AVEO Group (ASX:AOG) has indicated its transformation into a purely retirement-focused provider is almost complete at the annual general meeting.
The strategy was launched in 2013 with the shift towards retirement assets to be finalised this financial year, bolstered by strong results in FY15.
Aveo reported a 30 per cent lift in net profit after tax to $54.7 million last financial year, as well as $73.9 million in funds from operations up 88 per cent compared to the previous period. It was also a record year for retirement sales at 721 units.
Retirement sales during the first quarter of FY16 remain strong, with another 29 units delivered and the remaining pipeline of 153 units on track.
The group has been given the green light to develop a further 300 retirement units at its newly acquired site Aveo Shortland Waters in Newcastle, while a development application has been lodged for the first 66 units at Aveo Springfield.
With the group's transformation largely complete, Aveo CEO Geoff Grady (pictured) says management's attention is fully focused on the retirement business.
"The transformation of the group to retirement has been the immediate catalyst for the significant increase in shareholder value that has been created since the strategy was launched over two years ago," Grady says.
"Particularly, with our focus on increasing care and support services across our villages, we are redefining the customer proposition from one of a property offering to an integrated service offering including both accommodation and care, which is what a more discerning customer base is wanting."
Aveo's remaining apartment development The Milton Project in Brisbane is 96 per cent sold, with settlement to commence at the end of the month, with Albion Mill under contract for $25 million and the Gasometer 3 site fetching $18.4 million.
The group's non-retirement portfolio of land banks Rochedale, Point Cook and Peregian Springs have yet to be divested.
Aveo has maintained its FY16 profit guidance of $80 million, a 45 per cent improvement compared to the previous year.
Get our daily business news
Sign up to our free email news updates.