Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.Launch Radio player
BUSINESSDESK: Summerset Group, the retirement village operator and developer, is on the cusp of beating forecast annual sales of occupation rights after just nine months of the financial year.
The Wellington-based company increased new sales of occupation rights 41% to 86 in the three months ended September 30 from the same quarter a year earlier, it says.
That has taken year-to-date sales to 257, one short of the annual target in its prospectus. New sales rose 46% to 41 in the quarter and resales climbed 36% to 45.
"Sales within the group continue to the strong," chief executive Norah Barlow says. "Our recent first-half results reflected this and we are pleased to see the momentum continue."
The quarter built on 83 new sales of occupation rights for gross proceeds of $28.8 million and 88 resales, realising gains of $4.2 million.
Ms Barlow expects the company will beat its initial public offering forecast of net profit of $13.3 million and underlying earnings of $9.7 million in calendar 2012.
The shares were unchanged at $1.95 in trading today and have climbed 46% this year. The stock is rated an average "hold" based on four analyst recommendations compiled by Reuters, with a median target of $1.925.