Stockland has announced a drop in profit of 79%, down to $104.6M, after it wrote down the value of its property portfolio by $355M, largely in its Residential book. Meanwhile its Retirement Living group made an EBIT of $45M and an operating profit of $38M, up 6% on last year. With assets of just over $1B, new Retirement Living CEO Stephen Bull says return on assets rose from 4.2% to 4.5%, and they are targeting 6.5% by 2015 and 8.0% by 2018.
With 62 villages and 8,082 ILUs, they sold 851 ILUs over the 12 months, an average of 16 per week. The average price was $356,000. 36% were newly developed ILUs.
Retirement Living accounts for 10% of Stocklands real estate assets.
Opinion
These new retirement villages show providing care is here and now
Gone are the days when retirement living was defined by community centres, swimming pools and bowling greens. While these amenities still exist – the provision of care is now a core part of the value proposition. Hyegrove Willoughby on Sydney’s...
