Summerset Group (SUM) H2 2023 earnings summary

Executive summary

• Record underlying profit of $190.3m, up 11% YoY; IFRS NPAT reached $436.3m, up 62%, supported by operating growth and a $441.6m fair value gain.

• Record 1,103 Occupation Right settlements, comprising 560 new sales and 543 resales; net operating cash flow reached a record $398.2m.

• Total assets rose 19% to $6.9b, with embedded value up 9% to $1.6b.

Financial highlights

• Total revenue was $272.2m, up 14% YoY; total expenses increased 17% to $263.8m, while net finance costs rose to $27.5m.

• Realised development margin reached a record $121.2m, up 16%; realised resale gain was $88.1m, up 26% YoY.

• Net operating cash flow was $398.2m, up 8%; investing outflows rose 3% to $668.5m.

Outlook and guidance

• FY24 New Zealand delivery guidance is 675–725 units for sale under Occupation Right; St Johns first deliveries remain on track for 2H24.

• New Zealand villages under development are forecast to generate over $235m in positive net cash flows on completion; forecast capital investment is $3.1b–$3.3b.

• Australian expansion plans include continuing to target broadacre sites in Victoria and investigating Queensland opportunities.