The Poynton Metlifecare at Takapuna. Photo / Jason Oxenham
The Poynton Metlifecare at Takapuna. Photo / Jason Oxenham
Privately-owned $5.3 billion retirement giant Metlifecare pushed revenue up 32 per cent in the latest half-year from rising sales and retaining 30 per cent of residents’ money once they leave.
The company, which delisted from the NZX after a takeover three years ago, said its new unit sales and deferred management fee from resales meant it made more money.
The company, whose villages are mainly in the North Island, retains 30 per cent of the money elderly residents pay on entry.
It made $98.3 million in revenue in the six months to December 31, 2022, up 32 per cent on the $74.9m in the six months to December 31, 2021.
Revaluations weren’t as strong, up only $46.6m compared to a whopping $129.6m previously.
Net after-tax profit dropped from $114m to $12.7m, partly as a result of those lower revaluations but also due to employee expenses rising from $38.7m to $56.1m.
Revenue was up “due to strong growth in deferred management fees from resales and new development village sales”, the company said today.
“Metlifecare’s balance sheet has continued to grow, with total assets rising by $378.9m to $5.346b at 31 December 2022, underpinned by the acquisition of the Merivale and The Village Palms (Shirley, Christchurch) retirement villages and care communities in Christchurch in November 2022 and the completion of new independent living units across our development villages,” it said.
Total debt rose by $246.7m to $989.2m due to more new development, increasing the company’s future development landbank and the Merivale and The Village Palms retirement village acquisitions.
The company’s balance sheet remains robust with net assets of $2.093 billion supporting a debt-to-valuation ratio of 34.4 per cent, up from 28.1 per cent at last June.
With the two new villages, the company has 36 operating retirement villages and 20 hospitals or aged care centres at its sites, although it is adding new hospitals to some existing village operations.
Raukura at 7 Saint Vincent in Remuera, a block in a village owned by Metlifecare. Photo / Supplied
The business houses around 7000 people and was established in 1984.
Occupation right agreement sales were $33.9m in the latest half-year, up 21.3 per cent.
Hospital expansion is a key to growth; many Metlifecare villages don’t have hospitals but need them.
“The company expects to be operating over 1000 care beds by June 30, 2023,” it said.
It is building at Hobsonville, where the first residents moved in last month.
It built a new community centre and seven new apartments at its Pōhutukawa Landing, in Beachlands, Auckland.
It has also developed its first premium care suits in the last half year. These are at Greenwich Gardens, Greenhithe, Auckland and The Avenues, Tauranga.
The company is different from most other national retirement village chains because most of its properties are in the North Island. Most other chains have more of a geographic spread.
Metlifecare owned only one South Island property - a development site - until it bought the two Christchurch villages recently.
In 2020, Swedish investment firm EQT took over and delisted the company from the NZX.
