Commenting on the results, Aveo Group Chief Executive Officer Geoff Grady said: “We are on track to achieve our stated FY16 targets of a return on retirement assets of 6.0% - 6.5%, underlying profit after tax of over $80 million and a full year distribution of 8 cents per security.
“In the first half we achieved a significant increase in the pricing of retirement units, and our active portfolio management is reflected in the higher numbers of both buyback purchases and buyback sales. Strong sales rates continued at the residential land estates with cash proceeds being recycled into retirement development.” “We have strong momentum across the Group and total sales volumes in the second half are expected to exceed the first half.
We are in a strong position financially and strategically to achieve our objectives in FY16 and beyond”, he said.
Key financial highlights for HY16 were:
Statutory profit after tax of $66.5 million, up 121%
Underlying earnings per security of 8.9 cents, up 85%;
Funds from operations up 204% to $89.5 million and per security, up 195% to 17.4 cents;
Net assets of $1.57 billion, up 4%;
Net tangible assets per security of $2.98, up 5%; and
Reported gearing of 8.8%, versus 13.8% at 30 June 2015 and below Aveo’s target range of 10% to 20%.