day, and welcome to the Oceania Healthcare FY 'twenty one Results Announcement Conference Call. At this time, I would like to turn the conference over to Brent Patterson, the CEO of Oceania Healthcare. Please go ahead, sir.
Yes. Good afternoon, everyone, and welcome to Oceania's results briefing. My name is Brent Patterson, the CEO at Oceania, and I'll be joined by Catherine Waugh, our new CFO. You'll see on the front cover of our presentation, we have led with believe in better. And certainly for us, this is more than a catchphrase.
It signals our intent to build upon past achievements and challenge ourselves to do even better in the delivery of resident experience. The positive impact we can make on our local communities, program growth for the business, shaping perceptions around aging and being alert to our carbon footprint as well as being a great place to work. We are pleased to update you on the 10 month trading period to 31st March 2021. We will touch on what has been happening in the business an update on our strategy and our developments. Catherine will cover the financial results in more detail, and we certainly look forward to having time at the conclusion of the presentation for some Q and A.
If you turn with me to Slide 3, this is our first financial results presentation since we changed our full year balance date to 31 March. Historically, it has been a 31 May year end. The financial result contains a shorter full year period of 10 months and covers the trading period 1 June 2020 to 31 March 2021. We have included the 10 month comparative period information for investors and analysts. We're certainly pleased to observe that both of our underlying metrics being underlying earnings before interest, tax, depreciation and amortization, EBITDA, and net profit after tax NPAT are up 7.9% and 4.4% respectively on prior 10 months period.
This has been underpinned by record sales volumes, strong key performance and successful delivery of new developments, which we will touch on in the coming slides. The right hand side of the slide, we have included a COVID-nineteen graphic to aid investors and analysts with the impact of the various alert level lockdown restrictions have had on our business activity. In our prior reported period for the 12 months to 31 May 2020, there were 50 days of alert level 3 or higher restrictions and you'll see those in footnotes 12. In our 10 months to 31 March, there were a further 53 days of alert level 2.5 or higher restrictions and are contained in our footnotes 3 through to 6 and in the 10 month pro form a comparative period to 31 March 2020, there was little impact as only 5 days of alert level 4. Turning to Slide 4 and the 10 month trading highlights.
The 10 month trading period has been a busy and successful time for the business. We've delivered an increase in our premium revenue strategy, a steep change in our sales volumes and strong underlying EBITDA growth, increases on both 10 month prior corresponding period, PCP, and pleasingly more than our full 12 month period to May 2020. Our growth in premium revenue to $35,200,000 for the 10 month period is a strong proof point of our intentional investment in premium care. Dollars 13,100,000 of care DMS and PAC revenue, up from $9,400,000 PCP and strong new and resales in our Village segment with DMF revenue of $22,100,000 up from $18,100,000 PCP. Sales volume, development margin and resales were the key drivers of the 7.9% lift and underlying EBITDA to $56,200,000 from $52,100,000 PCP.
Total assets increased to $1,900,000,000 both a reflection of our continued capital investment of $102,000,000 in new and existing sites and changes to CBRE's valuation assumptions that largely reduce the COVID-nineteen input assumptions. We turn to Slide 5 and talk about aged care and record sales volumes. In our aged care business, we now have 847 care suites in our existing portfolio. And this establishes a strong position for us in the market with this product offering. The care suite supplies both efficient recycling of capital at first time sale and growing annuity income from the deferred management fees on occupational right agreements.
Our HQ business has delivered a near 20% increase in care earnings per bed to over $9,500 per annum compared to 8,800 dollars earnings per bed in the previous period. If we include the development margins and resales, we've seen an 11% lift in our earnings per bed to $17,600 per annum. Our premium beds or care suites now represent approximately 55% of our total care portfolio nationwide, up from 34% at the time of the IPO in 2017. We completed 132 new care suites across 2 sites during the 10 month 2021 period, and we have a further 144 care suites under development right now. Record sales.
Despite the shorter 10 month reporting period, we recorded 388 total Aura sales to 31 March 2021, an increase of 9% or 33 units and care suites on a full 12 on the full 12 month FY 2020 period. When we look at that on a 10 month PCP basis, we've achieved more than 25% growth in volumes across ILUs and Care Suites. Our new sales of 194 included over 75% of sales outside the Auckland region. We had guided to moderation in our development margin as we move outside the Auckland region, but pleasingly our development margin remains strong at 26% despite this more regional bias. The new sales included Villa, Apartment and Care Suite sales at Graceland, which is in Hastings, Green Gables and Nelson, Eldersley and Upper Hut, the Bayview and Tauranga and Awateri and Hamilton.
Our resale volumes of 194 were up 17% on the full year 2020. Prices achieved on Villa, Apartment and CareSuite were all up on a full year 2020 basis and more detail on this is contained within the slide deck, Page 21. If we now think about development and the recent acquisitions, we delivered 2 17 units and key suites across our brownfield portfolio in 3 geographical regions despite the loss of 53 days disrupted by alert level 2.5 restrictions or higher and the shortened 10 month trading period. As at 31 March, we had 394 Villas, apartments and care suites under construction across 5 regions and 2.21 of these are due for completion in the full year to 31 March 2020. 49 of these have already been secured through the completion of a new premium apartment block at our Eden site in Auckland in April.
Our remaining development pipeline of 19 56 units and care suites is 75% consented and has been complemented by the recent Brownfield and Greenfield acquisitions of Waterford and Franklin respectively. Our development team continued to demonstrate their ability to deliver projects on time and on budget, which provides the business with a very clear growth pathway over the coming years. Turning to acquisitions and the capital raise. We successfully completed an oversubscribed $100,000,000 capital raise in March 2021 to fund 2 quality acquisitions. This equity raise was undertaken by way of an $80,000,000 placement and a $20,000,000 retail offer.
It was great to see existing and new shareholders supportive of our growth. The acquisition of Waterford on Hopsonville Point provides us with an attractive Auckland location, quality built form of villa and apartments and a vibrant resident population. The existing site offers surplus land that has resource consent to develop circa care suite and apartment units. The acquisition of Franklin and Pukakaui is a 6.1 hectare greenfield site, currently with a small existing leasehold, which we operate on behalf of the Methodist. This site offers an opportunity to develop circa 215 units and key suites when complete.
Turning to the dividend, the directors have declared a final dividend of $0.021 per share. This is not imputed and brings our total dividend for the year to $0.034 per share, representing a 55% payout ratio of underlying net profit after tax, which is in line with board policy. The dividend reinvestment plan will continue to apply. Turning to Slide 7 and just an update on our strategy. Our strategy of premiumization of aged care and unlocking additional yield through site optimization continues to be a key feature of Oceania's strategy.
The graphic shows the steady annuity progress of our earnings and the status of our brownfield development. From consent to ramp up is traditionally a 5 year cycle. In our CareSuite portfolio, we have significantly progressed the proportion of those bid numbers that are now achieving greater than $10,000 a bid. In the past, we have disrupted short term earnings to deliver high yielding earnings per bed or site optimization. In our future planned and commissioned bed numbers, we have less of this disruption as we are largely building new CareSuite product on vacant or available land versus room conversion.
And recent examples include Bellevue, Green Gables and Lady Ellum. In our development pipeline across both Keyer and Village, we have 19 56 beds and units. There were 394 under construction at balance date and will progress to maturity of earnings or first time development margin capture in the next couple of years. Since the IPO in May 2017, we have delivered nearly 800 new independent living units and care suites to the market, including the opening of 6 premium aged care centers at Meadowbank in Auckland, the Sands, which is also in Auckland, the Bayview and Tauranga, Awateri and Hamilton, Green Gables and Nelson and the Bellevue and Christchurch. These developments and the subsequent sell down have materially contributed to the group's 105% growth in total assets to over $1,900,000,000 for that period.
Slide 8, just an update on our developments before we get to the pictorials. It's been a busy year for our development and property team, and we are pleased despite ongoing COVID-nineteen disruptions to deliver 2 17 units and care suites. This was the amount of new delivery we intended build over our full 12 month period, but we're very pleased to achieve that result with a shorter 10 month trading period. And I'll talk to each of the completed developments on the coming slides. Our future development is on track and as at 31 March, we were actively underway on a further 3 94 units and care suites over 7 sites across New Zealand with 221 scheduled for completion in the full year 2022.
We have consents in place for 75 percent of our total development pipeline, which has recently increased to 19.56 with the addition of our 2 recent acquired sites, Waterford and Franklin. Slide 9, on to the photos. We delivered 2 17 units in care suites in 10 months to 31 March 2021. These are across three sites, Green Gables and Nelson, the Bayview and Tauranga and the Bellevue and Christchurch. Green Gables has 28 apartments and 61 care suites.
It's a highly desirable city location in Nelson surrounded by leafy suburban streets. The site has strong local demand and very little competition. It has been well received by the local community, both in terms of design and quality. And we have seen strong inquiry and more than 70% of available apartments are sold. The Bayview Stage 2A is a further 35 apartments and community center.
This is a flagship property for us and it's located on the slopes of Jidea in Tauranga. It has commanding views towards the Mount and Otamotai Basin. The community center provides excellent amenity, including an indoor swimming pool and large outdoor living area. This sits alongside the key development on-site that is full and has waiting lists. Stage 2B of the Bayview unit development is scheduled for completion in the second half of full year twenty twenty two and will deliver a further 39 premium apartments.
Lastly, the Bellevue and Christchurch was only recently completed and consists of 22 units and 71 care suites. It's located on the popular Windermere Road and there is good demand for aged care in that region. During the build phase, we were able to save the memorial trees and these form part of a shared garden space that both the care and independent living residents can enjoy. We have a further stage of 46 apartments commencing in full year 2022. Slide 10.
I'm now going to quickly cover the FY 'twenty two schedule completions. We have 2 21 units in care suites. First photo, Eden. Our Eden site already has 67 care suites and 40 units. The site is already delivering strong care earnings per bed at circa $23,000 per annum that's largely full and has waiting list.
In April 2021, we completed the construction of 49 luxury apartments and a new community center on the land that we bought adjacent to our Eden Village with initial sales and applications underway. Lady Ellum is in Milford and has 113 Kia Suite development scheduled for completion in the second half of full year twenty twenty two. You'll see from the photo that the building works are significantly advanced with the superstructure proceeding already up to roof level. The completion of this new key development will enable further site optimization. In addition to these 2, we had 39 apartments of Stage 2B at the Bayview, 18 villas at Graceland and Hastings and 2 villas at the Stoke at Stoke and Nelson.
Other developments under construction, Slide 11. Other significant developments under construction include Wymery Street, which is in St. Halliers Bay in Auckland and Awatiri Stage 2 in Hamilton. Wymerie Street is a premium greenfield site and highly visible on the slopes of St. Helios Bay.
Groundworks are well underway. It's one of Auckland's most superior locations with 360 degree views of Auckland and its surrounding harbors. The site will deliver us 79 units and 31 care suites, and we have had a high level of interest with a significant number of inquiries already registered. Just as importantly for Mark Stockton, our Group General Manager of Property and Development, the site also boasts the largest tower crane in New Zealand and it's great for marketing as well. Awatiri Stage 2 construction is well underway for 63 units and community center on Stage 2.
The property is well located. It's nestled near Millen Park and the banks of the Waikato River. The construction is scheduled for completion in our full year 2023. And you can see from the photo that the construction works are well progressed. Onto acquisitions.
The recent acquisitions of the Waterford Property and Franklin Land Bank signal a pivot in our strategy. Firstly, to the identification and prosecution of value accretive M and A and secondly, to growing our Greenfield presence. The Waterford property is situated at the entrance of Hopsonville Point, the master planned and highly sought after community in the Auckland region. The acquisition represents a highly attractive brownfield bolt on to Oceania's existing platform. It comes with no immediate additional operational cost.
The site offers 2 further areas of development. We have concept plans advanced for the site and resource consent in place, so we can get underway with circa 60 units and care suites, delivering a greater yield on the site. We took position on the 23rd April, 2021 and have already secured a couple of new sales of apartments and applications. The villas on-site are 100% occupied. Turning to Franklin.
Franklin has a 4.1 hectare greenfield site in Puka Coli, plus we have purchased the adjoining 2 hectare site, of which we currently operate a key facility on behalf of the Methodist. Franklin is a key location in the broader Auckland region and part of the fast growing Southwestern corridor. We have developed concept plans for the site and with a mixture of villa, apartment and care suites are expecting to deliver circa 2 15 units and beds. These acquisitions will be settled using the proceeds of our recent $100,000,000 capital raise. And lastly from me before I hand over to Catherine to discuss the financial results.
We've set out the future outlook for our portfolio when it is fully developed. The right hand side graphic shows the existing portfolio, I. E, what we have delivered to date, then the development pipeline, I. E, what lies ahead for us, and lastly, our post development portfolio, I. E, our future state.
Our existing portfolio is roughly split fifty-fifty between premium and non premium units and care beds. The care suite component represents about 21% of total existing product. We had 1459 total units in care suites that are consented and under construction with a sixty-forty development pipeline bias to units. We have traditionally built care suites first from the reclaimed rest home and or care offering on our brownfield sites in order to free up the high yielding land for future apartment and villa development. In our completed future state, we will have roughly a fifty-fifty split towards unit and the Kia product.
Within the Kia product, it will also be split fifty-fifty between Kia beds and Kia suites. The total portfolio will have a seventy-thirty split between premium and non premium units and care and deliver over 5,500 units and beds across New Zealand. I'll now hand over to Catherine to run through the financial results.
Thank you, Brent, and good afternoon, everyone. I've been involved with the Oceania business for coming up to 12 years now, and it's great to be presenting the 10 month results today. Brent has spoken about our brand, the development pipeline, superior care earnings and continuation of strategy. I will now cover off an overview of the key financial results by segment and some of the key metrics with regard to sales and capital structure. Although I won't touch on them today, we have also provided further detail in the appendices of our presentation.
Moving firstly to Slide 15, Brent touched on the change of balance date right at the beginning of this presentation. As we mentioned, the majority of our presentation talks to the 10 months of trading, which also represents our statutory position as can be seen in the full financial statements. In addition, on this slide, we provide the details of the 12 month pro form a to March 2021 as compared to a pro form a 12 month to March 2020, noting that the 12 months to March 2021 include all COVID lockdown periods and as such are impacted by the full COVID effect. When running through GAAP information in the next few slides, we have the 12 months to May 2020 as a comparison. When discussing the non GAAP results of underlying earnings, we've provided 10 months to 31 March 2020 comparators.
Moving now to the income statement. Total comprehensive income of $167,800,000 was up significantly when compared to $9,900,000 in relation to the 12 months to May 2020. The material contributor to this positive result was the reversal of COVID-nineteen valuation assumptions contained within the March CBRE valuation. This has resulted in favorable fair value movements in both our investment property, which I will refer to as IP, and our property, plant and equipment, which I will refer to as PPE. There has been a positive change in the fair value of IP of 80 $3,100,000 This movement has been driven by an improvement in CBRE's valuation of the operator's interest, which reflects the value of future deferred management fees and retail gain cash flows from the Village portfolio, as well as positive impacts from the new developments of the Bayview, the Bellevue and Eden being valued on an as complete basis for the first time.
At the time of our FY 2020 results last year, CBRE's valuation of IP reflected adverse changes to key assumptions resulting from a point in time valuation being undertaken with a COVID lens. At our 30 November 2020 interim results, CBRE had reversed some of these key assumption changes and now at 31 March, these COVID valuation impacts have been unwound in full. We've highlighted these in the table to the right hand side of the slide. Firstly, property price growth rate in year 2 has returned to pre COVID levels of 1%, back up from 0% and now back to historical levels. In year 1, it has increased to 2%.
It was historically 0. Secondly, discount rates have reduced by 12.5 basis points across a large portion of the portfolio, reflecting a return to pre COVID levels, having been increased by 12.5 basis points and 25 basis points across the portfolio last May. Further supported at the total comprehensive income level, there has been a change in fair value of property, plant and equipment. Valuation improvements across many of our key care sites, reflecting the reduced discount rate, tenure changes, increase in EBITDA per bed and also the positive fair value movement for the newly completed care suites at the Bellevue. Turning now to operating revenue of 175,400,000 dollars We have seen continued growth in our Care business, which is favorably impacting increased reoccurring revenue of $13,100,000 in relation to the CareSuite deferred management fees and PAC revenues.
Village DMF is also continuing to experience strong growth as such group DMF, so Village UnCareSuite for the 10 month trading period was 8% higher than the full 12 month FY 2020 period. Operating expenses of $162,900,000 for the 10 months to March reflects the continued investment in staffing, patient welfare, particularly in relation to how development sites are ramping up in addition to COVID response across our facilities. The depreciation expense on buildings was $8,600,000 Our CareSuite assets are treated as PPE and therefore depreciated. We'll continue to see growing depreciation expense as we build out our pipeline of premium high value care suites. By comparison, if our care suites were treated as IP, our build in depreciation expense would have been $6,200,000 lower.
Lastly, taxation benefit of $10,400,000 We hold $86,900,000 of tax losses off balance sheet. Each year, we recognize a portion of these losses as a deferred tax benefit to offset any tax expense, mainly relating to fair value movements of our property assets. Moving now to Slide 17. This slide provides a reconciliation of reported debt profit after tax to our underlying GAAP and underlying EBITDA, which are non GAAP measures. These measures are important as they remove fair value movements and capture the actual realized gains achieved on resales and realized development margin on new sales at our site.
To be clear, with the change in our balance date, the underlying EBITDA position of $56,200,000 reflects a 10 month period and we're comparing to a 12 month period on the left hand side of this table. The right hand side of the slide provides a segmental EBITDA view with a like for like 10 months to March comparison. Of importance to note this year is the change which has been made to our definition of underlying profit. This change was previously discussed at the time of our interim results. In order to better align to our peers who recognize CareSuite's IP as opposed to PPE, we now include an adjustment to remove depreciation in relation to CareSuite.
As you can see from the slide, this has had an impact of increasing the underlying NPAT by $6,200,000 in the current period and $6,000,000 in the comparative. Underlying EBITDA in respect to the 10 months to 31 March 2021 of $56,200,000 includes good levels of new sales and retail despite operating in a COVID-nineteen environment where as we mentioned at the start, the 10 months included a significant portion of days where restrictions were in place. Overall underlying impact is $41,800,000 for the 10 months to March 21. Turning to retail gains and development margins. Strong retail gains of $17,900,000 for the 10 months exceed those of the 12 month comparative, up $6,400,000 on PCP.
This is a result of strong retail volumes and pricing across both Village and Care Suites. Development margin of 23,800,000 dollars is representative of lower individual margins as we move out of the Auckland into the region. We continue to be pleased with the strong levels of sales we are observing and reiterate that the increased regional mix in resales and new sales will be a theme that continues into FY 'twenty two and beyond. On the right hand side of the slide, we provide a segmental view on a 10 month PCP basis. When taking a segmental view in the financial statements and in this table here, we report the resale and development margins for CareSuites in the Village segment as our Village company is legally the issuer of the oral contract.
On the next slide, however, we make an adjustment to underlying care EBITDA to illustrate the level of these two gains. The Aged Care segment underlying EBITDA of $18,400,000 up 20% on a 10 month PCP, reflecting the ongoing transformation of our care portfolio towards greater portion of premium care beds and strong performance. The Village segment underlying EBITDA $55,100,000 up 7% on a 10 month PCP, continuing to see strong growth in deferred management fee income as development sell down and resales occur at a higher price point. And finally, the other segment includes support office and central costs. The increase of $2,600,000 on a 10 month PCP includes investment in our staff, clinical support processes and RT along with increased insurance costs.
Moving now to the Care segment. Our premiumization strategy is delivering increased EBITDA per vet with an 18% increase over PCP. This is particularly driven by increased deferred management fee income as our ramp up sites sell down and mature. As with prior periods, we consider that to get a fuller future of care, the CareSuite development and retail margins are most appropriately aggregated within the operating care segment figures, given the margins are essentially the near term offset of earnings foregone in the decommissioning of sites. Total aged care underlying EBITDA including this K Suite development margin and resale gains was $34,000,000 up 13% on PCP and delivers almost PCP and delivers almost $18,000 underlying EBITDA per bare diamond annualized basis.
Total Care underlying EBITDA includes CareSuite development margin and retail gains of $15,600,000 in the 10 months to March 2021. These are primarily related to the sales of recently completed developments of Green Gables, Aratieri and the Bayview, as well as CareSuite conversions at a number of regional sites. Moving to premium revenue. We are continuing to see good growth in reoccurring premium care revenues from premium accommodation charges and deferred management fees, and we recorded more DMF revenue in the 10 months to March 'twenty one than we did in the 12 months to May 'twenty. We will continue to see strong growth in this area, while we continue to build and ramp up our premium care development.
The $10,700,000 increase from PCP in total aged care operating revenue to $147,100,000 driven by this ramp up, including a material increase in premium revenues of $3,700,000 Moving to operating costs. Staff costs continue to be the greatest contributor to total expenses of $128,600,000 This includes pay increases of 3% to 7% for our registered nurses earlier in the year as part of our ongoing efforts to retain key professional staff. The ramp up of Green Gables, which opened in September, along with the Bellevue, which opened in March, together drove an associated increase in care operating costs. In summary, the care portfolio continues to perform well with higher group occupancy. We continue to replace the short term earnings impact with longer term quality clean quantity of premium and earnings.
More importantly, we pass the inflection point in the brownfield development of our portfolio, which we spoke about last year. Moving forward, we will likely see less volatility in our annual care earnings as the maturing and ramp up of prior period investment take hold. Moving on to Slide 19 in the Village segment. Again, we show a 10 month PCP comparison. The Village segment has continued to rebound strongly since COVID-nineteen with sales volumes for both new sale and resale for the 10 months being above all previous full financial years on record back to financial year 2012.
Underlying EBITDA of $55,100,000 has increased by 8% on PCP. As with Care, we continue to see strong growth in deferred management fee revenue for the Village segment, Zillow and Apartment DMF of $22,100,000 represents a $4,000,000 or 22% increase on the PCP and is higher than the full 12 months to FY 2020. This strong growth in deferred management fee in the Village segment is set to continue as development sell down and resales occur at a higher price point. Minor cost increases continue to be noted across occupancy and staffing, particularly in relation to the newly opened sites ramping up. In the 10 months to March, we opened an apartment development at Green Gables and later in the period at the Bayview and the Bellevue.
Total sales continue to be a key feature. We continue to deliver strong growth in sales volumes with 388 total sales in the 10 months to 31 March 2021, a 26% increase on PCP and a 9% increase on the 355 sales in the full 12 months to 31 May 2020. We provide further detail on resale and development gains in the next two slides. Moving to development. In the area of new sales volumes, Tuciana recorded 194 new sales over the 10 months to March 2021, 107 care suites, 55 apartments and 32 villas, a 20% increase on the 10 months to March 2020.
The 107 new care suite sales in the 10 months continue to illustrate that this model is well established and well accepted by residents who want the convenience of a larger well equipped room, additional services and confidence of care in a single move to meet their future needs. ILU and villa development sales increased by 58% on the 10 months to 31 March 2020, reflecting the sell down of Green Gables as well as sales of new villas at Graceland, Wittianger and Woodlands, which were completed towards the end of FY 2020. A softening of the development margin percentage continues. As we have indicated previously, we expect the development margin to moderate in the near term as we move our mix away from recent premium Auckland developments to those in more regional locations. The Sands and Meadowbank in Auckland delivered in FY 2019.
We then moved to Awateri in Hamilton, Graceland's in Hawke's Bay, Cityanga and Woodlands in Nelson in FY 2020. And again, regional deliveries in the last 10 months, 132 care suites and 85 apartments completed across 3 key sites, Green Gables and Nelson, the Bayview and Tarraronga and the Bellevue and Christchurch. Continued strong apartment sales prices have been achieved at Meadowbank and The Sands, which has consequently been offset by the lower price budget of Green Gables apartment sales in Nelson. Finally for this slide, the average apartment prices decreased to $952,000 The average price of Care Suites has also decreased slightly. This is representative of sale of CareSuite conversions at other locations, including Eldon in Paraparumu, Atifai in Hastings and Holwood in Christchurch.
When we look at retails on Slide 20, as with developments, to comparison purposes, we include both a 12 months at 31 May 20 and a 10 month to 31 March 20 comparative. Total resales of 194 for the 10 months to 31 March was up 31% on PCP and also up on the 166 resales in the 12 months to May 2020. We have continued to see a solid sales recovery from COVID-nineteen and through the 4 months since our interim results with increased resales continuing across all product types, villa, apartment and care suite compared to both the 10 months to March 2020 and even as compared to the 12 months to May 2020. Encouragingly, as you can see on the top right hand side illustration, with the exception of Christchurch, we are encouragingly seeing increased resales across all regions. Moving to the bottom left of the slide, you'll see that the resales prices continue to grow across fillers and care suites in the 10 months to March 'twenty one.
Again as compared to both the 10 months pro form a to March 'twenty and as compared to the 12 months to May 'twenty. In addition to that, retail margins of care suites improved period on period, moving from 11.5% in the PCP to 18.7% in the current period. The resale margins of independent living units have and will continue to moderate down from earlier levels of around 30%. ILU resale margins currently sit in at just under 26%. Despite the strong growth in resale volumes over the last 10 months, we still have good levels of resale stock on hand presently with the level akin to that as at 31 May, 2020, which at the time was post the restrictions of the COVID lockdown period.
This is a positive indicator for resales, both volumes and margins for the coming 12 months. The final three slides I will speak to cover statutory metrics. The first being cash flow. Oceana continues to demonstrate strong operating cash flow of $96,000,000 driven largely by the first time sales receipts at Development Science of $92,700,000 With total CapEx for the period of 102,000,000 dollars development activity has been and continues to be strong with a number of quality sites recently coming on stream. Importantly, as per Brent's earlier slides, we were able to hit the 12 month build rate indicated for FY 2021 despite the reduced timeframe as a reduced result of the change in balance date.
It's important to note that the key acquisitions of Waterford and Franklin settled post balance date and as such are not included in these numbers. Going forward, we would expect development CapEx to revert back to the higher 2020 levels as a number of developments have progressed, including the high spec winery development in St. Heliers. From a balance sheet perspective, total assets increased by $355,000,000 for the period to $1,900,000,000 This increase was driven largely by capital expenditure of $102,000,000 and the CBRE revaluation movements of approximately $160,000,000 across both IP and PPE. But coupled with the $80,000,000 received through the capital raise to 31 March 2021, which has since been used for settlement of the Waterford acquisition and will also be used for settlement of the Franklin acquisition.
On the right hand side of the slide, we show a reconciliation to the net adjusted value per share, a non GAAP measure. The net adjusted value reflects the value of existing sites plus the land and work in progress at development sites and excludes the present value of net development cash flows of future earnings at these development sites. Our net adjusted value per share as of 31 March 2021 was $1.28 per share. This is a strong increase from $1.03 per share as of May 2020, again driven largely by the revaluation uplift in IP and PPE. As an equity valuation, it strips out the value of refundable or repayments being $107,000,000 for CareSuite, the adjusted amount based on the CBRE valuation and $482,000,000 for IRU.
It's important to note for our IP and PPE balance sheet values already include a CBRE valuation discount on the unsold stock. For 31 March, this was a blended discount of 26%, down from 27.3% at May and equates to around 65,000,000 dollars or $0.092 per share. As we continue to sell this down, we expect to realize this fair value gain. Net adjusted value is approximately full valuation of the status quo of the existing. It excludes firstly the $0.092 per share referred to and the incremental development cash flow and earnings including resale gains and DMF from the 3 94 units in CareSuite which are under construction at 31 March 2021.
The final slide before we conclude our presentation is that of capital structure on Slide 24. Our net debt as of 31 March 2021 was 200 and $61,500,000 with gearing at 23.9 percent. This is down from 35.1% as of 31 May 2020 as we have reduced unsold stock value and experienced fair value gains in our property portfolio as well as having significant cash on hand following the $80,000,000 placement in late March. This level of gearing has increased slightly following the settlement of Waterford in April and further cash will be used to settle the Franklin Land acquisition, noting this will be offset by a further $20,000,000 raise from the retail issue. It includes $125,000,000 from our inaugural 7 year retail bond issue, which was successfully completed in October 2020.
It's achieved full owner subscriptions of $50,000,000 This assurance has extended our tenure and provides diversity of funding sources. In March 2021, Oceania announced an equity raise that included an $80,000,000 institutional placement, which successfully completed prior to balance date and a $20,000,000 retail offer, which is successfully completed during April. Both were well supported and strongly oversubscribed. We have $204,900,000 net bank debt drawn at 31 March 2021. This provides us with $145,000,000 of headroom in our banking facilities.
Low gearing coupled with sufficient bank facilities in place puts us in a great position for future growth and enables us to execute our development pipeline. Thank you everyone. That concludes the finance section of the presentation.
So I think we are open for Q and A. I think last time what we did was we took Q and A from people on the call, but we had a number of questions on screen. And so I thought while we're getting underway, I might just address some of the Q and A that we have on screen and then we can get to questions on the phone. So the question has been put to us in terms of can you give us a sense of what level of debt work in progress will be required to complete the current pipeline? Well, if we think over the next period, I guess, traditionally the business has spent about $100,000,000 to $120,000,000 on capital improvement.
But I guess what we look at is what is our overall gearing position. We try to sit around 30% to 35% gearing. And obviously, the business through its care operations generates strong cash. So from an operating basis, we recover about $90,000,000 of operating cash on an annualized basis. So we're pretty confident that we have that kind of level of debt in place and we'll have cash to offset it, which means that it will have significant headroom for either advancing the portfolio or for securing other greenfield sites.
A second part of that question was going to further acquisitions. So the question was how much headroom does Oceania have for further acquisitions. Once we paid down Franklin through the $20,000,000 retail offer that we received shortly, we'll be in a situation where we will use the $145,000,000 kind of additional capacity that we have for accelerating our business. And if greenfield sites come along, we think there's actually a ready supply of greenfield sites, if you think about the change of structural changes that are happening to house builders in the market, then that's obviously a ready source and a pivot that we want to put on underway as it relates to our strategy. From an M and A perspective, we're very fussy about M and A.
We think Waterford is a great transaction. They do not come along every day. So we'll take a very prudent approach to bolt on acquisitions and M and A in the future. The next question that we had was given the strong balance sheet and circa 1500 units are considered, is there an opportunity to accelerate the build rate? We've traditionally given guidance of our build rate in the kind of the 200.
And I think build rate also goes to sales cadence. So what's your confidence that as you build, you're going to be able to sell. We're seeing really good market trends as it relates to our sales cadence. We're having strong inquiry. We've got a mature portfolio.
We're a nationwide operator, so people are seeing us in the local communities. We've got a brand that we are intentionally investing in, and we've got some favorable market conditions. So we're very confident around sales cadence, and we're also very confident around sales volumes. So that will give us some confidence about bringing more product to market sooner. The challenge that we have is, as people are aware, it typically takes about 4 years to develop things.
So a year for resource consent, a year for building consent and a couple of years of construction. So we're just going to be mindful that while we have a great portfolio and while we have a lot of consented product, we have to obviously be able to move through that cycle and have things constructed. So we will hopefully be able to talk a bit more about build rate as the new financial year progresses. 3rd and last question that we have online was just in relation to what proportion the recent acquisitions may play on in terms of improving our underlying EBITDA or underlying impact in the next year. I think when we did the Waterford and Franklin transactions, Franklin is obviously a greenfield site and so initially it has a holding cost.
Our cost of funding is relatively cheap. And as a consequence of that, the option value of that greenfield site offers us a lot of attraction. On the Waterford front, because there's no additional costs required in operating the facility, the facility is immediately earnings accretive for us and has a positive impact on our results going forward. We've guided the market to low to mid single digit earnings per share accretion. But we do expect that as that portfolio matures, it will deliver strong recurring earnings for us through DMS.
I mentioned earlier that 100% of the villas that are on-site are occupied. They've been occupied since 2014. There's been quite a significant house price inflation since then. And we will start to experience some of those first resales over the coming period. So we're expecting Waterford to be a very positive contributor to our earnings.
And Franklin, clearly, in the medium term, will be a very positive contributor to our earnings. So those were the sort of the questions we had online. It's certainly open for questions from people in the call.
Thank We will take the first question from the first participant. Please go ahead. Your line is open.
Good afternoon, everyone. It's Andrew Steele from Jarden here. Can you hear me?
We can hear you, Andrew. Yes.
Thanks, Brent. Just the first one for me. I mean, you've partly addressed it on development build rates. It's only a relatively modest increase into next year. One quick question on that into next year.
Have there been any projects which might have slipped out of the planning for next year that have gone to later periods? And in terms of thinking about later periods, so FY 2023, FY 20 24, what sort of the pace of development we should expect in that sort of near to medium term?
Yes. So I think so nothing has slipped out. We've been very focused on recovering any ground that we might have lost through COVID. We haven't run into any problems as it relates to our planning and consenting of items that we had underway. And we've been sensitive to our local communities and thought about kind of the demand for the product that we're bringing to market relative to our competitors.
I think I touched on it on one of the slides, arbitrary in Hamilton is progressing significantly better than we expected as it relates to the construction and there are 63 units and community centers that currently are scheduled for completion in FY 'twenty three. So that's if that continues to run well, that might be something that swings into 1 year or another. The rest of the product is kind of mapped out from here as it relates to the build and construction. Part of the attraction for us with the Waterford acquisition is we had resource consents in place. And that is one site that probably we have an opportunity to accelerate as it relates to the build profile in the longer term.
Accelerate as it relates to the build profile. In the longer term, we absolutely intend to lift our build rate. We're just going to be sensitive to the availability of labor and kind of the cycle around just that couple of years to construct things. If we think about Eden with COVID, we lost some of our construction windows. So we took on board the additional costs of putting 3 teams on-site there to have it coming to market in April.
So we are open minded to the success of projects where we can accelerate them. But there are some items that you can't obviously change. They're already sculpted into the project. And we're also mindful of kind of keeping our gearing around that 30% to 35% in the medium term.
Great. Thanks. Just the next one for me is on care profitability, which on an EBITDA to debt basis is broadly flat since the first half, which looks like you've just got more product in the commissioning phase of development. Taking into account your planning for developments and the phasing of those over the next year, how should we think about the change in this metric over the next two halves? Should we be expecting it to return to growth for both periods?
Yes, I think that's a good question, Andrew. I think we've got a number of our sites that are coming out of commission and then to ramp up and a number of our sites going from ramp up into maturity. So I think from our perspective, we're going to expect to see sort of this gradual but continue to be pronounced sort of improvement in the premiumization of care and our care earnings. I did indicate that more of our build in the coming period is tilted towards units rather than care. But we're starting to get that kind of operational efficiency in our care operations.
So we are focused on sort of care earnings per bed and underlying EBITDA level regardless of development and resale margins, and we're expecting that to sort of continue to lift as the portfolio gets more mature. The other thing that's happening is that we just have far less disruption in our care earnings going forward. So this is at least about bowling over existing care. It's less about conversion of rooms. It's more a matter of vacant land that's available to us.
And Lady Elm in this next period is a good example. We're bringing 115 care suites to the market and it's being built alongside the existing care operations.
Great. Thanks. Just the last one for me is on the change in accounting for underlying earnings. I take your comment that you want to align with some of your peers. Could you go through your rationale and landing on, I guess, that side thus removing maintenance proxy out of your underlying earnings and therefore moving underlying earnings further away from what might be sort of a cash type earnings?
Yes. So I guess the way I was looking at it is we're trying to align those accommodations that are under an order to treat them the same. So we treat Care Suites as property, plant and equipment, which attracts the depreciation and other peers have them as IP, so there's no depreciation there. In our underlying that arriving at that, we back out all of the fair value gains and losses that come through from CBRE and then bring in our realized gains on those orders. So from a CareSuite perspective, we're backing out the fair value and we're bringing in the realized gains, but we're inadvertently leaving behind the depreciation.
So the reason for backing out that depreciation is so that we can treat everything in as an aura the same. So all of our auras are effectively underlying purposes treated like IP and therefore aligning better with peers.
And if we think about that, Andrew, on a period to period basis, I mean, obviously, we've restated the prior period. It's about $6,200,000 playing $6,000,000 So there's about a $200,000 difference at that level. The other thing that we're obviously cognizant of, if we take Green Gables as an example and Nelson, it's the same building that is offering both an independent living experience and care suite experience. We're depreciating 1 at 33% and 1 at 50%. So it's actually just bringing consistency to the treatment of depreciation, which we know is a non cash item, given the fact that we're an integrated offering on a lot of the new sites that we're developing.
And you didn't consider bringing in all your maintenance CapEx into underlying earnings to make it a fair representation of your true earnings?
There hasn't been considered, Andrew. No.
Okay. That's all for me. Thank you.
Thank you. We'll now take the next question from the participants. Your line is open. Please go ahead.
Yes. Hi, there. This is Aaron Ibbitson from Foresight Bar. Thank you. I've got a couple of minor questions.
So first, I just wanted to probe on your 2021 new units for FY 2022. My understanding is that, that doesn't include any conversions. You had a few historically. I wondered if you were planning to have any this year?
Yes. So I think you're right, Aaron. It doesn't involve any conversions. I think one of the sites that we are trialing a conversion into K Suite product is Eldon and Capity Coast, but we're doing that on a very incremental basis. So sort of 1 or 2 at a time.
So conversions in the portfolio are not material in that sense.
Okay. And secondly, just on the sort of village operating expenses, which I believe you had €20,000,000 or so reported. If I take out this rental payment to Everlore, that seemed to have grown quite a lot. I get the annualized growth there to be sort of in the almost 30%. Just wondering if I'm missing something there.
So why did that grow so much?
There's a few things going in there. There's kind of investments in staff, which we've done across the board, but specific for the village, there's the cost of newly opened sites in there. So we have the cost in relation to the apartments at Green Gables, which opened in September, October. And then we also have the cost in relation to Bayview and Bellevue. So those sites opened in March, but there are some costs that are incurred in the weeks, months running up to in getting a site ready for opening day.
So obviously, it kind of skews the numbers a little bit in the 1st few months because you're not getting that revenue in, but we are beginning to incur costs.
Okay. But if we think going forward, so I'm annualizing it, excluding these rental payments, I guess, around $20,000,000 But if you're saying that that ramped up towards the end of the year, presumably that number is going to be grow quite a lot again in 2022?
No. Because if we think about what happens in 2022, I guess, would be so as it relates to Lady Ellen, that development is alongside existing care. So we're thinking about the operational impacts of that. Eden obviously is a village, so it doesn't have the same operational drag that Katherine's just referenced. Bayview equally 39 apartments there are accented to using existing resources.
And then we've got some small villa developments obviously in Graceland and Stoke. So it's a good question, Aaron, but it won't hit the same drag we do not expect in the FY 'twenty two period.
Okay. Thank you. And then this is just a little general question, which I assume the answer will be yes to. But if we look at your 10 month period on things like DMF, for instance, is it fair to sort of annualize that, I. E.
Multiplied by 1.2 and see that as your base level? Or is there anything else going on in the accounts? Presumably not, but the growth was pretty strong if I annualized the 10 months.
Yes. And that's sort of obviously, we can't do that because we've had 10 months of trading, but I think your sentiment is exactly right. Part of the intentionality around the premiumization of care is to capture that ongoing annuity income through DME. We've experienced over a number of years now quite an attractive compounding annual growth rate and we're not expecting that to change.
Thank you. Finally, just on your CareSuite resale margins, which came in quite a lot higher than we had anticipated. If you look at your current stock and obviously, these are coming up for resale on a pretty short term basis, do you think still that you've got decent resale margins coming up? Or should we expect that to sort of trend back towards call it a 10%, 12% level?
Yes. I think we were pleasantly surprised by those resale margins as well, Aaron. I think you're right. It depends on a number of factors, including the regional bias that we have in terms of some of those key suites coming up. We have observed tenure being probably shorter than we anticipated.
And so therefore, that means that the market needs some time to catch up in order for us to capture the full sort of resale gain. But yes, I think whether it's there or we're at slightly lower as a product of what we have available and what regions. But we are establishing Ksway as a product. We are seeing good price points both at the new sale and resale levels. So I'm not sure that accurately answers your question.
Yes. That's fair enough. Finally, just would you argue would you say that there are any lingering sort of COVID costs in the 10 months period? Or was that largely done by the time we got to
May? Yes, I think the only thing that the sector is working through is really the rollout of the vaccination program. So that's going really well for our sites and for our residents. But that obviously comes with some operating complexity. We're just absorbing kind of the margin loss of that.
Obviously, we're not paying for the vaccines, but we're certainly paying for just extra resources around that as vaccinators come to site and the orchestration of that through extra staffing costs, we're experiencing that and so are our peers. We know that it's for the greater good and so we'll just absorb that marginal impact.
Okay, very good. Thank you. That's all for me.
Thanks, Aaron.
Thank you. We'll now take the next question. Please go ahead. Your line is open.
Hi, guys. It's Bianca from UBS. So first question for me, just on your resale prices. So mainly, I'm interested in the apartment resale prices being basically flat compared to resale prices a year ago. But at the same time, you show that the resale volumes in Auckland have increased.
So I'm just wondering if that means have you not really increased apartment resale prices? Or are apartment resales mainly outside of the Auckland region? Or what's the reason for that, please?
Yes, I think you're right. I mean, I think we had from the slide presentation, 79 sales in Auckland. Some of those sales have moved while in Auckland have moved away from some of our flagship sites. We've obviously had a lot more regionally up and down the country. So that sort of influences our price as well.
From our perspective, we're seeing both demand for product and continuing ability to move prices. And so I don't think there's anything that we're observing that's changed. There's been a bit of a lift in villas and we're sort of holding resale prices around the same levels. So I think it's much within that Auckland bias. There are obviously some stronger sites that we had in the North Shore and other locations.
Now we're sort of drifting south and west as it relates to some of those resale prices.
Yes. And I think to add to that Bianca, most of our resales on the Auckland sites at the moment are CareSuite. So obviously those premium sites that came online over the last few years like you, I'm thinking Sands and Meadowbank, the apartments aren't actually kind of at their maximum tenure yet. So we're not having the retails at both sites, but we are having the care retails at both sites.
Right. Okay. So more regional, I guess. Okay. Thank you.
And then, yes, just on your new sales as well. I thought for the second half, that looks a bit weak actually. That means that for the second half, you've done 49 new sales. And I know it was only a 4 month period, but especially comparing that to the second half FY 2020, is quite a bit lower. So I was just wondering what's the reason for that.
And also if
you could please give a
bit of an indication of how new sales are going for the first half of FY twenty twenty two?
Thank you. I'll start with your last question first. So FY 'twenty two has been good. I think our sales and our peers are continuing to see good uptake across our portfolios and products that we have. So sales momentum, sales velocity and sales pricing will be strong.
The Waterford is a good example. I mean, we took position of that on the 23rd April, and we've already had 3 sales on a couple of applications. So and the new sites that we're bringing to market is sort of same. So as it bodes where we stand today, sales velocity is going very well. As it relates to kind of the 4 versus 4, some of that's just there's not an enormous amount of seasonality in our 12 month period, but some of it will just be relating to some of the hesitations and sentiments that were being portrayed in the recent 4 month period we've had as people start thinking about the trial of COVID.
So we thought we're out of that and now we have travel bubbles closing, etcetera. So I don't think there's anything untoward in that. We haven't seen any sort of need for any seasonal adjustments period to period.
Okay. And yes, just following up on that, I guess, on your new sales, are there any regions where you're having difficulty selling? And is there any particular type of products that's selling better or worse, for example, more higher end compared to more basic products?
Yes. I mean, I think part of what we do obviously is a lot of market analysis before we come out of the ground in terms of what's going to suit a particular location, how it's going to be how it's going to fit in that location, how it's going to be adopted by the community that it's in. A good example was Graceland's in Hastings. We've seen incredibly strong sales and resales for our biller product in that region, contrasted with, say, apartments that have traditionally gone very well for us in the Auckland region. So it's a difficult thing to answer.
It is nuanced around what we have. What we're seeing is that care suites appear to sell through nationwide. So there's adoption of that product nationwide because it's got a greater bias towards being a needs based product as it relates to independent living units in a sort of nuance around the region and what suits that particular market and also what's available from the competition.
Okay. Great. Thank you. Thank you. It appears there is no further questions at this time.
I'd like to turn the conference back to you for any additional or closing remarks.
I just want to thank everybody for being on the call. It's a busy day for the market, and there's a lot going on. So thank you for everybody's participation. We're excited about the result and good to be on a 31 March balance date. Very pleased to have Catherine sitting in as CFO, so delighted with that appointment.
And yes, hope the rest of the day goes well for people. Thanks for your time.
Thank you for your participation. You may disconnect. Stay safe.