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Summerset fourth-quarter sales rise 6.8%

Monday 9th January 2017

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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.

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