Sharechat Logo

Metlifecare turned to a profit in 2013 after merger boosted property portfolio

Friday 23rd August 2013

Text too small?

Metlifecare, New Zealand's second-largest listed retirement village operator and developer, turned to a profit in 2013 as it benefited from a larger business following the merger with Vision Senior Living and Private Life Care Holdings.

Metlifecare posted a profit of $120.3 million in the year ended June 30, from a loss of $141.7 million in 2012 when it wrote down the value of its property portfolio by $99.8 million. Revenue rose 44 percent to $92.2 million as it increased sales by 214 percent to 113 and resales by 44 percent to 424.

The retirement village operator benefited from a larger portfolio following the merger, adding 46 percent more care beds over the financial year to take the total to 4,195 units. Metlifecare aims to build at least 200 units and care beds a year by 2015 as it sits on a land bank of 827 units and 173 care beds.

"We were particularly pleased with our sales and resales results which reflect the ongoing demand for homes in our villages and continue the steady increase in volumes we have seen over the last three years," chairman Peter Brown said in a statement. "We are looking forward to another successful year as we realise the benefits of scale and invest in growth."

Retirement village stocks are among the 15 best performing companies on the New Zealand stock exchange the past year as investors anticipate growth supported by an ageing population. Shares in Metlifecare have surged 26 percent in the past year, while shares in rival Ryman Healthcare have advanced 91 percent and Summerset Group Holdings has gained 63 percent.

Shares in Metlifecare last traded at $3.22.

Underlying profit, which Metlifecare uses to show trends in the underlying business excluding one-time items, rose 76 percent to $32.1 million.

BusinessDesk.co.nz

Father's Day SOON! Crazy Deals on ALL IRG Yearbooks - More than 50% OFF - $19.99 for 44th IRG Yearbook 2018-2019


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

UPDATE: Metlifecare shares fall 4.8% as posts drop as first-half profit falls 66%
Transpower seeks up to $125 mln in new bond ahead of November maturity
Metlifecare investigates building problems with Auckland Links Apartment complex
Resource Consent for new Glenfield Village for Metlifecare
Metlifecare undervalued compared with peers, Devon's Glass says
Metlifecare raises $70 mln at 8.3 % discount in institutional placement
Metlifecare to raise $80M via placement, share purchase plan to repay debt
Metlifecare on track for $60M full-year post-merger cashflows
Metlifecare sells Nelson village for $29 million
Metlifecare seeks 67 percent bump for directors' fee pool after merger

IRG See IRG research reports