Metlifecare's first half profit is up nearly a third, driven by gains in the value of its properies and a solid operating performance.
Photo: 123.rf
The listed retirement village operator's net profit rose 31 percent to $165 million in the six months to the end of December, while its underlying profit was up 15 percent on the year earlier.
Revenue rose 3.5 percent to about $53.9m.
Chief executive Glen Sowry said the company had experienced strong sales price growth in the key regions of Auckland and the Bay of Plenty, and was on track to meet its 2017 targets.
"We expect to achieve our delivery target of 229 units and care beds in this financial year, and are also well on track to deliver a further 233 units and beds in the 2018 financial year. Our development margin of 17 percent for the period was well ahead of last year's 12 percent."
But the sale of new units fell 14 percent to 89 during the first half, as reduced stock availability led to lower sales volumes.
"However, the impact of this was offset by an average price increase of 9 percent to $638,000 per unit, which combined with the increased development margin to drive a realised development margin of $9.6 million, 35 percent higher than last year."
The resale of units also fell 13 percent to 175, partly because 17 units were unavailable for sale in order rehouse existing tenants. The average resale price rose 16 percent to $489,000.
Metlifecare has declared an interim dividend of 2.25 cents per share, to be paid next month.