Metlifecare operates 16 retirement villages across New Zealand.
Metlifecare operates 16 retirement villages across New Zealand.
KEY POINTS:
Metlifecare is not paying an interim dividend after revealing a $61.9 million loss for the six months ended December 31 care of a fall in the value of its properties.
The owner and operator of 16 retirement villages throughout New Zealand slashed $55.3 million from the carrying valueof its properties, which are now worth $1.12 billion.
No interim dividend is to be paid to shareholders.
Last year the company paid an 11c-per-share interim dividend.
"The company's operational activities are performing well," said chairman Jim McLay. But international accounting standards required that property revaluations be reflected in the income statement, resulting in the loss.
The company reported a $12.3 million interim loss last year after a $10.7 million downward revaluation of its properties.
The year before it had an upward revaluation of $117.2 million in the interim period.
Total operating revenue rose $1.7 million to $29.9 million.
"The number of signed agreements is comparable with prior years. However, the slowing property market has meant that prospective residents are finding it difficult to sell their homes.
"This has resulted in a slowing of the settlement of Occupation Right Agreements, which reduced the operating net cash flow by $10.2 million."
The company had higher employee costs than last year, and higher finance costs. It also has an impairment of goodwill charge of $2.47 million.
Metlifecare shares closed unchanged at $2.50 yesterday.
