Summerset lifts annual sales 26% in 2015 on new developments

Thursday 7th January 2016

Summerset Group lifted occupation rights sales 26 percent in 2015 as the retirement village operator and developer benefited from an expanding foot print across the country, which will continue this year.

The Wellington-based company increased unit sales to 578 in calendar 2015 from 458 a year earlier, it said in a statement. Of that, sales of new units climbed 16 percent to 33, while resales gained 42 percent to 245. On a quarterly basis, sales fell 11 percent to 146, with new sales down to 90 from a record 113 a year earlier when Summerset benefited from the opening of four new villages in the second half of 2014. Fourth-quarter resales increased 9.8 percent to 56.

"We are seeing strong demand across all of our sites across the country for new sale and resale stock," chief executive Julian Cook said. "We have seen a greater number of resale units become available to sell this year which has led to the large increase in resales for the year."

Summerset raised earnings guidance after its third-quarter sales report, saying it expects underlying profit of between $36 million and $39 million in calendar 2015, up from a previous range of between $32 million and $34 million and more than the $24.4 million reported in 2014.

The company opened its Wigram, Christchurch village through the second half of last year and was granted consent to build a 237-home site in that city's Casebrook suburb.

Summerset will open its Ellerslie village in Auckland this year, which will add another 250 units and an 80-bed care centre to the company's books.

The shares last traded at $4.04, and have gained 46 percent over the past 12 months.

BusinessDesk.co.nz

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