Announcement

HALFYR: SUM: Financial Results for the Half Year Ended 30 June 2019 08:30a.m. 
SUM  
13/08/2019 08:30  
HALFYR  
PRICE SENSITIVE  
REL: 0830 HRS Summerset Group Holdings Limited  
 
HALFYR: SUM: Financial Results for the Half Year Ended 30 June 2019  
 
MEDIA RELEASE  
 
13 AUGUST 2019  
 
FIRST HALF UNDERLYING PROFIT OF $48M, UP 6%  
 
o Underlying profit for 1H19 of NZ$47.8 million, up 6% on 1H18  
o Reported (IFRS) profit after tax of NZ$92.6 million, down 4% on 1H18  
o Total assets of NZ$3.0 billion, up 24% on 1H18  
o Six new sites acquired this year  
o 139 new retirement units delivered  
o 278 total sales of occupation rights  
o Interim dividend of NZ 6.4 cents per share  
o Development margin of 28.4%  
 
Retirement village operator Summerset Group Holdings Limited has announced an  
underlying profit of $47.8 million, a 6% increase on the first half of 2018.  
 
Summerset CEO Julian Cook said results had been driven by strong demand at  
Ellerslie and Hobsonville villages.  
 
"Ellerslie and Hobsonville were our top sellers this half despite the slower  
Auckland housing market," Mr Cook said.  
 
Reported (IFRS) profit was $92.6 million, down 4% on the same period last  
year. IFRS profit includes fair value movement on investment property.  
 
"The fair value movement reflects ongoing strong value growth across the  
business and is close to the increase seen in the prior comparable period.  
This is despite the flattening property market in some areas of the country,"  
said Mr Cook.  
 
Mr Cook said the company had purchased six new sites since the start of this  
year. These are located in Blenheim, Rangiora, Cambridge, Milldale, Waikanae  
and Whangarei.  
 
"These purchases reflect our desire to buy sites in urban fringe locations,  
retirement destinations, and high growth regional centres. These sites are  
attractive from a financial return, risk, and demand perspective," he said.  
 
The additional sites have lifted Summerset's land bank to nearly 5,000  
retirement units, the largest in the sector.  
 
Summerset delivered 139 new homes in the half year. Mr Cook said the company  
expects to deliver around 350 homes this year, with a further 150 retirement  
units to be completed in the main buildings at Casebrook and Rototuna in the  
first half of 2020.  
 
Summerset is opening three new villages this year, in Avonhead  
(Christchurch), Kenepuru (Wellington), and Richmond (Tasman).  
 
"We've been very pleased with pre-sales interest and settlements for the new  
villages," Mr Cook said.  
 
Summerset reported a development margin of 28.4%, down from 33.0% for the  
same period last year. Mr Cook noted this was in line with the company's  
longer term expectations of development margins in the 20-25% range.  
 
Total assets grew to $3.0 billion, up 24% on the same period last year.  
 
Last year Summerset committed to reducing its impact on the environment  
through CEMARS (Certified Emissions Measurement and Reduction Scheme)  
certification.  
 
"We were delighted to become the first retirement village operator in New  
Zealand to be certified carboNZero and have also become a member of the  
Climate Leaders Coalition this year," said Mr Cook.  
 
Summerset continues to explore expansion across the Tasman.  
 
"We are in the process of carrying out due diligence on a number of potential  
sites in Melbourne, Victoria. We are seeing a good range of opportunities and  
will continue to be prudent with our approach".  
 
The board has declared an unimputed interim dividend of NZ 6.4 cents per  
share. The record date will be Tuesday 27 August 2019 and payment date Monday  
9 September 2019.  
 
ENDS  
 
For investor relations enquiries:  
Scott Scoullar  
CFO and Deputy CEO  
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:00338975 For:SUM Type:HALFYR Time:2019-08-13 08:30:09  

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