Summerset Group (SUM) investor relations material

Executive summary

• Achieved record underlying profit of $234.2m, up 13% year-over-year, with net profit after tax of $259.7m and total revenue of $361.8m, up 13% from FY24.

• Delivered 693 units across New Zealand and Australia, with total settlements up 26% to 1,560, and strong occupancy rates of 95% for retirement villages and 94% for care centres.

• Embedded value rose 11% to $1.9b, and net tangible assets per share increased 11% to $13.75.

• Maintained a diversified portfolio with 8,673 units and a land bank supporting future growth in both New Zealand and Australia.

Financial highlights

• Underlying profit reached $234.2m, up from $206.4m in FY24; net profit after tax was $259.7m, down from $332.0m in FY24 due to lower fair value movements.

• Total assets grew 15% to $9.2b, with investment property valued at $8.2b, up 12% year-over-year.

• Realised development margin hit a record $154.9m, up 31%, with a development margin of 27.8%.

• Cash flow from existing operations was $32.3m, up 18%, while cash outflow from development activity decreased by 20%.

• Dividend declared at 13.2 cents per share, representing a 25.3% payout of underlying profit.

Outlook and guidance

• FY26 guidance targets 650–700 units delivered in New Zealand and 100–150 in Australia, with a medium-term goal of 650 units in NZ and 300 in Australia annually from 2027.

• Gearing ratio expected to decline through FY26 as sales momentum continues and capex moderates.

• Care EBITDA projected to rise further as more units convert to Occupation Right Agreements and main buildings are delivered.

• Operating margins expected to improve over the medium term as inflationary pressures ease and villages mature.