Retirement village operator Metlifecare has reported a loss as Covid-19 caused the value of its properties to fall.
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The company posted a net loss of $33.7 million for the year ended June compared with a $90.5m profit the year before.
The latest result was hit by a $74.8m drop in the value of properties, whereas last year it had a $53.9m value gain. The company benefited from a $26.9m tax break.
However, stripping out one-off items, Metlifecare had an underlying profit of $93.8m, just below the year before.
Revenue increased 8 percent on the back of greater demand for health care and a delay paying management fees, but its development margins were lower and its profit on the resale of units was also reduced.
"After an encouraging first half we experienced a temporary, but major, sales decline in April and May 2020 due to the government-mandated lockdown restrictions," chief executive Glen Sowry said.
He said sales had picked up again after lockdown restrictions eased and have continued into the start of the new financial year. However, the lockdown has delayed building of 140 new units which will not be completed until the next financial year. Overall the company has 220 units and beds under construction.
"We have significantly strengthened our in-house capability to develop and profitably deliver multiple large-scale projects over the past year," Sowry said.
Sowry said there was solid interest in four new villages being developed in the Auckland region.
Metlifecare is set to be taken over by Swedish firm EQT Infrastructure, if shareholders approve a $6 a share offer later in the year. The deal was close to collapse in April after the Swedes wanted to pull out claiming the value of Metlifecare had been materially lowered by the pandemic and related lockdown.
No final dividend will be paid.