Vancouver-based retirement community operator Amica Mature Lifestyles Inc. (TSX: ACC) has posted a profit of $600,000 for the third quarter ending February 28, 2011.
That’s up slightly from a loss of $3.7 million in the third quarter of 2010.
The increase translates to basic and diluted earnings per share of $0.03 for the quarter that just ended, up from a loss of $0.22 per share a year ago.
Amica operates seven retirement homes in B.C. and 15 in Ontario.
According to company financials, Amica’s loss in the third-quarter of 2010 reflects a one-time $4.5 million writedown of a deposit it paid for a potential development site for a retirement community in Bellevue, WA after the sale did not complete.
For the quarter just ended, Amica posted revenues of $14.8 million, up 46% from $10.1 million a year ago.
Amica president, CEO and chairman Samir Manji said the quarter was positive on various fronts for the company.
“From an operational perspective, we’re continuing to see occupancy levels stabilize and recover, particularly in the west, where we’ve seen very strong momentum and recovery after what happened a couple of years ago,” Manji said.
“From a growth perspective, we’ve continued to execute on a strategy that we rolled out this fiscal year where we’ve been looking to increase our ownership in some of our communities that are mature – i.e. they’re not in lease-up. And we are continuing to explore acquisition opportunities.”
Amica’s total occupancy rate was 91.9% for the quarter that just ended, up from 90.7% a year ago. Amica’s B.C. occupancy rate stand at 94.3%.
Samir said the recovery in occupancy rates, particularly in the west, has been driven by an aging population, little new supply for seniors’ residences coming onto the market relative to a few years ago, and the recovery of the housing market. The latter is significant, he said, as Amica’s clients would tend to sell their real estate before moving into a seniors’ residence.
At press deadline, Amica’s stock was down nearly 4% to $7.55.