Summerset Group Holdings Limited Analysis

Overview

Summerset is the third largest operator and the second largest developer of retirement villages and aged care facilities in New Zealand. Summerset is one of the few retirement village operators to provide a continuum of care at its Villages.

Summerset ordinary shares commenced trading on the NZSX on Tuesday 01 November 2011.

Performance

The following information was extracted from Summerset Group Holdings Limited's full year results, released on 28 February 2025:

SUMMERSET POSTS $206.4M FULL YEAR UNDERLYING PROFIT

• Underlying profit for FY24 of NZ$206.4m, up 8% on FY23
• Total revenue of NZ$319.9m up 18% on FY23
• Total assets of NZ$8.1b, up 16% on FY23
• Three new sites and two land extensions acquired this year in New Zealand
• 1,238 total sales of occupation rights, up 12% on FY23
• 708 new homes under occupation right agreement (ORA) delivered (676 in New Zealand and 32 in Australia)
• Gearing ratio at 36.4%
• Development margin of 28.9%
• Land bank total of 6,147 retirement homes and 1,396 care homes across NZ and Australia
• Final dividend of NZ13.2 cents per share
• Village and care resident satisfaction 97%
• Staff retention 81% up 4% on FY23

Retirement village operator Summerset Group Holdings Limited today announced a record full year underlying profit for the year ending 31 December 2024 of NZ$206.4 million, up 8% on FY23. IFRS net profit after tax was down to $339.8 million with the change largely reflective of the fair value movement of investment properties recognised in 2024, relative to 2023.

Summerset Board Chair Mark Verbiest said Summerset was pleased with the business’ underlying operating performance in light of 2024’s tough macroeconomic environment.

“We have continued to deliver value for our residents and shareholders during a year which has been one of the most challenging we’ve seen as a company. Like most other businesses in 2024 we had to work within an environment where higher costs, inflation and the subdued residential property market all made our work harder. Despite these challenges, we have continued to grow,” Mr Verbiest said.

Summerset delivered its highest ever sales with 1,238 ORA homes contracted for 2024, up 12% on FY23.

Summerset CEO Scott Scoullar said the company’s broadacre build strategy was a continued strength.

“We continue to see the benefits of our regionally diverse portfolio with eight regions seeing over 30 sales settlements across 2024, highlighting the broad appeal and strength of our villages nationwide. When we exclude the three new village centre buildings we opened this year our uncontracted stock is down between 20-50% year-on-year across our home types, a very pleasing result in a tough market,” Mr Scoullar said.

Mr Scoullar said Summerset had continued to live the company’s purpose and ‘bring the best of life’ to its residents with continued high satisfaction scores and external acknowledgement of their work.

“Our resident satisfaction scores have remained extremely high for both village and care reflecting the work our team have put in to provide the best retirement living experience we can.

“We’ve also won a number of awards this year including Gold for the Reader’s Digest 2025 Quality Service Award in the Retirement Villages category, the second year in a row we’ve won this award.”