Summerset Group posts record profit and growth despite challenges

SYDNEY: Summerset Group Holdings Limited, a leading retirement village operator in New Zealand and Australia, announced a record underlying profit of NZ$190.3 million for 2023, up 11.0% from 2022.

The company also reported its second highest ever net profit after tax of NZ$436.3 million. Summerset Chief Executive Scott Scoullar said the company had a very good year despite facing increasing inflation, recruitment shortages and a falling residential property market.

He attributed the success to the company’s resilience, growth and customer satisfaction. Summerset delivered a record 1,103 sales of occupation right agreements (ORAs) for 2023, up 10% from 2022.

The company also achieved a record year of construction, delivering 643 homes under ORA, including its first Australian homes at its Cranbourne North village in Victoria.

The company also won several awards, including Aged Advisor’s “Best Provider Nationwide” and Reader’s Digest 2024 Quality Service Award in the Retirement Villages category.

Scoullar said these awards were voted for by consumers, including many of the company’s residents and their families. Summerset expects to deliver 675-725 homes in 2024, including Stage 1 of its St Johns village in Auckland, its first multi-level village.

The company also expanded its development pipeline in New Zealand and Australia, securing resource consents and purchasing new sites.

Shareholders will receive a final dividend of NZ13.2 cents per share, bringing the total dividend payable for 2023 to NZ24.5 cents per share, up 9.9% from 2022.