Another indication of how buoyant the New Zealand retirement village market is.
The operator – created by Australian village veteran Bill McDonald (pictured right) in November 2014 after he convinced 10 private operators to pull their 17 villages into one group and list on the NZ stock exchange – has reported a $41.8 million unaudited net profit for the six months to 30 September 2020.
This included a fair value movement on its investment property of $37.7 million as unit valuations increased higher than the $35.3 million in the same period in 2019.
The result is 7% down on its previous HY profits of $45 million, with $5 million in COVID costs.
Sales enquiries and resale prices on the up
The CEO added that Arvida was also receiving increased sales enquiries in the wake of the pandemic, with average resale prices 3% higher than they were at 31 March 2020 as the New Zealand housing market continues to build momentum.
“The average age of people entering a village is in the vicinity of 80 years,” he said. “For many, the coronavirus pandemic has brought forward decision making about their next home and ensuring it meets their needs.”
In total, the group settled $42.5 million in resales during the period and $36.7 million of new sales.
Arvida’s assets are now valued at $2 billion, up $118 million from the start of the 2021 financial year – just five months’ time.
Their future development pipeline also includes 1,574 units and beds with over 200 units to be delivered annually.
Arvida has 4,750 residents and 2,600 staff across 32 villages.