SUM Summerset Group

[Dolcile]

Care doesn't generally make money.  Shorter tenure does / quicker turnover of LTO does. 

[BlackPeter]

Care doesn't generally make money.  Shorter tenure does / quicker turnover of LTO does. 

Maybe you need to think a bit deeper ;

[KW]

Care doesn't generally make money.  Shorter tenure does / quicker turnover of LTO does. 

Which is why Summerset is switching to Care ORA's.  Charge them for 2 years, then hope they die soon after.  Repeat. 

[Shareguy]

Notice in Pie funds latest update that their property and infrastructure fund lists SUM as fifth largest holding.

[Basil]

Notice in Pie funds latest update that their property and infrastructure fund lists SUM as fifth largest holding.

Exceptionally well-managed company on undemanding metrics and SUM is extremely well positioned to benefit from any significant uptick in the property market.  If I believed a really decent improvement in the property market would happen in 2025, I'd buy back in without hesitation.

[Greekwatchdog]

Another solid update

4Q24 METRICS – SALES OF OCCUPATION RIGHTS

Summerset Group is pleased to report 361 sales for the quarter ending 31 December 2024, comprising 169 new sales and 192 resales. The company ended the financial year with its highest ever full year result of 1238 total settlements (an increase of 12 percent over FY23).

Total settlements in Q4 were on par with the same period in 2023 (360 sales) with the company seeing it's highest resale quarter ever.

Summerset CEO Scott Scoullar said this was an encouraging result to end the year, especially in such a challenging market.

"This is a positive result for both the quarter and the full year, the residential property market has been slow but despite this we've continued to grow.

"We've seen good demand, and we've managed to achieve a strong sales result in a difficult economic environment. It's been very pleasing to see the strength of our resales, reflecting our growing number of fully completed and established villages, and we have a substantial portfolio of both quality new and pre-occupied units around the country that continue to appeal to our target audience."

The big milestone in the quarter was the completion and opening of the first stage at St Johns village in October seeing 60 percent of the village's homes delivered as well as the village's main centre (including pool, café, bar and resident theatre).

Summerset St Johns now has 25 percent of the village units completed to-date under contract across independent living, serviced apartments and care suites.

Outside Auckland, the Pāpāmoa, Te Awa and Richmond villages were among the strongest performers in new sales for the quarter. Resales were led by Casebrook and Avonhead, however Summerset still continues to see a good balance of sales throughout the country with 59 percent of sales from outside Auckland, Wellington and Christchurch. In Australia, our Cranbourne North village continues to perform well as new stages of homes are released.

Mr Scoullar said the company has a strong pipeline of committed sales contracts heading into 2025 across its New Zealand and Australian villages.

Summerset will release its full year results on 28 February 2025.

[BlackPeter]

Running total (4 quarters) now 1238 sales p.a. - just one higher than the last ATH. Are they running out of puff?

Just kidding - well done, though looking for a better rise next time around ...

[Playa]

Exceptionally well-managed company on undemanding metrics and SUM is extremely well positioned to benefit from any significant uptick in the property market.  If I believed a really decent improvement in the property market would happen in 2025, I'd buy back in without hesitation.

[Playa]

On that note where do you think the property market is heading Basil?

[Basil]

I think it's on a road to nowhere.
Huge amount of supply and demand remains constrained by housings lack of affordability. Much lower levels of new immigration won't help.

SUM have proven to be a solid performer in a very soft real estate market so I am pleased Kingfish have a decent sized stake as I now have a significant shareholding in KFL..

[Waltzing]

yeah .... nowhere...

https://www.youtube.com/watch?v=LQiOA7euaYA

[Greekwatchdog]

A slight correction from Tuesdays announcement ex  CEO and some questions from Anne Gibson. (Paywalled)

https://www.nzherald.co.nz/business/summerset-groups-mistake-and-why-450m-project-is-mainly-unsold/U3Q7KLAW65FPJMLD4ZKE6YF3I4/

[Basil]

Excellent result in a tough market. SUM make all other listed company management in this sector look like absolute idiots.

[Greekwatchdog]

Yes it is a good result.

Found this quite telling and who can blame any of the RV's for not doing this.
Aged care funding

Mr Scoullar said that Summerset was considering changes to its care model due to the state of aged care underfunding in New Zealand.

"While we've created greater financial certainty for ourselves, and our residents, by moving to care ORAs at many of our villages there is still a major gap between our aged care funding and the costs of running our care centres.

"We are currently reviewing our policies and where this funding gap is leaving us. We will have to consider making our care centres available to our village residents only and no longer accepting referrals from the public health system.

"It's not a step we want to take but we need to focus our limited funding and staffing resources on our village residents and their needs. We don't want to end up overstretching our staff. We know this will mean a bigger burden will be placed on the public health system, but we can't keep taking the strain."

[mike2023]

I was talking about this yesterday with a care giver, where will they go? The government spend, from what I'm told, 2.5x looking after a potential resident than they pay a care home. It is idiocy at its best and clogging the health system.