Although Arvida is still a relative newcomer to the retirement and aged care sector, the provider appears to be progressing in leaps and bounds, with its year-end result significantly ahead of last year’s performance and its ambitious development programme that includes a conditional agreement on a site pegged for a $100 million retirement village and integrated care development.
Arvida’s unaudited result for the year ending 31 March 2017 showed total operating revenue of $101.4 million, 23% ahead of last year, of which $11.0 million was from villages acquired in FY2017. Unaudited Net Profit After Tax (IFRS) increased to $53.7 million. Underlying Profit, which removes non-cash and one-off items, increased to $23.1 million representing a 47% increase on the prior corresponding period.
Arvida’s Chief Executive Officer Bill McDonald said the company’s lift in performance was due to “strong demand for our village and care facilities”.
The company has acquired five villages in this financial year, bringing its total to 26 villages across the country. Like many of its competitors, Arvida’s focus appears to be on the demographic ‘Golden Triangle’ for retirement living and aged care, which encompasses the Auckland, Waikato and Bay of Plenty regions.
Arvida chair Peter Wilson says they are actively considering further acquisition prospects that meet the company’s criteria in terms of “location, quality of assets and current management, potential for development and earnings accretion”.
Arvida’s development programme looks to deliver 262 new retirement units/beds over the next two years. And just yesterday, the company entered a conditional agreement to acquire 8.2 hectares of bare land in Richmond, Nelson. Subject to consent, the site provides for a $100 million retirement village and integrated care development.