Announcement
FLLYR: SUM: Financial Results for the Year Ended 31 December 2020
08:32am
SUM
23/02/2021 08:32
FLLYR
PRICE SENSITIVE
REL: 0832 HRS Summerset Group Holdings Limited
FLLYR: SUM: Financial Results for the Year Ended 31 December 2020
NZX & ASX RELEASE
23 FEBRUARY 2021
SUMMERSET POSTS $98.3M FULL YEAR UNDERLYING PROFIT
o Underlying profit for FY20 of NZ$98.3 million, down 7% on FY19
o Net profit after tax of NZ$230.8 million, up 32% on FY19
o Total assets of NZ$3.9 billion, up 17% on FY19
o 785 total sales of occupation rights, up 20% on FY19
o 356 new units delivered, up from 354 for FY19
o Land bank total of 5,129 retirement units and 863 care units across NZ and
Australia
o Gearing ratio of 32.6%, down from 33.3% at FY19
o Final dividend of NZ 7.0 cents per share
Retirement village operator Summerset Group Holdings Limited today announced
a full year underlying profit for the year ending 31 December 2020 of NZ$98.3
million, down 7% on FY19.
Net (IFRS) profit after tax, which includes the impact of unrealised
movements in the fair value of investment property, was up 32% on FY19 at
NZ$230.8 million.
Summerset Chief Executive Julian Cook said it had been a strong year for
Summerset despite the COVID-19 pandemic.
"Summerset has maintained strong profitability and resilience throughout
2020."
Mr Cook said underlying profit was down on the previous year due to
expenditure on measures to keep residents safe from COVID-19 plus increases
in employee wages.
"Despite the COVID-19 pandemic and lockdown, we have performed well. This is
testament to New Zealand's effective public health response, the Summerset
team, our handling of the pandemic, and the underlying strength of
Summerset's business," he said.
In 2020, Summerset opened next-generation main buildings in Christchurch and
Hamilton and new retirement villages in Tauranga (Papamoa Beach), Napier (Te
Awa) and New Plymouth (Bell Block).
It completed 356 units built across nine sites despite the closure of
construction sites due to the COVID-19 lockdown.
Summerset now has 32 villages completed or in development and continues to
have the largest land bank in the sector. The number of residents increased
from just over 5,500 at the end of 2019 to over 6,200 as at 31 December 2020.
Summerset's care business continued its strong performance over 2020 with
occupancy at 96% in established care centres. Resident satisfaction was also
steady at industry-leading levels of 97% for care residents and 95% for
retirement village residents.
Summerset continued to build on its commitment to sustainability. It is now
in its third year as a certified Toitu carbonzero organisation and set a new
science-based carbon reduction target in 2020.
Looking ahead, Mr Cook said Summerset expected to open main buildings in its
Richmond (Nelson) and Avonhead (Christchurch) retirement villages in 2021.
The 9,000m2 main buildings include extensive village amenities such as a
swimming pool, gym and movie theatre, a care centre and memory care centre,
and serviced apartments.
A 32% increase in net profit after tax was driven by an investment property
revaluation uplift of NZ$221.1 million on Summerset's retirement village
assets for the year. The investment property valuation as at 31 December 2020
has rebounded strongly since the previous valuation as at 30 June 2020 when
the residential property market was forecast to fall by up to 10% as a result
of the COVID-19 pandemic.
The board has declared an unimputed final dividend of NZ7.0 cents per share.
The record date will be Tuesday 9 March 2021 and the payment date will be
Monday 22 March 2021. This brings the total dividend payment for 2020 to
NZ13.0 cents per share. The dividend reinvestment plan will apply to the
dividend, with a discount of 2% applicable to those shareholders
participating in the plan.
ENDS
For investor relations enquiries:
Scott Scoullar
Deputy CEO and CFO
scott.scoullar@summerset.co.nz
029 894 7317
For media enquiries:
Jenny Bridgen
Communications Manager
jenny.bridgen@summerset.co.nz
021 408 215
End CA:00368001 For:SUM Type:FLLYR Time:2021-02-23 08:32:16
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