26 May 2020

Arvida posts $42.6m full year net profit

2:02 pm on 26 May 2020

Arvida has produced a strong result in the financial year ended March but is warning challenges lie ahead because of the impacts of Covid-19.

Elderly woman's hands, care for the elderly concept

Photo: 123rf.com

The retirement village owner has reported net profit after tax of $42.6m, down from $59.1m the year before due to a $22m change in the estimated worth of investment property.

Underlying earnings were up 34 percent to $51.7m, reflecting continued high-care occupancy, a higher volume of resales and new sales.

The total value of assets which include 32 retirement villages grew to $1.9bn, up $607m.

Chief executive Bill McDonald said overall performance tracked to expectation for most of the year, with some disruption due to Covid-19 overshadowing a record result.

"Apart from that it was another terrific year with the acquisition of three of the Sanderson villages during the year and good strong performance across the balance of the business."

McDonald said he was unsure what the economic conditions held for the company.

"We have reduced our guidance for development from 250-plus units over the next few years to 200-plus over the next few years.

"We think there will be an impact but what that impact is from the market is yet to be seen."

He said there were early signs of activity from the market.

"We have had some pretty strong sales since being able to reopen up over the last couple of weeks and we hope that that continues."

McDonald said the view from the community was that retirement villages had been a pretty good place to be over the lockdown period and there may be some extra demand coming from that as well.

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