Metlifecare lifts profit 18pc to $68.8m

A sign at the site of Metlifecare's new Glenfield retirement village in Auckland. File photo / Natalie Slade

Listed retirement giant Metlifecare pushed up annual net profit after tax 18 per cent to $68.8 million after removing non-recurring items.

The result for the June 30, 2014 year just posted on the NZX showed settlement of 458 occupation right agreements, the second highest in the last six years.

Underlying profit, which removes non-cash items including unrealised valuation gains, increased by 37 per cent to $46 million, which Metlifecare said was at the top end of the market guidance range of $43 million to $46 million.

The value of its asset base rose $65.7 million to be worth $1.961 billion.

Alan Edwards, chief executive, said 2014 had been a successful year "as we have continued our focus on portfolio growth and realising benefits from our increased scale and large operational environments".

"Our villages are strategically located in residential markets where quality retirement lifestyle options continue to enjoy strong demand. Our focus is firmly on growing our portfolio to meet the needs of New Zealand's growing population of over-65 year olds. We have a number of large developments underway and confirm that we are on track to meet the delivery of 200+ units and beds by FY15 and onwards. Additionally, we are continually identifying and carefully assessing land acquisitions and other opportunities to expand our portfolio," he said.

The company has a land-bank of more 1000 units and rest home beds and is building two new villages in the Auckland area: Stages 1 and 2 of The Orchards, the $40 million village in Glenfield on the North Shore is under way.

Resource consent has been granted for the $160 million Greenwich Gardens village in Unsworth Heights, also on the Shore, and the earthworks programme has been completed and construction is due to start shortly.

Presales have started for the initial 27 villas.

At The Poynton in Takapuna, Stage 3 has been completed, with 55 apartments Stage 4 has started which will offer a further 62 apartments, the company said.

A resource consent application has been submitted for a further development at The Avenues in Tauranga, for 42 units and 38 care beds and at Coastal Villas in Paraparaumu, building consent has been obtained for 15 units and construction will start in the first quarter of FY15.

See Metlifecare's results presentation here: