Arvida benefits from strong gains in values and prices
Retirement village and aged care company Arvida has benefited from strong gains in the value of property and improved sales prices.
The company's net profit rose 47 percent to $45 million in the six months ended September, lifted by gains in property values, and higher revenue from treatment and hospital fees.
The bottom line was also boosted by the three villages bought from the Sanderson Group for $180m, which have now been largely integrated.
Revenue rose 5 percent, to $79.6m, reflecting increased sales and resales prices.
Arvida's chief executive Bill McDonald said the rest of the financial year was expected to remain strong with high demand for units.
"With a strong first half now behind us, good momentum in earnings and a lift in our full year targets following completion of the recent acquisition, we remain confident to follow through with our priorities in the second half of FY2020," said McDonald.
This article was originally published on RNZ and re-published with permission.
Help us create a sustainable future for independent local journalism
As New Zealand moves from crisis to recovery mode the need to support local industry has been brought into sharp relief.
As our journalists work to ask the hard questions about our recovery, we also look to you, our readers for support. Reader donations are critical to what we do. If you can help us, please click the button to ensure we can continue to provide quality independent journalism you can trust.