Aveo Group (ASX:AOG) CEO, Geoff Grady discusses the company’s latest financial results and growth opportunities at the ASX Spotlight Series 2016, in New York So Aveo Group
(ASX:AOG) is Australia’s only listed operator in the ASX 200, concentrating solely on retirement. We have an extensive portfolio; it’s currently 11,000 units across the country and at build out it’ll be Australia’s largest portfolio, 17,000 units. It’s comprised of 80 per cent independent living units, 20 per cent serviced apartments and we’ve got a growing number of aged care beds, as well.
The focus on the company is two things. It’s to improve the offering to the customer and to improve the financial returns to our investors. So just quickly in terms of improving the financial returns to investors, our aim is to be at an eight per cent return on assets by Financial Year 2018. And in terms of the customer proposition, what we see as really important, is giving more comprehensive and consistent care services, across our portfolio. We see care as being a really strong requirement of consumers, over time.
It’s in the Australian market. So while we do have villages in the United States and in China, our concentration is on the Australian consumer and giving them what they want. It’s going very well. So again, in terms of progressing from a four per cent return on assets in FY14 to an eight per cent return by FY18, we’re exactly in line with where we want it to be. So in FY16, we need to be in that target range of six to 6.5 per cent. And our earnings in the first-half put us exactly in that zone.
In a year from now or in FY18, I want to see it earn that eight per cent on retirement assets that we’ve communicated to the market, as our target. As I say, we’re well in line to do that and that’s where we’ll be in the middle of next year, as well.
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