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

Friday 23rd August 2013

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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.

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