Oceania Healthcare Delivers Record Full Year 2026 Results, Reduces Net Debt

Oceania Healthcare Limited has released its audited full-year financial results for the period ending March 31, 2026, delivering a significant operational expansion alongside targeted capital management strategies. The dual-listed retirement village and aged care operator recorded a 16% increase in sales volumes and a 20% growth in Proforma Underlying EBITDA, which reached $97.7 million for the year. This robust operational momentum enabled a major capital restructuring, including a $121.4 million reduction in net debt. However, in an effort to prioritise cash preservation, the board has suspended dividend payments for the financial year, opting to reassess future payouts once operational cash flow stabilises.

Operational Momentum and Care Profitability

The operational division delivered strong performance throughout the financial year, driven by steady demand across Oceania Healthcare's portfolio. The company settled a total of 603 units, representing a substantial step up in development and resale activity. The gross value of settled sales reached $375 million, highlighting a robust transaction volume in key regions.

In the care division, underlying profitability experienced a significant uplift of 43%. This performance was bolstered by a 40% increase in Care EBITDA per occupied bed, which rose to $27,000. The rise in care profitability highlights the success of targeted efficiency initiatives and structural enhancements across the group's residential care facilities.

Asset valuation and equity metrics also showed positive growth over the twelve-month period. Total assets across the group expanded by 4.6% to reach $3.1 billion. Concurrently, net tangible assets per share rose by 7.3% to $1.62, reinforcing the underlying value of the firm's physical portfolio despite broader headwinds in the real estate sector.

Balance Sheet Consolidation and Gearing

A major focal point of the full-year results was the substantial strengthening of the balance sheet. Oceania Healthcare successfully reduced its net debt by $121.4 million, bringing total net debt down to $506.7 million. This aggressive debt reduction strategy has improved the group's financial flexibility and lowered its exposure to interest rate fluctuations.

Following these debt-reduction measures, Oceania Healthcare's gearing level stands at 30.1%. This ratio positions the company comfortably at the lower end of its targeted capital structure range of 30% to 35%, demonstrating a highly disciplined approach to capital management.

This balance sheet consolidation was supported by an intensive operational efficiency programme. Oceania Healthcare successfully realised $13.2 million in cost savings during the year ending March 31, 2026. The company is actively working towards an annualised cost savings target of $20.4 million, with further structural and operational alignments planned to optimise overhead costs and administrative functions.