57% profit drop for Aveo points to continued difficult sales for some

Aveo has just released its Half Year results (being part of the FKP group). Retirement operations produced 6 months operations profit of $9.8 million compared to the same period last year of $22.9 million – a 57% drop. Aveo attributes the result mainly to a slowdown in the general residential market. Resales dropped 21% to 197 resales compared to 250 last year. New sales dropped from 13 to just 8. The result – occupancy down from 94% to 92%. Aveo announces a 5%p.a. revaluation each year, which over this six months adds $40 million to its profit contribution. Combined Aveo made just $50 million in six months on paper from a property portfolio valued at $2 billion. They say they will implement a number of focused marketing and sales initiatives to lift sales momentum.