Join our daily newsletter At The Bell to receive exclusive market insights
- Summerset has seen underlying half yearly profits grow to NZ$47.8 million
- The company is expected to develop another 350 new homes this year, and an additional 150 next year
- Summerset’s assets are worth NZ$3 billion, up 24 per cent
- Summerset’s share price is up 4.2 per cent at today’s market close, currently sitting at $5.70 apiece
Retirement village operator Summerset has seen its half yearly underlying profits increase 6 per cent to NZ$47.8 million, in comparison to the previous year.
The market responded favourably to the news today, with the company’s share price growing 4.2 per cent, sitting at $5.70 apiece at today’s close.
However, reported profits after tax were down 4 per cent on the year previous, sitting at NZ$92.6 million.
The company purchased six new sites and developed 139 new retirement units in the first half of the year.
CEO of Summerset Julian Cook said “these purchases reflect our desire to buy sites in urban fringe locations, retirement destinations and high growth regional centres. These sites are attractive from a financial return, risk and demand perspective”.
The company is expected to deliver 350 homes this year with an additional 150 units to be completed this time next year.
Summerset now owns close to 5000 retirement units across all of its sites.
Julian added another three villages will open this year in Christchurch, Wellington and Tasman.
“We’ve been very pleased with pre-sales interest and settlements for the new villages,” he commented.
Adding the new villages to the portfolio has seen Summerset’s assets increase to NZ$3 billion, up 24 per cent.
Going forward the company is focusing on reducing its environmental impact.
“We were delighted to become the first retirement village operator in New Zealand to be certified caboNZero and have also become a member of the Climate Leaders Coalition this year,” Julian said.
Summerset is also looking at establishing operations in Melbourne.
