Stockland achieved an impressive 909 retirement unit sales over the 12 months to June 2014. With a retirement village portfolio exceeding 8200 units they sold 647 established ILUs and 262 new ILUs. Average resale was $314,000 (with a $75,000 DMF/CG margin) and average new price was $389,000(with a 16% development margin before overheads).
They made an operating profit of $40M from the return on assets of 4.5% occupancy was at 95%.
On the negative side a retirement property portfolio took a $50M negative change in fair value; this is on top of a similar $47M negative result last financial year. This includes a reduction in the value of the DMF asset.
Despite a massive development pipeline of 3400 units where they are seeking an internal rate of return of 15 to 20%, they have played it safe revising down their expected return on assets building 7-7.5% by 2019.
