Summerset lifts fourth-quarter sales by 50%, annual sales top 400
Jan. 8 (BusinessDesk) – Summerset Group, whose shares have made more than three times the gains of the NZX 50 Index in the past 12 months, said sales of occupation rights jumped 50 percent in the fourth quarter from a year earlier.
The retirement village operator had 60 new sales and 51 resales in the final three months of 2013, up from 43 and 31 sales respectively a year earlier.
Sales in the year rose 21 percent to 402, made up of 228 new and 174 resales, the first time annual sales have topped 400. Annual gross cash from sales rose to $131 million from $102 million in 2012.
Summerset shares last trade at $3.44 and have advanced 52 percent in the past 12 months compared to a 16.5 percent gain for the NZX 50. The stock is rated a ‘buy’ based on the consensus of five analysts polled by Reuters, with a median price target of $3.55.
Listed retirement village operators have been one of the best-performing sectors on the bourse in the past year as they pursue growth by developing new sites and benefit from the demographics of an aging population.
Ryman Healthcare has surged 65 percent in the past 12 months and is now rated ‘hold’ and Metlifecare is up 31 percent and still has a ‘buy’ rating.