Metlifecare profit up a record 86pc, driven by huge demand

Metlifecare Pakuranga. Photo / Natalie Slad

Metlifecare, New Zealand's second biggest listed retirement business has pushed profit up a record 86 per cent, making $228.7 million net profit after tax for the year to June 30, 2016.

The company's underlying profit, stripping out various non-cash items, was $66.1
million, 26 per cent higher than last year.

The $228.7 million profit compares to $122.7 million made in the June 30, 2015 year.

Metlifecare ranks second only to Ryman Healthcare, the biggest listed retirement business.

Metlifecare's total asset values rose 16 per cent to $2.5 billion.

The business has 4025 retirement village units, a further 354 residential care beds and a substantial land bank.

Glen Sowry, the new Metlifecare chief executive, said today's result was driven by high
occupation right agreement sales for new and existing units and assisted by continued
high property value growth in the company's stronghold regions of Auckland and the Bay
of Plenty.

"This performance demonstrates the quality of Metlifecare's portfolio which is
concentrated in high-growth regions of the upper North Island and positions us well to
benefit from ongoing population growth and the buoyant property market," Sowry said.

"The volume of sales of occupation right agreements increased by 16% to 568 units which
was a record result.

As a result the gross sales of occupation right agreements were
$256.4 million, up 31 per cent on last year," he said.