New Zealand’s Arvida moves ahead with the replacement of residential aged care beds with resident funded care suites under a DMF model.
“Our experience with care suites to date has demonstrated that there is a market need for this product with improved returns possible. We will also be looking to accelerate the conversion of our traditional care beds and serviced apartments to care suites where it makes sense,” said CEO Jeremy Nichol in a statement to the NZ Exchange.
Arvida has seen its share price fall from NZ$1.72 to 98 cents since the start of the financial year.
“Despite the fall in the share price our business performance continues to improve to our lead demand indicators. Sales momentum continues to be strong, with ORA pricing firm and record levels of new and resale gains being recorded,” Jeremy added.
“In March 2023, we had our best month on record for new and resale gains. In a difficult residential market, this reflects the relative appeal of our product and the underlying business culture. It also highlights that often the decision to move into a retirement community is based on the desire for safety, security and support."
“Our construction programmes have continued to add new homes, delivering new villas, apartments and care suites across multiple sites in the year. The level of enquiry, deposited waitlists, pre-sale applications, and level of settled sales all remain high. This has given us confidence to continue to add to our future development opportunities albeit applying a more conservative approach to committing capital as we seek to cherry pick opportunities.”
Arvida will announce its result for the financial year ending 31 March 2023 at the end of May.
