Aveo operating profit $119.5 million for 2009

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With 10,200 ILU’s and 2214 beds, Aveo has announced it has made an operating profit before tax of $119.5 million. This equates to $9,600 per ILU/bed. This was 5% down on the previous year – but not bad given 9 months of the worst sales climate in memory. They did write down their property values by $130 million on a book value of $1.8 billion or 7%. The interesting facts revealed include:
• Average ILU resale price growth of 6%
• No new development work planned
• 2nd Half sales up 17% in volume and 37% in dollars
• Portfolio turnover: 10%pa
• Average DMF rate: 29%
• Average Capital Gain: 50%
• Average resident age: 82 years
• Valuation discount rate: 12.5%
• Average tenure:
ILU’s: 11.4 years
SA’s: 5.4 years
• Portfolio tenure given current age mix
ILU’s: 6.3 years
SA’s: 3.2 years
• Unsold development stock: 2.2% or 224 ILU’s

Parent company FKP announced an operating profit after tax of $78.6 million but a loss of $324 million after property value write downs. Their share price has risen from $0.23 in March to $0.65 this week – an increase of 183% in 5 months.

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