Summerset Group (SUM) H2 2024 earnings summary

Executive summary

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

• Delivered 1,238 total settlements/ORA sales, up 12% on FY23, and delivered 708 new homes under ORA.

• Maintained high occupancy (94%) and resident satisfaction (97%), with improved staff retention to 81%.

• Expanded land bank to 6,147 retirement homes and 1,396 care homes across New Zealand and Australia.

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

Financial highlights

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

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

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

• Realised development margin was 28.9%, slightly down from FY23 due to sales mix.

• Final dividend declared at NZ13.2 cps, totaling NZ24.5 cps for FY24.

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.

• Focus remains on cost control, improving cash flow, and leveraging a strong balance sheet.

• Plans to continue growth in both New Zealand and Australia, with ongoing village developments and land acquisitions.