Key Highlights

• Proforma Underlying EBITDA grew 20% to NZ$97.7 million in FY26, with sales volumes increasing 16% year-over-year

• Net Debt was reduced by NZ$121.4 million to NZ$506.7 million, bringing gearing to 30.1% at the lower end of the target range

• The company divested seven sites for NZ$51.1 million and delivered NZ$13.2 million in cost-out savings during the year

Oceania Healthcare(ASX:OCA) closed at A$0.525 on 05 November 2026, recording a gain of 0.96% during the session. The broader S&P/ASX 200 index (XJO) advanced 2.61%, adding 230.60 points to close at 9,065.10, while the S&P/ASX 200 Health Care index (XHJ) climbed 3.64%, gaining 1,240.30 points to reach 35,329.10. Global Equity markets drew support from overnight Wall Street gains following Democrats' decisive victory in the U.S. midterm elections. Oceania Healthcare is a New Zealand-based aged care and retirement village operator listed on both the NZX and ASX, providing care suites, retirement units, and independent living Options across its portfolio of villages.

Record Financial Performance in FY26

On 22 May 2026, Oceania Healthcare reported its audited full-year results for the period ended 31 March 2026, delivering what it described as a record outcome. Proforma Underlying EBITDA reached NZ$97.7 million, representing a 20% increase on the prior year. Total Comprehensive Income stood at NZ$75.0 million, while statutory net profit after tax came in at NZ$0.1 million, reflecting lower property revaluations compared with FY25 and costs associated with the closure of the Wesley Institute of Nursing Education.

Care EBITDA per occupied bed rose 40% to NZ$27,000, and underlying care profitability excluding development and resale gains increased 43%. The company delivered NZ$13.2 million of cost-out savings in FY26 and indicated it remains on track to achieve NZ$20.4 million in annualised savings in the coming financial year. Free Cash Flow from Operations was an outflow of NZ$15.0 million, representing a 64% improvement from the prior year, with the company targeting positive free cash flow in FY27.

Sales Activity and Portfolio Refinement

Settled sales volumes increased 16% to 603 units during FY26, with the gross value of settled sales rising 20% to NZ$375 million. Resale activity was up 20% with 402 units settled, delivering gains of NZ$37 million. Unsold stock reduced by 34% to NZ$227 million. At the premium Auckland retirement village, The Helier, 74% of apartments were sold or under application. A total of 71 new units were delivered in FY26, and the company is targeting delivery of 81 new units across three sites in FY27. The company also divested seven sites for NZ$51.1 million, with proceeds applied to debt reduction. Net debt fell to NZ$506.7 million, bringing gearing to 30.1%, at the lower end of the 30% to 35% target range. No Dividend was declared for FY26, with the Board indicating it will reassess dividend payments once free cash flow turns positive.

About Oceania Healthcare

Oceania Healthcare operates a portfolio of retirement villages and aged care facilities across New Zealand. The company offers a range of accommodation options including independent living villas, retirement apartments, and care suites. Listed on both the NZX and ASX under the ticker OCA, the company focuses on integrated villages combining retirement living with aged care services.

Sector Context

The ASX healthcare sector experienced broad-based gains on 05 November 2026, with the Health Care sub-index outperforming the broader market. Aged care and retirement village operators in Australia and New Zealand continue to navigate a landscape shaped by demographic tailwinds from ageing populations, alongside regulatory considerations and subdued residential property markets in some regions.

Risks

Key risks for Oceania Healthcare include exposure to the New Zealand residential property market, which influences resale pricing and sales volumes. Regulatory changes affecting aged care funding and staffing requirements present ongoing uncertainties. The company's development pipeline carries execution and Market Timing risks, and the absence of a dividend may weigh on income-focused investor sentiment.

Catalysts on Watch

Investors may monitor the company's progress toward achieving positive Free Cash Flow from Operations in FY27, the delivery of its NZ$20.4 million annualised cost-out target, and the potential resumption of dividend payments. The FY27 build program across three sites and ongoing sales momentum at key developments such as The Helier and Franklin Village also represent notable near-term milestones.

The Road Ahead

Oceania Healthcare enters FY27 with a materially reduced debt position, a refined portfolio, and a clear focus on cash generation and disciplined Capital allocation. The company's strategic reset, including portfolio divestments and operational efficiency programs, has laid the groundwork for what management has described as a platform for disciplined growth, with the Board expressing confidence in sustained Demand for both care suites and retirement living.