A large property revaluation gain and higher sales activity have seen Arvida Group's bottom line nearly double.
Arvida Group sold 253 units in its retirement villages in the six months ended September. Photo: 123RF
Key numbers for the six months ended September vs year ago:
- Net profit: $75.5m vs $41.8m
- Revenue: $94 vs $86.3m
- Underlying profit (excludes one-off items): $26.6m vs $20.5m
- Property value gains: $69.1m vs $37.m
- Interim dividend: 2.5 cps vs 2.4 cps
The chief executive of the retirement village operator, Jeremy Nicoll, said the strong first half had been achieved despite the disruption caused by the country going back into lockdown.
"We have prioritised the health and well-being of our people incurring additional to cost to ensure our retirement communities remain safe," he said.
This included bonus payments to staff and increased roster coverage.
Arvida's employee costs in the six months ended September rose from $51.6m to $55.5m.
Despite the disruption of the lockdown, the company sold 253 units - a 74 percent increase on last year.
This resulted in the company's earnings from unit sales rising by more than half on the previous year to $23.3m.
"New sales settlements of occupation rights were a highlight for the team and a key contributor to a strong sales performance for the six months," Nicoll said.
Over the past six months, the company brought 68 new units to market and was on target to reach its target of more than 200 by the end of the financial year.
The total value of the company's assets rose by $312m to $2.3 billion.
The company was yet another victim of mounting inflation pressures, saying it expected higher employee costs would be a challenge for the whole retirement sector in the second-half, as they compete for skilled staff in a tight labour market.
