Summerset still on track for sales target
WELLINGTON: Summerset Group’s firstquarter sales of occupation rights dropped 16% but it said it remains on track to deliver 450 new homes over 2018, as sales increase.
The Wellingtonbased company said sales of occupation rights fell to 143 in the three months ended March 31 versus 171 in the same quarter a year ago.
Forsyth Barr broker Lyn Howe told the ODT Summerset achieved new sales of 68 units and resales of 75, the total 143 being down on the same period last year’s total of 171 because of a decline in new unit sales, by 29.
‘‘New sales are tracking below our forecast run rate for 428 new unit sales in full year 2018,’’ she said.
Summerset’s chief executive, Julian Cook, said new sale settlements for the first quarter of 2018 were predominantly from selling homes completed and delivered at the end of 2017.
‘‘Retirement unit deliveries for 2018 are weighted towards the second half of the year, with new sales volumes throughout the remaining quarters of 2018 expected to progressively increase as we deliver new homes for which we will sell occupation rights,’’ Mr Cook said.
‘‘We are on track to deliver 450 new homes over 2018,’’ he said. The number is unchanged from the previous year, when Summerset sold 682 occupation rights and delivered 450 new retirement units.
The company is the youngest of New Zealand’s big retirement village operators, following in the footsteps of Ryman Healthcare and Metlifecare to acquire land and build units in anticipation of increased demand.
It has 23 retirement villages completed or in development across the country. It also has six development sites in different parts of the country and provides a range of living options and care services to more than 4700 residents.
The shares last traded at $6.88 and are up 27% over the past 12 months. — Scoop