The New Zealand operator, which has continuum of care offered at 65% of its 37 operating retirement villages, recorded a net loss after tax of NZ$22.1 million after a period of investing for growth. Its fair value gain on investment property was NZ$10.1 million (1H23: $46.7 million), in the six months to 31 December 2023.
Despite the high inflation rate (4.7% in the fourth quarter of 2023) and a poor housing market (sales in January the second lowest level in at least 32 years), Metlifecare said it is on track to deliver over 300 units and care beds for the full year, which will be a record for the operator.
Total sales rose 12.9% to NZ$218.1 million, with a strong resale portfolio and increasing development sales activity.
Operating revenue increased by 7.5% to NZ$105.8 million, due to growth in deferred management fees from resales and new development village sales, higher care and village fees, and six months’ revenue attributable to two retirement villages in the South Island acquired in December 2022.
The balance sheet of Metlifecare, whose CEO is Earl Gasparich, grew, with total assets increasing by NZ$324.7 million over the period to NZ$5.961 billion.
“This increase was driven by the acquisition of a new premium lifestyle village and co-located care home in Blenheim in November 2023, plus ongoing development activity,” said the company.
Metlifecare’s total debt increased by NZ$150.9 million over the period to NZ$1.293 billion.
Sweden’s EQT Group bought Metlifecare in July 2020.
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