Metlifecare has notched up a profit turnaround it attributes to a recovery in the value of its property portfolio which was previously hit by the global financial crisis.The annual profit of $67.5 million compared to a loss the previous year of $115.7 mi
Metlifecare has notched up a profit turnaround it attributes to a recovery in the value of its property portfolio which was previously hit by the global financial crisis.
The annual profit of $67.5 million compared to a loss the previous year of $115.7 million after accounting for non-operating non-cash items, including the revaluation of investment properties and financial instruments under the international financial reporting standards.
At June 30 the retirement village operator had investment properties valued at $1.268 billion, up from $1.129 billion.
Metlifecare is not paying a final dividend.
"Last year's announcement flagged that an uplift in leads and inquiries had arisen during 2009 after the worst of the global financial crisis. I am pleased to report this momentum translated into a significant increase in the level of sales and resales settlements across the villages in the 2010 financial year," chairman Charles MacDonald said.
The main contributor to the profit turnaround was the $73.2m upward property revaluation.
"While the property market in New Zealand has improved, there is still some way to go to achieve more normalised levels of housing transaction turnover. Many new and potential residents still encounter long delays in trying to sell their homes to enable them to enter a retirement village," he said.
