Summerset Group, the rest-home operator whose shares have jumped 49% this year, says it has lifted its long-term annual build rate for new retirement units and agreed to an increase in its bank facilities to help fund the expansion.
The Wellington-based company is now aiming to build 300 units a year by 2015 compared to a target in the prospectus for its initial public offering last year of 250 units a year by 2016.
Summerset has increased its banking facilities by $30 million to $180 million and says it does not plan to tap shareholders for more funds to expand.
The shares last traded at $1.97, valuing the company at $427 million. They are rated a "hold" based on the consensus of four recommendations compiled by Reuters, with a price target of $1.95.
The company says it is on track to deliver its IPO forecast of 155 retirement units in the 2012 financial year and now plans to build at least 200 in the 2013 financial year. It currently has 1554 units.
"Our strong sales of occupation rights, range of quality new sites, and increased efficiency through the in-house management of the development and construction process has increased the rate at which we can expand," chief executive Norah Barlow says in a statement.
The company also says it has bought a 3.8ha development site in the Auckland suburb of Ellerslie which will become its 19th retirement village.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- Marlborough displaces Central Otago for best Pinot Noir in world competition
- Hellaby shareholder: Bapcor’s offer price is too low
- READER POLL RESULT: Who won the first presidential debate?
- Warminger complained of 'aggressive selling' in email to NZX
- Court rules against Chinese investor over $7.3m Auckland property deal
Most listened to
- Ironically, Trump showed the lack of stamina he had accused Clinton of, says NBR's Rob Hosking
- NZX market surveillance manager Fraser Wyeth gives evidence at the Warminger trial
- Hellaby shareholder Aaron Bhatnagar says why he thinks Bapcor's offer is too low
- No knockout blows in first presidential debate, says NBR's Nevil Gibson
- Intueri's problems raise questions for the board, says Martin Watson of the Shareholders Association