Aveo Group reported earnings results for the fiscal year ended June 30, 2018. For the year, the company reported underlying profit after tax and non-controlling interest of $127.2 million, up 17% on fiscal year 2017. On a statutory basis, the company recorded a fiscal year 2018 statutory profit after tax of $365.1 million, up 44% on fiscal year 2017. This result was driven by a 40% profit increase from the Group's retirement business and is underpinned by the continuing revaluation uplifts in the retirement portfolio and the sale of the Gasworks complex at Newstead, Brisbane at a substantial premium to its book value. The company's net tangible assets per security were up 16% to $3.92. Earnings per stapled security (EPS) on underlying profit after tax and non-controlling interest up 16% to 22.0 cents and funds from operations (FFO) in line with settlements at $115.4 million against $163.9 million in fiscal year 2017. Total retirement revenue increased by 56% in fiscal year 2018 to $600.7 million, driven by higher contributions from both the Development and Care and Support Services segments. The company recorded total retirement sales volumes of 974 units, down 22% from fiscal year 2017. Capital expenditure decreased by 35% to $18 million due to a decrease in community center refurbishment activity.

The sales rate is expected to return to normalised levels that are over 10% in fiscal year 2019. Based on current market conditions, the company confirms fiscal year 2019 EPS guidance of 20.4 cents. Effective tax rate is expected to be circa 5% lower due to a higher contribution from the trust.