Summerset retirement village at Avonhead, Christchurch. Photo: Google Maps
Retirement village operator Summerset's first half profit was flat after reduced property value gains, but stripping out the one-offs, higher margins drove an increase in its underlying earnings.
Key numbers for the six months ended June compared with a year ago:
- Net profit $133.1m vs $134.6m
- Revenue $128.2m vs $114.1m
- Property value gains $131.5m vs $136.7m
- Underlying profit $87.2m vs $82.5m
- Interim dividend 11.3 cents a share vs 10.7 cps
Chief executive Scott Scoullar said the business performed solidly over the first six months and was pleased with the result.
Summerset recorded 483 sales in the first half, compared to 511 a year ago.
It said its first quarter performance of 210 total sales reflected the lower turnover in the property market, whereas the second quarter saw a record result for resales.
Net profit fell 1 percent on reduced property value gains due to fewer units delivered in the period.
Its interim underlying profit rose 6 percent to a new record, as the company's development margin climbed to 34 percent, compared to 28 percent for the same period last year, which was above its long term expectations of margins between 20-25 percent.
Summerset delivered 152 total units in the first half.
"Our deliveries are weighted towards the second half of this year and we remain on track to deliver approximately 625-675 units this year," Scoullar said.
Summerset also announced the purchase of two new sites in the South Island, in Rolleston and Mosgiel.
"We're pleased to continue to find quality sites to grow our business where we'll be able to introduce more New Zealanders to our retirement village lifestyle," Scoullar said.
