Summerset profit expectation up 32%
RESTHOME owneroperator Summerset has upgraded its fullyear underlying profit expectations, by as much as 32% on last year.
Summerset yesterday forecast its underlying profit for the full year to December at $72 million$75 million, much higher than last year’s $56.6 million.
The key driver was Summerset continuing to have strong development margins from new sales of occupation rights, the company said.
‘‘This reflects positive trading conditions across all of our villages,’’ Summerset said.
Craigs Investment partners broker Peter McIntyre said Summerset had strong momentum on good unit sale volume.
‘‘They’ve maintained a strong construction pipeline which is transcending into [unit] sales,’’ Mr McIntyre said.
Summerset has 21 retirement villages across the country, plus six development sites, with more than 4200 clients.
In lateMarch Summerset Group completed a $600 million syndicated loan facility refinancing, increasing it from $450 mil lion, to fund growth initiatives across existing and future retirement villages.
At the time Summerset had $283 million of debt, or 47% of the $600 million in place, leaving ‘‘substantive headroom’’ for future development or unexpected economic cycle events, Summerset chief executive Julian Cook said at the time.
simon.hartley@odt.co.nz