ARV - Arvida Retirement Villages

[Beagle]

Traded ex divvy today but nonetheless I agree, its been a tough gig this last couple of months. Mind you the whole market has had a couple of tough months.

[JohnnyTheHorse]

ARV tends to be quite volatile and choppy as liquidity can just disappear (both when going up and down). Whilst the technicals are being tested, the sector as a whole are holding supports and I think the economic tailwinds of rising house prices is too strong of a catalyst for prices to decrease.

[winner69]

ARV tends to be quite volatile and choppy as liquidity can just disappear (both when going up and down). Whilst the technicals are being tested, the sector as a whole are holding supports and I think the economic tailwinds of rising house prices is too strong of a catalyst for prices to decrease.

ARV has been the least volatile of the 4 main players in the sector - RYM most volatile (over last 12 months and last 4 months)

[Beagle]

http://nzx-prod-s7fsd7f98s.s3-websit...569/341702.pdf

Looks very good to me. Interesting seeing what they've done with pricing, see last paragraph of Tristan Saunders report on page 2. Smart man that chap, I think he has his finger on the pulse. Hope oCA marketing department are taking notes.

[Greekwatchdog]

Latest Sector For Bar update.


Oeania Healthcare OCA 1.32 1.80 13.4 20.0 OUTPERFORM
Arvida ARV 1.70 2.15 13.9 21.4 OUTPERFORM
Ryman Healthcare RYM 15.00 14.10 24.6 44.7 NEUTRAL
Summerset SUM 12.05 13.25 18.5 35.2 NEUTRAL
Oeania Healthcare OCA 1.32 1.80 13.4 20.0 OUTPERFORM
Arvida ARV 1.70 2.15 13.9 21.4 OUTPERFORM
Ryman Healthcare RYM 15.00 14.10 24.6 44.7 NEUTRAL
Summerset SUM 12.05 13.25 18.5 35.2 NEUTRAL

[Sideshow Bob]

Orderly exit/entry.....another CFO into the big swively chair.

Arvida CEO Announces Retirement, New CEO Appointed - NZX, New Zealand’s Exchange

[Snoopy]

Latest Arvida news from down my way.

https://www.stuff.co.nz/timaru-heral...-and-wellbeing

Huge backwards step which will have a major impact on both staff and the residents they care for. If this is a sign of things to come for residential aged care, we should all be very concerned - and not just as shareholders.

I wonder if some of the money Arvida is saving is going into the new "Wellness Centre" at 'Arvida Park Lane' in Addington, Christchurch? There was an open day on the weekend so I decided to attend and see what all the fuss was about.

According to the staff I spoke to there, this is a new concept in NZ retirement villages, modelled on a successful centre in Brisbane. The new "Wellness Centre" is a combination of a gym (it also has a hydrotherapy pool, for aquarobics) and a medical follow up centre. A physiotherapist operates out of there as does a podiatrist and a dietician and a hairdresser(and maybe others). There are no doctors on site. But the idea is to have a one stop shop for improving your 'wellness'. You don't have to be part of the Arvida village to join either, but you do have to be over 60. Unless that is you want to stop in for lunch at the cafe which is open to all. A very superior cafe it was too with reasonable prices. There were also a couple of meeting rooms that could be used for talks and seminars

Part of the reason to have it 'open to the public' is to to try and give residents the opportunity to interact with the public more. It is very easy once you go into a retirement village to suffer from a silo mentality where you don't really get out and visitors don't come and see you. Obviously the use of the Wellness Centre to alleviate this is more applicable to independent living residents. I quizzed the medical staff about whether they interacted with residents who required more care, and they said no. In fact all of the medical practitioners at the open day had their own practices as well. But they seemed to be quite buoyed by the 'integrated approach' that the "Wellness Centre" offered.

I wondered about the economics of what is a seriously expensive experiment. But apparently utilisation will be boosted by 'bussing in' residents from the eight other Arvida villages around Christchurch. I thought it was an interesting idea and it will be worth keeping tabs on to see how it works out.

SNOOPY

[flyinglizard]

It smells so good, when is annual report announcement date? Next week?

[Sideshow Bob]

Arvida Reports Record Profit on Revaluation Gains - NZX, New Zealand’s Exchange

Arvida Reports Record Profit on Revaluation Gains

25/5/2021, 8:50 amFLLYRFY21 Highlights:
• IFRS Net profit after tax for FY21 of $131.1 million, up 207% on FY20
• Underlying profit* of $51.9 million, in line with FY20
• Total assets of $2.2 billion, up $275 million on FY20
• 404 total sales of occupation rights, in line with FY20
• 247 new units and beds delivered, up from 210 in FY20
• Land bank total of 1,324 units and beds
• Gearing ratio maintained at 30% and inaugural $125 million bond issue
• 4Q dividend of 1.50 cents per share declared, brings FY21 dividend to 5.35 cents per share

25 May 2021 – NZX listed retirement village and aged care operator Arvida Group Limited today reported a record full year IFRS net profit for the year ending 31 March 2021 up 207% on the prior year at $131.1 million. Results included the impact of unrealised movements in the fair value of investment property.

Arvida Chief Executive Bill McDonald said performance had been strong this year despite disruptions from New Zealand’s response to the Covid-19 pandemic impacting first half results.

Underlying profit* for the year at $51.9 million was in line with the prior year. Second half performance for the Group was significantly improved, 53% higher than the first half.

“Additional expenditure was incurred in the first half to ensure resident safety and staff wellbeing was the priority and we were able to keep Covid out of our communities.”

Mr McDonald said Arvida maintained strong operating cash flows and resilience in care revenues throughout the year.
“While we continued to operate throughout the pandemic as an essential business, care admissions, sales and construction activities were significantly disrupted in lockdown periods,” said McDonald.

Sales activity
Total gross proceeds from new sale and resale unit settlements increased to $227.4 million, up 13% on the prior year. Settlements in the second half were up 87% when compared to the first half.
“This was a very strong result reflecting a significant effort by our sales teams and reflects a positive trending sentiment towards retirement village living,” said Bill McDonald.

Construction activity
Arvida built 247 new homes in the year across ten sites despite the closure of construction sites for the Covid-19 lockdown. Construction activity exceeded guidance provided at the start of the year.
Milestones celebrated included the completion of the first of Arvida’s purpose-built care suite product. These multi-storey buildings at Aria Bay in Auckland and Copper Crest in Tauranga delivered 114 new care suites and 29 apartments. The care suite model allows the desired premium care accommodation outcome, with a higher level of investment.

“The provision of care is core to strategy,” CEO Bill McDonald said. “Providing residents with the confidence that care services are available as they age is essential. Care suites will lead the New Zealand retirement industry into a new standard for aged care.”
Arvida announced plans to introduce care suites across a number of its other retirement communities.
The latest Arvida retirement community Te Puna Waiora in Kerikeri was launched during the year. Arvida now has 33 retirement communities completed or in development across New Zealand. It has a large future development pipeline of 1,324 units and beds.
Stated strategy

Arvida announced it had conditionally agreed to sell one of its smaller Christchurch retirement and aged care villages as it continued to rebalance its portfolio in line with strategic priorities.

Also announced are conditional agreements to acquire two parcels of bare land to provide the opportunity to develop broad acre retirement communities in the future. In Kerikeri an adjoining site has been acquired with settlement in June 2021.
“Adding to our land bank will support future greenfield development as we look to lift our build rate,” commented Mr McDonald.
“We are building differentiated product for the future that will be relevant to ongoing generations of New Zealanders. Combining community connection is central to building multi-generational assets.”

As a key part to its community engagement strategy Arvida launched Arvida Good Friends earlier this year after a successful Christchurch pilot. The service combines the provision of care and services into the home with member transport and a wellness centre where people can socialise, feel connected, and receive centralised healthcare support if needed.
Planning is underway to introduce Arvida Good Friends into other Arvida retirement communities.
Sound balance sheet

Total assets grew to $2.2 billion, up from $1.9 billion at the start of the financial year with development activity completed and an increase in the value of investment property.

The annual revaluations of investment property undertaken by CBRE and Jones Lang LaSalle delivered a revaluation movement of $123.5 million. The increase was driven by higher unit prices, the delivery of new units and the reversal of the material uncertainty that existed at 31 March 2020 in relation to Covid-19.

During the year, Arvida listed a $125 million retail bond applying the proceeds to repay bank debt. The bond provided extended tenor to Arvida’s debt profile and improved diversification in debt funders. Balance sheet gearing including the bond remained at 30% and within the target gearing band.
 
Dividend and outlook
Arvida Chair Mr Peter Wilson said Arvida’s shareholders will receive an increased unimputed dividend of 1.50 cents per share for the final quarter. The dividend is to be paid on 10 June 2021 with a record date of 2 June 2021.
Mr Wilson said, “We are pleased to return a total of $29 million to our shareholders in dividends during this year. The dividend is evidence of the strong momentum in the business even in a pandemic-impacted year.”
The Arvida board also announced the intention to move the target distribution band to 40-60% of underlying profit*. A dividend reinvestment plan would be implemented at the next dividend payment with payments becoming six monthly. Mr Wilson said the dividend reinvestment plan would help support Arvida’s capital base as it looks to recycle capital into growth opportunities including greenfield development activity.

“Both our care operations and retirement villages continue to perform strongly, and our development activities continue to grow,” said Mr Wilson.

The current level of dividend is expected to be sustainable for FY22. However, Mr Wilson noted that Covid-19 would be a factor globally for some time yet with the outcomes unknown on the business and domestic economy as New Zealand opens its border. The Government’s move to dampen residential house prices and possible review of the sector’s regulatory framework are factors that could impact the sector and performance of Arvida.
– ENDS –

[bull....]

good result i note there warning

The Government’s move to dampen residential house prices and possible review of the sector’s regulatory framework are factors that could impact the sector and performance of Arvida.

https://www.nzx.com/announcements/372755