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Retirement village and aged care provider Oceania has reported underlying profit growth, while the bottom line has been hit by a drop in revaluation gains.
Key numbers for the 12 months ended March compared with a year ago:
- Net profit $15.4m vs $61.1m
- Revenue $247.2m vs $231.1m
- Underlying profit $80m vs $76.2m
- Total units and beds 4455 vs 4204
- FY dividend 4.2 cents a share - unchanged
The company's assets rose through the year by $347 million to $2.5 billion, primarily as a result of the $57m purchase of the Remuera Rise and Bream Bay Village acquisitions, capital expenditure of $164m and fair value increases of $31m, which compared with a fair value gain of $105.2m the year earlier.
Gains from new sales and resales rose 5 percent to $59.4m, reflecting strong development and resale margin performance.
Chief executive Brent Pattison said capital structure and capital management were a key area of focus for the business and subject to ongoing review.
"We recognise that an optimal cash recovery profile will be a key driver of value and growth as development margins come under pressure in future periods and as we continue to extend the development pipeline," he said.
Oceania has a conditional agreement in place to sell two of its Auckland care sites to a smaller, experienced operator, which was expected to settle in August.
He said the company continued to see strong demand for its units, despite the downturn in the housing market and broader economy.
"While Oceania has certainly observed an increase in the average days to sell its independent living villas and apartments, we have observed higher levels of enquiry for our premium offering."
Oceania has 409 units and care suites under construction at eight sites, including Auckland, Taupō, Nelson and Motueka.
However, only 233 units were completed in the year just ended, which was below market expectations.