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Summerset's 4Q sales slip; 2018 build target met

Thursday 10th January 2019

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Summerset Group's fourth quarter new sales were down 5.4 percent on a year earlier but it met its 2018 target to build 450 new retirement units. 

The Wellington-based retirement village operator and developer said it sold 193 occupation rights in the three months to Dec. 31 versus 204 in the prior year. Of those, 112 were new sales, up 5.7 on the year. Resales were down 17 percent at 81, it said.  While the resales were down on the year, they were the highest in 2018. 

“The fourth quarter of 2018 saw us achieve our highest new sales in the last two years, and was the second highest quarter ever for the group,” chief executive Julian Cook. 

Over the 12 months, sales of occupation rights fell 6 percent to 640. Of those, 339 were new sales and 301 were resales. 

However, the firm said its 2018 retirement unit build target of 450 new homes was achieved, with 454 retirement units being delivered. Of those,133 were delivered in December and are expected to be sold in 2019, said Cook.

Summerset now has 24 villages completed or in development across the country and provides living options and care services to more than 5,000 residents. It has a further eight sites for development and last year opened an office in Melbourne as it mulls expanding into Australia. 

The stock last traded at $6.30 and is up 14 percent over the past year. 

(BusinessDesk)

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