Summerset Group Holdings Limited Analysis

Overview

Summerset is the third largest operator and the second largest developer of retirement villages and aged care facilities in New Zealand. Summerset is one of the few retirement village operators to provide a continuum of care at its Villages.

Summerset ordinary shares commenced trading on the NZSX on Tuesday 01 November 2011.

Performance

The following information was extracted from Summerset Group Holdings Limited's half year results, released on 26 August 2024:

SUMMERSET FIRST HALF UNDERLYING PROFIT $89.9M, UP 3%

• Underlying profit for 1H24 of NZ$89.9m, up 3% on 1H23
• Reported (IFRS) profit after tax of NZ$102.2m
• Total assets of NZ$7.4 billion, up 17% on 1H23
• Gearing ratio of 36.2%
• 352 new units delivered
• 588 sales of occupation rights for the half
• Development margin of 28.3%
• New site acquired in New Zealand

Retirement village operator Summerset Group Holdings Limited has announced an underlying profit of $89.9 million for the six months ended 30 June 2024, a 3% increase on the first half of 2023.

Summerset CEO Scott Scoullar said the company had delivered an underlying profit at the upper end of the guidance provided to investors in early July ($87-90m).

“We feel, in the current market, we’ve shown the continued strength of our sales pipeline, our disciplined approach to costs and the demand for our retirement living option despite the weak macroeconomic conditions we find ourselves in,” says Mr Scoullar.

Summerset recorded 588 sales comprising 290 new sales and 298 resales in the six months to 30 June 2024. Total sales for the first half of the year were the highest first half the company has recorded, with resales being particularly strong.

“The New Zealand property market saw a softer than anticipated start to 2024, restrained by high interest rates, weak consumer confidence and cost of living pressures. This has meant that some of our prospective residents have taken longer to sell their homes to enable them to move into our villages.”