Despite a 46% jump in sales in January to June, compared to July to December 2011, Aveo saw its cash profit for the full year fall from $46M to $33M over the 12 months. They added an $80M increased revaluation for their 46 villages on top of this the same figure as last year. This took them to a $113M accounting profit on a portfolio valued at $1.9B (i.e. a 6%return)
Sales have been a challenge across their 6,300 owned/controlled ILUs:
July/Dec Jan/June 2012 (2011)
Resales 192 275 467 481
New sales 8 29 37 37
Total Sales 205 304 504 518
% of portfolio 8% 8%
A reported average occupancy of 93% means Aveo has 570 vacant ILUs. Valued at an average $276,000 each this translates into $157M. Their average DMF is reported at $108,000 meaning they have $61.5M in income locked up.
Looking forward Aveos Board states they expect moderate profit growth, with a stable residential market but an increase in DMF income as they shift the mix from buy back sales to more profitable resident to resident sales.
