BUSINESSDESK: Metlifecare, the retirement village operator that merged with major shareholders Vision Senior Living and Private Life Care, slashed the value of its property portfolio by $99.8 million, sending it to a full-year loss.
The company made a loss of $141.7 million, or $1.04 per share, in the year ended June 30, from a profit of $20.8 million, or 17 cents per share, a year earlier.
Revenue fell 1.5% to $64.2 million, led by a 7.9% fall in the fees charged to residents for the use of village common facilities.
The writedown in the value of its property portfolio was in line with expectations and previous disclosures, the company said.
Last month, Metlifecare completed the merger with Vision and Private Life Care Holdings, which will give it eight new villages, taking its portfolio to 24, three of which are in development.
The all-scrip deal, valued at $91.8 million, came after the retirement village operator's balance date, lifting Metlifecare's total assets to some $1.9 billion.
It increased the number of units to 3902 from 2460 and added a further $128.9 million of bank debt to the company's books.
Metlifecare reporting annual operating cash flow of $31 million, beating guidance of $26.5 million, and up from $23 million a year earlier.
Trading and relicensing performance earnings rose to $46 million from $43.3 million.
Metlifecare reported 36 new sales of unit rights for gross settlements of $20.4 million, up from 29 new sales attracting $15.7 million in 2011. Unit rights resales increased to 294 attracting $93.5 million from 267 sales raising $98 million a year earlier.
The board didn't declare a dividend.
The shares rose 2% to $2.60 and are up 12% this year. The stock is rated a "buy" according to the one analyst recommendation compiled by Reuters, with a target price of $2.725.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- “A very ballsy thing to do” – Rodney Hide and Kelvin Davis discuss Serco’s response to Correction’s Mt Eden Prison report
- “The response from shareholders has been overwhelming” — A2 Corporation chief executive Geoff Babidge
- Greg Gent says a board of 13 people is "prehistoric"
- Arvida CEO Bill McDonald on his company's half-year net profit
- Lance Wiggs on the future of food exports
- Auckland Councillor Chris Darby on the Council's alternative funding report
- Nevil Gibson discusses his latest Editor's Insight on oil prices
- Campbell Gibson, Nick Grant and Chelsea Armitage chat about the inner workings of New Zealand media
- Paul Brislen discusses the 'snake oil' sales tactics of SalesConcepts
- Fonterra chief executive Theo Spierings reveals his ambitious China plan
- UDC Finance chief executive Wayne Percival talks about the company's profit
- Hamish McNicol discusses the latest court stories