Making a $7.4 million net profit from assets worth $1.2 billion did not delight all institutional investors in retirement village operator Metlifecare, which released its December half-year result yesterday.

But the company emphasised a 278 per cent rise in net after-tax profit, from $1.9 million.

One institutional investor was yesterday examining the effects of poor sales at the company's multi-level Takapuna retirement complex, The Poynton, wondering about the effects of a depressed residential property market and the impact on sales.

Wade Gardiner, UBS analyst, also cited that project as not being a great success. "In the past five years the only significant development Metlifecare has undertaken has been The Poynton which by its own admission was not executed well."


Metlifecare said it had sold just 12 Poynton units in the half-year, having to offer incentive deals to boost sales.

UBS initiated coverage with a buy rating and a price target of $2.90 but a detailed report said it was examining Metlifecare, taking into account no housing market price growth.

Metlifecare shares were yesterday steady at $2.40.

Craig Tyson of OnePath said the half-year result was "solid".