Geoff Grady’s Aveo retirement village EBITDA profit has increased by $8M from $45M to $53M in the past 12 months.

$5M growth in profit came from established business despite flat resales of 685 units, with an average transaction price of $267K per unit (including lower-priced serviced apartments) - just $1,000 more per unit compared to last year. However average profit per sale increased from $75K to $83K, delivering a 31% DMF/Caital Gains margin.
New units sold increased from 23 to 62 for the year with an average margin of 20%.

With Aveo's continued sale of non-retirement village assets, the group now has gearing down to 13.8%.

In May they launched their new “Aveo Way” standard contract and report that it has not affected sales rates. They expect it will deliver an improvement in property valuations by 5% to 10% as the contract is rolled out plus added control to the exit process and condition of the units.

They forecast that profits will be between $108M - $116M by 2018, delivering an 8% return on assets compared to 4.6% today.