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
- New Chief Executives appointed for Ministry for Pacific Peoples and Ministry for Women
- Auckland University gets share of $215m investment deal for commercialisation
- Moa Group narrows its FY17 loss as revenue continues to lift
- Youth big winners in Greens' final list
- NZ dollar holds near highest in almost 4 months vs Aussie as parity talk re-appears
Most listened to
- "All options are open with private equity," says MediaWorks chief executive Michael Anderson
- Orion chief executive Ian McCrae on his company's full-year result and the year ahead
- Mainfreight chief executive Don Braid on the company's outlook and global reach
- The Green Party has revealed its final list and co-leader James Shaw is upbeat about the party's new look
- Steven Newman talks through Eroad's US progress
- NBR Radio: best of the week ended May 26, with Grant Walker