The owner of new Central Otago upmarket dining precinct Ayrburn has suffered a profit drop due to what its boss calls the ‘struggling economic environment’.
Winton Land’s revenue fell 5% to $81.1 million in the half-year to December 31, 2024 and last year’s $9.7m profit turned into a net loss after tax of $2m.
“These results reflect the struggling economic environment and a year of lower product delivery in Winton’s residential development timeline,” said chairman and chief executive Chris Meehan.
Ayrburn is a new $200m dining and hospitality precinct near Arrowtown where heritage farm buildings dating from 1864 have been rebuilt and restored .
Meehan said today Ayburn had recently opened The Bakehouse and R.M. Prime Produce as new venues.
A full six months of trading at that new rural precinct was in today’s results but so were the expenses from its establishment and operation.
During H1 FY25, Ayrburn hosted events including Christmas Wonderland last July and the Wonderland Ball.
It will host various music events and next month will hold its first festival of motoring, the Ayrburn Classic.
“Positive momentum continues at Ayrburn as a multi-venue hospitality and tourism destination,” a Winton presentation said.
Meehan said the economic downturn had been more severe and prolonged than expected.
“A change in Government was anticipated to be a catalyst to get the economy moving again and out of recession. However, it is taking more time than was generally expected,” Meenah said.
The business was cautious and believed New Zealand had not yet hit the bottom of the construction cycle.
“While interest rates have decreased, that is only one part of the economic levers stifling the economy.
“Unemployment continues to increase, and we maintain our view that the property market is unlikely to substantially turn around until after unemployment has peaked,” Meehan said.
Winton is developing several rretirement villages, including one at Ayrburn alongside a new hotel.
Cost of sales has stayed steady despite the decrease in units settled in 1H25, again owing to the higher proportion of construction products.
Winton’s property portfolio also suffered a $2.8m devaluation, compared with the previous $2.6m gain.
In December, the company said it would pause plans for the $750 million Northbrook Wynyard Quarter retirement village and neighbouring The Villard apartments near Auckland’s Waterfront, refunding buyers if they want.
Meehan said the company would continue Arrowtown and Wānaka retirement village projects but not in Auckland.
People who put deposits on Northbrook Wynyard Quarter were being offered the chance to stay in at the current prices or get a full refund of their deposits plus any interest.
Contractors were working on the fenced land where the first blocks are planned to rise: A 12-level 152-unit village building and apartments.
The site is on Beaumont St opposite Orams Marine.
In December, Meehan said the company would complete site preparation work, including the piling works, and building consenting.
“We want to get the timing in the cycle right.”
Winton has a $566m market capitalisation.
Forsyth Barr analyst Rohan Koreman-Smit had outperform on the company last August, saying that in its full-year result, it hadreported a softer-than-expected outcome.
That was largely due to lower margins on built form product and operating cost increases at Northbrook, with the opening of Ayrburn Farm.
No final dividend was paid to conserve cash.
Management of capital remains Winton’s key focus over the next 12–24 months, as it recycles its residential pre-sales into its Northbrook development pipeline, while maintaining flexibility to capitalise on cyclical opportunities, Koreman-Smit said.
Anne Gibson has been the Herald’s property editor for 25 years, written books and covered property extensively here and overseas.