Since leaving the New Zealand stock exchange in 2020 when Swedish private equity firm EQT took over the business, the Auckland-based operator has been transformed by its five-year Full Potential Plan initiated in 2021.
“We really have gone through the boldest of changes that you’d expect of a company of our scale in New Zealand. It’s been executed at considerable pace,” said Metlifecare Chief Executive Earl Gasparich, who spoke at the 2022 LEADERS SUMMIT.
Metlifecare has increased its portfolio of villages by 50%; extended its geographic footprint into the South Island; more than doubled the number of villages offering co-located care and embedded development capability and a substantial pipeline to support further growth.
EQT Infrastructure, which bought Stockland's 58 villages and 10 development projects (now Levande) for $987 million in February 2022, says it has reinvested every dollar the business has made back into it.
For the 12 months to 30 June 2024, Metlifecare delivered total income of NZ$95.1 million and net profit after tax of NZ$53.1 million. Total sales of occupation right agreements for FY24 increased by 17% to NZ$464.6 million, reflecting a high demand for the villages and a strong resale portfolio and growing development sales activity.
Operating revenue grew 9.5% to NZ$222 million, driven by strong care revenue growth, increased deferred management fees from resales and new development sales, plus seven months’ revenue from Metlifecare’s latest purchase in the country's South Island.
Earl (pictured) said the retirement living sector in New Zealand had been “oversold”.
Summerset was an outlier, continuing to expand as reflected in its share price, which had risen more than 10% year to date and its 1H24 financial result.
