Arvida Group Limited Analysis

Overview

Arvida is one of the larger operators of aged care facilities and retirement villages in New Zealand. The group comprises 32 villages spread nationally with 2,475 retirement units and 1,688 care beds. Over 4,7500 residents are provided a continuum of care that extends from independent living to full rest home, hospital and dementia level care.

Arvida listed in December 2014 and became a constituent member of the NZX 50 Index in December 2016. Since raising $80 million at the Initial Public Offer, Arvida has grown considerably completing the acquisition of a further fourteen villages and now has a development pipeline of 1,683 units/beds to be progressively rolled out over the next 5-7 years with an annual build rate of 200 units.

Arvida continues to invest in its residents and support network adding programs and engaging in the local communities. A holistic approach is taken to care where as much emphasis is put on vitality and community inclusion as to quality of care. Arvida has a vision to be true leaders and innovators in the New Zealand retirement and aged care industry, creating rich and dynamic resident communities.

Arvida targets a dividend payout ratio of between 50% and 70% of Underlying Profit per annum, with imputed dividends paid on a regular quarterly basis.

Performance

The following information was extracted from Arvida Group Limited's Full year results, released 29 May 2025

Highlights

• Total assets $4.7 billion
• Total equity $1.6 billion
• Reported net profit after tax $101 million
• Operating EBITDA $101 million

Financial Performance

Arvida reported a 6% lift in Operating EBITDA to $101 million. The improved result was underpinned by continued growth in resale activity.

Chief Executive Jeremy Nicoll said the business had achieved record resale settlement volumes despite the weak residential housing market. The gross value of occupation right agreements resold was up 21% on the prior year to $302 million.

The increase in resale activity also contributed to a 11% increase in operating cash flow to $161 million.