Summerset first quarter sales fall 16%; on track to deliver 450 new homes in 2018
By Rebecca Howard
April 6 (BusinessDesk) - Summerset Group's first quarter sales of occupation rights dropped 16 percent but said it remains on track to deliver 450 new homes over 2018 as sales increase.
The Wellington-based company said sales of occupation rights fell to 143 in the three months ended March 31 versus 171 in the same quarter a year ago. Of the 143, 68 were new sales and 75 were resales, it said.
Chief executive Julian Cook said new sale settlements achieved for the first quarter of 2018 were predominantly from selling homes completed and delivered at the end of 2017.
"Retirement unit deliveries for 2018 are weighted towards the second half of the year with new sales volumes throughout the remaining quarters of 2018 expected to progressively increase as we deliver new homes for which we will sell occupation rights," said Cook.
"We are on track to deliver 450 new homes over 2018," he said. The number is unchanged from the prior year when Summerset sold 682 occupation rights and delivered 450 new retirement units.
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.
It currently has 23 retirement villages completed or in development across the country. It also has six development sites in different parts of the country and provides a range of living options and care services to more than 4,700 residents.
The shares last traded at $6.88 and are up 27 percent over the past 12 months