Summerset third-quarter sales lift 21% as Wigram village attracts new residents

Wednesday 5th October 2016

Summerset Group lifted third-quarter sales 21 percent from a year earlier as the opening of the main building at the retirement village's Wigram site in Christchurch attracted new residents.

Sales of occupation rights rose to 196 in the three months ended Sept. 30 from 162 a year earlier, the Wellington-based company said in a statement. Of that, new sales jumped 48 percent to 125, while resales fell 10 percent to 71.

"The past nine months has seen good growth for Summerset and strong demand for our offering," chief executive Julian Cook said. "Wigram village's main building in Christchurch opened in September, contributing to strong third quarter sales."

The retirement village operator and developer lifted first-half earnings 44 percent to $24.7 million as it generated a record 185 sales in the second quarter, and said it expected that momentum to continue with a new village set to open in Auckland's suburb of Ellerslie this month.

Summerset's year-to-date sales were 16 percent higher than a year earlier at 502, of which new sales were up 27 percent to 308 and resales up 2.6 percent to 194. The company said it had only 21 unsold resale stock as at Sept. 30.

The company's shares last traded at $5.30 and have gained 31 percent this year, outpacing the 13 percent increase on the S&P/NZX All Index over the same period. The stock is rated an average 'hold' based on five analyst reports compiled by Reuters, with a median price target of $5.60.

BusinessDesk.co.nz

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