The retirement village and aged care operator Arvida Group has made a record profit, boosted by the $345 million purchase of the Arena portfolio of six retirement villages in November.
Arvida's net profit rose by 52 percent. Photo:
Key numbers for the 12 months ended March compared to a year ago:
- Net profit $198.9m vs $131.1m
- Revenue $201.7m vs $174.5m
- Valuation $158.9m vs $123.5m
- Underlying profit $73.5m vs $51.7m
- Expenses 181.0m vs 152.8m
- FY dividend 5.5 cents a share vs 5.4cps
Net profit rose 52 percent with an underlying profit gain of 42 percent, which was boosted by a 15-million profit from the Arena portfolio.
"The villages in prime Auckland and Tauranga locations delivered a number of immediate benefits that we have been able to realise as well as presenting longer term options for future growth," Arvida chief executive Jeremy Nicoll said.
Revenue was hit by Covid-19 related disruptions to care sales and construction activities, with staffing shortages, particularly nurses, and restrictions on new admissions during lockdowns and the Omicron peak.
Covid-related measures added about $5.0m to expenses.
"Additional expenditure was again incurred to ensure resident safety and staff wellbeing, as the priority was to protect our resident communities and teams," Nicoll said.
However, the proceeds from new sale and resale unit settlements increased to $325.2 million, up $97.8 million on the prior year, with settlements of 580 units up 44 percent during the year.
He said resales were a key contributor to financial performance with 26 percent margins compared with 23 percent the year earlier.
Nicoll said demand remained high, with 221 new homes built in the year, across ten sites.
"We've seen increased levels of inquiry for retirement village living so people are seeing the benefits of of living within a retirement village community," he said.
He said the downturn in the housing market was yet to affect the business, with plenty of demand.