tribunal.
Specific Disclosures
There were no specific disclosures made by Directors during the year ended 31 March 2023
of any interests in transactions with Oceania or any of its subsidiaries.
Use of Company Information
During the year ended 31 March 2024, the Board did not receive any notices from Directors
requesting use of Oceania’s or any of its subsidiaries’ information.
Securities Dealings of Directors
Dealings by Directors of Oceania in relevant interests in Oceania’s ordinary shares during the year
ended 31 March 2024 are entered in the Interests Register:
Director
Number of
ordinary shares
Nature of relevant
interest
Acquisition
/ disposal
Consideration
(per share)Date of Transaction
Elizabeth Coutts15,000Beneficial InterestAcquisition$0.704 December 2023
Elizabeth Coutts15,000Beneficial InterestAcquisition$0.7124 November 2023
Alan Isaac30,000Beneficial InterestAcquisition$0.6924 November 2023
Sally Evans36,500
Registered and
beneficial interestAcquisition$0.7024 November 2023
Elizabeth Coutts35,000Beneficial InterestAcquisition$0.74
22 June 2023 and
27 June 2023
Elizabeth Coutts31,896Beneficial InterestAcquisition $0.7721 June 2023
Alan Isaac1,956Beneficial InterestAcquisition $0.7721 June 2023
Dame Kerry
Prendergast4,058
Registered and
Beneficial InterestAcquisition $0.7721 June 2023
Sally Evans2,901
Registered and
beneficial interestAcquisition $0.7721 June 2023
Peter Dufaur866
Registered and
beneficial interestAcquisition $0.7721 June 2023
Sally Evans60,000
Registered and
beneficialAcquisition$0.7929 May 2023
Directors’ Interests in Shares
Directors of Oceania have disclosed the following relevant interests in shares as at 31 March 2024:
DirectorNumber of shares in which a relevant interest is held
Elizabeth Coutts1,999,403 shares
Alan Isaac344,886 shares
Dame Kerry Prendergast365,355 shares
Sally Evans242,985 shares
Gregory Tomlinson
1
27,882,244 shares
Robert Hamilton40,500 shares
Peter Dufaur78,035 shares
Indemnity and Insurance
Oceania has granted indemnities, as permitted by the Companies Act 1993 and the Financial
Markets Conduct Act 2013, in favour of each of its Directors. Oceania also maintains Directors’
and Officers’ liability insurance for its Directors and officers.
Auditor’s Fees
0n 28 August 2023, EY replaced PricewaterhouseCoopers as auditor.
Oceania’s external auditor is EY. Total fees payable to EY in its capacity as auditor during the
financial year ended 31 March 2024 were $588,000. Total fees payable to EY for other assurance
services relating to climate related reporting requirements were $93,000. Total fees payable to EY
for non-audit services related to remuneration benchmarking services were $19,000. No other fees
were paid to EY for other professional services.
Total fees payable to PricewaterhouseCoopers in its capacity as auditor during the financial
year ended 31 March 2023 (for the prior comparative period) were $616,000. Total fees payable
to PricewaterhouseCoopers for other professional services (being trustee reporting, requested
procedures for the LTIP, advice on the Task Force on Climate-Related Financial Disclosures
(TCFD) gap analysis and materiality matrix workshop and agreed upon procedures for the
Annual Shareholders Meeting) during the financial year ended 31 March 2023 (for the prior
comparative period) were $31,000. No other fees were paid to PricewaterhouseCoopers for
other professional services.
1 Gregory Tomlinson’s relevant interests are legally held by Tomlinson Group Investments Limited and Harrogate Trustee Limited.
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OCEANIA ANNUAL REPORT 2024
Corporate Governance
Donations
During the year ended 31 March 2024, Oceania paid a total of $31,363 in donations.
Listings
Oceania’s shares are listed on the NZX Main Board and the Australian Securities Exchange operated
by ASX Limited. Oceania is listed on ASX as a Foreign Exempt Listing, which means that Oceania is
required to comply with the NZX Listing Rules but it is exempt from the majority of the ASX Listing
Rules. In accordance with ASX Listing Rule 1.15.3, Oceania confirms that it has complied with the
NZX Listing Rules for the financial year ended 31 March 2024.
NZX Waivers
Oceania did not apply for or rely upon any waivers from the requirements of the NZX Listing Rules
during the financial year ended 31 March 2024.
Credit Rating
Oceania currently has not sought a credit rating.
Former Directors
There have not been any Director resignations during the period 1 April 2023 to 31 March 2024.
Subsidiary Company Directors
Brent Pattison and Kathryn Waugh are the Directors of all Oceania’s subsidiaries as at 31 March
2024, with the exception of OCA Employees Trustee Limited (the Directors of which are Elizabeth
Coutts and Sally Evans).
No remuneration is payable, and there is no entitlement to other benefits, for any directorship
of a subsidiary.
Shareholder and Bondholder Information
Twenty Largest Registered Shareholders
(as at 31 March 2024)
Registered ShareholderNumber of Shares% Shares
1New Zealand Central Securities Depository Limited 239,594,08733.09%
2Forsyth Barr Custodians Limited <1-Custody>54,926,1427.58%
3Custodial Services Limited <A/C 4>28,857,5753.99%
4New Zealand Depository Nominee Limited <A/C 1 Cash Account>
26,398,018
3.65%
5Tomlinson Group Investments Limited 23,831,0553.29%
6FNZ Custodians Limited 23,291,5273.22%
7Hobson Wealth Custodian Limited <Resident Cash Account>21,077,3302.91%
8Lennon Holdings Limited 14,368,6431.98%
Registered ShareholderNumber of Shares% Shares
9PT (Booster Investments) Nominees Limited 9,475,0461.31%
10Forsyth Barr Custodians Limited <Account 1 E>8,669,1021.2%
11H & G Limited 6,150,0000.85%
12JB Were (NZ) Nominees Limited <NZ Resident A/C>5,169,4660.71%
13Andrew Craig Strong & Alison Jean Strong 4,621,0710.64%
14NZX WT Nominees Limited <Cash Account>4,123,6570.57%
15Harrogate Trustee Limited <Brandywine A/C>4,051,1890.56%
16M A Janssen Limited 3,870,0260.53%
17FNZ Custodians Limited <DTA Non Resident A/C>3,532,7150.49%
18FNZ Custodians Limited <DRP NZ A/C>3,220,9490.44%
19Leveraged Equities Finance Limited 2,572,2110.36%
20ASB Nominees Limited <100652 Ml A/C>2,315,9600.32%
Total490,115,76967.68%
New Zealand Central Securities Depository Limited provides a custodial depository service that
allows electronic trading of securities to its members. It does not have a beneficial interest in
these shares. Its major holdings of Oceania shares are held on behalf of:
NameNumber of Shares% Shares
1ANZ Wholesale Trans-Tasman Property Securities Fund 35,206,333 4.86%
2BNP Paribas Nominees (NZ) Limited 28,336,135 3.91%
3Accident Compensation Corporation 28,121,343 3.88%
4MFL Mutual Fund Limited 26,754,791 3.69%
5Generate Kiwisaver Public Trust Nominees Limited 22,887,647 3.16%
6Citibank Nominees (New Zealand) Limited 15,970,141 2.21%
7JP Morgan Chase Bank NA NZ Branch Segregated Clients Acct 14,555,284 2.01%
8HSBC Nominees (New Zealand) Limited A/C State Street 13,377,238 1.85%
9ANZ Wholesale Australasian Share Fund 13,347,404 1.84%
10Tea Custodians Limited Client Property Trust Account 12,856,567 1.78%
11HSBC Nominees (New Zealand) Limited 11,066,876 1.53%
12Pathfinder Nominees Limited 4,446,395 0.61%
13ANZ Wholesale Property Securities 3,531,707 0.49%
14Public Trust Class 10 Nominees Limited 2,708,012 0.37%
15ANZ Wholesale NZ Share Fund 1,645,961 0.23%
16ANZ Custodial Services New Zealand Limited 1,569,780 0.22%
17Public Trust 1,500,000 0.21%
18BNP Paribas Nominees (NZ) Limited 704,785 0.10%
19ANZ Wholesale Equity Selection Fund 289,688 0.04%
20Public Trust RIF Nominees Limited 273,969 0.04%
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OCEANIA ANNUAL REPORT 2024
Corporate Governance
Spread of Registered Shareholdings
(as at 31 March 2024)
Size of HoldingNumber of Shareholders%Number of Shares%
1 – 1,00096211.87%454,2540.06%
1,001 – 5,0001,95524.13%5,734,3530.79%
5,001 – 10,0001,53318.92%11,692,9471.61%
10,001 – 100,0003,18539.31%96,782,73913.36%
100,001 and over4685.77%609,490,48684.18%
Totals8,103100%724,154,779100%
Substantial Product Holders
According to notices given under the Financial Markets Conduct Act 2013, the following were
substantial product holders of Oceania as at 31 March 2023:
Substantial Product Holder
Number of
Shares
% of shares held
at date of noticeDate of Notice
ANZ New Zealand Investments Limited, ANZ Bank
New Zealand Limited and ANZ Custodial Services
New Zealand Limited
54,134,5767.56915 December 2022
Twenty Largest Registered Bondholders OCA 010
(as at 31 March 2024)
Registered BondholderNumber of Bonds% Bonds
1New Zealand Central Securities Depository Limited 27,873,00027.87%
2Custodial Services Limited <A/C 4>23,613,00023.61%
3Forsyth Barr Custodians Limited <1-Custody>11,360,00011.36%
4FNZ Custodians Limited 10,719,00010.72%
5Hobson Wealth Custodian Limited <Resident Cash Account>7,967,0007.97%
6Investment Custodial Services Limited <A/C C>2,157,0002.16%
7Forsyth Barr Custodians Limited <Account 1 E>1,081,0001.08%
8FNZ Custodians Limited <DTA Non Resident A/C>875,0000.88%
9Richard Barton Adams & Allison Ruth Adams <Adams Family A/C>
751,000
0.75%
10Hobson Wealth Custodian Limited <Equities DTA Account>623,0000.62%
Registered BondholderNumber of Bonds% Bonds
11JB Were (NZ) Nominees Limited <NZ Resident A/C>569,0000.57%
12Hobson Wealth Custodian Limited <AIL Cash Account>462,0000.46%
13kiwigold.co.nz Limited <Kiwigold A/C>400,0000.40%
14Marianne Mathilde Marie Stoessel 350,0000.35%
15Andrew William Gawlik & Susan Mary Gawlik <Scarness A/C>310,0000.31%
16NNZ Wt Nominees Limited <Cash Account>273,0000.27%
17FNZ Custodians Limited <DRP NZ A/C>218,0000.22%
18JB Were (NZ) Nominees Limited <NR USA A/C>175,0000.18%
19Custodial Services Limited <A/C 12>174,0000.17%
20Paul Arnold Aitken 170,0000.17%
Total90,120,00090.12%
New Zealand Central Securities Depository Limited provides a custodial depository service that
allows electronic trading of securities to its members. It does not have a beneficial interest in these
bonds. Its major holdings of Oceania bonds are held on behalf of:
NameNumber of Bonds% Bonds
1Generate Kiwisaver Public Trust Nominees Limited 11,850,000 11.85%
2HSBC Nominees (New Zealand) Limited 9,553,000 9.55%
3Tea Custodians Limited Client Property Trust Account 5,900,000 5.90%
4JP Morgan Chase Bank NA NZ Branch-Segregated Clients Acct 400,000 0.40%
5Public Trust RIF Nominees Limited 110,000 0.11%
6Public Trust Class 10 Nominees Limited 60,000 0.06%
Spread of Registered Bondholdings OCA 020
(as at 31 March 2024)
Size of HoldingNumber of Bondholders%Number of Bonds%
1,001 – 5,0005610.98%280,0000.28%
5,001 – 10,00013326.08%1,104,0001.1%
10,001 – 100,00029357.45%7,996,0008%
100,001 and over285.49%90,620,00090.62%
100,001 and over4685.77%609,490,48684.18%
Totals510100%100,000,000100%
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OCEANIA ANNUAL REPORT 2024
Corporate Governance
Oceania has maintained an enterprise-wide risk management policy, supported by regular
Management and Board reporting on risk management, since 2016. Recognising the increasingly
complex sector and environment in which Oceania operates, work is underway to further uplift
and mature the risk management framework.
Oceania established a Board Risk Committee this year, which will meet at least three times per
year, and has responsibility for the monitoring and oversight of effective risk management at
Oceania, including the most significant and strategic risks. The Board has overall responsibility
for determining the nature and extent of material risks Oceania is willing to take to achieve its
strategic objectives.
Oceania also engages an external service provider for independent evaluation of selected internal
controls and risk mitigations, as well as recommending continuous improvements to the control
environment. The findings from internal audit are provided to the Risk Committee for oversight
and follow up.
Oceania’s Top Risks
Management and the Board Risk Committee regularly identify and assess the top risks including
risk mitigation plans. The most significant risks that Oceania manages are set out below.
Oceania’s senior leaders are collectively accountable for managing these Risks. The Remuneration
Policy includes incentives to manage the risks.
RiskResponse
Macro-
economic
The risk of local and global
macroeconomic drivers
such as equity markets,
housing sentiment, inflation
and supply chain having
a negative impact on the
financial wellbeing
of Oceania.
Macro-economic conditions, including the New Zealand
property market, general economic conditions, and
government policy, are closely monitored by management
and used to inform financial forecasting and stress testing
where required.
According to the Reserve Bank of New Zealand, the extent
and timing of easing of inflation and interest rates is uncertain
but is expected either late in 2024 or early 2025. In the
interim, Oceania continues to maintain a strong balance
sheet and liquidity.
People The risk that Oceania is not
able to meet its strategic
objectives due to staffing
capacity, capability or
engagement, or poor
organisational culture.
The ongoing management of Oceania’s workforce in the aged
care sector, remains an area of significant focus. A people and
culture strategy and plan are being developed and will cover
a comprehensive range of initiatives, including remuneration
and benefit framework, the implementation of a new human
resources information system and a focus on learning
and development.
Oceania continues to support the growth of the nursing
profession through the Wesley Institute.
RiskResponse
Climate Risk from physical climate
hazards and the ability to
transition business strategy
to a low carbon and climate
resilient economy. This
includes potential physical
and transition opportunities
which may arise.
Oceania maintains a comprehensive sustainability
strategy, resourced with a Sustainability team, and
supported by extensive consultation with independent
experts where appropriate.
In accordance with the Financial Sector (Climate-related
Disclosures and Other Matters) Amendment Act 2021, Oceania
will release its inaugural climate change report in June 2024.
Cyber, Data
& Privacy
The risk that the privacy of
Oceania’s residents or staff is
adversely affected by a cyber-
attack, data or privacy breach.
Oceania adopted the National Institute of Standards and
Technology (NIST) framework for managing cyber-security
threats. Management recently commissioned an independent
review of its cyber risk preparedness, part of ongoing uplift of
security monitoring and controls.
Oceania also has a Privacy Officer, and a privacy framework.
Development
& Build
The risk of failure during
development of new or existing
sites. This could be due to
supply chain issues, developer
(or subcontractor) failure risk
or labour supply risk.
Oceania only engages with highly regarded and experienced
construction contractors and consultants, with robust quality
assurance, due diligence, health & safety and auditing
practices to support end to end contractor management.
Management aim for as much fixed pricing as possible in
the current market.
The broader development pipeline delivery is a function of
Oceania’s strategy and managed across multiple years in
conjunction with oversight of macro-economic and property
market risks.
Innovation,
Experience
& Offerings
The risk of a failure to
innovate or offer relevant
resident experiences and
product, including failure
to respond to changes in the
competitive environment due
to new entrants.
There is a regular pipeline of innovation and new product
development to reimagine retirement living and aged care.
In recent years, Oceania has launched nurse practitioner
services, the resident-centred 5 Ways to Wellbeing programme,
a new category of premium offering at The Helier (which
includes private care), and new app technology for connecting
residents called “Together”.
Oceania regularly scans the market for competitor offerings,
new entrants and emerging resident trends. Technology is
expected to play a significant role in innovation and resident
offering in the future.
ESG &
Corporate
Responsibility
The risk that Oceania does
not meet its ESG or corporate
responsibilities, impairing its
“social licence” to operate.
Oceania has a strong focus on ESG matters, including
a dedicated Sustainability team, maintenance of
a Sustainability Linked Loan, with oversight by the
Board Sustainability Committee.
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OCEANIA ANNUAL REPORT 2024
Risk Management at Oceania
RiskResponse
Health &
Safety
The risk or potential for
harm to employees, residents,
contractors, or visitors
because of business activities.
Oceania has a robust health and safety framework, including
regular Board and management oversight and reporting,
comprehensive policies and procedures, regular independent
audits, ongoing programmes for contractor management,
and employee training.
As part of Oceania’s focus on continuous improvement, a
new health and safety system will be implemented to monitor
Oceania’s health and safety risks.
Please see further disclosure on health and safety risks on the
opposite page.
Risk of
Adverse
Resident
Event
The risk of an event at a single
or multiple sites resulting in
adverse resident outcomes,
reputational damage and
licence to operate.
Oceania has a specific clinical risk management framework,
including comprehensive policies, procedures, and formal
reporting to the Board Clinical and Health & Safety Committee.
Ongoing training, internal and external audits and a learning
culture are embedded across Oceania.
Regulatory
Reforms
The risk that regulatory reforms
require a change in business
model.
Management closely monitors government and regulatory
developments which may impact Oceania.
Business
Continuity
The risk to operations arising
from business disruption,
including pandemic, other
health-related disruptions
or physical/natural events.
Oceania has extensive experience in recent years in managing
significant business disruption including pandemic and
extreme weather events.
Emergency management plans and training are in place and
regularly tested.
ComplianceThe risk of systemic or
significant non-compliance
with regulatory or legal
requirements.
Oceania maintains a compliance management framework,
with key compliance obligations embedded into a wide range
of operational policies and procedures, with oversight where
appropriate by expert functions e.g. Clinical and H&S, Risk
and Legal.
Health & Safety
Oceania maintains a comprehensive Health & Safety policy and framework and has a dedicated
National Health and Safety team. The Clinical and Health & Safety Board Committee has oversight
of Oceania’s responsibilities under the Health and Safety at Work Act 2015.
The Clinical and Health & Safety Committee is responsible for ensuring that health and safety
has appropriate focus within Oceania through oversight of health and safety risk assessment
and mitigation, safety systems, staff capability, staff competency, safety leadership and culture.
Health and safety is discussed by management at regular Safety Steering Group meetings.
An integral part of the health and safety framework is a strong health and safety culture, with
a focus on identifying, assessing and managing all critical health and safety risks, including
role modelling and leadership from all levels of management.
The Health and Safety team work closely with the Clinical team and regional management to
ensure well-aligned culture and practices. Oceania also employs Health and Safety Representatives
across key business units.
Health and safety reviews are conducted for health and safety incidents and Oceania also
undertakes lost time injury frequency reporting, near miss reporting, health and safety
inductions, local site health and safety committee meetings, legislative updates and key health
and safety initiatives.
Oceania has a health and safety risk matrix to assess the severity and likelihood of identified
risks, determine mitigation strategies, and determine the level of residual risk. This matrix is reviewed
annually by the Board (and is integrated with the enterprise-wide risk management framework) and
annual health and safety objectives are set for the business based on the significant risks identified.
The rolling average Lost Time Injury Frequency Rate (LTIFR) at the end of the FY24 is 7.47 which is
considerably lower than the previous year of 10.30, as a result on the continued work on building
health & safety culture.
Oceania is part of the Accredited Employer Program (AEP) and remains at Tertiary level after the
ACC audit conducted in April 2024.
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OCEANIA ANNUAL REPORT 2024
Risk Management at Oceania
oceaniahealthcare.co.nz
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.