Archive | Securities – NZ

Kiwi Property adds 2 banks to its funding pool

Kiwi Property Group Ltd has further diversified its sources of debt, adding HSBC Holdings plc & China Construction Bank Corp to its pool of banking lenders.

Kiwi chief financial officer Stuart Tabuteau said today the company had increased its total finance debt facilities by $75 million to $1.3 billion. It’s added a $100 million facility from HSBC on 3-, 4- & 5-year terms and a $100 million 6-year facility from China Construction Bank, and paid down $125 million of shorter-dated debt.

Mr Tabuteau said one result was to increase Kiwi’s weighted average term to maturity of its finance debt facilities by half a year to 3.5 years.

Attribution: Company release.

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Out of a selldown & rescue, Taurus has built a syndication business ready to grow

In the depths of the global financial crisis, in 2011, Auckland property syndicators Murray Alcock & Allister Knight had one particular syndicate that was going only one way: downhill. Others were shaky, at best.

6 years later, after Christchurch-based Taurus Group Ltd took control of the Aucklanders’ 9 syndicates, investors in that one are looking at daylight, the selldown of the SPI Group syndicates is otherwise almost complete, and Taurus is confident about its own future as a smallscale syndicator.

Taurus Group has 2 arms – its chartered accountancy business headed by Wayne Bailey; and a range of businesses which include capital-raising, property-structuring & syndication, headed by David Kitson (pictured above).

Property syndicate specialist Taurus Management Ltd, part of the capital & finance arm, said on Wednesday it had been granted a licence under the Financial Markets Conduct Act as a manager of managed investment schemes (excluding managed funds) to primarily invest in, or own, real property. It said it aimed to provide good opportunities for investors, mostly in the South Island.

Mr Kitson said the new licence gave the company wider scope to offer managed investment schemes to the public, in addition to the wholesale market. It is now one of 2 managed investment scheme licence holders in the South Island.

Taurus, the early syndication days

But back to the early syndication days of Taurus. In 2011, Taurus began advising SPI Capital Ltd on restructuring its $125 million portfolio of 15 properties in the office, retail & industrial sectors throughout New Zealand and, in 2012, SPI appointed Taurus to wind up the affairs of some of its syndicates.

Taurus has outlined, in an article on its website, its work in trying to deal with the 78 investors in a syndicate that owned a large industrial site in Papakura which had 5 industrial buildings in various states of tenancy & repair, the main tenant in liquidation, and a bank that wanted out.

Taurus persuaded the bank to continue its support rather than force a sale at a large loss, gathered a group of 5 of the syndicate investors willing to support a longer recovery with some extra capital, initially sold some roadfront property and is now moving to sell more of the land, and has negotiated longer-term leases.

Lesson learned: stay smallscale

Mr Kitson has distinguished between Taurus’s investment targets and those of the bigger Auckland syndicators such as Augusta Funds Management Ltd (owned by NZX-listed Augusta Capital Ltd) & Oyster Property Group Ltd (50% owned by ASX-listed Cromwell Corp Ltd, 50% by a group of 5 individuals).

Augusta, in particular, has gone for ever bigger investments and has won strong investor support.

But Mr Kitson said he learned from the SPI restructure & selldown not to get too ambitious and to hold syndicates below the $20 million level, thus requiring fewer investors.

Taurus now manages 4 syndicates with $45 million of property for a total 210 investors.

Mr Kitson said Taurus had seen money flow north to the big syndicators’ offerings, but he believed there was also a strong future in smaller syndicates, and in the South Island: “We see this as complementary to the larger syndicate managers, as the maximum individual property size we will manage is unlikely to be greater than $20 million. There are plenty of attractive opportunities in the south, with very good returns & security. And when it comes to syndicate investment, size does not necessarily matter – tenant profile, returns & security do, so it’s all about the opportunity.

“The syndicates we offer will always have fewer investors, meaning we can continue to provide personal service where investors are bigger fish in a smaller pool. We know it builds confidence to have personal & direct access to the syndicate manager.”

New licence gets Taurus Management focused

Gaining the managed investment scheme licence – a 15-month process – has meant Taurus has had to realign its business to ensure Taurus Management can grow entirely separately from its sister company, Taurus Group. Said Mr Kitson: “The new licence provides the opportunity for the company to start planning a wide-ranging portfolio in the mid-range boutique investment sector over the next 5 years.”

Through the wholesale market, the company recently settled on 9 childcare centres, mostly in the South Island, and is undertaking due diligence on a 10th centre. That scheme will soon own properties worth $25 million.

Taurus Management has also settled the purchase of a 4000m² factory & warehouse in Dunedin, where a sale & leaseback arrangement gave investors the opportunity to be part of a small boutique syndicate with a single very successful tenant. “With monthly cash distributions of 8.5%, the syndicate compares very favourably with larger opportunities in the north,” Mr Kitson said.

Taurus is also conducting due diligence on 2 Christchurch properties, with more opportunities in its sights: “There’s plenty coming up and, while the South Island is our focus, we are also considering forays into regional centres in the North Island, as long as the opportunity is right.”

Taurus Management’s chief financial officer, Michael Kohing, has been with the group since 2000. The company added a distribution manager, Andrew Dorgan, early this year after Mr Dorgan returned to Christchurch from client management & sales roles at 3 banks in London over 7 years, and 5 years in Melbourne as Westpac Banking Corp’s public sector banking team relationship director.

In June, commercial property & investment specialist Charlie Goodwin joined Taurus as a non-executive director. His career has included 6 years as head of investments & marketing for Perpetual Trust, 5 years as a director of Mainland Capital Ltd and, in the last 2 years, work as a consultant providing business case studies and appointment in August as general manager of Ashburton family investment company Tricroft Properties Ltd.

Links: Taurus Group
Taurus, Hunua syndication article: Commercial property – delivering equity growth & dividends, post-GFC

Earlier stories:
15 April 2016: Taurus Group restructures
11 November 2014: SPI directors Alcock & Knight give undertakings to FMA, including repayment
19 October 2012: SPI investors vote to stick with Highland Park cinema property
31 August 2012: Investor majority decides to terminate SPI’s Gloucester syndicate
22 August 2012: SPI Capital manager strikes short-term deal on one syndicate, calls vote on a second
20 April 2012: Syndicator concedes no return to investors in 2 accommodation syndicates 4 years after tenant Edpac’s collapse

Attribution: Company release, website, Companies Register.

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Summerset buys at Porirua for 5th Wellington village

Retirement village developer Summerset Group Holdings Ltd said today it had bought a 6ha site, price undisclosed, in the Kenepuru Landing development at Porirua for its 5th village in the Wellington region.

Kenepuru Landing is a joint residential housing project between developer Carrus Corp Ltd & local iwi Ngati Toa.

Summerset chief executive Julian Cook said the proposed village on Bluff Rd would have over 290 homes, including 2- & 3-bedroom villas & apartments, one-bedroom serviced apartments and resthome & hospital care. The village would also include Summerset’s memory care centre concept, offering 20 one-bedroom apartments in a safe environment for people with dementia.

The company expects to build 450 retirement units nationally this year.

Attribution: Company release.

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Arvida buys 3 more retirement villages

Retirement village owner & operator Arvida Group Ltd has bought 2 villages & 50% of a third from Hurst Lifecare Ltd for $106 million, funded through a combination of new equity & debt.

The villages are Mary Doyle Lifecare (Havelock North), Strathallan Lifecare (Timaru) & 50% of Village at the Park Lifecare (Wellington), which Arvida said it had bought at a 5% discount to CBRE’s 2017 valuation.

Arvida said yesterday it intended to raise:

  • $77 million through a 1:5 pro rata renounceable rights issue at $1.15/share, fully underwritten by Forsyth Barr Group Ltd
  • $16 million of shares issued to vendors, escrowed for 12 months, and
  • $16 million of bank debt, comprising $10 million of debt acquired in conjunction with Village at the Park & $6 million from existing facilities, leaving headroom for further acquisitions & brownfield development activity.

Arvida expects to complete the acquisitions in mid-October on receipt of customary third-party approvals.

It expects the rights issue offer document to be available on the NZX website next Tuesday, 19 September, and it will be sent to shareholders by 21 September. The offer will close on Monday 9 October.

The acquisitions will increase the number of Arvida villages to 29, containing 1761 care beds & 1752 retirement units.

Based on Arvida’s estimates of earnings, the acquisitions will add $9 million of underlying profit on a pro forma 2018 financial year basis and be 8% accretive to underlying earnings/share. The company said it expected to increase earnings before the 2018 financial year from development of 110 consented new units at Village at the Park & Mary Doyle.

Arvida chief executive Bill McDonald said the new units would be progressively developed over the next 4 years, and included developments nearing completion.

Hurst Lifecare & associated parties sold their Rhodes on Cashmere village to Arvida as part of the initial public offer and remain holders of shares issued in that offer. They’ve elected this time to receive a large portion of the purchase price in Arvida shares at market price.

Earlier stories:
21 October 2016: Shortfall bookbuild completes Arvida capital-raising
21 September 2016: Arvida announces rights issue to buy 3 retirement villages
27 May 2016: Arvida well ahead of forecasts
25 June 2015: Arvida buys Aria Villages
22 November 2014: Arvida sets listing price at 95c

Attribution: Company release.

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Kiwi Property’s Drury buy approved

Kiwi Property Group Ltd said yesterday it had received approval from the Overseas Investment Office to proceed with its acquisition of land at Drury, 35km down State Highway 1 from Auckland’s city centre.

The company said on 7 April it had secured agreements to acquire 3 greenfield sites totalling 51.3ha adjacent to the junction of the Southern Motorway, Great South Rd & the North Island main trunk railway line.

The Overseas Investment Office approval relates to the acquisition of a freehold interest of 39.2ha of this 51.3ha.

Kiwi Property chief executive Chris Gudgeon said yesterday: “This landholding reinforces our commitment to be part of Auckland’s future growth. Our vision is to develop a town centre to complement the existing Drury town centre, which would be staged over the next 20 years to coincide with predicted population growth, household formation & employment growth in South Auckland.”

Settlement of Kiwi’s purchase of 30.6ha of the Overseas Investment Office-approved land parcels is due to occur next Wednesday, 20 September 2017. Mr Gudgeon said Kiwi would fund it through existing debt facilities.

He said in April the acquisition price for 2 of the land parcels, totalling 42.7ha, was $39.8 million. Kiwi secured the third parcel of 8.6ha via a right of first refusal, with the purchase price to be determined with reference to the market when the right is exercised.

Earlier stories:
10 September 2017: Second round for Auranga precinct confirms Drury as major growth centre
7 April 2017: Kiwi Property plans new town centre next to Stevenson’s Drury development
31 October 2016: Work starts on 3 striking special housing area projects
24 August 2016: Work set to start after fast approval for Auranga special housing area at Drury
4 July 2015: 2 large special housing areas for Franklin
30 August 2013: Drury South industrial area plan change & MUL extension approved
4 September 2012: Drury South plan changes notified

Attribution: Company release.

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Fletcher Building adds new facilities to already worse debt position

Fletcher Building Ltd said on Friday it had arranged additional debt facilities of $345 million with 3 banks from its existing syndicate – ANZ, HSBC & Westpac Bank.

The new facility was finalised 3 weeks after Fletcher Building issued its annual report, which showed substantial available funding but a much worse debt position than a year earlier, including leverage beyond its target range.

Chief financial officer Bevan McKenzie said the company had put the debt facilities in place in line with its scheduled refinancing programme, and they’d allow the company to work with its lenders to access longer-term funding solutions: “We are very pleased to have put these facilities in place, which show the continued support we have from our lenders. Fletcher Building has a strong funding profile and will continue to work with our lenders to maintain our diverse sources of debt funding.”

Balance date figures:

The annual report, released on 16 August, showed Fletcher Building had total available funding of $2.666 billion at its 30 June balance date, of which $536 million was undrawn. It had an additional $219 million of cash on hand.

The annual report showed $198 million of drawn debt facilities maturing within the next 12 months and a further $71 million of capital notes subject to interest rate & term reset.

The group’s gearing was 35.3% (27.3% at the 2016 balance date). Gearing has returned to the target range following completion of the Higgins acquisition. Gearing is interest-bearing net debt (including capital notes):interest-bearing net debt (including capital notes) & equity.

The group’s leverage was 2.7 times (1.6 times in 2016) interest-bearing net debt (including capital notes):ebitda before significant items. The company noted in its annual report: “Whilst just outside the target range of 2.0–2.5 times, the expectation is that this will return to within the range in 2018. The average maturity of the debt is 4.7 years.”

Interest coverage was 4.7 times (5.9 times in 2016). Interest coverage is the ratio of ebit before significant items:total interest paid (including capital notes interest).

Attribution: Company release, annual report.

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Precinct sets notes interest rate

Precinct Properties NZ Ltd allocated $125 million of 4-year convertible notes today at 4.8%/year, the minimum interest rate under the offer. It has another $25 million of notes available under its priority offer.

Today’s allocation included the maximum $25 million of oversubscriptions.

Minimum application amounts are $5000 under the general offer, which closes on Friday 22 September, and $1000 under the priority offer, to eligible NZ-resident Precinct retail shareholders, closing on Tuesday 19 September.

Today’s bookbuild setting the interest rate was for participants in the general offer.

Link: Precinct notes product disclosure statement

Earlier story:
27 August 2017: Precinct launches 4-year convertible notes

Attribution: Company release.

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Metlifecare’s Botany site price disclosed

Metlifecare Ltd’s Botany site, bought through Bayleys 4 months ago for a retirement village, cost it $21 million.

Metlifecare bought the near-level, north-facing site, formerly part of the Pakuranga golfcourse, to build a $140 million retirement village. Its plan is for about 160 independent living units & serviced apartments plus care facilities.


Botany Downs

197 Botany Rd:
Features: 2.38ha site zoned mixed housing suburban
Outcome: sold for $21 million, at $882/m², to NZX-listed Metlifcare Ltd
Agent: Dave Stanley

Attribution: Agency release.

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Augusta shareholders get insight into workings of a fast-moving asset manager in an oft-pedestrian sector

Augusta Capital Ltd’s annual meeting last Thursday was an opportunity for investors to gain an insight into a changing world.

The company’s annual results, out in May, showed an entity determined to shift completely out of long-term passive direct investment and into a range of portfolio management roles. It now has a $1.7 billion portfolio of syndicates & other funds under its wing, including privately held portfolios and the Value-Add Fund No 1, which is not about the traditional yield-based returns on property but about repositioning assets and making a profit.

Mark Francis.

Managing director Mark Francis said the company had limited opportunities for growth in its remaining direct property portfolio without substantial new capital being introduced, and market conditions favoured diversifying.

He listed these alternatives, which he saw offering much better returns:

  • Realising further opportunities to manage funds
  • Launching additional funds with the potential to expand & diversify these types of offerings into niche & strongly performing sectors of the economy
  • Ongoing, measured expansion into Australia
  • Maintaining prudent capital management structures throughout
  • Balance sheet transformation
  • Working closely with Bayleys Real Estate to maintain optimal efficiency across the existing asset portfolio, and
  • Active management.

Here & there he would throw in a corporate catchphrase, realise it and revert to blunter language. Augusta is about making properties work – and if they don’t work, can’t be improved further, don’t offer redevelopment opportunities, are syndicates at the end of their time, the company will move on.

While the company’s refashioning ownership away from long-term passive, it’s also been adjusting its balance sheet to cater for different ownership forms (syndicates closing earlier than they used to, funds with other imperatives, development) and for volatile cash holdings.

The issue of volatility was sorted out at the annual meeting when the constitution was changed with a 99.74% vote in favour of removing the loan:value ratio clause that had impeded some investments.

Recurring fees are the cement

Augusta chair Paul Duffy said the focus of the last year, growing recurring management fee income, remained the focus and would be driven through new syndicates & a range of multi-asset property funds. The company would also invest in new staff, technology & processes to further that aim.

“Recurring annualised base management fees increased 10% in the last financial year. This trend has continued in the new financial year with the completion of the 33 Broadway Offer at the end of June and our latest Australian syndication, which will settle this coming Monday.

“In the last financial year, we raised over $200 million in equity for the establishment of new syndications. This included the 2 largest-ever syndications completed by Augusta – the NZME & BDO buildings at Graham St, Auckland. Outside of the KiwiSaver sector, there are very few entities across the financial sector which will have raised similar amounts of equity.

“The success of those capital raisings has seen the number of investors in our syndicates & funds grow 20% in the past year. Augusta now has over 3000 investors in its syndicates and 880 shareholders in Augusta Capital.”

The sale of remaining Finance Centre properties will be completed in 2018 & 2019, and Augusta will use the released funds to warehouse property before syndication, underwriting & co-investments in new funds. However, Mr Duffy said it was proving harder to source these opportunities.

The earnings

Augusta increased adjusted funds from operations by 19% to $6.75 million, equating to operating earnings/share of 7.7c (6.5c in 2016). Net profit after tax fell 43% to $7.75 million, the result of lower revaluation & disposal gains as directly held investment portfolio assets continued to be divested.

However, as those directly held gains fell, the company increased funds under management by 9.5% to $1.6 billion at balance date – and to $1.7 billion since then, following settlement of the 33 Broadway and Nudgee Rd, Brisbane, properties.

Augusta raised $203 million in new equity through 5 new syndications, lifting assets under management by $347 million and continuing the expansion into Australia. Recurring annualised base management fees rose 10% to $5.6 million at balance date, and have since risen to $5.8 million following settlement of 33 Broadway at the end of June and Brisbane syndicate property Nudgee Rd, settling today. Net asset value/share has risen from 94c in March 2016 to 98c.

He said Augusta, which carries buildings on its balance sheet at cost, would launch more funds this financial year, including “measured expansion” into Australia.

All those funds were about yield, but the Value-Add Fund No 1, is about total return, repositioning assets for capital gain for the investors in the fund, including Augusta itself.

Of the 5 properties bought for that fund, all in Auckland, 3 have been sold:

  • 100 Carbine Rd, Mt Wellington, unconditionally sold for $36.8 million (purchase price $33.45 million)
  • 11 McDonald St, Morningside, sold for $24 million (purchase price $17 million), and
  • 36 Kitchener St in the cbd, sold for $21 million (purchase price was $16.5 million).

Mr Francis said the company was working on options for the other Value-Add Fund properties, Hangar 54 at 54 Cook St and 151 Victoria St West.

Next task is to transform balance sheet

Next up for Augusta is to transform its balance sheet. In short, this is about moving out of direct property ownership – albeit investments such as the company’s stake in the value-add fund and short-term underwrites amount to a form of direct investment – and into portfolio management for other investors. It’s contract management for a spread of entities, expanding the external management concept which listed property entities have switched in & out of over the last 3 decades.

Mr Francis said Augusta was getting better use of its capital through that contract management than it would have by sticking to direct investment. That change led to the 19% increase in adjusted funds from operations, he said.

Instead of being “a listed property company”, Mr Francis said: “We’re a pure-play funds management initiative. We’re getting a better earn – 31% – off funds management than we were off direct property investment.”

The change in focus reduced group gearing from 35.5% a year ago to 26.6% in December and 21% now, but Mr Francis said shareholders could expect that ratio to be volatile, depending on the state of investments: “Given what we’ve got on the radar, you wouldn’t expect us to sit at those gearing levels [in the 20-25% range] very long.”

Shareholders approved amending the company’s constitution, by removing the loan:value ratio limit, with a 99.74% vote in favour of this change. The result, Mr Francis said, was that against a target gearing ratio of 35%, the actual gearing could range from 0-55% on a drawn basis.

Future borrowings will consist of 3 categories, each with its own target gearing levels:

  • Real property: A gearing ratio of about 45%, with interest serviced by the income from the relevant real properties; this category includes properties warehoused short-term, with an exit strategy
  • Investment assets (shares or co-investments in managed funds): A lower gearing ratio, with interest serviced by the distribution or dividend income from such assets, and
  • A separate working capital facility, which will be serviced by the cashflows generated from the funds management business and only used to facilitate new deals or funds initiatives.

“The key focus will be servicing the debt, as the debt profile will be low on a long-term average basis, but may increase with respect to new initiatives.”

Mr Francis said that before the constitutional change, “you will see where we’ve bought property to syndicate and underwritten ourselves, but sometimes we’ve hit a debt barrier.”

Changes for syndicate investors

Syndicate investors will see changes too, as Augusta rationalises the portfolios it manages. It’s prepared to be active in closing a syndicate, including offering investors in some of the provincial syndicates the opportunity to enter a new syndicate with better growth prospects.

Mr Francis said Augusta had put proposals to investors to sell out of syndicates and had sold $150 million of such assets in the last 12 months.

“We believe we’re exiting them at the right time, and we can get better investment outcomes. This is a win-win in our minds. We’ve certainly had strong support from investors for our exploring this avenue, and we still see plenty of opportunity for divestment.”

The NZ portfolio

Augusta’s NZ audited portfolio delivered a weighted average total return of 16% for the year to March, an unrealised average 25% equity gain since establishment and a 4.8% valuation gain in the last year. That $1 billion portfolio excludes Australian audited properties, new schemes, the directly owned portfolio, the Value-Add Fund and privately owned & other properties.

The portfolio is about two-thirds exposed to Auckland and is across all commercial sectors. Mr Francis commented: “If you believe the data, it’s hard to ignore Auckland as the preferred investment location.”

How Augusta goes about buying, and building on what it buys

Company chair Paul Duffy & director Bryce Barnett added some detail on how Augusta goes about syndication purchases.

Mr Duffy said there would be an informal discussion with the board about a proposal – at that morning’s board meeting there 3 of these – and, if an agreement to buy was prepared, the board would have a due diligence committee look at the tenants: “It’s not a passive investment. The returns we achieve, close to 16% – it’s a very active management to achieve those results.”

As Augusta looks more at Australia, and Brisbane in particular, Mr Bryce spoke up as the expert in that market segment. KCL Property Ltd, which he headed, merged with Augusta in 2014, taking $850 million of assets under management into the enlarged group, including a number of syndicated Brisbane assets.

“The Australian opportunities at the moment with the best upside are in the Brisbane region,” Mr Barnett said.

One shareholder was curious to know if Augusta improved a property during its brief ownership before passing it on to a syndicate. “Not as a rule,” Mr Francis said. “We’ll buy something then pass it on. Sometimes that will be in passive form, sometimes it will need working on. But we’re not buying, putting a bow on it and then passing it on.

“For the Value-Add Fund, all 5 properties required some sort of addition. The real opportunity there was the short lease to Bunnings and no opportunity to renew it.”

Mr Duffy added: “At McDonald St, management initiated a plan change. We were able to increase the density of that building. We then found the risk to develop it was too high and we’ve now realised it at a substantial profit.”

Future for syndication

On a question of syndication becoming more difficult if interest rates rise, Mr Duffy said: “We’re trying to tie our bank finance to the lease period with interest rate swaps & so forth, and the team lock in a chunk of bank finance. That’s why the recurring earnings become a driver.”

Mr Duffy also said Augusta had hired accountancy firm PWC to provide treasury expertise.

He also commented on likely investment in commercial property by New Zealanders, especially the impact of KiwiSaver on the flow of capital: “With KiwiSaver, you’re going to have 10-15% weighted in property. New Zealand has seen foreign capital coming into commercial real estate, so I don’t see commercial property yields going to 6.5-8% in the next 3-4 years. It’s just not possible.”

Loughlin defers retirement

John Loughlin, who’d intended to retire at this annual meeting, will stay on until the end of the year, when a replacement is expected to be named. Mr Duffy said the search for a new director was progressing but wasn’t quite complete.

And Mr Francis complimented Mr Loughlin, who joined the board in 2007, saying they’d had “many robust discussions over the years” and had disagreed as many times as they’d agreed – “and that’s what you want from a director”.

Attribution: Annual meeting.

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Metlifecare hits $3 billion of assets

Metlifecare Ltd reported a record profit on Monday of $251.5 million for the June year as it lifted total asset values by 14% to $3 billion.

Chief executive Glen Sowry said the company also achieved big increases in realised resale gains & development margins. The value of Metlifecare’s net tangible assets increased 21% ($1.11)/share to $6.43/share.

Mr Sowry said Metlifecare had made tremendous progress during the year: “We delivered on our growth targets with the completion of 235 new units & care beds – more than double last year’s number – while at the same time increasing the development margin to 23% from last year’s 13%. “Additionally, our sharpened commercial intensity has contributed to strong price growth and we have outperformed the market in the areas our villages are located. Demand has remained consistently high and we have maintained 98% village occupancy.”

Mr Sowry said Metlifecare would leverage the momentum this year: “Accelerated growth remains core to our strategy. Our analysis shows strong long-term sector fundamentals in our regions, including the continued increase in anticipated housing demand, an ongoing undersupply of housing development and the escalating growth of our target demographic. Projections show that the population aged over 75 in our regions will double to around 225,000 potential customers in the next 15 years.

“With our expanded development programme well established, we will also be heavily focused on further targeted land acquisitions to enhance our longer-term land bank.”

Performance highlights (2016 in brackets):

  • Reported net profit after tax up 10% to $251.5 million ($228.7 million)
  • Underlying profit, which removes unrealised gains in asset values, up 24% to $82.1 million
  • Net tangible assets/share up 21% to $6.43
  • Underlying operating cashflows up 2% to $51.3 million
  • 235 development units & care beds delivered, up 124%
  • Realised development margin up from 13% to 23%
  • Embedded value/unit up 29% to $269,000/unit
  • Loan:value ratio down from 6.3% to 4.8%
  • Final dividend of 5.8c/share, lifting total for the year by 40% to 8.05c/share.

Attribution: Company release.

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