The New Zealand retirement village sector continues to boom. Summerset, NZs third-largest listed retirement village operator, expects annual earnings to rise by as much as 39% as it experiences record sales of units.
They sold 270 units January to June which is 38% up on last year. This includes 110 resales and 160 new units, largely from four new villages.
Our third-largest village operator, Stockland, will have sold about 450 units in the same period that we have six times a population.
Summerset expects to record a profit of between $32 million and $34 million in the year ending December 31, compared with $24.4 million last year. Their share price has jumped 28% so far this year.