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Speaker 1: Essentially by twenty forty the population goes from four hundred

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Speaker 1: thousand New Zealanders over seventy five to eight hundred thousand

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Speaker 1: New Zealanders over seventy five. It's massive change in gemographic

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Speaker 1: We're second largest home developer in New Zealand. I's aren't

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Speaker 1: think for a time, but is the largest home developer

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Speaker 1: in New Zealand. Yeah. Anything that can be done to speed stuff,

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Speaker 1: are your time efficient means I can building villages faster. Yeah,

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Speaker 1: the massive demographic push, I think you're going to find

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Speaker 1: that this is not enough retirement village operators in New

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Speaker 1: Zealand and fifteen years time and certainly there's going to

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Speaker 1: be not enough care be it's in New Zealand, which

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Speaker 1: is actually pretty sad.

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Speaker 2: Krakoto. Welcome to Shared Lunch, brought to you by Shears's.

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Speaker 2: I'm Garth Bray and today we're here in Saint John's

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Speaker 2: in Auckland at the newest retirement village opened by Somerset.

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Speaker 2: Now that's one of the three big listed operators of

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Speaker 2: retirement villages in New Zealand, and we're here to speak

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Speaker 2: to the CEO Scott's Schooler. More than fifty thousand New

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Speaker 2: Zealanders call a retirement village home, but that is set

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Speaker 2: to rise as our population ages. So what are Sumrset's

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Speaker 2: plans to get a hit of that curve? Before I

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Speaker 2: head up to the Penthouse to hear here's some important

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Speaker 2: information you should always consider when investing.

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Speaker 3: Investing involves the risk you might lose the money you

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Speaker 3: start with, we recommend talking to a licensed financial advisor.

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Speaker 3: We also recommend reading product disclosure documents before deciding to invest.

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Speaker 3: Everything you're about to see and here is current at

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Speaker 3: the time of recording.

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Speaker 2: Scott, thanks for having us to the Penthouse. From the

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Speaker 2: look of it, where are we bright now? What is

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Speaker 2: the spot and what can taust about it? Yes?

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Speaker 1: So look we bought the site and s John's probably

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Speaker 1: twenty fifth day now and so it's been a long

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Speaker 1: journey for us to get to this point where it's

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Speaker 1: open and opened late last year. So yet it's going

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Speaker 1: to be home to break close to three hundred residents. Good,

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Speaker 1: so you're in a pink house. It's having there pretty

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Speaker 1: much for sites got three sixty degree of view start.

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Speaker 1: It's a lovely, lovely sites amazing as.

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Speaker 2: Views and if you are looking to try to arrive

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Speaker 2: in this kind of place obviously going to have to

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Speaker 2: have a pretty good financial plan.

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Speaker 1: Yes, so that's a lovely part about this collection. We

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Speaker 1: tried to sort of match like aspiration and make it

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Speaker 1: quite aspirational. So like hopefully when people been up here

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Speaker 1: they feel like it's buk turning up to a hotel.

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Speaker 1: It's at Fields Groove Formal. It has a lot appeal

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Speaker 1: to it. It's got flop fine dining and it's got cafe,

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Speaker 1: it's got heavy theaters, gyms, all the subur pools, things

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Speaker 1: you can think of. The vast majority of the product

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Speaker 1: probably arranges them about which there's a lot for parts

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Speaker 1: of New Zealand. But like an Auckland's actually in this

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Speaker 1: location is actually pretty portable because.

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Speaker 2: You tend to match whatever offering you make here to

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Speaker 2: whatever local proppery prices are doing because that's where people

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Speaker 2: are coming from.

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Speaker 1: Yeah, Essentially, like most people come into a time village

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Speaker 1: within either two situations, either within a five K radios

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Speaker 1: where they lived their lives or typically then they may

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Speaker 1: be chaking a choice to move from a completely different

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Speaker 1: location to be closer to family. But you'd find eighty

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Speaker 1: percent of people would be within five kilometers, so you

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Speaker 1: kind of want it to be highly affordable for those

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Speaker 1: people to be able to sell their home, put a

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Speaker 1: little bit of money in the bank and then come

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Speaker 1: in and use that money to sort of enjoy retirement life.

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Speaker 1: And so most of the time we're target ninety percent

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Speaker 1: eighty five to ninety percent of the medium house price

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Speaker 1: in terms of the products that we're building.

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Speaker 2: It's interesting you mentioned that chain of needing to sell

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Speaker 2: before you come into a place like this, because obviously

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Speaker 2: the market's been a weabit so though probably more so

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Speaker 2: than anywhere here in Auckland. How is that showing up.

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Speaker 1: Yeah, Look, I think your right to pickle on the

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Speaker 1: fact that I think people who's confidence to be able

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Speaker 1: to sell their house has been quite constrained in the

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Speaker 1: last twelve months, that hasn't really sort of borne out

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Speaker 1: in terms of their desire to come into a village.

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Speaker 1: So we've seen lots of inquiry, like we would have

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Speaker 1: seen more inquiry the last twelve months than we have

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Speaker 1: traditionally previously. So inquiries pretty by people's commitment to sales

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Speaker 1: contract is really high, but they've been constrained at ticks.

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Speaker 1: Why they're a bulleted sell our own home and so

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Speaker 1: look some of that as people take choice to sort

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Speaker 1: of sit on the beach and wake three months six months,

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Speaker 1: but until they feel like they can actually sell their house.

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Speaker 1: Sometimes we'll work with that resident to give them options

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Speaker 1: to come in. So it might be like we have

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Speaker 1: situations we will allow people to move in early. They

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Speaker 1: can move in whilst they're still selling their home, get settled,

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Speaker 1: which is really lovely for them, and then be out

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Speaker 1: of the house while they're selling it. And so you know,

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Speaker 1: at times we'll give them six months to do that,

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Speaker 1: and that gives them the confidence to sort of say, right,

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Speaker 1: I'm prepared to give that a go in some of

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Speaker 1: my house and look, at the end of that six

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Speaker 1: months period, if they still and sold their house, would

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Speaker 1: work with them. It's not like they're going to get

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Speaker 1: kicked out on the street, you know, like we want

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Speaker 1: them to be living life here. And so you're just

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Speaker 1: constantly working with people in their individual situations to figure

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Speaker 1: out how you can help facilitate them coming in. And

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Speaker 1: that's been hard. But with your economy in the last

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Speaker 1: sort of six twelve months, it's not as I said,

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Speaker 1: that people's desire to come and has changed. It's as

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Speaker 1: you're just helping them sort of make that transition.

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Speaker 2: Those terms, Are they kind of a new response to

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Speaker 2: the conditions or is that something you've gone to before

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Speaker 2: in other times where things are tricky because you've been

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Speaker 2: around for a while, right as a company.

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Speaker 1: Look, it's a good question. Most of them are things

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Speaker 1: that you've used in the past. So, like you know,

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Speaker 1: during COVID twenty twenty, it was the same sort of environment, right,

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Speaker 1: people were predicting housing market it was going to be terrible,

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Speaker 1: and to be honest, it wasn't actually as bad as

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Speaker 1: people predicted. But it's those same types of tools that

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Speaker 1: you pull out that just facilitate people to come into

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Speaker 1: a village.

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Speaker 2: I guess if you can tell me a bit more

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Speaker 2: about Somerset particularly, like what would I see here that

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Speaker 2: I wouldn't see it another retirement village operator's place.

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Speaker 1: Yeah, Look, there's a few parts I think, like in

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Speaker 1: terms of what we're proud of. Like the first one

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Speaker 1: is we sort of pride ourselves that you come and

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Speaker 1: live in a village where it's actually your home, so

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Speaker 1: we treated as residents' homes. So like when our staff

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Speaker 1: are here, they're ver even mindful of this is actually

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Speaker 1: people's homes that they're sort of working with them. I

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Speaker 1: think potentially that could be a different philosophy from other operators,

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Speaker 1: where it's sort of more like this is our village,

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Speaker 1: you're come to live with us, so you know, pretty

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Speaker 1: much we stand in the background, facilitated as much as

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Speaker 1: we can, but you know, almost try and be an

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Speaker 1: extended member of their family to help out and stuff.

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Speaker 1: But and so I think service like residents love their

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Speaker 1: lives in our villages. Ninety seven percent of our residents

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Speaker 1: are satisfied living in some set village, so we're very

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Speaker 1: proud of that. The second thing is we build on

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Speaker 1: a lot of Broadway locations, so you know, I think

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Speaker 1: a lot of Keywis have grown up with the six

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Speaker 1: and re scumiter section the grass. That's something we we

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Speaker 1: like and enjoy building. So you know you'll see us

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Speaker 1: in broad acre situations right throughout New Zealand. So we're

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Speaker 1: probably the most geographically diverse of any operator throughout New

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Speaker 1: Zealand and like to build homes that people can actually

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Speaker 1: enjoy but agree in space obviously, when you come to

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Speaker 1: a special place like this, you know you can't actually

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Speaker 1: do that because you can't get enough land bututical village.

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Speaker 1: But yeah, we are in a vertical village and we

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Speaker 1: sort of only build one of those, probably eading a

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Speaker 1: particular point in time, but most of the time it's

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Speaker 1: broad acre villages. And the bit I love about that

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Speaker 1: is that people got access to outdoor living pocket parks

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Speaker 1: like barbecue is you name it, like mini gulf driving ranges,

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Speaker 1: like there's just it's NonStop sort of ability for them

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Speaker 1: to exist things and so we'll it be vegetable gardens

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Speaker 1: is something the fever in and people's ability to then

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Speaker 1: jump out of their home out the back door and

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Speaker 1: kind of have their own little pattio area and stuff

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Speaker 1: they can enjoy, their own little grass patch they can

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Speaker 1: enjoys is quite special. So yeah, I think like there's

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Speaker 1: a couple of things there, like you know, and I

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Speaker 1: think probably the third thing i'd say is in kre

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Speaker 1: like you know, we have integrated villages with care access

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Speaker 1: on site and with that that's probably not that's pretty

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Speaker 1: typical for New Zealand. Look, it's quite different for Australia,

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Speaker 1: so we are quite different Australia on that regard. But

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Speaker 1: in New Zealand, like here, we try and produce quite small,

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Speaker 1: private homely care environments. So because when people are going

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Speaker 1: through the latter part of their life and they need

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Speaker 1: some care and support, I know, we feel like it's

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Speaker 1: really important that they feel that that's an environment they're

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Speaker 1: sort of safe, comfortable in. It's private, they have the

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Speaker 1: same nurse every day, they have the same care giver

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Speaker 1: every day, rather than a large hospital environment where each

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Speaker 1: day you might be experiencing a different person looking after you,

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Speaker 1: or you've got no privacy in the lounge because there's

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Speaker 1: forty other people in there. So small private care facilities

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Speaker 1: combined with broad acre living, combined with that sort of

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Speaker 1: like lovely sort of service environment that we create, I

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Speaker 1: think is kind of the three things that probably the

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Speaker 1: most important to someone.

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Speaker 2: Sat. All right, how's that working for the financials? Can

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Speaker 2: you walk us through the numbers? I know you've you've

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Speaker 2: fived you're half year pretty recently, so they'll all be fresh.

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Speaker 2: I'm sure.

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Speaker 1: Yeah. Look here last year, so we delivered our undern

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Speaker 1: profit result of to earn six million dollars. That was

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Speaker 1: up eight percent and to be honest, op eight percent

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Speaker 1: in what i'd probably are my working career anyway, it's

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Speaker 1: probably the hardest year I've experienced, and so for us

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Speaker 1: to deliver a result up eight percenters, we feel is

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Speaker 1: pretty credible. And I think at the same time balancing

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Speaker 1: that with the ninety seven percent customer satisfaction and for

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Speaker 1: our staff who are working for us as well, making

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Speaker 1: sure that they are still engaged. And so we scored

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Speaker 1: eight point one out of ten in our engagement surveys,

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Speaker 1: which puts us in the top quartile of healthcare providers

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Speaker 1: around the world. Getting that mix of sort of financial

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Speaker 1: performance with good staff satisfaction, with engaged residents enjoying their

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Speaker 1: lives living in our villages, that sort of trifector of

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Speaker 1: things is really really important to us. But on the

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Speaker 1: look on the profit side of things, that was really

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Speaker 1: driven by the popularity. So we talked before about people's

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Speaker 1: struggles coming into our villages. But you know, if yet

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Speaker 1: you look underneath the profit results, new sales were up

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Speaker 1: about five percent. Resales that's homes that people previously lived in,

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Speaker 1: they were up twenty percent, So you know, the core

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Speaker 1: sales for the company was still up twour percent, which

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Speaker 1: was in a pretty dire property market. So that was

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Speaker 1: sort of the genesis of the profit performance. At the

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Speaker 1: same time, we were being pretty careful and cautious about

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Speaker 1: making sure that we managed spend. Operating costs out there

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Speaker 1: are pretty crazy for New Zealanders in general, but it's

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Speaker 1: the same thing for a time village operators. It doesn't

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Speaker 1: matter whether it's rates, insurance. Trying to constrain some of

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Speaker 1: those costs as well at the same time as making

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Speaker 1: sure that we delivered that great experiences sort of key

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Speaker 1: for us.

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Speaker 2: Yeah, I'm just sort of looking around. I guess we've

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Speaker 2: seen two of your competitors effectively going to private equity,

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Speaker 2: you know, another one sort of if we're frank struggling

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Speaker 2: we bit with an equity raise that's just finished. Are

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Speaker 2: you still ruling out the need for that kind of

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Speaker 2: capital raise.

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Speaker 1: Yeah, look for our growth plans at the moment, we

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Speaker 1: don't need to raise capital. Essentially, the way ours, our

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Speaker 1: sort of development cycle works maybe a little bit different

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Speaker 1: to some of the other operators. So when we build

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Speaker 1: a broad acre site, essentially it might cost us to

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Speaker 1: say one hundred and fifty million dollars to build that

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Speaker 1: site the time. That what our aim is. So when

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Speaker 1: we buy a piece of land, our aim is essentially

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Speaker 1: to get all that money back through the first sale

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Speaker 1: of those homes in that villages. So we won't purchase

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Speaker 1: a bit of land and start construction if we don't

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Speaker 1: think we can recycle our money out after we've basically

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Speaker 1: built a village and sold it down for the first time.

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Speaker 1: And so we don't as a business have any core

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Speaker 1: debt that sits there. All our debt is essentially land

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Speaker 1: working capital for building villages that are half complete, and

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Speaker 1: then stock that we own when we're just as we're

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Speaker 1: going to sell it down. So if you think about that,

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Speaker 1: like if we were, you know, West Case Scenariot to

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Speaker 1: shut the doors and say we're not going to build

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Speaker 1: any more homes, the company would have no sort of coredette,

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Speaker 1: whereas I think you know probably and that we feel

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Speaker 1: is a bit of a differentiative for us, And so

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Speaker 1: we can essentially go as fast as we like, as

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Speaker 1: long as we're sort of keeping in mind that we

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Speaker 1: want our number one ambition is to sort of recycle

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Speaker 1: that capital back out of each project.

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Speaker 2: You don't feel extra pressure to sort of step it

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Speaker 2: up a little bit and maybe leverage a little bit

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Speaker 2: more and go and grow a little quicker.

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Speaker 1: And I think there's always a challenge there about can

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Speaker 1: you build faster? Should we build faster? And I should

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Speaker 1: we build faster? In Australia, I think as a business

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Speaker 1: we've just got to do the right thing for the

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Speaker 1: company at that particular point of time in the cycle.

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Speaker 1: So you know, we give twelve months guidance on build rates,

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Speaker 1: but we're not afraid to like slow that down. So

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Speaker 1: last year, in the first part of the year, you know,

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Speaker 1: we came out and said, hey, economy is not so good,

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Speaker 1: property market's a bit harder, We're going to build fifty

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Speaker 1: less homes. And it's much the same during good time.

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Speaker 1: Better times, we would do the same thing. We'd sit

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Speaker 1: there and say, hey, we can't get enough product and

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Speaker 1: people are cuing up at the door, like let's say

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Speaker 1: I should build some more homes in each village. And

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Speaker 1: so it's about of keeping the company really sound and

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Speaker 1: financially sort of stable for the conditions that you're trading

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Speaker 1: with in and so we're very remindful of that, and

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Speaker 1: we meet and have conversations as a leadership team about

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Speaker 1: things like build rates every six weeks. So that's us

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Speaker 1: just constantly sitting there and saying what's the economy, doing

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Speaker 1: what's property market, doing what's house sales like in each

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Speaker 1: one of our villages, and just applying focus to that constantly.

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Speaker 1: So it is it. Look, there's always there's always pressure there,

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Speaker 1: like asn't as a leadership team, we're pretty competitive, want

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Speaker 1: to build more, want to generate a better return for shareholders.

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Speaker 1: But at the same time as you're going to be

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Speaker 1: careful around making sure that the balance sheets always strong

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Speaker 1: as well.

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Speaker 2: I just can't help thinking about the announcements this week

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Speaker 2: around development contributions and around checking up the roma ye

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Speaker 2: widely spoken about is good news for people who like

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Speaker 2: building things? You people who like building things? Is it

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Speaker 2: good news?

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Speaker 1: Look a couple of things there. Development contributions are pretty

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Speaker 1: pretty burdensome for large operators. If you think about like

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Speaker 1: the infrastructure for this village and everything we do in

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Speaker 1: this village. You know, like people probably don't have a

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Speaker 1: lot of need to kind of access other services throughout Auckland,

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Speaker 1: which was from what you're paying for with those development contributions.

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Speaker 1: But it's and look at probably a little bit skeptical

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Speaker 1: around some of the changes and freeing stuff up and

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Speaker 1: making it better. Like we've seen the fast track process,

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Speaker 1: which we've used probably now since COVID there was some

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Speaker 1: legislative fast track fast track process to build big projects.

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Speaker 1: And to be honest, that fast tracked projects process is

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Speaker 1: almost at the point now where it's slower than the

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Speaker 1: slow track process. And so you know, it's interesting in

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Speaker 1: that I think sometimes you can see these good intentions

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Speaker 1: come in, but they need to actually practically work, and

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Speaker 1: so yeah, the magic and this and that will be

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Speaker 1: actually how they actually operationalize that in a way that

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Speaker 1: actually practically works.

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Speaker 2: I think.

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Speaker 1: So we're in the sidelines and sort of just way

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Speaker 1: to really I guess.

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Speaker 2: I mean, you're a nationwide builder, so the idea that

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Speaker 2: they're potentially going to simplify things so that there's more

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Speaker 2: uniform codes around construction just makes a bit more sensible.

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Speaker 1: Yeah, look love the theory behind it. And you know,

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Speaker 1: like we're second largest home developer in New Zealan NOWS

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Speaker 1: proably wouldn't think for a time of the rotor think

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Speaker 1: largest th home developed New Zealand. So you know, yeah,

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Speaker 1: anything that can be done speed stuff up. Essentially, you know,

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Speaker 1: it's a better use of capital for us, more time

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Speaker 1: efficient means we can build more villages faster. It is

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Speaker 1: just in the practicality of with which yeah they implement

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Speaker 1: this stuff.

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Speaker 2: You don't acquire other properties then, really do you? You

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Speaker 2: don't go into an existing operator and say will heed

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Speaker 2: you to take you on? What is that a conscious choice?

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Speaker 2: That's just not part of pretty conscious choice.

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Speaker 1: Like the only time we've done that is in Nelson,

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Speaker 1: we bought a village that the first ten to twenty

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Speaker 1: homes been built already by another operator, and then when

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Speaker 1: I brought that off them. But typically if you come

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Speaker 1: back to that sort of conversation before about the business

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Speaker 1: model and essentially what we're doing is building those homes

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Speaker 1: and recycling our money back out of it via selling

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Speaker 1: them down. If you have to go pay another operator

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Speaker 1: who's already built a village to purchase their village, you

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Speaker 1: can't recycle your money back out of that. And so

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Speaker 1: you would have to keep going to shareholders and saying, hey,

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Speaker 1: you know, I want to go buye these great set

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Speaker 1: of retirement villages, but we need some more money for

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Speaker 1: you to do that. And so when you look at

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Speaker 1: the merits of that versus organic growth, organic growth is

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Speaker 1: way more efficient. It generate's a better return because the

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Speaker 1: investor hasn't had to putting more money in. So yeah,

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Speaker 1: we our preference most of the time is.

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Speaker 2: To build, provided you can get the land.

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Speaker 1: Yes, but you know, to be fear on that. We've

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Speaker 1: got seven thousand homes in our land bank, and so

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Speaker 1: if you think of us as a business, we've got

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Speaker 1: seven thousand homes built, So you know, like our landbank

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Speaker 1: enables us to double in size. And if you think

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Speaker 1: about through the worst part of the economic cycle last year,

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Speaker 1: we're building seven hundred homes. Seven hundred homes, you've got

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Speaker 1: ten years worth of build supply if you kept at

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Speaker 1: that level. But in ten years time, the size of

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Speaker 1: the company is going to double. The value of the

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Speaker 1: company is going to double, and hopefully the shephros for

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Speaker 1: the shareholders will double as well.

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Speaker 2: So it's doubled twice in the time that you've been

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Speaker 2: with the company, either a CFO and CEO. Is that

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Speaker 2: about right?

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Speaker 1: When I joined, it was two dollars later. Yeah, so yeah,

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Speaker 1: it's probably four times. Yeah, in terms of assets, I

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Speaker 1: think it's no, there's no reason why that shouldn't continue

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Speaker 1: because if you think about, you know, you're building these

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Speaker 1: assets and effectively there's sort of free assets. Once you've

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Speaker 1: sold them down the ANTIA the company goes up. And

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Speaker 1: if you track, you know, the NTIA have a company

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Speaker 1: relative to our share price, it's a pretty sort of

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Speaker 1: consistent track. So you know, the moment the share price

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Speaker 1: is twelve dollars, you know, one would like to believe

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Speaker 1: and hope that if the companies twice as big in

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Speaker 1: two years time, maybe the share price might be more

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Speaker 1: double that and it might be twenty four dollars rather

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Speaker 1: than twelve dollars. But you know that's if you're sort

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Speaker 1: of sit if your track over the last twelve years,

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Speaker 1: that's the sort of history of what the company's been on.

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Speaker 1: So that's that's the goal that we're chasing.

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Speaker 2: Is that achievable just with the kind of organic growth

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Speaker 2: you're talking about here in New Zealand with the sites

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Speaker 2: that you've bought most recently, or are you looking increasingly

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Speaker 2: that you are going to have to make good on

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Speaker 2: the talk of development, you know, taking those agressive opportunities

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Speaker 2: perhaps or growth opportunities in Australia.

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Speaker 1: Yeah, look, we're pretty comfortable, Like I mean, I think,

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Speaker 1: you know, doubling the size of the company in ten

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Speaker 1: years isn't a bad thing, like for a company our

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Speaker 1: size anyway, it's probably not a bad thing. I don't

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Speaker 1: want to sound complacent, but I think during the better

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Speaker 1: times in the property market in New Zealand, you know

391
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Speaker 1: you might have ambitions to build exponentially faster in New Zealand.

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Speaker 1: So we've got the land bank to do that, and

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Speaker 1: it's pretty well consented. So you know, we don't have

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Speaker 1: a lot of barriers to stop us building faster because

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Speaker 1: we're broad acre developers. We've got fifteen villages we're building

396
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Speaker 1: any particular point in time. If you chose to build

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Speaker 1: ten more homes on each village, you know, demand's really high.

398
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Speaker 1: All of a sudden you lift the build up one

399
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Speaker 1: hundred and fifty homes. That's quite material, right, that's a

400
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Speaker 1: twenty percent left and build rate in New Zealand. And

401
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Speaker 1: then if you think about our journey in Australia, we've

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Speaker 1: got seven bits of land there now and opened our

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Speaker 1: first village last year, open our second village at the

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Speaker 1: end of this year, open our third village the year after.

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Speaker 1: That's going to become quite progressive growth journey for us.

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Speaker 1: And so again five of those sites are consented now,

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Speaker 1: so that will quite meaningfully become contributed to our aggregate

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Speaker 1: build rate, and quite a mature way. So last year

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Speaker 1: we only built ten homes, but in three four five

410
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Speaker 1: years time, we'd be building two three hundred homes from Australia,

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Speaker 1: And so you start taking sort of those in aggregating together.

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Speaker 1: And not only is this sort of growth, but there's

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Speaker 1: probably quite a large level of exponential growth that's an

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Speaker 1: opportunity for us as well.

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Speaker 2: I suppose we've rered to talk about the demand side

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Speaker 2: of all of that. We're all getting older, all of us, apparently,

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Speaker 2: are we still on track? What to sort of hit?

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Speaker 2: I think something like a million people over seventy five

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Speaker 2: by when twenty thirty forty years.

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Speaker 1: Yeah, Look, essentially by twenty forty the population goes from

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Speaker 1: four hundred thousand ye Zealanders over seventy five to eight

422
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Speaker 1: hundred thousand year Zealanders over seventy five. It's a massive

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Speaker 1: change in the demographic and I think even by twenty

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Speaker 1: thirty the number of eighty five year olds goes up

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Speaker 1: by one hundred and twenty five thousand, and so like

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Speaker 1: it's pretty quack like it's pretty close by now. If

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Speaker 1: you think in the next five years, one hundred and

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Speaker 1: twenty five thousand extra people. You know, like we need

429
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Speaker 1: something like thirteen thousand extra year beds in this country

430
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Speaker 1: just to cope with that demand in the next five years.

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Speaker 2: So we're getting older. But the stats would also tell

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Speaker 2: us that an increasing number of people work past sixty five,

433
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Speaker 2: which is the point we'd retire, and lots of people

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Speaker 2: want to stay in their own homes. So where's the evidence.

435
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Speaker 2: I suppose that there is a really big wave of

436
00:20:30,480 --> 00:20:33,320
Speaker 2: people that would be looking for the kind of opportunity

437
00:20:33,359 --> 00:20:35,480
Speaker 2: that's offered in a place like like a summer set

438
00:20:35,520 --> 00:20:36,200
Speaker 2: retirement village.

439
00:20:36,359 --> 00:20:38,520
Speaker 1: Look might I've been in the company for probably twelve

440
00:20:38,600 --> 00:20:40,680
Speaker 1: years now, and it's interesting, like you sort of see

441
00:20:40,760 --> 00:20:45,960
Speaker 1: as change in medication, you know, advancements in medicine in

442
00:20:46,119 --> 00:20:48,240
Speaker 1: terms of people with the way they live their life

443
00:20:48,280 --> 00:20:50,320
Speaker 1: sort of has changed quite a bit last ten twelve years.

444
00:20:50,359 --> 00:20:52,720
Speaker 1: But for us, like if you sort of correlate to

445
00:20:52,800 --> 00:20:55,679
Speaker 1: their average entry age, it's probably lifted up about one

446
00:20:55,760 --> 00:20:57,919
Speaker 1: or two years at the same time. So there's definitely

447
00:20:58,000 --> 00:21:02,879
Speaker 1: a drift as people live there life and live it

448
00:21:02,960 --> 00:21:08,280
Speaker 1: in healthy conditions, healthy state that they take a choice

449
00:21:08,280 --> 00:21:10,520
Speaker 1: to come in maybe slightly later, but it's not like

450
00:21:10,600 --> 00:21:13,639
Speaker 1: I don't think you see a massive trend of like

451
00:21:13,880 --> 00:21:16,200
Speaker 1: people suddenly coming into retire religious sort of ten years

452
00:21:16,280 --> 00:21:18,680
Speaker 1: later than what they previously did. It's a very slow

453
00:21:18,840 --> 00:21:20,639
Speaker 1: sort of drift. And if you could have come back

454
00:21:20,640 --> 00:21:22,280
Speaker 1: to the sort of reasons why people come in, it's

455
00:21:22,320 --> 00:21:27,080
Speaker 1: often safety security, mums struggling to get up the stairs anymore,

456
00:21:27,119 --> 00:21:29,639
Speaker 1: Dad doesn't want to mode lawns. Those things still happening

457
00:21:29,640 --> 00:21:31,680
Speaker 1: in your life at a certain point in time. It's

458
00:21:31,760 --> 00:21:33,240
Speaker 1: just you know, as at seventy nine or as at

459
00:21:33,240 --> 00:21:35,719
Speaker 1: eighty one, you know, like and so I don't think

460
00:21:35,760 --> 00:21:38,600
Speaker 1: there's going to be a mess of philosophical change to

461
00:21:39,320 --> 00:21:43,119
Speaker 1: the age when people enter into villages. And if you

462
00:21:43,160 --> 00:21:45,560
Speaker 1: look at that, just the sheer numbers of that demographic stuff,

463
00:21:46,280 --> 00:21:48,640
Speaker 1: you know, like it's literally going to double the next

464
00:21:48,720 --> 00:21:50,840
Speaker 1: fifteen years. You know, like even if you get a

465
00:21:50,920 --> 00:21:54,800
Speaker 1: small drift, they're the massive demographic push. I think you're

466
00:21:54,800 --> 00:21:56,320
Speaker 1: going to find that this is not enough for timement

467
00:21:56,400 --> 00:21:59,560
Speaker 1: village operators in New Zealand and five ten years time. Wow,

468
00:22:00,040 --> 00:22:01,560
Speaker 1: certainly there's going to be not enough gear beds in

469
00:22:01,560 --> 00:22:03,640
Speaker 1: New Zealand, which is which is actually pretty sad.

470
00:22:04,280 --> 00:22:05,879
Speaker 2: We've got the model for it, we've got the funding

471
00:22:05,920 --> 00:22:07,439
Speaker 2: for it here in New Zealand. We're going to support

472
00:22:07,480 --> 00:22:11,920
Speaker 2: people through through those needy years. Aged care we've got, yeah,

473
00:22:11,960 --> 00:22:13,919
Speaker 2: we've got and we've got the retirement settings right.

474
00:22:14,160 --> 00:22:16,600
Speaker 1: Yeah, retirement settings I think are good luck. There's a

475
00:22:16,640 --> 00:22:19,679
Speaker 1: bit of work to be done. The sector is pretty

476
00:22:20,200 --> 00:22:25,320
Speaker 1: folcused around making some changes legislatively to retire for the sector,

477
00:22:25,400 --> 00:22:28,280
Speaker 1: to just clean up some practice from some of the

478
00:22:28,480 --> 00:22:31,199
Speaker 1: operators in there, and to be fear's it's a very

479
00:22:31,240 --> 00:22:34,520
Speaker 1: small minority such of things like you know, charging maintenance

480
00:22:34,560 --> 00:22:37,840
Speaker 1: fees after people leave, or continuing to charge weekly fees

481
00:22:37,920 --> 00:22:40,159
Speaker 1: after people leave. There's a bunch of little things like

482
00:22:40,240 --> 00:22:42,639
Speaker 1: that which are probably not working quite as well as

483
00:22:42,680 --> 00:22:45,600
Speaker 1: they should be at the moment. But generally it's pretty good.

484
00:22:45,800 --> 00:22:48,400
Speaker 1: Aged care in New Zealand is pretty broken at the moment,

485
00:22:48,600 --> 00:22:53,399
Speaker 1: so that is significantly underfunded. There is going to be

486
00:22:53,400 --> 00:22:56,560
Speaker 1: a massive shortage of beds in five ten years time

487
00:22:56,600 --> 00:22:59,920
Speaker 1: in New Zealand, and you know, no one's building because

488
00:23:00,320 --> 00:23:05,160
Speaker 1: aged care is horrendously harding the funded at the moment.

489
00:23:05,280 --> 00:23:07,000
Speaker 1: So you know, I think that is a challenge for

490
00:23:07,080 --> 00:23:07,640
Speaker 1: New Zealanders.

491
00:23:08,040 --> 00:23:10,280
Speaker 2: So as a business, you were just literally offering it

492
00:23:10,440 --> 00:23:13,600
Speaker 2: as part of the proposition for the people that are

493
00:23:13,600 --> 00:23:13,879
Speaker 2: part of you.

494
00:23:13,920 --> 00:23:16,600
Speaker 1: Can we are Yeah, Look, we used to build slightly

495
00:23:16,640 --> 00:23:19,040
Speaker 1: bigger facilities to cater for people to come in straight

496
00:23:19,119 --> 00:23:22,159
Speaker 1: from a time of need independently into the village, but

497
00:23:22,240 --> 00:23:26,000
Speaker 1: now because the economics and the lack of health news

498
00:23:26,040 --> 00:23:29,200
Speaker 1: and funding for that, we're really just predominantly focusing on

499
00:23:30,160 --> 00:23:32,880
Speaker 1: having enough bets to cater for people living their lives

500
00:23:32,920 --> 00:23:35,840
Speaker 1: within our villages. And look, there's a synergy with us

501
00:23:36,119 --> 00:23:40,639
Speaker 1: around continuing to make those those care fasilies smaller and

502
00:23:40,720 --> 00:23:42,560
Speaker 1: more homely as well, which is great as well, but

503
00:23:43,000 --> 00:23:45,399
Speaker 1: predominantly that's driven also by a lack of funding.

504
00:23:45,960 --> 00:23:51,080
Speaker 2: Scott, you were a CFO, you become a CEO, A

505
00:23:51,160 --> 00:23:51,840
Speaker 2: bit of a switch.

506
00:23:53,280 --> 00:23:58,120
Speaker 1: Yeah, look at is quite different. My exec team would

507
00:23:58,440 --> 00:24:01,679
Speaker 1: tease me about at times you've gone from being an

508
00:24:01,680 --> 00:24:04,400
Speaker 1: no man, which is being the CFO role, and going

509
00:24:04,440 --> 00:24:06,520
Speaker 1: to be a yes man and the CFO and the

510
00:24:06,640 --> 00:24:10,760
Speaker 1: CEO role, I should say, but it's Look, it's different.

511
00:24:10,960 --> 00:24:12,800
Speaker 1: I think you're in the CEO role you're trying to

512
00:24:12,840 --> 00:24:16,479
Speaker 1: balance off expectations of residents and you're trying to make

513
00:24:16,600 --> 00:24:20,320
Speaker 1: their environment lovely and enjoyable, and you know there are

514
00:24:20,359 --> 00:24:22,959
Speaker 1: biggest advocates out there. You're trying to make sure staff

515
00:24:23,000 --> 00:24:25,480
Speaker 1: as you really enjoy working for the company and feel

516
00:24:25,520 --> 00:24:28,200
Speaker 1: like they're actually doing some good and at the same time,

517
00:24:28,240 --> 00:24:31,320
Speaker 1: you're trying to bounce off that shareholder expectation. So you're

518
00:24:31,320 --> 00:24:33,639
Speaker 1: trying to get that balance right. And at times, I

519
00:24:34,440 --> 00:24:36,159
Speaker 1: spend a lot of my time going out to the

520
00:24:36,440 --> 00:24:40,679
Speaker 1: villigious talking to residents, and you're almost like, rather than

521
00:24:40,720 --> 00:24:43,960
Speaker 1: being CE, you're the chief customer advocate for the organization,

522
00:24:44,080 --> 00:24:46,800
Speaker 1: and that's really enjoyable, Like it's real privileged to be

523
00:24:46,800 --> 00:24:49,560
Speaker 1: able to do that for the organization at time at times,

524
00:24:49,680 --> 00:24:54,520
Speaker 1: but yeah, it's it's certainly different from being CFO.

525
00:24:56,040 --> 00:24:57,879
Speaker 2: Does it leave any time at all for you to

526
00:24:58,200 --> 00:25:00,920
Speaker 2: tinker away with your vintage cars? Classic cars? I should

527
00:25:00,920 --> 00:25:01,440
Speaker 2: add rather.

528
00:25:01,840 --> 00:25:03,920
Speaker 1: Yeah, Look, I have least classic cars now than I

529
00:25:04,000 --> 00:25:06,960
Speaker 1: did because my son's racing and doing motorsports, so I

530
00:25:07,000 --> 00:25:08,400
Speaker 1: had to sell a couple of my cars to pay

531
00:25:08,440 --> 00:25:11,280
Speaker 1: for his race car. So but I do have a

532
00:25:11,560 --> 00:25:16,360
Speaker 1: sixty seven Mustang, which it's been with me for twenty

533
00:25:16,440 --> 00:25:18,520
Speaker 1: five years. My wife would probably tease me and say

534
00:25:18,520 --> 00:25:20,000
Speaker 1: I love it more than I do my family.

535
00:25:20,119 --> 00:25:21,280
Speaker 2: But that is not right.

536
00:25:22,600 --> 00:25:24,240
Speaker 1: But yeah, it's part of the family.

537
00:25:24,600 --> 00:25:26,520
Speaker 2: Fantastic. Hey, it's been lovely spending some time with you.

538
00:25:26,600 --> 00:25:30,720
Speaker 2: Thanks very much, Thanks for watching and for listening. I'm excited.

539
00:25:30,760 --> 00:25:33,600
Speaker 2: It looks like it's Scott's shout. I finally get that

540
00:25:33,720 --> 00:25:34,320
Speaker 2: shared lunch.

541
00:25:34,640 --> 00:25:35,200
Speaker 3: Call me too,