Listed retirement village company Oceania Healthcare made an interim underlying net profit after tax of $27.5 million, up 22 per cent on the previous $22.5m but Covid has caused disruptions, particularly in Auckland.
Sales were up 10 per cent for the interim period to September 30, 2021 and occupancy of its properties stands at 92.5 per cent, previously 91.1 per cent.
The company announced operating earnings of $36.5m for the half-year, up 19.7 per cent or $6m on the previous figure.
The results were complicated by it changing its balance date to March 31.
Its income statement showed $36.9 million net profit after tax which it compared to its 10-month net profit after tax of $85.5m.
Total assets are now $2.1b, representing 9.7 per cent growth since March 31, 2021.
Shareholders will get an interim dividend of 2.1cps on December 20.
"The aged care business continued to perform well throughout the period despite Covid-19 disruptions," company commentary today said although its boss then told of how much harder business had become because of the pandemic.
Brent Pattison, chief executive, said: "Prior to the alert level 4 lockdown being announced on August 17, sales volumes were strong and development activities were progressing well. The extended lockdowns, particularly in the Auckland region, have temporarily impacted Oceania's sales, delayed building works and have added direct costs associated with Covid-19."
The company has raised substantial funds lately.
"Oceania's total funding positions the company well for future growth - a heavily oversubscribed seven-year retail bond issue of $100m in September, following a capital raise of $100m undertaken in March/April and Oceania's inaugural seven-year retail bond issue in October 2020," it said.
Oceania has 545 new retirement village units under construction.
"Covid-19 alert level 4 lockdowns in Auckland have delayed Lady Allum which was previously expected to deliver in March 2022," the company said of its Milford village on Auckland's North Shore.
One of its largest new projects is on a high ridge above the waterfront at St Heliers' Waimarie St where it is building 79 units and 32 care suites.
Half of its existing portfolio is now premium units and care suites "as we progress to 70 per cent premium and 30 per cent standard at the end of our current pipeline", the company's investor presentation out today said.
Rob Hamilton, SkyCity Entertainment Group's former chief operating officer, has joined the board along with Peter Dafaur who was head of development for Goodman Property Trust for a decade.
Both are independent directors.
In full-year results out in May, the company made $85.5m net profit after tax for the 10 months to March 31, following last year's $13.6m loss.
The business made operating revenue of $175.4m and has changed its balance date from May 31, 2020 to March 31, 2021 so only reported on that shorter period today due to that swap-over.
On March 21, Pattison took over from Earl Gasparich as CEO. He calls the company "a smaller operator" in the sector. It has nearly 3700 residents living in 44 villages.
Oceania shares are trading around $1.29, down from $1.60 in February. The company has a market cap of $910m.