Metlifecare ramps up development

Last updated 10:37 25/08/2014
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Retirement village operator Metlifecare's net profit has almost halved, as the company ramps up its development efforts and announces a new chairman.

The company posted a profit of $68.8 million after tax, down from $120.3m, for the year to June 30.

Chief executive Alan Edwards said after allowing for one-off costs associated with its recent merger and the sale of its Oakwoods village in Nelson, the adjusted net profit was 18 per cent higher than last year.

New chairman Kim Ellis, best known for his years as chief executive of Waste Management NZ, replaces retiring chairman Peter Brown.

Metlifecare's revenue for the year of $94.8m was slightly higher than last year's $92.8m.

Revaluations of investment properties lifted the company's portfolio value by $65.7m to $1.9 billion.

Shareholders will receive a final dividend of 2.5 cents a share, taking the full year dividend to 3.75c a share, up from 3c last year.

Edwards said Metlifecare had several large developments under way and was on track to start offering more than 200 units and beds every year by the end of next year.

"Additionally, we are continually identifying and carefully assessing land acquisitions and other opportunities to expand our portfolio," he said.

The company had hit the top end of its guidance range for underlying profit at $46m, up 37 per cent on last year, Edwards said.

Metlifecare had flagged its underlying profit, which strips out non-cash items including unrealised valuation gains, would be within $43m to $46m.

Metlifecare's building programme included the beginning of stage one and two of its $40m The Orchards village in Glenfield, and gaining resource consent for the first stages of another North Shore village, the $160m Greenwich Gardens.

Over the year, the company also added 55 apartments at its Takapuna complex, The Poynton, and began work on another 62 apartments.

It was also seeking resource consent to built 42 units and 38 care beds at The Avenues in Tauranga and had been granted consent to built 15 units at Coastal Villas in Paraparaumu.

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