Retirement village operator and developer Metlifecare has reported a 69 per cent drop in first-half profit as the gains from last year's merger with Vision Senior Living and Private Life Care Holding wash through.
Net profit dropped to $NZ26.8 million ($A25.28 million), or 12.76 NZ cents per share, in the six months ended December 31, from $NZ87.4m, or 48.51 NZ cents, a year earlier, the Auckland-based company said on Friday.
Underlying earnings, which strips out the one-off gains in 2012 and movements in the value of its property portfolio, jumped 77 per cent to $NZ15.3m.
Income gained 6.2 per cent to $NZ46.2m on increased deferred management fees. The retirement village operator reported 19 sales of units and 172 resales, generating cash of $NZ69.7m. That was down from 59 sales and 192 resales a year earlier when the benefits of the merger were recognised.
"Constrained stock levels in the high demand Auckland area impacted on both sales and resales during HY14. However, volumes are expected to rise as new stock from Metlifecare's development pipeline becomes available," it said.
"Metlifecare is progressing a number of large development opportunities as it focuses on building its portfolio and achieving its target build rate of 200+ units per year by 2015."
The company is focusing its development in Auckland, Hamilton and Bay of Plenty, which it sees as having large ageing populations.
"The property market within our targeted geographical regions continues to perform well and we are taking a carefully considered approach to land acquisitions in these areas," chairman Peter Brown said.
The board declared an interim dividend of 1.25 NZ cents per share, payable on April 17, with an April 3 record. That's up from an interim dividend of one NZ cent per share a year earlier.
The shares fell 1.2 per cent to $NZ4.15 on Thursday, and have gained 4.8 per cent this year.
