Sharechat Logo

Summerset annual earnings rise 50% as expansion accelerates

Thursday 23rd February 2017

Text too small?

 Summerset Group boosted annual earnings 50 percent after opening more retirement villages and improving its margins.

Underlying earnings, which excludes property revaluations, increased to $56.6 million in calendar 2016, from $37.8 million a year earlier, the Wellington-based company said in a statement. That's ahead of its forecast for earnings of between $53 million and $55 million.

Net profit jumped 73 percent to $145.5 million, as the value of the company's investment properties increased by $143.5 million, compared with an $83.5 million gain a year earlier.

Summerset invested $200 million in new and existing villages in 2016. The company delivered a record 409 retirement units during the year, 35 percent more than in 2015, and it raised its target for 2017 to around 450 units. It improved its development margin to 22.2 percent from 20 percent.

"As one of the country’s largest retirement village developers and operators, we have established an offering that sees us develop new villages efficiently and operate them well," said chief executive Julian Cook. "Our focus for FY17 will be on continuing to grow Summerset as well as continuing to refine and improve our customer offering. This should mean continued earnings growth for shareholders."

The company will pay a final dividend of 5.1 cents per share on March 22, taking the annual dividend to 7.7 cents, ahead of the 5.25 cent dividend paid in the first half of the previous year.

Summerset shares last traded at $4.91 and have gained 26 percent the past 12 months.

 

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
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:

Gold Report 16th July 2019
NZ dollar rises after CPI meets expectations; US dollar weakens
Yili's Westland takeover gets OIO approval
Govt eyes 2025 for farm-level emissions pricing
Govt won't "die in a ditch" for 100% renewable target
NZ 2Q CPI +0.6% on quarter, +1.7% on year
16th July 2019 Morning Report
Suspect company faces liquidation after director dies
NZ dollar holds gains; focus on domestic inflation data
MARKET CLOSE: NZ shares slip as fears over slowing Chinese growth weigh; AMP slumps

IRG See IRG research reports