Metlifecare Limited Analysis

Overview

Metlifecare is a leading New Zealand owner and operator of retirement villages, providing rewarding lifestyles and outstanding care to more than 7,000 New Zealanders.

Established in 1984, it currently owns and operates a portfolio of 35 villages in areas with strong local economies, supportive demographics and high median house prices, located throughout New Zealand

Performance

The following information was extracted from Metlifecare Limited's Full Year results, released on 28 February 2025:

FINANCIAL RESULTS FOR THE HALF YEAR ENDED 31 DECEMBER 2024

Metlifecare Limited’s (NZX: MET) (Metlifecare or the Company) performance summary for the sixsix-month period ending 31 December 2024 (1H25):

• Total occupation right agreement sales of $258.9m, up 18.7% on the prior comparable period ended 31 December 2023 (1H24)

• Operating revenue of $120.3m, up 13.8% on 1H24

• Net profit after tax of $51.1m, up from a net loss after tax of $22.1m in 1H24

• Total assets $6.660bn, up from $6.371bn at 30 June 2024

• Net tangible assets $2.406bn1, up from $2.220bn at 30 June 2024

• Net gearing reduced to 38.1%

• Bank re-financing completed to extend tenor, optimise pricing and provide additional $100m debt capacity

• Equity contribution of $107.7m to enable continued growth and momentum

Financial result

Metlifecare has today reported a strong financial result for 1H25, despite economic headwinds from inflationary pressures and a subdued housing market.

The net profit after tax of $51.1m included a fair value gain on investment property of $85.1m (1H24: $10.1m), supported by retirement village unit price increases and new unit delivery. The Company achieved record numbers of applications on its new and resale units during the period and is well on track to deliver over 330 units and care beds for the full year as part of the ongoing execution of its Full Potential (Strategic) Plan.

Total sales of occupation right agreements increased by 18.7% to $258.9m, reinforcing the high demand for Metlifecare’s villages and reflecting a strong and diversified resale portfolio and increased development sales activity.

Operating revenue increased by 13.8% to $120.3m, due to growth in deferred management fees from resales and new development village sales, together with higher care and village fees.

Metlifecare’s total assets increased by $288.3m to $6.660bn at 31 December 2024, primarily due to the fair value gain on investment property, increased unit delivery and development activity. Total debt increased by $5.5m over the period to $1.479bn at 31 December 2024, however, the balance sheet remains robust with net tangible assets increasing by $185.8m to $2.406bn at 31 December 2024 and the net gearing ratio2 reducing to 38.1%.

During the period the Company re-financed $1.150bn of its bank facilities, demonstrating strong support from its banking syndicate with the extension of tenor, optimisation of pricing and a $100m increase in the overall facility.

The Company also received an equity contribution from its parent (APVGL) of $107.7m to enable continued growth across the business.