Summerset profits surge 58pc

Chief executive of retirement village operator Summerset, Julian Cook.

New Zealand's third largest listed retirement specialist, Summerset Group, increased net profit after tax by 58 per cent, from $34 million to $54.2 million and remains in a big expansion phase.

The Wellington headquartered business has just reported its latest December 31, 2014 result, well ahead of the 2013 result.

Ryman Healthcare is New Zealand's largest listed retirement business, then Metlifecare.

Summerset chief executive Julian Cook said the latest period had been one of investment in future growth.

"In 2014 we celebrated completion of our 2000th retirement unit and now have over 3000 residents living with Summerset. We have seen a record profit and strong increase in development margins across the group in 2014. We have opened four new villages in Karaka, Hobsonville, New Plymouth and Trentham (village extension), and had three new care centres in Nelson, Dunedin and Hamilton. We delivered 261 retirement units across the country, up from 209 in the prior year.

"Overall we are happy with the profit growth of 10 per cent on the prior year, particularly as this was achieved whilst opening four new villages and three new care centres. We expect the level of investment in 2014 to support a higher level of earnings growth in the future," Cook said.

This is Summerset's fourth year of record occupation right sales.

Gross new sales of 286 retirement units saw sale proceeds reaching more than $106 million. This compares with gross new sales of $79 million in 2013 full year, a 34 per cent increase.

Total revenue rose from $45.2 million to $54.2 million but total expenses were also up from $38.5 million to $47.8 million.

Summerset has villages in Aotea in Porirua, Dunedin, Hamilton, Hastings, Havelock North, Hobsonville, Karaka, Katikati, Levin, Manukau, Napier, Nelson, New Plymouth, Palmerston North, Paraparaumu, Taupo, Trentham, Wanganui, Warkworth and Wigram.

See Summerset's latest investor presentation here: