Metlifecare reports annual loss after writedowns

One of Metlifecare's new retirement villages on Auckland's North Shore. Photo / Glenn Jeffrey

Metlifecare has reported a bottom line loss of $115.7 million after a $106.9m writedown on property assets.

The aged care provider is not paying a dividend.

Revenue in the year to June 30 was $58.56m, little changed from $58.36m in the same period last year.

Chairman Charles MacDonald said at the end of the period the group's properties were worth $1.129 billion, down from $1.176b last year.

Metlifecare owns and operates 17 lifestyle villages incorporating 10 care facilities. Across the villages it has 2470 villas and apartments providing care for more than 3300 residents.

"As mentioned in last year's report, under international financial reporting standards, the change in investment properties valuation is recorded in the income statement while under previous accounting standards the movements were recorded in balance sheet reserves.

"This change has introduced volatility to Metlifecare's income statement based on an assessment of future market conditions which distracts from our operational performance in the current period," he said.

Cash flows from relicensing activities were down on the prior year as a result of the downturn in residential housing, but occupancy levels were maintained.

MacDonald said management responded to the trading conditions by reducing operating expenses, although this was partly offset by higher financing costs.

In June, the company opened the first stage of its new retirement village complex at Takapuna, which created a new market for Metlifecare."

The company raised $37.4m of new capital in March.

- NZPA