Australian Unity’s resale settlements hit new record of $172.2M in FY23 profit

The mutual company, which decided to keep its residential aged care operation in July after a review, saw its revenue from its Specialist Care division – retirement living and aged care – rise 11.4% to $255.5 million.

Australian Unity, which reported a $56.8 million profit after income tax for FY2023, up 24.2%, said Specialist Care “recorded a sound financial result”.

It owns and operates 11 integrated retirement villages and residential aged care precincts and 12 standalone retirement villages across New South Wales, Victoria and Queensland, comprising 2,724 independent living units (ILUs) and 1,215 aged care beds (2022: 2,664 ILUs and 1,007 aged care beds). 

Australian Unity opened Walmsley Residential Aged Care in Kilsyth, 36km east of Melbourne’s CBD, and The Alba in South Melbourne, to provide continuum of care outlets during the financial year.

It received over $172.2 million in retirement village resale settlements, which exceeded the prior year’s total by 14%. 

Occupancy levels across the portfolio’s mature retirement villages rose to almost 95% at year end, while the mature residential aged care portfolio strengthened occupancy during the course of the year to end at over 97%.

Specialist Care’s adjusted EBITDA of $56.9 million represented a decrease of 13.2%, $8.6 million on the prior year. The previous year included a $19.1 million gain related to a business combination uplift arising from its acquisition of Greengate and its three co-located retirement and aged care communities in Sydney and Brisbane. Adjusting for this one-off gain, underlying adjusted EBITDA increased by $10.4 million or 22.6% from the prior year, said the mutual.

The SOURCE: It would have been madness for Australian Unity to exit residential aged care with the population ageing.