Summerset unit sales decline in third quarter

Julian Cook
Julian Cook
Summerset's third-quarter sales fell 4.5% as the retirement village operator waits for a large number of new units to come on stream.

Total sales of occupation rights declined to 148 in the three months ended September 30 from 155 a year earlier. Of that, 83 were sales of new units, down 15% from a year earlier. Resales were up 14% at 66.

Summerset's quarterly new sales have tracked behind 2017. Chef executive Julian Cook expects a pick-up in the final three months of the year.

"Total sales have remained at consistent levels across the year, and we continue to expect higher sales in the final quarter of 2018, with a large proportion of retirement units built this year being delivered in the fourth quarter," he said.

Resales delivered strong earnings for Summerset in the first half of 2018, underpinning a 27% lift in underlying earnings to $45.2million. Resales of 220 units were up 8.9% in the year-to-date.

The company completed 165 new units in the first six months of 2018 and today said it is still on track to deliver the 450 forecast for the calendar year.

Summerset has 23 villages completed or under development, with 3443 retirement units and 858 care beds. Its land bank has the potential to add 3041 units and 368 care beds.

The shares last traded at $7.64 and have gained 41% this year, making it the best-performing listed retirement village operator and developer so far this year.

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