Summerset expects annual earnings to rise as much as 46%

Friday 28 October 2016 08:53 AM

Summerset expects annual earnings to rise as much as 46%

By Paul McBeth

Oct. 28 (BusinessDesk) - Summerset Group says earnings will rise by as much as 46 percent this year as the retirement village company benefits from strong sales in a nation with an ageing population.

The Wellington-based company anticipates underlying profit of between $53 million and $55 million in calendar 2016, up from $37.8 million a year earlier, it said in a statement. It didn't give guidance on net profit, saying there was too much uncertainty in the fair value of its investment properties.

"Occupation right sales have been strong since the half year and are a key driver of the underlying profit forecast," Summerset said.

The retirement village operator's first-half earnings were up 44 percent with Summerset generating record quarterly sales in the second three months of the year and allowed the company to pay a bigger dividend.

Earlier this month Summerset said third-quarter sales were boosted by the opening of a building at its Wigram site in Christchurch and that new village in Auckland's suburb of Ellerslie would maintain that momentum.

The shares last traded at $4.75, and have gained 16 percent so far this year, outpacing a 5.9 percent gain on the S&P/NZX All Index.

(BusinessDesk)

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