New Zealand’s second-largest listed retirement village operator Metlifecare has lifted annual profit 78 per cent after its properties jumped in value.
Net profit rose to $122.7 million in the 12 months ended June 30, from $68.8m, a year earlier, the Auckland-based company said.
The value of its investment property increased $121.2m, ahead of a $65.7m gain the year earlier, lifting the total value to $2.23 billion.
Excluding the unrealised valuation gains and other non-cash items, underlying annual profit rose 14 per cent to $52.4m, in line with the company’s forecast in February.
Total income increased 7.1 per cent to $101.5m while expenses advanced 9.2 per cent to $90.1m.
Metlifecare has doubled the size of its property development team to 18, adding additional development and project managers to support brownfield opportunities, construction sites and the development of two new greenfield sites at Red Beach and Manukau.
It stepped up the rate of development with 133 new units in 2015, from 59 in 2014, and expects to increase that further to 158 new beds and units in 2016, and 265 in 2017.
“In FY16, we are anticipating a year of continued growth in the delivery rate of new units and care beds,” said chief executive Alan Edwards.
Sales of occupation rights agreements rose 7 per cent to 490 in the past year.