Summerset Group Holdings Limited has announced a record full year underlying profit in light of 2024's tough financial climate.
Retirement village operator Summerset Group Holdings Limited has announced a record full year underlying profit for the year ending 31 December 2024 of NZD 206.4 million, up eight percent on FY23.
IFRS net profit after tax was down to $339.8 million with the change largely reflective of the fair value movement of investment properties recognised in 2024, relative to 2023.
Summerset Board Chair Mark Verbiest said Summerset was pleased with the business’s underlying operating performance in light of 2024’s tough macroeconomic environment.
“We have continued to deliver value for our residents and shareholders during a year which has been one of the most challenging we’ve seen as a company. Like most other businesses in 2024 we had to work within an environment where higher costs, inflation and the subdued residential property market all made our work harder. Despite these challenges, we have continued to grow,” Verbiest said.
Summerset delivered its highest-ever sales with 1,238 ORA homes contracted for 2024, up 12 percent on FY23.
Summerset CEO Scott Scoullar said the company’s broadacre build strategy was a continued strength.
“We continue to see the benefits of our regionally diverse portfolio with eight regions seeing over 30 sales settlements across 2024, highlighting the broad appeal and strength of our villages nationwide. When we exclude the three new village centre buildings we opened this year our uncontracted stock is down between 20 to 50 percent year-on-year across our home types, a very pleasing result in a tough market,” Scoullar said.”
Summerset has continued to live the company’s purpose and ‘bring the best of life’ to its residents with continued high satisfaction scores and external acknowledgement of their work.
“Our resident satisfaction scores have remained extremely high for both village and care, reflecting the work our team have put in to provide the best retirement living experience we can.”
“We’ve also won a number of awards this year including Gold for the Reader’s Digest 2025 Quality Service Award in the Retirement Villages category, the second year in a row we’ve won this award.”
Summerset again met its forecast build target, delivering 676 homes under ORA in New Zealand and 32 in Australia, up 10 percent on FY23. The company’s New Zealand deliveries was consistent with guidance provided at the Half Year result where Summerset indicated it would deliver at the lower end of the 675-725 forecast range.
The company was building on 20 sites across New Zealand and Australia in 2024 and delivered some significant projects including the main buildings at its Boulcott (Lower Hutt) and St Johns (Auckland) villages.
Scoullar said Summerset reported a development margin of 28.9 percent down from 31.6 percent in FY23, driven by a change in the company’s sales mix with a higher proportion of care and memory care suites sold than previous years.
Summerset’s flagship village, St Johns, was delivered on time and on budget in October 2024 and opened officially by New Zealand Prime Minister, Rt. Hon. Christopher Luxon in December. This complex build on the 2.6ha site, in the heart of Auckland, features six multi-storey buildings with excellent views of Auckland city and Rangitoto.
Scoullar said St Johns was a unique opening for the company, delivering a large percentage of the village’s homes in the first stage, along with facilities such as the indoor pool, café and library.
“We typically develop broadacre villages where we deliver homes in a staggered process across multiple years. However, the nature of St Johns has meant we have delivered 60 percent of its homes on day one. Having care available immediately, along with its facilities increases the appeal to our prospective residents, however it does mean we have higher levels of uncontracted stock than normal.
“So far we have approximately 30 percent of St Johns’ available homes under contract, a figure we’re pleased with, and which compares very favourably with similar retirement villages in the area which have been open much longer.”
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