Presentation of

Annual Financial Results

Arvida Group Limited

For the 12 months ended 31 March 2023

Arvida Group | Results Presentation

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FY23 Highlights

Financial performance

  • Record underlying profit of $88.0m, up 20% from $73.5m in FY22
  • Strong increase in annuity EBITDA up 30% to $83.6m from $64.6m in FY22
  • Net profit after tax of $82.5m, down 59% on IP fair value movements of $80.4m that included Parklane impairment for flood damage
  • Net operating cash flows of $152.6m, broadly flat on FY22
  • Total assets increased to $3.8b, with $3.4b of investment property
  • Gearing of 30.5% within 25-35% target range
  • Final dividend of 2.35 cents per share declared with DRP entitlement, change in dividend payout range to 30-50% underlying profit from 1 April 2023

1. Underlying Profit is a non-GAAP unaudited financial measure and differs from NZ IFRS net profit after tax. A reconciliation to Reported Net Profit after Tax is provided in the financial section of this presentation and definition appended.

Underlying Profit1 NZ$m

88.0

73.5

51.7 51.9

38.6

FY19

FY20

FY21

FY22

FY23

Arvida Group | Results Presentation

FY23 Highlights

Business performance

  • Record resale and new sale settlements of $376.4m occupation rights, up 16% on FY22
  • 59% increase in resale gains to $69.1m
  • Resale margin increased to 32% from 26% in FY22, and volumes increased 10% to 371 units
  • New sales volume down on delays to delivery programme, but gains up 10% to $27.8m on higher price and margin
  • Delivery of 215 units, a miss to 250+ target with Aria Bay now scheduled for 2Q completion
  • Includes 63 care suites at Lauriston Park, opens in June
  • FY24 delivery target to be retained at 200 units, subject to market conditions

3

Total Resale & New Sale Settlements NZ$m

376

325

227

201

131

FY19

FY20

FY21

FY22

FY23

  • Acquisition of 2 development sites announced, increasing land bank to 2,200+ units

Arvida Group | Results Presentation

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Investing in our teams

  • Focus and investment in our employee brand, 2-3 year timeframe of roll out refreshed proposition
  • Already driving improved engagement, up from 7.2 to 7.5 against a global peer benchmark of 7.8
  • High engagement with over 33,500 comments received via Peakon
  • Surveys confirm purpose & culture key attraction
  • Retention at 70%
  • Nurses represent 8% workforce, casual workforce has increased in current environment
  • Workforce is 76% female, gender pay gap 0.5%
  • Focus on supporting teams with career development, 45,000 course completions underpin training / maintaining high clinical standards
  • Mental Wellbeing by Design workshops facilitated across group

Arvida Group | Results Presentation

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Resident-led experience

  • Covid response has been key priority over last couple of years, but moved to normalise pandemic plan at the beginning of year
  • Excellent NPS scores recorded again in annual resident survey: +38 independent residents and +59 care residents
  • Arvida rated #1 in Canstar Blue 'Most Satisfied Customers' award in retirement category
  • Waimea Plains came out on top in the 'Resident-led Sustainability Initiative' category at RVA Awards
  • Pending ComCom and MHUD reviews will put focus on differing resident experiences and offerings across sector
  • Demand for care suite offering is high and important part of our continuum offering going forward
  • Living Well Centre at Park Lane has proved very successful as community engagement pilot
  • First national marketing campaign to lift brand awareness has been highly successful in driving lead generation

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Disclaimer

Arvida Group Limited published this content on 30 May 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 May 2023 22:32:04 UTC.