Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Summerset lifts annual earnings 44%, beating profit forecast

Summerset lifts annual earnings 44%, beating profit forecast

By Tina Morrison

Feb. 23 (BusinessDesk) - Summerset Group lifted annual earnings 44 percent, ahead of its forecast, after the retirement village developer and operator built more units and improved its margins.

Underlying earnings, which excludes property revaluations, increased to $81.7 million in calendar 2017, from $56.6 million in 2016, the Wellington-based company said in a statement. That's ahead of its forecast for earnings of between $77 million and $79 million.

Net profit jumped 54 percent to $223.4 million, as the value of the company's investment properties increased by $218 million, compared with a $143.5 million gain a year earlier. It improved its development margin to 27.3 percent from 22.2 percent.

Summerset built a record 450 retirement units during the year, up from 409 units the previous year, and plans to match that level again this year. It bought new development sites in Avonhead in Christchurch and Kenepuru in Wellington and additional land alongside its Casebrook village in Christchurch, taking its total number of sites to 29. The company is the youngest of New Zealand's big retirement village operators, following in the footsteps of Ryman Healthcare and Metlifecare to acquire land and build units in anticipation of increased demand as people born in the country's post-war era reach the target age for operators, with the number of people aged over 75 set to more than triple in the next 50 years. At year's end, Summerset's land bank represented about 2,841 retirement units and 396 care beds, or about six years' supply.

"With 23 villages and another six for development in New Zealand, Summerset has grown quickly since its first village opened in Wanganui on 21 November 1997," said chair Rob Campbell. Since listing on the NZX six years ago "we have more than doubled our size and we are likely to double again in the next five years as we continue to grow our footprint and as the ageing population continues to increase.

"We continue to assess potential entry into the Australian market."

The company will pay a final dividend of 7.1 cents per share on March 22, taking the annual dividend to 11 cents, ahead of the 7.7 cent annual payment the previous year.

Summerset shares last traded at $5.81 and have gained 15 percent the past 12 months.

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Land Report: Issues With Soil Degradation

An environmental report released today has found we are damaging and losing our soils and our native plants and animals. More>>

ALSO:

Water Quality Report: Cause For Optimism

National River Water Quality Trends released by Land, Air, Water Aotearoa (LAWA) this week, reveal that for all river water quality parameters monitored over a 10 year period, more sites were improving than deteriorating. More>>

ALSO:

IMF Report On NZ: Positive Economic Outlook

Minister of Finance Grant Robertson has welcomed the IMF’s Concluding Statement, released following its annual visit, which provides an independent assessment of the strength of the New Zealand economy. More>>

ALSO:

Retail Power Price: Review Panel Named

The Energy and Resources Minister Megan Woods has released the details of who will sit on an expert advisory panel which is tasked with leading a review into the price of electricity in New Zealand. More>>

ALSO:


Increasingly Disruptive Threats: Govt Cyber Security Refresh

Broadcasting, Communications and Digital Media Minister Clare Curran today announced a comprehensive refresh of New Zealand’s approach to cyber security. More>>

ALSO:


Regional Growth: Action Plan To Modernise Taranaki’s Economy

The Provincial Growth Fund (PGF) will invest up to $20 million to help future-proof the Taranaki region by diversifying its economy, creating additional jobs and leveraging off the strong base the region has established through its oil, gas and agricultural ... More>>

ALSO:

Winding Down Irrigation: Funding Ends For Crown Irrigation Investment

The Government has begun winding down public funding for large-scale irrigation through Crown Irrigation Investments Limited (CIIL), in line with the Coalition Agreement and the Confidence & Supply Agreement. More>>

ALSO: