CEO Geoff Grady released Aveo’s 2013/14 financial year results this week. The group owns 46 villages accounting for approximately 5,200 ILUs and 1,100 serviced apartments +209 aged care beds. They also manage 29 villages owned by RVG, which delivers them another 2,800 ILUs and 600 serviced apartments. All up best 12,800 units and beds.

By comparison lend lease has about 12,700 units.

This is Grady’s first year as CEO, moving up from Chief Operating Officer. His task has been to transition the group from a diversified property business to a pure retirement business and at the same time significantly improved performance.

Amongst the major achievements for the 12 months they list:

• record sales of 711 village units, up 14%
• 60% increase to $45M by the retirement business
• kick starting development of new retirement units across four sites and the acquisition of two more development sites with the potential of 740 new units/beds
• just 23 new units were sold but targeting 200 a year within 24 months
• establishing low care services to over 90% of their owned villages
• reducing their net debt by $313M, delivering a gearing of just 16%
11% of their retirement units turned over delivering $189M in sales. This is an average of $266,000 per ILU.

Looking forward Grady reaffirms his confidence that he can build the return on assets from 4% last year to 8% by 2018.

He also predicts that profit increased by 15 to 20% by this time next year.

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