Tuesday 24th August 2021
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Retirement village operator Summerset Group Holdings Limited has announced a reported (IFRS) profit of NZ$263.8 million for the six months ended 30 June 2021.
The IFRS profit includes fair value movement on investment property and is up from $1.0 million for the same period last year, when the long-term financial effects of COVID-19 were unknown.
Summerset reported an underlying profit of NZ$75.5 million for the six months ended 30 June 2021, a 68% increase on the COVID-19 impacted first half of 2020.
Summerset CEO Scott Scoullar said the current lockdown was a reminder that New Zealand was still operating in an environment dominated by COVID-19.
“We have moved quickly to keep our residents and staff safe by restricting entry to our villages, and protective measures such as having care staff in masks and working in cohorts were already in place when the new community case was announced. We have been here before, and are well placed to look after our residents’ health and wellbeing once again.”
Summerset reported a development margin of 21.6%, down slightly from 22.3% for the same period last year. This is in line with the company’s longer term expectations of development margins in the 20-25% range.
Total assets grew to NZ$4.4 billion, up 27% on the same period last year.
Summerset built a record 347 new units – 321 under Occupation Right Agreement (ORA) and 26 care beds – in the first six months of 2021.
“To meet growing demand, we will lift our build rate for this year from between 500 and 550 units under ORA to 550 to 600, plus 52 care beds,” Mr Scoullar said.
Summerset has again led the way in the sustainability field, becoming the first retirement village operator in New Zealand to link sustainability achievements with funding arrangements under a newly signed agreement.
“As part of our sustainability commitment we are continually looking at sources of renewable energy for our villages, such as the environmentally friendly wood pellet boiler which will be used to heat our St Johns village main building when it opens in 2026,” Mr Scoullar said.
The Summerset Board has declared an unimputed interim dividend of NZ9.9 cents per share. The record date will be 7 September 2021, with payment on 20 September 2021.
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