Orpea Slides on Plan to Regulate Care-Home Rents: Paris MoverAlbertina Torsoli
French retirement-home operators including Orpea SA, Korian and Medica SA, plunged in Paris trading on signs the government will restrict rent increases.
Puteaux-based Orpea, France’s biggest publicly traded operator, lost 4.6 percent to 31.05 euros in Paris trading today, its steepest one-day decline since Nov. 18, 2011. Korian shares closed down 1 percent to 14.24 euros, after falling as much as 7.5 percent in the session.
President Francois Hollande’s government wants to “act on the cost of retirement homes,” Michele Delaunay, delegate minister for the elderly and the dependent, was cited as saying in an interview with Le Parisien two days ago. The minister also told the newspaper that the facilities will no longer be allowed to increase room costs for older people at will.
The minister’s comments sparked concern about potential “uncertainty on the regulatory environment” for these companies, Mathieu Chabert, an analyst at Bryan Garnier & Co. in Paris, said in a telephone interview. “This is weighing on shares of nursing-home operators today.”
Shares in Medica, another retirement-home operator, retreated 4.5 percent to 14.08 euros while rival Le Noble Age was down 5.4 percent to 11 euros.