WEBVTT - NZ’s second-biggest property developer isn’t who you think 0:00:00.240 --> 0:00:04.600 Essentially by twenty forty the population goes from four hundred 0:00:04.640 --> 0:00:07.000 thousand New Zealanders over seventy five to eight hundred thousand 0:00:07.040 --> 0:00:11.719 New Zealanders over seventy five. It's massive change in gemographic 0:00:12.039 --> 0:00:15.200 We're second largest home developer in New Zealand. I's aren't 0:00:15.200 --> 0:00:17.160 think for a time, but is the largest home developer 0:00:17.200 --> 0:00:19.640 in New Zealand. Yeah. Anything that can be done to speed stuff, 0:00:19.640 --> 0:00:22.919 are your time efficient means I can building villages faster. Yeah, 0:00:22.960 --> 0:00:25.759 the massive demographic push, I think you're going to find 0:00:25.760 --> 0:00:27.680 that this is not enough retirement village operators in New 0:00:27.760 --> 0:00:30.240 Zealand and fifteen years time and certainly there's going to 0:00:30.240 --> 0:00:32.200 be not enough care be it's in New Zealand, which 0:00:32.280 --> 0:00:33.280 is actually pretty sad. 0:00:36.280 --> 0:00:39.320 Krakoto. Welcome to Shared Lunch, brought to you by Shears's. 0:00:39.440 --> 0:00:42.120 I'm Garth Bray and today we're here in Saint John's 0:00:42.120 --> 0:00:46.040 in Auckland at the newest retirement village opened by Somerset. 0:00:46.120 --> 0:00:49.360 Now that's one of the three big listed operators of 0:00:49.400 --> 0:00:51.840 retirement villages in New Zealand, and we're here to speak 0:00:51.880 --> 0:00:55.080 to the CEO Scott's Schooler. More than fifty thousand New 0:00:55.160 --> 0:00:57.760 Zealanders call a retirement village home, but that is set 0:00:57.840 --> 0:01:01.280 to rise as our population ages. So what are Sumrset's 0:01:01.360 --> 0:01:04.560 plans to get a hit of that curve? Before I 0:01:04.600 --> 0:01:07.160 head up to the Penthouse to hear here's some important 0:01:07.200 --> 0:01:09.759 information you should always consider when investing. 0:01:10.160 --> 0:01:12.760 Investing involves the risk you might lose the money you 0:01:12.800 --> 0:01:16.080 start with, we recommend talking to a licensed financial advisor. 0:01:16.800 --> 0:01:20.640 We also recommend reading product disclosure documents before deciding to invest. 0:01:20.880 --> 0:01:23.280 Everything you're about to see and here is current at 0:01:23.280 --> 0:01:24.160 the time of recording. 0:01:25.040 --> 0:01:27.959 Scott, thanks for having us to the Penthouse. From the 0:01:27.959 --> 0:01:30.080 look of it, where are we bright now? What is 0:01:30.080 --> 0:01:32.920 the spot and what can taust about it? Yes? 0:01:33.000 --> 0:01:36.000 So look we bought the site and s John's probably 0:01:36.240 --> 0:01:39.240 twenty fifth day now and so it's been a long 0:01:39.319 --> 0:01:41.039 journey for us to get to this point where it's 0:01:41.040 --> 0:01:44.400 open and opened late last year. So yet it's going 0:01:44.440 --> 0:01:49.600 to be home to break close to three hundred residents. Good, 0:01:50.000 --> 0:01:52.960 so you're in a pink house. It's having there pretty 0:01:53.000 --> 0:01:55.200 much for sites got three sixty degree of view start. 0:01:55.480 --> 0:01:59.080 It's a lovely, lovely sites amazing as. 0:01:59.080 --> 0:02:02.600 Views and if you are looking to try to arrive 0:02:02.640 --> 0:02:04.160 in this kind of place obviously going to have to 0:02:04.200 --> 0:02:05.480 have a pretty good financial plan. 0:02:06.200 --> 0:02:08.920 Yes, so that's a lovely part about this collection. We 0:02:08.919 --> 0:02:11.760 tried to sort of match like aspiration and make it 0:02:11.840 --> 0:02:14.560 quite aspirational. So like hopefully when people been up here 0:02:14.600 --> 0:02:17.400 they feel like it's buk turning up to a hotel. 0:02:17.440 --> 0:02:21.160 It's at Fields Groove Formal. It has a lot appeal 0:02:21.240 --> 0:02:23.720 to it. It's got flop fine dining and it's got cafe, 0:02:23.880 --> 0:02:27.560 it's got heavy theaters, gyms, all the subur pools, things 0:02:27.600 --> 0:02:29.480 you can think of. The vast majority of the product 0:02:29.520 --> 0:02:34.600 probably arranges them about which there's a lot for parts 0:02:34.600 --> 0:02:36.959 of New Zealand. But like an Auckland's actually in this 0:02:37.080 --> 0:02:39.160 location is actually pretty portable because. 0:02:38.960 --> 0:02:41.760 You tend to match whatever offering you make here to 0:02:42.120 --> 0:02:45.600 whatever local proppery prices are doing because that's where people 0:02:45.600 --> 0:02:46.160 are coming from. 0:02:46.240 --> 0:02:48.640 Yeah, Essentially, like most people come into a time village 0:02:48.680 --> 0:02:52.640 within either two situations, either within a five K radios 0:02:52.720 --> 0:02:55.360 where they lived their lives or typically then they may 0:02:55.400 --> 0:02:57.520 be chaking a choice to move from a completely different 0:02:57.560 --> 0:03:00.480 location to be closer to family. But you'd find eighty 0:03:00.480 --> 0:03:03.120 percent of people would be within five kilometers, so you 0:03:03.240 --> 0:03:05.040 kind of want it to be highly affordable for those 0:03:05.040 --> 0:03:06.679 people to be able to sell their home, put a 0:03:06.680 --> 0:03:08.959 little bit of money in the bank and then come 0:03:09.000 --> 0:03:11.880 in and use that money to sort of enjoy retirement life. 0:03:11.960 --> 0:03:15.800 And so most of the time we're target ninety percent 0:03:16.240 --> 0:03:18.560 eighty five to ninety percent of the medium house price 0:03:18.600 --> 0:03:21.280 in terms of the products that we're building. 0:03:21.320 --> 0:03:24.400 It's interesting you mentioned that chain of needing to sell 0:03:24.400 --> 0:03:26.600 before you come into a place like this, because obviously 0:03:26.639 --> 0:03:29.240 the market's been a weabit so though probably more so 0:03:29.360 --> 0:03:32.160 than anywhere here in Auckland. How is that showing up. 0:03:32.320 --> 0:03:35.040 Yeah, Look, I think your right to pickle on the 0:03:35.080 --> 0:03:38.080 fact that I think people who's confidence to be able 0:03:38.080 --> 0:03:40.160 to sell their house has been quite constrained in the 0:03:40.240 --> 0:03:43.360 last twelve months, that hasn't really sort of borne out 0:03:43.400 --> 0:03:45.040 in terms of their desire to come into a village. 0:03:45.080 --> 0:03:47.080 So we've seen lots of inquiry, like we would have 0:03:47.120 --> 0:03:48.920 seen more inquiry the last twelve months than we have 0:03:49.480 --> 0:03:53.640 traditionally previously. So inquiries pretty by people's commitment to sales 0:03:53.720 --> 0:03:55.880 contract is really high, but they've been constrained at ticks. 0:03:55.920 --> 0:03:57.800 Why they're a bulleted sell our own home and so 0:03:58.440 --> 0:04:00.800 look some of that as people take choice to sort 0:04:00.840 --> 0:04:03.320 of sit on the beach and wake three months six months, 0:04:03.360 --> 0:04:05.400 but until they feel like they can actually sell their house. 0:04:05.680 --> 0:04:09.120 Sometimes we'll work with that resident to give them options 0:04:09.120 --> 0:04:11.680 to come in. So it might be like we have 0:04:11.680 --> 0:04:13.680 situations we will allow people to move in early. They 0:04:13.680 --> 0:04:16.839 can move in whilst they're still selling their home, get settled, 0:04:16.839 --> 0:04:19.080 which is really lovely for them, and then be out 0:04:19.080 --> 0:04:21.279 of the house while they're selling it. And so you know, 0:04:21.279 --> 0:04:24.160 at times we'll give them six months to do that, 0:04:24.400 --> 0:04:26.640 and that gives them the confidence to sort of say, right, 0:04:26.720 --> 0:04:28.520 I'm prepared to give that a go in some of 0:04:28.520 --> 0:04:30.240 my house and look, at the end of that six 0:04:30.279 --> 0:04:32.479 months period, if they still and sold their house, would 0:04:32.480 --> 0:04:34.119 work with them. It's not like they're going to get 0:04:34.320 --> 0:04:35.840 kicked out on the street, you know, like we want 0:04:35.839 --> 0:04:38.240 them to be living life here. And so you're just 0:04:38.279 --> 0:04:41.000 constantly working with people in their individual situations to figure 0:04:41.000 --> 0:04:44.280 out how you can help facilitate them coming in. And 0:04:44.279 --> 0:04:46.640 that's been hard. But with your economy in the last 0:04:46.640 --> 0:04:48.840 sort of six twelve months, it's not as I said, 0:04:48.880 --> 0:04:51.400 that people's desire to come and has changed. It's as 0:04:51.440 --> 0:04:53.600 you're just helping them sort of make that transition. 0:04:53.920 --> 0:04:56.120 Those terms, Are they kind of a new response to 0:04:56.160 --> 0:04:58.239 the conditions or is that something you've gone to before 0:04:58.240 --> 0:05:00.000 in other times where things are tricky because you've been 0:05:00.080 --> 0:05:01.919 around for a while, right as a company. 0:05:02.160 --> 0:05:04.599 Look, it's a good question. Most of them are things 0:05:04.600 --> 0:05:06.760 that you've used in the past. So, like you know, 0:05:07.000 --> 0:05:10.200 during COVID twenty twenty, it was the same sort of environment, right, 0:05:10.200 --> 0:05:12.760 people were predicting housing market it was going to be terrible, 0:05:12.760 --> 0:05:14.360 and to be honest, it wasn't actually as bad as 0:05:14.360 --> 0:05:17.479 people predicted. But it's those same types of tools that 0:05:17.520 --> 0:05:19.920 you pull out that just facilitate people to come into 0:05:19.920 --> 0:05:20.480 a village. 0:05:20.560 --> 0:05:22.360 I guess if you can tell me a bit more 0:05:22.400 --> 0:05:26.200 about Somerset particularly, like what would I see here that 0:05:26.240 --> 0:05:29.479 I wouldn't see it another retirement village operator's place. 0:05:30.120 --> 0:05:32.680 Yeah, Look, there's a few parts I think, like in 0:05:32.760 --> 0:05:35.360 terms of what we're proud of. Like the first one 0:05:35.440 --> 0:05:38.360 is we sort of pride ourselves that you come and 0:05:38.400 --> 0:05:41.080 live in a village where it's actually your home, so 0:05:41.560 --> 0:05:44.679 we treated as residents' homes. So like when our staff 0:05:44.680 --> 0:05:46.880 are here, they're ver even mindful of this is actually 0:05:46.880 --> 0:05:49.240 people's homes that they're sort of working with them. I 0:05:49.279 --> 0:05:51.839 think potentially that could be a different philosophy from other operators, 0:05:51.839 --> 0:05:53.400 where it's sort of more like this is our village, 0:05:53.440 --> 0:05:55.560 you're come to live with us, so you know, pretty 0:05:55.600 --> 0:05:58.159 much we stand in the background, facilitated as much as 0:05:58.240 --> 0:06:01.160 we can, but you know, almost try and be an 0:06:01.160 --> 0:06:03.280 extended member of their family to help out and stuff. 0:06:03.320 --> 0:06:07.320 But and so I think service like residents love their 0:06:07.320 --> 0:06:10.239 lives in our villages. Ninety seven percent of our residents 0:06:10.640 --> 0:06:12.960 are satisfied living in some set village, so we're very 0:06:13.000 --> 0:06:15.600 proud of that. The second thing is we build on 0:06:15.640 --> 0:06:19.520 a lot of Broadway locations, so you know, I think 0:06:19.560 --> 0:06:21.400 a lot of Keywis have grown up with the six 0:06:21.400 --> 0:06:25.840 and re scumiter section the grass. That's something we we 0:06:26.640 --> 0:06:28.840 like and enjoy building. So you know you'll see us 0:06:28.839 --> 0:06:31.560 in broad acre situations right throughout New Zealand. So we're 0:06:31.560 --> 0:06:34.120 probably the most geographically diverse of any operator throughout New 0:06:34.200 --> 0:06:37.680 Zealand and like to build homes that people can actually 0:06:37.720 --> 0:06:39.200 enjoy but agree in space obviously, when you come to 0:06:39.240 --> 0:06:41.159 a special place like this, you know you can't actually 0:06:41.240 --> 0:06:45.200 do that because you can't get enough land bututical village. 0:06:45.200 --> 0:06:46.800 But yeah, we are in a vertical village and we 0:06:46.800 --> 0:06:48.640 sort of only build one of those, probably eading a 0:06:48.680 --> 0:06:50.520 particular point in time, but most of the time it's 0:06:50.560 --> 0:06:52.640 broad acre villages. And the bit I love about that 0:06:52.800 --> 0:06:57.680 is that people got access to outdoor living pocket parks 0:06:57.920 --> 0:07:04.120 like barbecue is you name it, like mini gulf driving ranges, 0:07:04.400 --> 0:07:07.840 like there's just it's NonStop sort of ability for them 0:07:07.839 --> 0:07:10.920 to exist things and so we'll it be vegetable gardens 0:07:11.040 --> 0:07:13.720 is something the fever in and people's ability to then 0:07:13.840 --> 0:07:17.120 jump out of their home out the back door and 0:07:17.280 --> 0:07:19.480 kind of have their own little pattio area and stuff 0:07:19.840 --> 0:07:21.840 they can enjoy, their own little grass patch they can 0:07:21.880 --> 0:07:25.080 enjoys is quite special. So yeah, I think like there's 0:07:25.080 --> 0:07:28.960 a couple of things there, like you know, and I 0:07:29.040 --> 0:07:31.960 think probably the third thing i'd say is in kre 0:07:32.080 --> 0:07:35.880 like you know, we have integrated villages with care access 0:07:35.920 --> 0:07:38.520 on site and with that that's probably not that's pretty 0:07:38.520 --> 0:07:41.120 typical for New Zealand. Look, it's quite different for Australia, 0:07:41.200 --> 0:07:43.360 so we are quite different Australia on that regard. But 0:07:43.800 --> 0:07:49.200 in New Zealand, like here, we try and produce quite small, 0:07:49.440 --> 0:07:54.960 private homely care environments. So because when people are going 0:07:55.040 --> 0:07:56.800 through the latter part of their life and they need 0:07:56.840 --> 0:07:59.520 some care and support, I know, we feel like it's 0:07:59.520 --> 0:08:03.240 really important that they feel that that's an environment they're 0:08:03.240 --> 0:08:05.560 sort of safe, comfortable in. It's private, they have the 0:08:05.600 --> 0:08:07.600 same nurse every day, they have the same care giver 0:08:07.600 --> 0:08:11.600 every day, rather than a large hospital environment where each 0:08:11.680 --> 0:08:15.280 day you might be experiencing a different person looking after you, 0:08:15.600 --> 0:08:18.040 or you've got no privacy in the lounge because there's 0:08:18.080 --> 0:08:21.560 forty other people in there. So small private care facilities 0:08:21.600 --> 0:08:26.480 combined with broad acre living, combined with that sort of 0:08:26.600 --> 0:08:30.400 like lovely sort of service environment that we create, I 0:08:30.400 --> 0:08:32.280 think is kind of the three things that probably the 0:08:32.280 --> 0:08:33.040 most important to someone. 0:08:33.080 --> 0:08:35.560 Sat. All right, how's that working for the financials? Can 0:08:35.600 --> 0:08:37.280 you walk us through the numbers? I know you've you've 0:08:37.320 --> 0:08:39.959 fived you're half year pretty recently, so they'll all be fresh. 0:08:40.040 --> 0:08:40.520 I'm sure. 0:08:41.920 --> 0:08:45.720 Yeah. Look here last year, so we delivered our undern 0:08:45.800 --> 0:08:48.559 profit result of to earn six million dollars. That was 0:08:48.640 --> 0:08:51.040 up eight percent and to be honest, op eight percent 0:08:51.080 --> 0:08:53.160 in what i'd probably are my working career anyway, it's 0:08:53.160 --> 0:08:56.400 probably the hardest year I've experienced, and so for us 0:08:56.440 --> 0:09:00.199 to deliver a result up eight percenters, we feel is 0:09:00.200 --> 0:09:02.560 pretty credible. And I think at the same time balancing 0:09:02.559 --> 0:09:05.320 that with the ninety seven percent customer satisfaction and for 0:09:05.360 --> 0:09:08.040 our staff who are working for us as well, making 0:09:08.040 --> 0:09:11.480 sure that they are still engaged. And so we scored 0:09:11.520 --> 0:09:14.440 eight point one out of ten in our engagement surveys, 0:09:14.480 --> 0:09:17.959 which puts us in the top quartile of healthcare providers 0:09:17.960 --> 0:09:21.200 around the world. Getting that mix of sort of financial 0:09:21.200 --> 0:09:27.360 performance with good staff satisfaction, with engaged residents enjoying their 0:09:27.400 --> 0:09:30.200 lives living in our villages, that sort of trifector of 0:09:30.200 --> 0:09:31.880 things is really really important to us. But on the 0:09:31.960 --> 0:09:35.640 look on the profit side of things, that was really 0:09:35.720 --> 0:09:40.040 driven by the popularity. So we talked before about people's 0:09:40.040 --> 0:09:42.280 struggles coming into our villages. But you know, if yet 0:09:42.360 --> 0:09:45.720 you look underneath the profit results, new sales were up 0:09:45.760 --> 0:09:50.320 about five percent. Resales that's homes that people previously lived in, 0:09:50.920 --> 0:09:53.760 they were up twenty percent, So you know, the core 0:09:53.840 --> 0:09:56.000 sales for the company was still up twour percent, which 0:09:56.080 --> 0:09:59.560 was in a pretty dire property market. So that was 0:09:59.640 --> 0:10:02.240 sort of the genesis of the profit performance. At the 0:10:02.240 --> 0:10:04.920 same time, we were being pretty careful and cautious about 0:10:04.920 --> 0:10:08.640 making sure that we managed spend. Operating costs out there 0:10:08.640 --> 0:10:11.400 are pretty crazy for New Zealanders in general, but it's 0:10:11.400 --> 0:10:13.400 the same thing for a time village operators. It doesn't 0:10:13.400 --> 0:10:16.480 matter whether it's rates, insurance. Trying to constrain some of 0:10:16.520 --> 0:10:18.480 those costs as well at the same time as making 0:10:18.480 --> 0:10:20.400 sure that we delivered that great experiences sort of key 0:10:20.480 --> 0:10:20.800 for us. 0:10:21.360 --> 0:10:23.600 Yeah, I'm just sort of looking around. I guess we've 0:10:23.640 --> 0:10:27.760 seen two of your competitors effectively going to private equity, 0:10:28.360 --> 0:10:31.120 you know, another one sort of if we're frank struggling 0:10:31.200 --> 0:10:33.920 we bit with an equity raise that's just finished. Are 0:10:33.960 --> 0:10:36.000 you still ruling out the need for that kind of 0:10:36.000 --> 0:10:36.640 capital raise. 0:10:37.240 --> 0:10:39.480 Yeah, look for our growth plans at the moment, we 0:10:39.520 --> 0:10:43.560 don't need to raise capital. Essentially, the way ours, our 0:10:43.800 --> 0:10:46.000 sort of development cycle works maybe a little bit different 0:10:46.000 --> 0:10:48.240 to some of the other operators. So when we build 0:10:48.240 --> 0:10:52.520 a broad acre site, essentially it might cost us to 0:10:52.559 --> 0:10:54.440 say one hundred and fifty million dollars to build that 0:10:54.559 --> 0:10:57.360 site the time. That what our aim is. So when 0:10:57.360 --> 0:10:59.640 we buy a piece of land, our aim is essentially 0:10:59.679 --> 0:11:02.120 to get all that money back through the first sale 0:11:02.120 --> 0:11:05.200 of those homes in that villages. So we won't purchase 0:11:05.200 --> 0:11:07.839 a bit of land and start construction if we don't 0:11:07.880 --> 0:11:11.439 think we can recycle our money out after we've basically 0:11:11.520 --> 0:11:13.440 built a village and sold it down for the first time. 0:11:13.559 --> 0:11:15.679 And so we don't as a business have any core 0:11:15.760 --> 0:11:19.720 debt that sits there. All our debt is essentially land 0:11:20.679 --> 0:11:24.840 working capital for building villages that are half complete, and 0:11:24.880 --> 0:11:26.640 then stock that we own when we're just as we're 0:11:26.640 --> 0:11:28.840 going to sell it down. So if you think about that, 0:11:28.960 --> 0:11:31.520 like if we were, you know, West Case Scenariot to 0:11:32.480 --> 0:11:33.920 shut the doors and say we're not going to build 0:11:33.920 --> 0:11:36.840 any more homes, the company would have no sort of coredette, 0:11:36.880 --> 0:11:40.600 whereas I think you know probably and that we feel 0:11:40.679 --> 0:11:42.800 is a bit of a differentiative for us, And so 0:11:43.280 --> 0:11:47.600 we can essentially go as fast as we like, as 0:11:47.600 --> 0:11:50.160 long as we're sort of keeping in mind that we 0:11:50.200 --> 0:11:53.240 want our number one ambition is to sort of recycle 0:11:53.240 --> 0:11:54.640 that capital back out of each project. 0:11:54.880 --> 0:11:56.679 You don't feel extra pressure to sort of step it 0:11:56.760 --> 0:11:58.760 up a little bit and maybe leverage a little bit 0:11:58.760 --> 0:11:59.960 more and go and grow a little quicker. 0:12:00.160 --> 0:12:02.240 And I think there's always a challenge there about can 0:12:02.280 --> 0:12:04.520 you build faster? Should we build faster? And I should 0:12:04.520 --> 0:12:06.360 we build faster? In Australia, I think as a business 0:12:06.400 --> 0:12:07.640 we've just got to do the right thing for the 0:12:07.640 --> 0:12:09.480 company at that particular point of time in the cycle. 0:12:09.640 --> 0:12:12.600 So you know, we give twelve months guidance on build rates, 0:12:12.600 --> 0:12:14.520 but we're not afraid to like slow that down. So 0:12:14.640 --> 0:12:16.960 last year, in the first part of the year, you know, 0:12:17.000 --> 0:12:19.240 we came out and said, hey, economy is not so good, 0:12:19.280 --> 0:12:21.160 property market's a bit harder, We're going to build fifty 0:12:21.200 --> 0:12:23.760 less homes. And it's much the same during good time. 0:12:23.840 --> 0:12:26.360 Better times, we would do the same thing. We'd sit 0:12:26.400 --> 0:12:29.880 there and say, hey, we can't get enough product and 0:12:29.920 --> 0:12:32.040 people are cuing up at the door, like let's say 0:12:32.040 --> 0:12:34.080 I should build some more homes in each village. And 0:12:34.160 --> 0:12:37.840 so it's about of keeping the company really sound and 0:12:37.880 --> 0:12:40.680 financially sort of stable for the conditions that you're trading 0:12:40.679 --> 0:12:43.240 with in and so we're very remindful of that, and 0:12:43.559 --> 0:12:47.000 we meet and have conversations as a leadership team about 0:12:47.000 --> 0:12:50.439 things like build rates every six weeks. So that's us 0:12:50.440 --> 0:12:52.959 just constantly sitting there and saying what's the economy, doing 0:12:53.320 --> 0:12:56.319 what's property market, doing what's house sales like in each 0:12:56.320 --> 0:13:00.000 one of our villages, and just applying focus to that constantly. 0:13:00.960 --> 0:13:04.880 So it is it. Look, there's always there's always pressure there, 0:13:05.040 --> 0:13:09.400 like asn't as a leadership team, we're pretty competitive, want 0:13:09.520 --> 0:13:12.760 to build more, want to generate a better return for shareholders. 0:13:12.760 --> 0:13:14.400 But at the same time as you're going to be 0:13:14.480 --> 0:13:16.720 careful around making sure that the balance sheets always strong 0:13:16.760 --> 0:13:17.120 as well. 0:13:17.200 --> 0:13:19.840 I just can't help thinking about the announcements this week 0:13:19.880 --> 0:13:24.560 around development contributions and around checking up the roma ye 0:13:25.360 --> 0:13:28.280 widely spoken about is good news for people who like 0:13:28.320 --> 0:13:30.880 building things? You people who like building things? Is it 0:13:30.920 --> 0:13:31.720 good news? 0:13:32.559 --> 0:13:38.559 Look a couple of things there. Development contributions are pretty 0:13:38.600 --> 0:13:42.840 pretty burdensome for large operators. If you think about like 0:13:43.040 --> 0:13:45.080 the infrastructure for this village and everything we do in 0:13:45.080 --> 0:13:50.560 this village. You know, like people probably don't have a 0:13:50.559 --> 0:13:54.800 lot of need to kind of access other services throughout Auckland, 0:13:54.920 --> 0:13:58.120 which was from what you're paying for with those development contributions. 0:13:58.160 --> 0:14:02.640 But it's and look at probably a little bit skeptical 0:14:02.679 --> 0:14:04.839 around some of the changes and freeing stuff up and 0:14:04.880 --> 0:14:07.280 making it better. Like we've seen the fast track process, 0:14:07.320 --> 0:14:10.240 which we've used probably now since COVID there was some 0:14:10.360 --> 0:14:13.280 legislative fast track fast track process to build big projects. 0:14:13.840 --> 0:14:17.079 And to be honest, that fast tracked projects process is 0:14:17.120 --> 0:14:18.920 almost at the point now where it's slower than the 0:14:18.960 --> 0:14:22.240 slow track process. And so you know, it's interesting in 0:14:22.320 --> 0:14:26.160 that I think sometimes you can see these good intentions 0:14:26.160 --> 0:14:29.840 come in, but they need to actually practically work, and 0:14:30.520 --> 0:14:34.640 so yeah, the magic and this and that will be 0:14:34.760 --> 0:14:36.920 actually how they actually operationalize that in a way that 0:14:36.960 --> 0:14:38.040 actually practically works. 0:14:38.120 --> 0:14:38.520 I think. 0:14:39.160 --> 0:14:41.000 So we're in the sidelines and sort of just way 0:14:41.040 --> 0:14:42.680 to really I guess. 0:14:42.680 --> 0:14:45.360 I mean, you're a nationwide builder, so the idea that 0:14:45.360 --> 0:14:47.800 they're potentially going to simplify things so that there's more 0:14:47.880 --> 0:14:51.360 uniform codes around construction just makes a bit more sensible. 0:14:51.800 --> 0:14:54.520 Yeah, look love the theory behind it. And you know, 0:14:54.560 --> 0:14:57.520 like we're second largest home developer in New Zealan NOWS 0:14:57.560 --> 0:14:59.200 proably wouldn't think for a time of the rotor think 0:14:59.320 --> 0:15:02.520 largest th home developed New Zealand. So you know, yeah, 0:15:02.600 --> 0:15:05.400 anything that can be done speed stuff up. Essentially, you know, 0:15:05.440 --> 0:15:07.360 it's a better use of capital for us, more time 0:15:07.400 --> 0:15:10.760 efficient means we can build more villages faster. It is 0:15:10.960 --> 0:15:15.040 just in the practicality of with which yeah they implement 0:15:15.120 --> 0:15:15.560 this stuff. 0:15:15.720 --> 0:15:19.240 You don't acquire other properties then, really do you? You 0:15:19.280 --> 0:15:21.640 don't go into an existing operator and say will heed 0:15:21.720 --> 0:15:24.760 you to take you on? What is that a conscious choice? 0:15:24.800 --> 0:15:27.360 That's just not part of pretty conscious choice. 0:15:27.440 --> 0:15:29.400 Like the only time we've done that is in Nelson, 0:15:30.040 --> 0:15:32.520 we bought a village that the first ten to twenty 0:15:32.600 --> 0:15:36.160 homes been built already by another operator, and then when 0:15:36.200 --> 0:15:38.800 I brought that off them. But typically if you come 0:15:38.840 --> 0:15:40.920 back to that sort of conversation before about the business 0:15:41.000 --> 0:15:43.320 model and essentially what we're doing is building those homes 0:15:43.360 --> 0:15:45.400 and recycling our money back out of it via selling 0:15:45.440 --> 0:15:47.880 them down. If you have to go pay another operator 0:15:47.880 --> 0:15:50.680 who's already built a village to purchase their village, you 0:15:50.760 --> 0:15:53.040 can't recycle your money back out of that. And so 0:15:53.240 --> 0:15:56.320 you would have to keep going to shareholders and saying, hey, 0:15:56.560 --> 0:15:58.240 you know, I want to go buye these great set 0:15:58.280 --> 0:16:00.920 of retirement villages, but we need some more money for 0:16:01.040 --> 0:16:02.880 you to do that. And so when you look at 0:16:02.920 --> 0:16:07.440 the merits of that versus organic growth, organic growth is 0:16:07.760 --> 0:16:10.200 way more efficient. It generate's a better return because the 0:16:10.280 --> 0:16:13.800 investor hasn't had to putting more money in. So yeah, 0:16:13.880 --> 0:16:15.840 we our preference most of the time is. 0:16:15.880 --> 0:16:18.160 To build, provided you can get the land. 0:16:18.600 --> 0:16:21.760 Yes, but you know, to be fear on that. We've 0:16:21.800 --> 0:16:24.800 got seven thousand homes in our land bank, and so 0:16:24.840 --> 0:16:26.760 if you think of us as a business, we've got 0:16:26.960 --> 0:16:30.200 seven thousand homes built, So you know, like our landbank 0:16:30.280 --> 0:16:32.200 enables us to double in size. And if you think 0:16:32.200 --> 0:16:36.480 about through the worst part of the economic cycle last year, 0:16:36.640 --> 0:16:41.240 we're building seven hundred homes. Seven hundred homes, you've got 0:16:41.320 --> 0:16:43.720 ten years worth of build supply if you kept at 0:16:43.760 --> 0:16:46.600 that level. But in ten years time, the size of 0:16:46.600 --> 0:16:48.400 the company is going to double. The value of the 0:16:48.400 --> 0:16:51.400 company is going to double, and hopefully the shephros for 0:16:51.520 --> 0:16:52.960 the shareholders will double as well. 0:16:53.120 --> 0:16:55.640 So it's doubled twice in the time that you've been 0:16:55.920 --> 0:16:59.040 with the company, either a CFO and CEO. Is that 0:16:59.120 --> 0:16:59.520 about right? 0:17:00.040 --> 0:17:03.400 When I joined, it was two dollars later. Yeah, so yeah, 0:17:03.440 --> 0:17:06.720 it's probably four times. Yeah, in terms of assets, I 0:17:06.760 --> 0:17:09.960 think it's no, there's no reason why that shouldn't continue 0:17:10.000 --> 0:17:12.320 because if you think about, you know, you're building these 0:17:12.359 --> 0:17:15.720 assets and effectively there's sort of free assets. Once you've 0:17:15.960 --> 0:17:18.920 sold them down the ANTIA the company goes up. And 0:17:19.000 --> 0:17:20.760 if you track, you know, the NTIA have a company 0:17:20.800 --> 0:17:23.200 relative to our share price, it's a pretty sort of 0:17:23.240 --> 0:17:26.040 consistent track. So you know, the moment the share price 0:17:26.119 --> 0:17:28.120 is twelve dollars, you know, one would like to believe 0:17:28.160 --> 0:17:30.760 and hope that if the companies twice as big in 0:17:30.800 --> 0:17:32.679 two years time, maybe the share price might be more 0:17:32.920 --> 0:17:34.800 double that and it might be twenty four dollars rather 0:17:34.800 --> 0:17:36.720 than twelve dollars. But you know that's if you're sort 0:17:36.720 --> 0:17:38.400 of sit if your track over the last twelve years, 0:17:38.840 --> 0:17:40.680 that's the sort of history of what the company's been on. 0:17:40.880 --> 0:17:43.720 So that's that's the goal that we're chasing. 0:17:44.080 --> 0:17:46.040 Is that achievable just with the kind of organic growth 0:17:46.080 --> 0:17:49.159 you're talking about here in New Zealand with the sites 0:17:49.200 --> 0:17:52.200 that you've bought most recently, or are you looking increasingly 0:17:52.359 --> 0:17:54.359 that you are going to have to make good on 0:17:54.440 --> 0:17:57.600 the talk of development, you know, taking those agressive opportunities 0:17:57.640 --> 0:18:01.800 perhaps or growth opportunities in Australia. 0:18:02.400 --> 0:18:05.080 Yeah, look, we're pretty comfortable, Like I mean, I think, 0:18:05.200 --> 0:18:07.160 you know, doubling the size of the company in ten 0:18:07.280 --> 0:18:09.719 years isn't a bad thing, like for a company our 0:18:09.720 --> 0:18:11.200 size anyway, it's probably not a bad thing. I don't 0:18:11.240 --> 0:18:14.000 want to sound complacent, but I think during the better 0:18:14.119 --> 0:18:15.760 times in the property market in New Zealand, you know 0:18:15.960 --> 0:18:19.159 you might have ambitions to build exponentially faster in New Zealand. 0:18:19.200 --> 0:18:21.000 So we've got the land bank to do that, and 0:18:21.080 --> 0:18:24.600 it's pretty well consented. So you know, we don't have 0:18:24.640 --> 0:18:26.640 a lot of barriers to stop us building faster because 0:18:26.640 --> 0:18:29.760 we're broad acre developers. We've got fifteen villages we're building 0:18:29.760 --> 0:18:32.399 any particular point in time. If you chose to build 0:18:32.440 --> 0:18:36.200 ten more homes on each village, you know, demand's really high. 0:18:36.560 --> 0:18:38.080 All of a sudden you lift the build up one 0:18:38.200 --> 0:18:40.639 hundred and fifty homes. That's quite material, right, that's a 0:18:40.680 --> 0:18:42.280 twenty percent left and build rate in New Zealand. And 0:18:42.320 --> 0:18:44.080