Its Retirement Living business’ operating profit hit $63M in FY17 – up 11.1% from $57M last financial year – helped by ‘strong sales, active management of portfolio and improved margins’.
Its cash return on assets grew to 6.2% from 5.8% in FY16, with a total 780 retirement units were sold – an average of 65 a month or two a day.
Group Executive and CEO Retirement Living Stephen Bull said their development margins were higher this year at 19.1%, thanks to the opening of their UDIA award-winning apartments at Cardinal Freeman The Residences in Sydney’s inner-west and their new vertical village at Birtinya on QLD’s Sunshine Coast, but should normalise to around 15-17% in FY18.
The group is also investing in a new non-deferred management villages concept for over-55’s under the brand name ‘Aspire’.
“We have two projects in this new category currently underway, at our Elara residential community in Sydney and Calleya in Perth, and the initiative will be rolled out at other locations over the coming years,” Mr Bull said.
With village exit fees in the spotlight, will this new direction boost Stockland’s profits even higher in FY18?