This article is from the Australian Property Journal archive
SUMMERSET Group Holdings Limited (ASX:SNZ) has seen significant uplifts over the first half of 2021, posting an underlying profit of NZ$263.8 million compared to the NZ$1 million reported in 1H20.
The retirement village operated reported a first half underlying profit of NZ$75.5 million, up 68% on the previous corresponding period where COVID-19 imposed greater challenges.
While the group’s assets grew to NZ$4.4 billion over the period, an increase of 27% from $3.4 billion in the pcp, its development margin was down slightly from 22.3% in 1H20 to 21.6%.
“We are continuing to see strong demand for our brand of retirement living; the database for our soon-to-open Whangārei village stands at 700-plus, and nearly 60% of villas in our developing villages nationwide are pre-sold,” said Scott Scoullar, CEO of Summerset.
The group also acquired three new sites over the year and in the past six months built a record number of new units, at 347 units.
As well as recording new and resale settlements of 545 units in the first half, up 106% on the pcp.
“To meet growing demand, we will lift our build rate for this year from between 500 and 550 units under ORA to 550 to 600, plus 52 care beds,” added Scoullar.
Summerset also purchased a third site in Australia over the first half in Chirnside Park, Melbourne, as well as a fourth just announced, in Craigieburn.
“We’re looking forward to bringing our model of care to older Australians and are in the final stages of obtaining the planning permit for our first Australian village at Cranbourne North in Melbourne,” said Scoullar.
“The design and planning of our second village at Torquay is now well under way. In March we purchased land at Chirnside Park, and we have just bought a further site at Craigieburn, in north Melbourne.”
The group posted operating cash flows of $229.7 million, up from $92.8 million in the pcp.
While Summerset’s gearing was at 28.5%, dropping down from FY20’s 32.6% and at its lowest rate since 2014.
The Summerset board declared an unimputed interim dividend of NZ9.9 cents per share.
