Metlifecare enjoying housing boom

Alan Edwards tells shareholders Metlifecare is expecting extraordinary results. Photo / Greg Bowker

Property sales at listed retirement business Metlifecare are 50 per cent up and shareholders yesterday heard of improving fortunes.

The business, with real estate valued at $1.12 billion, held its annual meeting in Auckland.

It is selling more retirement village units and enjoying the housing market's rebound in sales volumes.

Metlifecare has 17 retirement villages and chief executive Alan Edwards said business in the first quarter of this financial year was 50 per cent up on the same period last year.

Metlifecare has a June balance date but has suspended dividends until further notice.

"We took 84 settlements in the first quarter and if we keep going at this pace, we will exceed expectations," Edwards said.

Chairman Charles MacDonald said the first stage of the new Takapuna retirement village had 18 occupied units, 10 with conditional and unconditional agreements and 50 unsold. The second stage would be finished in April and would bring a further 47 apartments, he said.

"We've seen a lot more interest in the last two months. Alan did presentations and there were 78 applications. We had to hold 30 off for another meeting, so we are starting to see momentum," MacDonald said.

Edwards said the business had seen growing interest from potential residents.

"This increased sales activity will unlock the previously delayed cash flows. We have set exceptionally challenging targets for our teams and we are expecting extraordinary results."

The business needed to sell a minimum of 30 retirement village units a month to meet budget targets. Last month, it sold 53 units, he said. "If we keep going with the momentum we have, we will be well on target by year-end to meet budget."

Metlifecare reported a $115.7 million loss in the June 2009 year, including property devaluations of $106.9 million.