I agree with good1rosco's viewpoint. "Close the gap" has been the central theme they have always pushed...and a bloody big gap it is. It is wishful thinking that we could be at a premium to NTA as is Ryman. But then they have a brilliant culture, as well as a perfect model which blends independent living with aged care. AOG have quite some catching up to do here. Stocklands is gunning for NTA or close thereto but then they might well have a point in that their villages are arguably better positioned and not as old. Aveo have a number of 25+ year old villages where the costs of upgrading will be very high. The sad facts are that the retirement industry is presently facing a perfect storm where public opinion is at an all time low (the Earl Haven Retirement Village fiasco on the Gold Coast hasn't helped) at a time when Federal and State Governments are under the pump to protect the elderly with legislation. Witness the new legislation where operators are required to compulsorily reacquire ILU's even if a re-sale has not been enacted. The additional capital required to run the DMF model is growing hugely.
AOG Price at posting:
$1.95 Sentiment: Hold Disclosure: Held
