Aged care village operator Arvida has increased its net profit on the back of a big lift in the value of its properties outside Auckland.
The value of Arvida's 29 retirement villages rose 15 percent to $1.3b in the year. Photo: 123rf.com
Its profit for the year to March was up 2.5 percent to $59.1m.
Revenue was up 15 percent to $152.4m as it continued to concentrate on specialised care facilities to treat dementia and other conditions.
"This has translated into high occupancy rates, transformed our ability to gain extended certifications and enabled premium pricing structures," chief executive Bill McDonald said.
The value of its 29 retirement villages, most of which are outside Auckland, rose 15 percent to $1.3 billion in the year.
It built 113 new retirement units in the year and planned to build another 170 this financial year.
Mr McDonald said it has bought a site in Kerikeri and is eyeing up more.
"Arvida continues to evaluate the acquisition of greenfield development sites with the quality of land acquisition opportunities increasing," he said.
"Having a mix of regional and urban future development opportunities in our pipeline is desirable."
It expected further earnings growth this year as demand increases for its facilities.
However, a shortage of nurses, higher labour costs, and a softening property market in Auckland and Christchurch, were concerns.