Arena acquisition continues to pay off for NZ’s Arvida as resale margins hit 30%
Resale margins were up from 21% in the prior corresponding six months to 30%, with new sale margins at 20%; Arvida has ascribed the resale margin growth in no small part to “markedly higher margins” at the Arena Living villages it bought late...
Last year’s acquisition of Arena Living is continuing to boost the bottom line at NZ-based retirement village operator Arvida Group, with resale margins up nine percentage points and underlying profit up 46% in the six months to 30 September. Arvida posted an underlying profit of NZ$38.9 million (AU$36.6 million) over the half-year period, with total sales up 31% including a 59% boost in resales; in total, the operator made 164 resales and 105 new sales. Resale margins were up from 21% in the prior corresponding six months to 30%, with new sale margins at 20%; Arvida has ascribed the resale margin growth in no small part to “markedly higher margins” at the Arena Living villages it bought late last year.
“The retirement living side of our business continued to experience strong demand and delivered solid sales performance for the six months,” said CEO Jeremy Nicoll (pictured).
The six Arena Living villages in Auckland and Tauranga helped fuel a 52% uplift in profit for Arvida earlier this year.
