The NZ retirement village group’s half-year net profit has fallen slightly in the six months to June to $92.6M, down 4%, however, the underlying profit rose 6% to $47.8M with revenue up nearly 13%.
Summerset chief executive Julian Cook said revenue growth was driven by strong demand for two Auckland retirement villages. The growth compares favourably with the overall housing market in Auckland which is down 2.4% and countrywide down 1.2%.
The group’s profits compare favourably with those of Aveo who’s underlying profits were down from 127.2M to 50M, especially as Aveo has up to four times more villages than Summerset’s 39.
The group’s success is largely due to growth and investor confidence in the retirement village sector in New Zealand and its profitability.
Summerset has bought six sites outside of main centres and plans to open three more villages this year. It has also started detail appraisals of several sites in Melbourne.