Retirement village operator Aveo has reaffirmed its full-year earnings guidance as its sales rates continue to improve.
This comes after demand for its units slowed in July in the wake of a joint Fairfax Media and ABC Four Corners probe into Aveo which aired concerns by former residents and staff about hefty exit and maintenance fees.
Aveo says the rate of sales enquiries has continued to improve since falling 40 per cent in July compared to the same period a year ago.
"Enquiries have steadily improved since mid-August - mostly as a result of the improved product offers, ie the money back guarantees, the improved buybacks we began to put into the market from late August," chief executive Geoff Grady told the group's AGM on Wednesday.
"On that back of that improved enquiry, sales have also steadily improved - most notably since mid-September."
He said sales rates were expected to recover to normalised rates by December 31 and to remain at that level through the second half of the 2018 financial year.
Aveo is maintaining its profit guidance of 20.4 cents per security (7.9 per cent growth in 2017 financial year) and continues to target a full-year distribution payout based on 40 per cent to 60 per cent of underlying profit in the current financial year.
