Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Metlifecare announces strong profit as development continues

Metlifecare announces strong profit as development continues/New Chair Appointed


Metlifecare has recorded a successful result for the year ended 30 June 2014, as New Zealand’s second largest retirement village provider continues to focus on realising development opportunities and driving further efficiency into its operations.

Net Profit After Tax was $68.8 million for the financial year ended 30 June 2014. This was an 18% increase on the previous year, after excluding FY13 non-recurring items[1] associated with the merger and the sale of Oakwoods village (Nelson).

Underlying profit[2], which removes non-cash items including unrealised valuation gains, increased by 37% to $46.0 million - this was at the top end of the market guidance range of $43 million to $46 million.

The value of Metlifecare’s asset base continued to grow, with a $65.7 million increase in the fair value of investment properties, which were valued at $1.961 billion at 30 June 2014. Net Tangible Assets increased to $3.75 per share, 8% up on the previous year.

A final dividend of 2.5 cents per share reflects the company’s strong cash flow and sound financial position, taking the full year dividend to 3.75 cps, a year on year increase of 25%.

Chief Executive Officer, Alan Edwards, said: “It has been a successful year for the company, as we have continued our focus on portfolio growth and realising benefits from our increased scale and large operational environments.

“Our villages are strategically located in residential markets where quality retirement lifestyle options continue to enjoy strong demand.

“Our focus is firmly on growing our portfolio to meet the needs of New Zealand’s growing population of over-65 year olds. We have a number of large developments underway and confirm that we are on track to meet the delivery of 200+ units and beds by FY15 and onwards. Additionally, we are continually identifying and carefully assessing land acquisitions and other opportunities to expand our portfolio.”

Settlement of 458 occupation right agreements for the 2014 financial year was the second highest in the last six years.

An occupancy level of 96% constrained the stock available for resale in FY14, particularly with some villages at full occupancy. Overall, settlement volumes are expected to increase as new stock from Metlifecare’s development pipeline becomes available in the last quarter of FY15.

Metlifecare currently has a land-bank of over 1,000 units and care beds. Construction is progressing on a number of large developments, including two new villages in the Auckland area and the expansion of several existing villages in the Group.

Stages 1 and 2 of The Orchards, the $40 million village in Glenfield on Auckland’s North Shore, is well underway with excellent presales of apartments.

Resource consent has been granted for the $160 million Greenwich Gardens village in Unsworth Heights, also on Auckland’s North Shore. The earthworks programme has been completed and construction is expected to commence shortly. Presales have just commenced at Greenwich Gardens for the initial 27 villas being built and demand has been strong resulting in some immediate applications.

Development continued at The Poynton in Takapuna, Auckland, with the completion of Stage 3 which offers 55 apartments, and commencement of construction on Stage 4 which will offer a further 62 apartments. A resource consent application has been submitted for a further development at The Avenues in Tauranga, for 42 units and 38 care beds and at Coastal Villas in Paraparaumu, building consent has been obtained for 15 units and construction will start in the first quarter of FY15.

Integrating the continuum of care where possible is important as Metlifecare looks to ensure that residents requiring a higher level of care can remain in the village they have chosen as their home. Providing first class care in resident-directed environments will remain a crucial area of focus for the company into the future.

Alan Edwards said: “The population of those aged over 65 years is expected to double to over one million people by 2036. We have a significant development pipeline and a growing portfolio of high quality villages which will assist in enabling us to meet projected increases in demand.

“In FY15, we will be focused on progressing the consenting processes and planned developments, as well as seeking other new development opportunities. Presales of units constructed in our new villages are expected to be settled in the final quarter of FY15.”

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Fruitful Endeavours: Kiwifruit Exports Reach Record Levels

In June 2016, kiwifruit exports rose $105 million (47 percent) from June 2015 to reach $331 million, Statistics New Zealand said today. Overall, goods exports rose $109 million (2.6 percent) in June 2016 (to $4.3 billion). More>>

ALSO:

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news