Sharechat Logo

Summerset fourth-quarter sales rise 6.8%

Monday 9th January 2017

Text too small?

Summerset Group lifted fourth-quarter sales 6.8 percent in the final quarter of 2016, led by sales of new retirement village units in a period that included the opening of a new site in Auckland's suburb of Ellerslie. 

Sales of occupation rights rose to 156 in the three months ended Dec. 31 from 146 a year earlier, the Wellington-based company said in a statement. Of that, new sales rose 18 percent to 106, while resales fell 11 percent to 50, its second quarterly decline. Summerset said resale stock remains low with just 29 unsold units as at Dec. 31. 

The retirement village operator and developer's annual sales rose 14 percent to 658, with a 24 percent gain in new sales to 414, while resales were largely flat at 244. 

"This reflects the uplift in build rate from 300 retirement units in 2015 to just over 400 retirement units in 2016," chief executive Julian Cook said. "A key driver of our strong results for the year is the current continuing development across 10 villages." 

In October, Summerset said it expected annual underlying profit of between $53 million and $55 million in calendar 2016, up from $37.8 million a year earlier, as the nation's ageing population continues to generate demand for units at its villages. 

The shares last traded at $4.65, and have gained 19 percent over the past 12 months.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares follow Asian markets higher on renewed hopes for China-US resolution
Housing Ministry head hints he acted against departed KiwiBuild head Stephen Barclay
NZ dollar heading for 1% weekly slide as outlook weakens
Currency frozen in multi-million dollar Cryptopia theft
NZ manufacturing activity hits highest level since April
Tilt affirms guidance; Dec qtr production misses long-term expectations
NZ dollar extends slide as Philly Fed lifts sentiment in US
January 18th Morning Report
MARKET CLOSE: NZ shares get further lift from positive offshore markets
NZ dollar extends decline amid mixed data

IRG See IRG research reports