Less spectacular revaluation gains were partly responsible for pushing Oceania Healthcare's bottom-line profit down 29 per cent but the retirement village business made far higher operating revenue.
The $85.7 million net profit after tax for the 10 months of the 2021 financial year fell to $61.1m in the March 31, 2022, year, due partly to last year's $83.3m revaluations turning down to $69.6m this year.
But operating revenue rose from $175.4m in last year's 10-month reporting period to $231.1m for the latest 12-month full year.
Operating cash flow was $105.5m, up on $96m for the previous 10 months, reflecting rising first-time sales of new properties and rest home suites and resales.
Retirement villages like Oceania make profits from ongoing sales of care suites, apartments and units when elderly residents become ill and die but the company was emphasising the first-time sales of its newly developed properties in today's result.
Neville and his dad Cliff Cook, Remuera Rise in 2013. Photo / Sarah Ivey
Total assets rose from $1.9b to $2.2b after Oceania bought Waterford at Hobsonville Point in Auckland and Franklin, Pukekohe. Growth in asset value on first-time sales of development sites was also cited for assets rising.
Unaudited underlying earnings before interest, tax, depreciation and amortisation were $76.2m, up 16.2 per cent on the previous $10.6m.
The company has capitalised on interests associated with New Zealand retirement village pioneer Cliff Cook selling a high-rise Newmarket "village". Oceania said this month it had struck a deal to buy Remuera Rise, Newmarket and Bream Bay Village, Northland.
Cook has been busy in London lately at Battersea Place LifeCare Residences by Guernsey-registered LifeCare Residences International, founded and chaired by him.
Oceania made 450 sales of independent living apartments, villas and care suites in the latest year. It is building 550 new units and care suites.
Oceania plans to spend $57m buying the Northland and Newmarket villages.
Brent Pattison, Oceania chief executive, said today that significant steps were taken to strengthen the balance sheet in the year and that would give a strong platform for growth.
"This will enable Oceania to accelerate its development pipeline, add greenfield sites and complement this growth with merger and acquisition activity," he said.
Oceania has 1625 independent living units, 1725 hospital beds and 854 apartments for its residents with a stronger weighting to the North than the South Island. Around 54 per cent of its portfolio is premium units and care suites.
It is either planning or building a further 862 premium care suites, which are like upmarket private hospital rooms, as well as 1957 further independent living units, often apartments or terraced. Of those, it has 1381 units and 619 hospital rooms or suites under construction or consented.
Liz Coutts, the chairperson, said a final dividend of 2.3 cents per share unimputed would bring the total dividend for the year to 4.4 cents per share.
Shareholders will be paid that final dividend on June 21.
The company's 710m shares are trading around $1.03, 24 per cent down annually, to give a market capitalisation of $731m.
