Summerset new sales drop in fourth quarter

SUMMERSET Group’s fourthquarter new sales were down 5.4% on a year earlier but it met its 2018 target to build 450 new retirement units.

The Wellingtonbased retirement village operator and developer said it sold 193 occupation rights in the three months to December 31 versus 204 in the previous year. Of those, 112 were new sales, up 5.7 on the year. Resales were down 17% at 81, it said. While the resales were down on the year, they were the highest in 2018.

‘‘The fourth quarter of 2018 saw us achieve our highest new sales in the last two years, and was the secondhighest quarter ever for the group,’’ chief executive Julian Cook said.

Over the 12 months, sales of occupation rights fell 6% to 640. Of those, 339 were new sales and 301 were resales.

However, the firm said its 2018 retirement unit build target of 450 new homes was achieved, with 454 retirement units being delivered. Of those, 133 were delivered in December and are expected to be sold in 2019, Mr Cook said.

Summerset now has 24 villages completed or in development across the country and provides living options and care services to more than 5000 residents.

It has a further eight sites for development, and last year opened an office in Melbourne as it mulls expanding into Australia.

The stock last traded at $6.30 and is up 14% over the past year.