Arvida Group (ARV) H1 2025 earnings summary

Executive summary

• Net profit after tax was $64.0 million for the six months ended 30 September 2024, including a $72.9 million fair value gain on investment property, reflecting ongoing development and resale price momentum.

• Operating EBITDA rose 13.1% year-over-year to $44.1 million, despite a challenging property market and weak economic environment.

• Operating revenue increased 2.8% to $125.5 million, driven by deferred management fees and higher care and village fees.

• Completed delivery of 62 new care suites at Queenstown Country Club and 70 new units overall, with 140-150 new units expected by FY25 year-end.

• Scheme of arrangement with Stonepeak expected to complete on 20 November 2024, offering shareholders NZ$1.70 per share in cash.

Financial highlights

• Total revenue for the six months was $125.5 million, up from $122.1 million in the same period last year.

• Gross value of occupation right agreement sales reached $193.4 million, up 12.9% year-over-year.

• Net profit after tax was $64.0 million, down from $90.0 million in the prior year, mainly due to a lower fair value gain on investment property.

• Operating EBITDA reached $44.1 million, up from $39.0 million year-over-year.

• Net operating cash flow increased to $79.5 million from $45.6 million in the prior year.

Outlook and guidance

• Remain on track to deliver 140-150 new units by FY25, consistent with previous guidance.

• Board anticipates gradual property market recovery as inflation and interest rates decline.

• Well-positioned to meet rising demand for quality retirement living in New Zealand.

• Completion of Stonepeak scheme expected to accelerate value recognition for shareholders.