Arvida Group (ARV) H1 2025 earnings summary

Executive summary

• Delivered solid financial results for the six months ending 30 September 2024, with operating EBITDA up 13% to $44.1 million compared to the prior period, despite a challenging property market and weak economic environment.

• Net profit after tax was $64.0 million, including a $72.9 million fair value gain on investment property, reflecting ongoing development and resale price momentum.

• Completed delivery of 62 new care suites at Queenstown Country Club; on track to deliver 140-150 new units 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.

• 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.

• Underlying profit was $30.7 million, compared to $33.6 million in the prior year.

• 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.

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

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