Summerset Group (SUM) H2 2025 earnings summary

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.

• IFRS net profit was $259.7m, down 22% from FY24, mainly due to lower median house prices impacting portfolio revaluations.

• Delivered 693 units across New Zealand and Australia, with 637 in New Zealand and 56 in Australia, and total settlements up 26% to 1,560.

• Embedded value rose 11% to $1.9b, and net tangible assets per share increased by $1.32 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%.

• Care EBITDA increased to $18.8m from $2.7m in FY24, reflecting improved care profitability.

• Dividend declared at 13.2 cents per share, with total FY25 dividend at 24.5 cents per share.

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.

• Expectation of continued high demand and record sales in both New Zealand and Australia for FY26.

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

• Anticipate welcoming first Assisted Living residents in Australia in Q1 FY26 and providing care from Q2.

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