Babcock & Brown Communities Group (BBC) announces $18.2 million profit for Primelife and Fini villages, plus some fascinating business statistics
John Martin, CEO of Babcock & Brown Communities Group (BBC), says the basic business numbers that drive the income for villages should be clear, simple & available. His half year profit release to the Stock Exchange for Primelife and Fini Villages...
John Martin, CEO of Babcock & Brown Communities Group (BBC), says the basic business
numbers that drive the income for villages should be clear, simple & available. His half
year profit release to the Stock Exchange for Primelife and Fini Villages, and more recently
Conform Health Care, stated an after-tax net profit of $18.2 million for the 6 months.
Among the drivers of the profit was 227 ILU resales which averaged $70,000 cash income
each or $600,000 per week. This was 7.4% of their existing stock which implies the
average occupancy of 13.5 years a lot longer than many other occupancy models. They
also comment that each refurbishment of a unit shows a 24% uplift in the market price of a
unit. Not a bad return on investment.
Members of the aged care sector will be particularly interested in BBCs forecast of $7,200
profit per bed for the full year. BBC now owns and manages a portfolio of 56 retirement
villages and 29 aged care facilities in Australia and New Zealand.
