Summerset Group (SUM) H2 2024 earnings summary

Executive summary

• Achieved record underlying profit of $206.4m, up 8% on FY23, and net profit after tax of $339.8m, with total revenue up 18% year-over-year to $319.9m.

• Delivered 1,238 total settlements, up 12% on FY23, with strong demand across New Zealand and Australia despite challenging economic conditions.

• Maintained high occupancy (94%) and resident satisfaction (97%), with robust sales and a growing land bank in both New Zealand and Australia.

• Opened flagship St Johns village in Auckland and first Australian village at Cranbourne North, with further expansion underway.

• Declared total dividend of 24.5 cps, with a final dividend of 13.2 cps payable in March 2025.

Financial highlights

• Revenue increased 18% to $319.9m, driven by growth in village deliveries and high care occupancy.

• Underlying profit rose 8% to $206.4m; net profit after tax was $339.8m, down 20% due to lower fair value movement of investment property.

• Operating cash flows reached a record $443.2m, up 11% year-over-year.

• Total assets increased 16% to $8.1b; net tangible assets per share rose 13% to $12.53.

• Realised development margin was $118.4m (29%), slightly down from FY23 due to sales mix.

Outlook and guidance

• FY25 build rate guidance: 600–650 units in New Zealand and 50–80 in Australia, similar to FY24.

• Q1 2025 settlements expected to be in line with Q1 2024; sales contract rates up ~30% year-to-date.

• Committed sales pipeline increased to 430 units in February 2025, up 21% from FY24.

• Development margins expected to remain within 20-25% over the medium term.

• Ongoing focus on prudent balance sheet management and capital recycling to support growth.