Our Cash Flows
We create shareholder value by developing new villages which are self funding on completion, and which then leave decades of recurring, growing cash flows. In this way, we recycle capital on a village by village basis, and extract capital and equity for future developments.
Our ability to recycle capital is demonstrated by the $240 million of dividends paid since listing, having only raised $25m at IPO, and through the in house development of what are now 25 villages throughout the country worth over $1.3 billion - without the need for any fresh equity.
Our Key Cash Flows are:
- Where we receive a weekly fee for service and achieve margin
- The largest amount of our care fees come from Resthome, Hospital, Dementia and Assisted Living residents
- We also receive weekly fees from Independent and Assisted Living residents, primarily to contribute to village outgoings
New Sales of Occupation Rights
- Where we collect an Occupancy Advance from new residents for the right to occupy new units we have constructed
- The Occupancy Advance is greater than the cost of construction
Resales of Occupation Rights
- Arise from offering the Occupation Rights for existing units to new incoming residents when they are vacated
- Where we collect up to 20% of the Occupancy Advance when the resident vacates the unit
We isolate out the unrealised movement from the revaluation of investment properties each six months, so that an underlying profit is reported to shareholders; as this reflects the trading activities and cash flows noted above.
Underlying profit is the key driver of shareholder value, dividends and reflects our trading activities. This is what you should judge us on.