Summerset St Johns retirement village in Auckland in 2024. Photo / Summerset Group
New Zealand’s biggest listed retirement village business pushed up underlying profit and revenue 13% in its latest year.
Summerset Group made an underlying profit of $234.2 million and revenue of $361.8m in the year to December 31, 2024.
Its net profit after tax was $259.7m, down 21.8% on its prior financial year.
Summerset said the change was largely driven by the impact of lower median house prices on revaluations of the company’s portfolio over the year.
It now has total assets of $9.2b, up 15% on 2024.
Despite the housing market downturn, it made 1560 total sales of occupation rights, up 26% on FY24.
CEO Scott Scoullar said the company’s long-term strategy continued to deliver results.
“We’ve continued to achieve despite another year where the business environment and property market has been subdued.
“Summerset has lifted the value of the company by $1.32 per share to have a net tangible assets per share of $13.75, and we are proud to be very focused on growth,” Scoullar said.
The company met its forecast build target, delivering 637 new homes here and 56 in Australia.
It is building on 22 sites.
It has also applied to build a new village in Mornington, Victoria.
“We are hopeful of securing the consent this year which will include a retirement village, assisted living apartments and aged care. We believe this opportunity will be a great addition to our growing Australian portfolio,” Scoullar said.
Last August, Summerset labelled itself New Zealand’s fastest-growing retirement village operator, with assets up 18% annually and a pipeline of 7000-plus housing units and private hospital or care rooms.
“Our land bank has 5800-plus retirement units and 1300-plus care units,” the company reported then.
Market capitalisation exceeded Ryman Healthcare, which for many years has been the country’s largest retirement business.
It owns the Summerset St Johns in east Auckland, an apartment village valued last year at $477.7m.
Last August, Summerset declared net profit after tax of $127.2m for the half-year to June 30, up 26% on 1H24. It made total revenue of $173m, up 14%.
Summerset’s market capitalisation today stands at $2.59b on the NZX, while Ryman is at $2.51b.
Craigs Investment Partners investment director Mark Lister forecast that today’s full-year result would be telling.
Companies sensitive to the state of the economy included Port of Tauranga and Fletcher Building, while Summerset might offer some clues to the path of the housing market, he wrote last Monday.
Summerset houses 9500 residents in 7200 units and has more than 1400 care units, including 98 in Australia.
Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.
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