Summerset's retirement village in Dunedin. Photo by Peter McIntosh.
Retirement village operator Summerset is being tipped by
analysts to book a more than 40% profit increase for its
full-year result, remaining on target to continue its strong
level of development this year.
Summerset is scheduled to deliver its full-year 2013 result
today, with Forsyth Barr broker Haley Van Leeuwen and Craigs
Investment Partners broker Peter McIntyre each predicting
after-tax profit up more than 40%, at respectively $21.8
million and $21 million.
Summerset had expected to develop at least 200 new units last
year, 200 for 2014 and and forecast 300 during 2015.
Ms Van Leeuwen said Summerset ''should'' achieve its 2013
targets and expected it to confirm the 300 units in 2015,
given progress of its development pipeline last year and
She picked revenue up 23.6%, from $53.2 million a year ago to
$65.8 million, and after-tax profit up 43.5%, from $15.2
million to $21.8 million.
Mr McIntyre highlighted that Summerset maintained a
five-year, development land bank and that results from 2012
and first half 2013 demonstrated its development model was
He predicted revenue up from $53.2 million a year ago to $88
million, and after-tax profit up from $15.2 million to $21
• NZ's third-largest provider
• 17 villages
• 1646 retirement units
• 327 care beds
Source: Craigs Investment