Austria is only pure play retirement village operator listed on the Australian stock exchange, Aveo, hit a price of $3.26 last week.
Five months ago at the start of the financial year (1 July), they were trading at $2.60. This is an increase of exactly 25%. They started in January at $2.20.
Along the way they introduced the new contract/product offering titled the Aveo Way, designed to take all financial uncertainty out of the purchase of a retirement village unit. While eliminating marketing and refurbishment costs it also accelerated and escalated the DMF to 35%. Sales were not dented, demonstrate again that demand exceeds supply the right value proposition.
With a price/earnings ratio now at the very top end, Aveo CEO Geoff Grady will have to both squeeze additional profits and expand products and services to deliver on the faith they have created with professional investors.
All of the village operators will be watching and supporting their performance.