Summerset 3Q sales flat as new sales grow, resales stall

Monday 6th October 2014

Summerset Group Holdings, the retirement village operator and developer, reported new sales for occupation rights in the third quarter rose 31 percent with strong sales at its new villages, while resales stalled due to limited stock.

The Wellington-based company reported 99 sales of occupation rights in the three months ended Sept. 30 from 102 in the same quarter a year earlier. Of that, new sales rose to 68 from 52 a year earlier, while resales shrank to 31 from 50. Summerset's occupation rights for resale shrank to 27 units at the end of the September quarter from 32 as at June 30.

The increase in new sales "was a result of strong sales across all new villages as well as first residents arriving in our recently opened Karaka and Hobsonville villages," the company said in a statement. "Further new sale settlements in the New Plymouth and Trentham villages are expected in the fourth quarter."

In August, Summerset reported a 42 percent increase in net profit to $15.3 million, as earnings growth slowed with the company focusing on developing new villages.

Summerset today said it's on track to build 250 retirement units in 2014, and aims to lift that to 300 in 2015.

Shares of Summerset last traded at $2.79, and have shed 14 percent this year.

BusinessDesk.co.nz

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