Summerset second quarter sales growth stalls as development in focus
Second quarter growth stalled in the sale of occupation rights at retirement village operator Summerset Group [NZX: SUM] as it focuses on developing villages for future growth.
Wellington-based Summerset sold 103 occupation rights in the second quarter, compared with 100 in the same quarter last year, the company said. That equates to growth of 3 percent, compared with a gain of 23 percent in the same quarter last year.
In the most recent quarter, new sales of occupation rights rose to 57 from 52 while resales slipped to 46 from 48, the company said.
In February, Summerset posted a doubling of annual profit to a record as sales of occupation rights in its retirement villages reached an all-time high. Still, chief executive Julian Cook said earnings growth may not be as fast in the current year as the company spends money to acquire sites and build villages ahead of making sales.
Shares in Summerset last traded at $3.40, and have gained 4.6 percent so far this year. The stock is rated an average 'hold' with a median price target of $3.71, according to analyst recommendations compiled by Reuters.