Latest news with #retirementvillages
Bloomberg
09-07-2025
- Business
- Bloomberg
Australian Over-50s Village Operator's Stock Drops on Fee Ruling
Lifestyle Communities Ltd. shares tumbled the most in 16 years after an Australian state tribunal ruled that some of the retirement village operator's exit fee agreements should be scrapped. The stock plunged as much as 42%, the most since January 2009, after the Victorian Civil and Administrative Tribunal found that some of the company's deferred management fees, also known as exit fees, should be declared void. The company plans to appeal the decision, it said in an exchange statement Tuesday.
RNZ News
23-06-2025
- Business
- RNZ News
Retirement villages operating on razor thin margins, report shows
Grant Thornton New Zealand's study indicates retirement villages can be profitable, but it can take more than 20 years to fully recover investment. Photo: RNZ / REECE BAKER A report on retirement villages indicates most are operating on razor thin margins, with little prospect of making a quick return on investment. Grant Thornton New Zealand's study indicates retirement villages can be profitable, but it can take more than 20 years for an owner of an average village to fully recover their investment. "This is a major pain point for many of the operators we work with," Grant Thornton retirement village services lead Pam Newlove said. "It stems partly from a misconception that building and operating a retirement village is much the same as selling residential property where operators build units, sell them, buy them back at a discount and sell them again for more, repeating that process every few years as residents come and go. "These misconceptions are not helped by the financial reporting requirements for villages which can present an overly optimistic situation." The study covers a 25-year period from sourcing land and construction of a retirement village, to project completion and revenue generation. The research indicates the payback period for a rural villa complex would take 21 years, with investment in an urban-style apartment complex to take more than 25 years. "That isn't to say these villages are making an operating loss for two decades," she said. The study indicates both types of sites experienced strong early cashflows, though ongoing operational and refurbishment costs started to eat into cashflows for occupancies lasting between 7.5 and 10 years. Weekly fee income typically covered operating expenses, but not in all cases, with some operators reporting losses of about 20 percent. "General feedback during our research was that many operators are struggling to cover operating expenses in the current economic environment," she said, adding it was important to understand the stresses facing the sector, given the service they deliver to an ageing population. "(Retirement villages sit) at an unusual intersection of commercial viability and the provision of vital services for a particularly vulnerable part of our population." She said the imposition of mandatory payouts on the sale of units, when occupants leave or die, could be difficult to meet for village operators with limited cashflow and high operating costs. "I mean, we see there's a perfect storm brewing." Newlove said the report aimed to set out the industry's financial limitations. "By focusing on actual cashflows, the real financial position for operators emerges." Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
ABC News
06-06-2025
- Politics
- ABC News
Cairns mayor accused of 'chilling' debate amid proposed 800pc retirement village rate hike
Elderly residents of retirement villages in Cairns lobbying against a council proposal to hike their rates have hit out at the city's mayor, accusing her of "spying" on their movements using social media. Cairns Regional Council is proposing to charge its minimum general rate of about $1,072 to each individual unit in retirement villages from next financial year. Currently, it imposes a single charge across entire villages. Retirement village operators say the change would lead to a rates increase of about 800 per cent which they claim they would be required to pass on to elderly residents under state legislation. Cairns Mayor Amy Eden defended the council's position during a live radio interview with ABC Far North this week saying many retirement villages "put in requests [to the council] for footpaths" which ratepayers had to pay for. But it was a follow-up remark about elderly residents using council-owned recreational spaces that one critic said has had a "chilling effect". "Ratepayers pay for that. Everyone needs to contribute." Retirement village resident Judy Holtzheimer, who has lobbied against the council's proposal, said she was shocked by the mayor's on-air comments. "I was absolutely stunned that someone in her position would, I would say in my words, stoop to spying on elderly [people]," she said. Another retirement village resident, Kay Nyland, said she believed she would be "one of the people" the mayor has looked up "because I have been very prominent on social media about this issue". The ABC has contacted Ms Eden to seek her response to the concerns. In a statement, a council spokesman said today the council "does not engage in tracking of residents". "It is well known that the mayor is active on social media and uses it to engage with the community," he said. "It is also common for social media users to post images of themselves using council facilities, which as a social media user the mayor made an offhand reference to on radio." Cairns Regional Council argues changing its rating structure would bring retirement villages into line with other multi-dwelling complexes. She said others should seek financial hardship assistance from their village operator or the council. "There are always going to be a percentage of ratepayers that really struggle to pay their rates," Ms Eden said. "That is just the way that it goes." The retirement village sector has campaigned against the proposal, concerned other councils could follow suit. Oak Tree Retirement Villages CEO Christine Gilroy said villages already paid for the installation of roads, lightning and garden maintenance, and that it would be a "double hit to those residents to pay that again". Retirement Living Council executive director Daniel Gannon said the council should put off its plan for a year for "genuine and proper consultation". He described Ms Eden's remark as "shocking and bizarre". The council is due to vote on the proposal at the end of June.
