Retirement operator’s shares ‘overlooked’, analysts say Orr apologises for breach
AUCKLAND: ‘‘Yeah, I think it has been overlooked,’’ conceded an investment research head on one listed business missing from brokers’ annual share market picks for 2021.
Yet the company he was referring to has piled 300% on to its share price in the past 10 months.
In fact, this NZXlisted company operates in a sector popular with investors, is about to get new management, is New Zealand’s biggest by one measure and is expanding into Australia.
So why did brokers seemingly overlook retirement village operator Summerset Group, whose price rocketed from about $3 last March to more than $12 now?
Instead, they picked the seemingly sure sitters such as Fisher & Paykel Healthcare, a2 and Mainfreight.
Fat Prophets head of research head Greg Smith acknowledged Summerset was missing from that list. Yet he also acknowledged the massive share price rise, and said if someone had had the foresight to put in $10,000 last March, today they could be banking $40,000.
Why so Cinderella?
‘‘Ryman [Healthcare] is the market darling and in the brokers’ picks,’’ Mr Smith said.
‘‘Ryman is the family favourite. ‘‘Yeah, I think it has been overlooked,’’ he said of Summerset.
He expected its share price to keep rising this year, although not perhaps by as much again.
‘‘There will be scope of further gains due to low interest rates and the property market, which can’t keep going to the extent it is but there’s no reason why it can’t remain strong.’’
Ryman’s share price was still below where it had been a year ago, Mr Smith noted; Summerset was ‘‘ahead by a mile’’.
Craigs Investment Partners head of private wealth research Mark Lister praised the firm.
‘‘We really like Summerset. It is a great business which is executing very well and provides an excellent exposure to the strong housing market. It has also been making some very good progress from a brand perspective,’’ Mr Lister said.
Summerset deputy chief executive and chief financial officer Scott Scoullar, who takes over from outgoing chief executive Julian Cook in March, yesterday acknowledged the success.
‘‘It was trading at around $3 at the height of the initial global share market reaction but prior to that had been trading at around $9. There appears to be a positive sentiment associated with the company driven by good sales announcements . . .
‘‘Summerset has the largest land bank in New Zealand of the retirement village operators. Our land bank is well diversified across New Zealand, we have a strong development pipeline, and a good past track record of building new villages,’’ he said.
Last year, real estate agents and consultants JLL noted Summerset had the biggest development pipeline after buying seven sites in 2019. It planned new 4726 new units, JLL said.
Ryman Healthcare was second busiest, planning 2816 units; Arvida Group planned 1484 units; Metlifecare 1348; Oceania Healthcare 1119; and Bupa NZ 448. About 70% of Summerset, Ryman and Metlifecare plans were for new villages, but 90% of Oceania and Arvida’s plans were to expand existing villages.
Summerset says it has 31 villages completed or under development and a further nine sites here in its land bank plus two in Australia, bringing the total number of properties to 42.
It has more than 6000 residents. — The New Zealand Herald
WELLINGTON: Reserve Bank governor Adrian Orr has called in an independent investigator to review a ‘‘malicious and illegal breach’’ at the central bank and apologised for letting down the public.
The bank announced on Sunday that a filesharing application, known as Accellion, had been compromised, potentially exposing personal and commercially sensitive information.
‘‘We apologise unreservedly to all affected parties for this breach,’’ Mr Orr said in a recorded statement released yesterday.
‘‘I personally own the issue. I am very sorry and I am very disappointed to be here giving this news.’’
Earlier this week, it was revealed the bank had been warned in midDecember of a critical vulnerability in the thirdparty filesharing service. The bank says the application has now been shut down and secured.
While service levels had been below what the bank would have accepted, the bank also took some responsibility, Mr Orr said.
‘‘We accept that our actions to date have fallen short of the public’s expectations.’’
The bank was giving the matter its full attention and had launched a detailed forensic cyber investigation, he said.
‘‘Be assured, we are taking action.
‘‘We are working closely with public authorities and utilising international expertise as necessary.’’
An independent reviewer had also been commissioned to conduct a full inquiry due to the ‘‘enormous public interest’’.
‘‘There are serious questions to be answered: how this incident occurred and how to strengthen our systems and processes.’’
The review’s terms of reference would be released publicly shortly. — RNZ