Stockland has delivered a significant jump in real profit from its 69 retirement villages, moving from $40M to $48M in 12 months. 

More importantly for shareholders, return on assets increased from 4.5% to 5.3%. Compare this to 5 years ago (2010) when the operating profit was $9 million and direct ROI is 2.7%.

An indication of the improved efficiency focus is the reduction in refurbishment time of rollover retirement village units by 50% and cost by 20% over the last two years. They also sold two rtirement villages and acquired eight over the 12 months.

Across their established portfolio Stockland also escalated price by 5% and margins by 11% across the 663 units they traded at an average price of $329K.

Stockland is the country’s largest developer of retirement villages. They built and sold 282 units this year, an increase of 8%, the average sales price of $413K, an increase of 6% on 2014