Financial Results for the Half Year Ended 30 June 2022
Summerset Group Holdings Limited
Level 27 Majestic Centre, 100 Willis St, Wellington
PO Box 5187, Wellington 6140
Phone: 04 894 7320 | Fax: 04 894 7319
Website: www.summerset.co.nz
NZX & ASX RELEASE
23 August 2022
Summerset HY Results 2022
SUMMERSET FIRST HALF UNDERLYING PROFIT OF $82.5M, UP 9.2%
• Underlying profit for 1H22 of NZ$82.5m, up 9.2% on 1H21
• Reported (IFRS) profit after tax of NZ$134.6m
• Total assets of NZ$5.4 billion, up 22.9% on 1H21
• Gearing ratio of 29.4%
• Three new sites acquired this year across New Zealand and Australia
• 223 new retirement units delivered, our second highest first half ever
• 511 sales for the half
• Development margin of 28.1%
• Interim dividend of NZ10.7 cents per share
Retirement village operator Summerset Group Holdings Limited has announced an
underlying profit of $82.5 million for the six months ended 30 June 2022, a 9.2% increase on
the first half of 2021.
Summerset CEO Scott Scoullar said this was an excellent result, particularly considering the
disruptions that the arrival of Omicron created in the half.
“Omicron first arrived in our villages in January and our staff have been working extremely
hard to keep residents safe. Our residents in the care and memory care centres are at most
risk from COVID-19, in order to keep them safe we’ve had to take a more cautious approach
than the rest of the country and continuously adjust our pandemic response to ensure we
stay ahead of potential issues for our residents.
“The work we’ve done has meant that Summerset has dealt with this Omicron wave
exceptionally well. It’s not just our village staff who have had to juggle the complexities of
Omicron either, our building sites around the country have been impacted and yet we
continue to be on track to meet our building targets.”
Mr Scoullar said that in addition to the Omicron wave, Summerset had responded well to the
economic and housing market pressures in New Zealand over the last six months.
“We are continuing to see strong demand for our retirement living offer, prices for our
retirement villages are robust in the face of a changing property market. While the residential
property market rose significantly over the two years to December 2021, we did not increase
our own pricing at the same rate. This provided us with a buffer going into what could be a
flat to declining market in the coming months.
“We’re not seeing excesses of stock or any changes in demand either, our available
retirement units have stayed steady, and demand doesn’t appear to be tethered to the
property market.
“Enquiry levels remain high, and waitlists are strong and currently we’re not seeing any
increase in days to sell or settle for people moving into a Summerset home. Our total sales
for the half were 511, limited principally by availability of stock.”
Summerset reported a development margin of 28.1% up from 21.6%, for the same period
last year, exceeding the company’s longer-term expectations of development margins in the
20-25% range.
Total assets grew to NZ$5.4 billion, up 22.9% on the same period last year.
Summerset delivered 223 total units, its second highest first half ever.
“We’re on track to deliver approximately 600 units this year. We expect to deliver our new
main building at our Kenepuru village in the second half of this year with the first residents
moving in early in 2023, said Mr Scoullar.
Summerset has confirmed the purchase of three new sites also, two in New Zealand
(Masterton and Rotorua) and one in Australia (Mernda, Victoria).
The New Zealand sites will each offer over 300 units and further boost Summerset’s land
bank of units, the largest in New Zealand’s retirement village sector, and gives Summerset
enough secured land to more than double the size of its current New Zealand business.
Mernda is Summerset’s sixth Australian site and gives Summerset capacity to build
approximately 1,700 units in Victoria.
“We’re pleased to continue to find quality sites to grow our business where we’ll be able to
introduce more New Zealanders and Australians to our retirement village lifestyle.
“We have completed major earthworks at our first Australian village in Cranbourne North.
We are working with Major Road Projects Victoria who are developing the road next to our
site to sequence our infrastructure work with their work, and last week began civil
infrastructure on site,” Mr Scoullar said.
The Summerset Board has declared an unimputed interim dividend of NZ10.7 cents per
share. The record date will be 6 September 2022, with payment on 19 September 2022.
ENDS
For investor relations enquiries: For media enquiries:
Will Wright Louise McDonald
Chief Financial Officer Senior Communications Advisor
will.wright@summerset.co.nz louise.mcdonald@summerset.co.nz
021 490 251 021 408 215
ABOUT SUMMERSET
• Summerset is one of the leading operators and developers of retirement villages in
New Zealand, with 36 villages completed or in development nationwide
• In addition, Summerset has seven proposed sites at Half Moon Bay (Auckland)
Milldale (Auckland), Parnell (Auckland), Rotorua (Bay of Plenty), Kelvin Grove
(Palmerston North), Masterton (Wairarapa), and Rangiora (Canterbury)
• Summerset also has six properties in Victoria, Australia, bringing the total number of
sites to 49
• Summerset provides a range of living options and care services to more than 7,100
residents
---
H a l f Ye a r
Report
2022
Cover photo: Carl Mize (left) and Muriel Poulsen (right) from Avonhead
Summerset on the Landing, Kenepuru
0 2
Contents
Chair and CEO's Report04
Highlights12
Snapshot
12
Half Year Financial Highlights
14
Financial Statements15
Directory
36
Company Information
38
0 3
Half Year Report 2022
Chair and
CE
O's report
Mark Verbiest
Chair
Scott Scoullar
Chief Executive Officer
Welcome to Summerset’s half year
report for the six months ended
30 June 2
022.
The first six months of the current
financial year have seen continued
growth for us as a company, despite
the arrival of the Omicron and
other new COVID-19 variants in
our villages. Managing outbreaks
of COVID-19 in villages around the
country has required significant
focus to keep residents, staff and
visitors safe.
Despite the challenges, Summerset
has had an excellent start to the
year and we’d like to take this
opportunity to publicly thank our
staff, particularly those on the
frontline, for the dedication and
focus they’ve shown to bring the
best of life to our residents in very
trying circumstances.
Our performance
We are pleased to report an
underlying profit of $8
2.5 million for
the six months ended 30 June 2022,
an increase of 9.2% over the same
period last year. Our IFRS net profit
after tax was $134.6 million for the
same period.
We have had a number of
achievements over the half year,
particularly on the sales and
construction side of the business.
We achieved our highest first quarter
ever, and second highest quarter
ever, with 279 sales of Occupation
Rights. The second quarter also
remained high with 232 sales.
This is pleasing, particularly during
a turbulent six months for New
Zealand with Omicron dominating
the half.
We delivered 223 new units in the
first half and we remain on track to
deliver approximately 6
00 units in
2022. More than 7,100 residents now
call our villages home.
The Board has declared an interim
dividend of 10.7 cents per share
payable on 19 September 2022.
This reflects a 30% pay out of
underlying profit.
With inflation biting around the
country we have tightly managed
our construction costs through
our good procurement and supply
arrangements to greatly reduce any
impacts on us.
Despite current economic and
residential housing pressures, prices
for our retirement villages are
holding up very well in the face
of a changing property market
around the country. Across the
portfolio, whilst the residential
property market rose significantly
over the two years to December
2021, we did not increase our
own pricing at the same rate. This
provided us with somewhat of a
buffer going into what could be a
flat to declining market.
Our available stock has stayed
steady, and demand doesn’t appear
to be tethered to the property
market. Enquiry levels remain high
and waitlists are strong. Currently we
are not experiencing any increase in
days to sell or settle for prospects
moving into a Summerset home.
0 4
C H A I R A N D C E O ' S R E P O R T
Dedicated frontline team members
Our villages
We continue to focus on ensuring
our residents are well protected
against COVID-1
9 and we’ve had to
remain nimble in the face of the
Omicron variant which first arrived
in our villages in January.
We were pleased that our high
rate of vaccination in our villages
and the vigilance of our staff has
meant that we’ve responded very
well. We held vaccination clinics
at each village for all residents to
get their COVID-19 booster and flu
vaccination, and have commenced
the roll out of second COVID-19
booster vaccinations for residents
and staff.
With our care and memory care
residents at a heightened risk of
vulnerability during COVID-19 it was
challenging at times for families and
friends of residents visiting, and for
village residents unable to use all
facilities. At times throughout this
year we have closed care centres
and kept visitors away, other than on
compassionate grounds, to protect
our residents and staff.
In the first half of 2022 we finished
bringing food services in-house
which enables us to standardise
and align our service across all
villages and create efficiencies with
food procurement.
Our care business saw occupancy
for the first six months of the year at
95% in our developed villages.
Our focus continues to be on
providing high quality aged care
for our residents already living
in our care facilities and offering
an ongoing continuum of care
for our village residents. However,
the aged care sector overall has
seen occupancy drop due to
the need to temporarily close
facilities because of staffing and
funding challenges. COVID-19 has
only further exacerbated issues in
the sector.
The lack of action and funding for
aged care has put our sector at
a crisis point. Whilst we will never
compromise on our own standards
of care, with the public funding
shortfall we are forced to cross
subsidise care costs. This is not an
option for smaller organisations in
our sector who are suffering.
Acquisitions and development
We are on track to deliver
approximately 6
00 homes in 2022.
Demand remains strong, with our
developed villages maintaining low
levels of uncontracted stock and
presales continue to track at
high levels.
We currently hold enough land
to double our current retirement
unit portfolio.
In Australia we are pleased to
have strengthened our land bank,
having acquired a sixth site in
Mernda, Victoria.
In New Zealand our development
pipeline continues to grow and
we’re very pleased to announce two
further land acquisitions. Our first
Wairarapa property in Landsdowne,
Masterton is expected to be
a drawcard for residents from
the wider region and Wellington.
Our second site is in Fairy
Springs, Rotorua.
0 5
Half Year Report 2022
$82.5m
Underlying profit
Rotorua’s market doesn’t currently
have the retirement village offering
that Summerset provides and we’re
pleased to have purchased this
great site.
Each site will offer over 300
retirement units comprising one-to-
three-bedroom independent living
villas and cottages as well as a care
offering and memory care.
Construction is currently
progressing across 1
6 sites in New
Zealand with resource consent
for 88% of units in our pipeline
(excluding Masterton and Rotorua).
We are pleased to have reached
an out of court agreement with the
appellants to our Parnell resource
consent decision, and that is now
with the court for its consideration.
Development and construction is
also underway with sites at St Johns
and Half Moon Bay in Auckland,
Pāpāmoa in Tauranga, Te Awa in
Hawke's
Bay, Boulcott in Lower Hutt,
and Prebbleton in Christchurch.
Additionally, the Kenepuru village
main building in Porirua will be ready
for residents in early 2023.
We have commenced a
modernisation programme for our
older care centres which will begin
with the upgrade of our 20-year-
old care centre in Havelock North.
The multi-million dollar upgrade
will include new care suites with
individual ensuites and more open-
plan communal resident lounges
and dining rooms.
Australia
We now have six Australian sites with
the recent acquisition of a site at
Mernda in Victoria giving us capacity
to build over 1,700 units.
Our first retirement village in
Cranbourne North has been
consented, and we have completed
major earthworks on-site. Major
Road Projects Victoria are working
on the road next to our site and we’re
working with them to sequence our
work with theirs as they prepare
infrastructure along that route which
has altered our timelines.
Consenting is progressing well at
our Chirnside Park site, and we
will look to continuously consent
all of our Australian sites so
we have a consented land bank
ready and waiting for us to move
seamlessly from site-to-site as we
finish each village.
Comfortable communal lounge at Summerset Richmond Ranges
0 6
C H A I R A N D C E O ' S R E P O R T
0 7
Half Year Report 2022
Our people and community
The work we did throughout 2020
and 2
021 allowed us to prepare, test
and refine our COVID-19 response
which was key in our preparedness
for the severity and speed at which
the virus spread throughout the
country in the first half of 2022.
As the country moved down alert
levels and settings, we typically
took a more cautious approach with
our vulnerable care and memory
care centre residents, we were
cognisant that more relaxed settings
would result in more community
transmission and we needed to
take extra precautions to keep our
residents safe. These precautions
continue with visitors requiring a
negative Rapid Antigen Test (RAT)
before entering our care centres and
mask wearing a requirement inside
our buildings.
COVID-19 put a lot of strain on our
staff to keep residents safe. For one
thing they have spent much of the
year working in personal protective
equipment, including N95 masks.
While necessary, this is hard work.
To recognise our frontline team’s
dedication during the Omicron
surge we provided a 7% on average
increase in pay between March and
May 2022. This was something we
did last year as well to reflect the high
value we place on our people's work.
To give staff a break where we
could during the height of the
Omicron outbreak, we brought in
the Summerset Village Reliever
Programme where Head Office
staff were trained to step in and
assist villages seriously affected by
staffing shortages.
Despite the COVID-19 challenges,
bringing the best of life to our
residents saw us develop several
virtual events in our villages. These
included the creation and roll
out of “Summerset Sessions” – a
virtual entertainment programme
for our residents, to be enjoyed at
home or together in the lounge.
The programme included concerts
by Will Martin (Summerset Sings),
cooking lessons and recipes with
New Zealand’s original MasterChef,
Brett McGregor (Cooking with a
MasterChef), interviews with well-
known Kiwis hosted by Jude Dobson
(An Interview with...) and our very
own variety show created by New
Zealand actor, William Kircher (A
Summerset World).
We continued the roll out of our
Summerset signature exercise class
CB Fit, hosting live virtual exercise
classes for residents while COVID-19
restrictions were in place.
We also celebrated Matariki by
producing a book of residents’
creative answers to the question
“What does Matariki mean to you”;
this included some fantastic poetry,
art, essays and photos.
COVID-19 and its impacts have
brought to a head some of the other
underlying issues in the aged care
sector. We have joined forces with
providers from around the country
and the Aged Care Association
of New Zealand (ACANZ) in a
group called ‘Aged Care Matters’ to
advocate for realistic government
funding in aged care, including
the issue of pay parity for aged
care nurses.
Residents keep up-to-date with village events and activities with Lumin
0 8
C H A I R A N D C E O ' S R E P O R T
This is a critical issue for us
as a company as we seek to
ensure our wider sector is viable.
Overall, public funding for care
services, including daily care rates,
is insufficient to provide the exacting
standards of service that are rightly
expected of our industry. While
we are in a position to continue
to provide quality aged care,
the same is not always true of
the not-for-profit members of our
industry, many of whom are having
to close their doors or restrict
admissions into their facilities. If
these smaller operators close it will
have serious consequences for our
health system.
This is an issue we’ll keep raising
with the government as we seek to
bring some meaningful change and
funding to our industry.
Technology
We committed to investing $4.5m
in frontline staff and new digital
innovations this year, not just to
keep our residents safer, but also to
improve their experiences every day.
Some of the changes we’ve seen in
the last six months include:
•Our new Kaitiaki (Wellbeing
Assistant) roles have expanded
with 6
0 people recruited into
these roles. Residents are
responding very positively to the
high quality social and wellbeing
support they are receiving such
as improving independence with
mobile therapy and supporting
access and participation in
recreational and diversional
therapy, especially for residents
living with dementia.
•Roll out of PainChek®, an
app available on smart phones
and tablets, that intelligently
automates the multidimensional
pain assessment process using
artificial intelligence and facial
recognition technology to
identify the presence of pain.
PainChek is currently used in
over 1,500 aged care facilities
around the world and after
conducting a successful trial in
2
021, Summerset will be the
first aged care provider in New
Zealand to use PainChek in our
care centres.
•Virtual Reality (VR) which is
one way to enhance the
quality of life of all Summerset
residents with studies showing
positive physical, psychological,
and emotional outcomes after
VR engagement. VR kits
have been purchased to be
rotated through villages offering
residents access to a diverse
library of immersive virtual
content such as swimming in the
Caribbean or visiting the Louvre.
•Successfully trialling Lumin
technology in our Kenepuru
village and rolling this
technology out nationally over
the coming year.
Lumin is an in-
room communication
system that will allow
residents to chat, book
activities and to hear
about what is going on
in
their village, from the
comfort of their home.
Recognition
We are committed to a workplace
culture that promotes and values
diversity and inclusiveness in all
its dimensions, and that supports,
recognises and celebrates our staff.
Ways we have done this include:
•We celebrated Caregivers Day
(25 March) and International
Nurses Day (May 1
2) throughout
the organisation and had an
overwhelming response to a
‘gratitude wall’ where residents,
families and friends were invited
to post personal messages of
thanks to our team.
•We have aligned with ‘MATES
in Construction’ which is
an evidence-based workplace
suicide prevention model
developed to reduce high
suicide rates in the New Zealand
construction industry – an
industry which loses nearly one
person every week to suicide,
and construction workers being
six times more likely to die from
suicide
than an accident at work.
•In recognition of International
Women’s Day we partnered with
Dignity NZ, which is a women-
owned New Zealand company
that wants to end the shame
and anxiety of being caught
out by a surprise period. They
believe period products should
be available to anyone, anytime.
Summerset has made Dignity
products freely available in all
staff bathrooms.
We offered our Staff Share Scheme
again in 2022. The vesting of the
2019 issue this year saw around 600
staff receive shares.
Summerset is actively involved
in our local communities having
supported around 160 groups
through community engagement.
Additionally, Summerset has
national sponsorship partnerships
with the following organisations:
•New Zealand Symphony
Orchestra (NZSO)
•Netball New Zealand
•Wellington Free Ambulance
•Bowls New Zealand
•Dementia New Zealand
0 9
Half Year Report 2022
Our commitment to sustainability
As far as we know, we are the
only net carbonzero
TM
retirement
village operator in New Zealand
and a signatory of the Climate
Leaders Coalition. Summerset has
achieved net carbonzero
TM
status
through a combination of carbon
emission reduction targets across
the business since 2
018, and the
purchase of carbon credits to offset
our emissions for the last three years.
This year (2022) is the final year of
our short term target (set in 2018)
to reduce our emissions intensity by
5% from our 2017 base year, and we
are pleased to report that through
our concentrated initiatives, we are
on track to exceed this target. A new
five-year target will be developed
at the end of this year which will
link in with our sustainability linked
lending performance targets and
our longer-term science aligned
emissions reduction target.
Our “Go Greener” programme
provides all staff and residents with
the opportunity to be involved
in Summerset’s Sustainability
Programme and contribute towards
meeting our carbon reduction
targets. Waste reduction, energy
efficiency and greener ways to travel
are some of our key initiative themes.
Our focus on construction
waste reduction aims to avoid
landfill and improve diversion
rates to recycling. Summerset’s
Avonhead construction team have
been pushing for innovation in
implementing their Waste and
Recycling Plan on-site. The target
for their waste diversion is 35%
and year to date they are sitting
at 66% through the site team
working alongside build partners
and suppliers. Waste diversion is
reliant on process and people, and
Avonhead is leading best practice
by example.
We introduced solar panels on
the roof of the standalone club
house at our Nelson Summerset
in the Sun village. The panels
are currently performing very well,
heating the outdoor swimming pool
and providing electricity to the
popular club house. This is our first
step in understanding the benefits
of solar and how we can integrate
solar into both existing villages and
the design process for new villages.
We have started to make the
switch to electric vehicles (EVs) and
bringing EV charging solutions to
our villages. We’ve also partnered
with Meridian Energy to power our
first public EV charging station with
the first at Avonhead followed by
Rototuna and Kenepuru, with more
to come.
Summerset has undergone a full
redesign of our Main Building
Standard to produce a highly
sustainable building which achieves
both operational efficiency and
a reduction in embodied carbon.
The project outcomes can be
measured directly against our
previous regional main building
designs which do not contain
these sustainable initiatives. This
new design will be used at our
Whangārei site which is currently
under construction.
We have a commitment to
eliminate modern slavery. Our work
in Australia legally requires this
commitment, but beyond that, it’s
the ethical thing to do. Ensuring
we have sustainable supply chains
is part of our overall sustainability
efforts at Summerset.
Solar Panels at Summerset in the Sun, Nelson
1 0
C H A I R A N D C E O ' S R E P O R T
An important part of that is making
sure no modern slavery is connected
to the goods and services we obtain.
We have updated our Modern
Slavery Statement and implemented
a new training module to assist staff
who procure goods and services
understand more about modern
slavery and how we can ensure
we are not supporting it through
our spending.
Looking ahead
We have done an excellent job at
weathering the COVID-1
9 waves to
date and we hope the worst of that is
behind us so we can free up more of
our staff to concentrate on bringing
the best of life to our residents.
We are optimistic about growth this
year and beyond. The core drivers
behind why people enter our villages
remain and, in a lot of respects, have
continued to strengthen. People
are looking for support to continue
to live their lives. They often also
want the security of living in a
retirement village.
Our success now and into the
future is underpinned by the passion
and support of our residents,
their families, our staff and our
investors. We thank you for all
that you contribute towards making
Summerset a wonderful place to live
and work.
Mark Verbiest
Chair
Scott Scoullar
Chief Executive Officer
23 August 2022
Dedicated frontline team members
1 1
Half Year Report 2022
Snapshot
Our people
7,100+
Residents
2,300+
Staff members
Our care
1,098
Care units
(which includes beds)
in portfolio
1,302
Care units
(which includes beds)
in land bank in
New
Zealand and Australia
1
Our portfolio
5,153
Retirement units
$5.4b
Total assets
5,645
Retirement units
in land bank in
New Zealand
and Australia
1
37
Villages completed or
under development
511
Sales of
Occupation Rights
11
Greenfield sites
1
Our performance
$134.6m
Net profit after tax
$82.5m
Underlying profit
$190.4m
Operating cash flow
1As at 30 June 2
022, excludes Mernda
1 2
Artist impression of Summerset Waikanae
H I G H L I G H T S
1 3
Half Year Report 2022
Half Year
F
inancial
Highlights
1H20221H2021% ChangeFY2021
Net profit before tax (NZ IFRS) ($000)134,921265,612-49%543,637
Net profit after tax (NZ IFRS) ($000)134,639263,803-49%543,664
Underlying profit ($000)
1
82,46375,5179.2%141,139
Total assets ($000)5,375,1784,375,17522.9%4,923,712
Net tangible assets (cents per share)891.31707.2826.0%835.93
Net operating cash flow ($000)190,440222,735-14.5%383,405
1 Underlying profit differs from NZ IFRS profit for the period
1H20221H2021% ChangeFY2021
New sales of Occupation Rights289302-4.3%540
Resales of Occupation Rights222243-8.6%438
Realised development margin ($000)52,33740,67728.7%78,525
Realised gains on resales ($000)31,86529,4048.4%59,905
New Occupation Right units delivered223321-30.5%619
Non-GAAP Underlying Profit
$0001H20221H2021% ChangeFY2021
Profit for the period
1
134,639263,803-49%543,664
Less: fair value movement of investment property
1
(136,660)(260,176)-47%(537,497)
Less: reversal of impairment of assets
1
---(3,431)
Add: realised gain on resales31,86529,4048.4%59,905
Add: realised development margin52,33740,67728.7%78,525
Add/(less): deferred tax expense/(credit)
1
2821,809-84.4%(27)
Underlying profit82,46375,5179.2%141,139
1 Figure has been extracted from the financial statements
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Refer to Note 2 of the financial
statements for definitions of the components of underlying profit.
1 4
Financial
statements
1 5
Half Year Report 2022
Income Statement
For the six months ended 30 June 2022
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
NOTE$000$000$000
Care fees and village services68,70959,498126,884
Deferred management fees43,90335,36975,174
Other income1,525173,291
Total revenue114,13794,884205,349
Reversal of impairment of property, plant and equipment--3,431
Fair value movement of investment property5136,660260,176537,497
Total income250,797355,060746,277
Operating expenses3(101,990)(78,954)(179,045)
Depreciation and amortisation expense(6,614)(5,160)(11,555)
Total expenses(108,604)(84,114)(190,600)
Operating profit before financing costs142,193270,946555,677
Finance costs(7,272)(5,334)(12,040)
Profit/(loss) before income tax134,921265,612543,637
Income tax (expense)/credit4(282)(1,809)27
Profit for the period134,639263,803543,664
Basic earnings per share (cents)958.51115.91238.18
Diluted earnings per share (cents)958.36115.13236.86
The accompanying notes form part of these financial statements.
1 6
Statement of Comprehensive Income
For the six months ended 30 June 2022
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
$000$000$000
Profit for the period134,639263,803543,664
Fair value movement of interest rate swaps21,7059,75424,443
Tax on items of other comprehensive income(6,211)(2,731)(6,881)
Gain/(loss) on translation of foreign currency operations(1,565)6222
Other comprehensive income that will be reclassified
subsequently to profit or loss for the period net of tax
13,9297,02917,784
Net revaluation of property, plant and equipment--35,783
Tax on items of other comprehensive income--(10,019)
Other comprehensive income that will not be
reclassified subsequently to profit or loss for the period
net of tax
--25,764
Total comprehensive income for the period148,568270,832587,212
The accompanying notes form part of these financial statements.
1 7
Half Year Report 2022
Statement of Changes in Equity
For the six months ended 30 June 2022
SHARE
CAPITAL
HEDGING
RESERVE
REVALUATION
RESERVE
RETAINED
EARNINGS
FOREIGN
CURRENCY
TRANSLATION
RESERVE
TOTAL
EQUITY
$000$000$000$000$000$000
As at 1 January 2021303,499(20,267)34,5081,037,325(220)1,354,845
Profit for the period---263,803-263,803
Other comprehensive
income for the period
-7,023--67,029
Total comprehensive
income for the period
-7,023-263,8036270,832
Dividends paid---(16,032)-(16,032)
Shares issued7,855----7,855
Employee share plan
option cost
433----433
As at 30 June
2
021 (unaudited)
311,787(13,244)34,5081,285,096(214)1,617,933
Profit for the period---279,861-279,861
Other comprehensive
income for the period
-10,53925,764-21636,519
Total comprehensive
income for the period
-10,53925,764279,861216316,380
Dividends paid---(22,911)-(22,911)
Shares issued12,747----12,747
Employee share plan
option cost
365----365
As at 31 December
2
021 (audited)
324,899(2,705)60,2721,542,04621,924,514
Profit for the period---134,639-134,639
Other comprehensive
income for the period
-15,494--(1,565)13,929
Total comprehensive
income for the period
-15,494-134,639(1,565)148,568
Dividends paid---(19,926)-(19,926)
Shares issued9,364----9,364
Employee share plan
option cost
(85)----(85)
As at 30 June
2
022 (unaudited)
334,17812,78960,2721,656,759(1,563)2,062,435
The accompanying notes form part of these financial statements.
1 8
Statement of Financial Position
As at 30 June 2022
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
NOTE$000$000$000
Assets
Cash and cash equivalents36,62219,3628,422
Trade and other receivables63,16342,51244,992
Interest rate swaps18,26411,5775,723
Property, plant and equipment295,106230,542277,715
Intangible assets6,8515,3496,664
Investment property54,955,1724,065,8334,580,196
Total assets5,375,1784,375,1754,923,712
Liabilities
Trade and other payables199,457195,074202,257
Employee benefits21,14314,71621,580
Revenue received in advance151,517129,860141,393
Interest rate swaps6,48318,3967,243
Residents’ loans62,008,4951,707,8711,847,136
Interest-bearing loans and borrowings7886,156670,825747,015
Lease liability11,68813,14412,638
Deferred tax liability427,8047,35619,936
Total liabilities3,312,7432,757,2422,999,198
Net assets2,062,4351,617,9331,924,514
Equity
Share capital334,178311,787324,899
Reserves71,49821,05057,569
Retained earnings1,656,7591,285,0961,542,046
Total equity attributable to shareholders2,062,4351,617,9331,924,514
The accompanying notes form part of these financial statements.
Authorised for issue on 22 August 2022 on behalf of the Board
Mark Verbiest
Director and Chair of
the Board
Anne Urlwin
Director and Chair of the
Audit Committee
1 9
Half Year Report 2022
Statement of Cash Flows
For the six months ended 30 June 2022
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
$000$000$000
Cash flows from operating activities
Receipts from residents for care fees and village services68,22260,501127,045
Interest received931755
Payments to suppliers and employees(94,322)(76,731)(171,804)
Receipts for residents' loans - new occupation right agreements183,004187,205337,566
Net receipts for residents' loans - resales of occupation right agreements33,44351,74390,543
Net cash flow from operating activities190,440222,735383,405
Cash flows to investing activities
Sale of investment property6,335-15,201
Payments for investment property:
- land(72,836)(23,788)(87,164)
- construction of retirement units and village facilities(157,966)(126,612)(285,234)
- refurbishment of retirement units and village facilities(4,817)(4,136)(8,164)
Payments for property, plant and equipment:
- construction of care centres(19,385)(15,482)(33,084)
- refurbishment of care centres(677)-(380)
- other(3,517)(5,425)(7,980)
Payments for intangible assets(283)(196)(1,725)
Capitalised interest paid(13,826)(9,760)(16,472)
Net cash flow to investing activities(266,972)(185,399)(425,002)
Cash flows from financing activities
Net (repayments of)/proceeds from borrowings122,481(20,128)67,100
Proceeds from issue of shares1,6331,5784,943
Interest paid on borrowings(6,306)(4,654)(12,407)
Payments in relation to lease liabilities(946)(838)(1,767)
Dividends paid(12,221)(9,781)(23,712)
Net cash flow from/(to) financing activities104,641(33,823)34,157
Net increase/(decrease) in cash and cash equivalents28,1093,513(7,440)
Cash and cash equivalents at beginning of period8,42215,81715,817
Foreign currency translation adjustment913245
Cash and cash equivalents at end of period36,62219,3628,422
The accompanying notes form part of these financial statements.
2 0
Reconciliation of Operating Results and Operating Cash Flows
For the six months ended 30 June 2022
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
$000$000$000
Profit for the period134,639263,803543,664
Adjustments for:
Depreciation and amortisation expense6,6145,16011,555
Reversal of impairment of property, plant and equipment--(3,431)
Fair value movement of investment property(136,660)(260,176)(537,497)
Finance costs paid7,2725,33412,040
Gain on sale of investment property(1,336)-(3,236)
Income tax expense/(credit)2821,809(27)
Deferred management fee amortisation(43,903)(35,369)(75,174)
Employee share plan option cost1,3154441,459
Other non-cash items(8)(197)431
(166,424)(282,995)(593,880)
Movements in working capital
Increase in trade and other receivables(546)(816)(1,619)
(Decrease)/increase in employee benefits(475)(722)6,142
Increase/(decrease) in trade and other payables7,3685,248(141)
Increase in residents’ loans net of non-cash amortisation215,878238,217429,239
222,225241,927433,621
Net cash flow from operating activities190,440222,735383,405
The accompanying notes form part of these financial statements.
2 1
Half Year Report 2022
Notes to the
financial
s
tatements
For the six months ended 30 June 2022
1. Summary of accounting policies
The consolidated interim financial statements presented for the six months ended 30 June 2
022 are for Summerset Group Holdings
Limited (the "Company”) and its subsidiaries (collectively referred to as the "Group”). The Group develops, owns and operates
integrated retirement villages.
Summerset Group Holdings Limited is registered in New Zealand under the Companies Act 1993 and is an FMC Reporting Entity for
the purposes of the Financial Markets Conduct Act 2013. The Company is listed on the New Zealand Stock Exchange (NZX), being
the Company’s primary exchange, and is listed on the Australian Securities Exchange (ASX) as a foreign exempt listing.
The consolidated interim financial statements have been prepared in accordance with generally accepted accounting practice in
New Zealand (NZ GAAP), except for Note 2: Non-GAAP underlying profit, which is presented in addition to NZ GAAP compliant
information. NZ GAAP in this instance being New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS)
as appropriate for profit-oriented entities. These consolidated interim financial statements also comply with NZ IAS 34 –
Interim
Financial Reporting and IAS 34 – Interim Financial Reporting, and are prepared in accordance with the Financial Markets Conduct
Act 2013.
The consolidated interim financial statements for the six months ended 30 June 2022 are unaudited and have been the subject of
review by the auditor, pursuant to NZ SRE 2410 (Revised)
Review of Financial Statements Performed by the Independent Auditor of
the Entity, issued by the External Reporting Board. They are presented in New Zealand dollars, which is the Company's and its New
Zealand subsidiaries' functional currency. The functional currency of the Company's Australian subsidiaries is Australian dollars. All
financial information has been rounded to the nearest thousand, unless otherwise stated.
These consolidated interim financial statements have been prepared using the same accounting policies as, and should be read in
conjunction with, the Group’s financial statements for the year ended 31 December 2021.
Segment reporting
The Group operates in one industry, being the provision of integrated retirement villages. The services provided across all of the
Group’s villages are similar, as are the type of customer and the regulatory environment. The chief operating decision makers, the
Chief Executive Officer and the Board of Directors, review the operating results of the Group as a whole on a regular basis. On
this basis,
the Group has one reportable segment, and the Group results are the same as the results of the reportable segment. All
resource allocation decisions across the Group are made to optimise the consolidated Group’s result.
The Group continues to proceed with its expansion into Australia with five sites purchased to date. These sites are either currently
being, or will be, developed into retirement villages. To date the expenditure incurred and assets acquired in Australia have been
immaterial to the Group and so are not reported as a separate operating segment as at 30 June 2022.
2 2
The Ministry of Health is a significant customer of the Group, as the Group derives care fee revenue in respect of eligible government
subsidised aged care residents. Fees earned from the Ministry of Health for the period ended 30 June 2
022 amounted to $19.0 million
(Jun 2021: $16.2 million, Dec 2021: $34.6 million). No other customers individually contribute a significant proportion of the Group
revenue. All revenue is earned in New Zealand.
Comparative information
Comparative information in the Statement of Cash Flows has been updated to reflect the reclassification of $6.99 million of trade
payables in relation to construction invoices from operating cashflows to investing cashflows for the period ended 30 June 2021.
There is no such reclassification required for the 31 December 2021 period.
In addition, based on materiality, the foreign exchange movement on the cash balance has been included in the Statement of
Cash Flows effective from the current period. For the comparative periods, this foreign exchange movement of $32k for June
2021 and $45k for December 2021 has been reclassified from net (repayments of)/proceeds from borrowings to foreign currency
translation adjustment.
The impact of these reclassifications on the comparative periods is shown below.
6 MONTHS
JUN 2
021
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
ReportedReclassReclassified
$000$000$000
Statement of Cash Flows
Payments to suppliers and employees(69,745)(6,986)(76,731)
Net cash flow from operating activities229,721(6,986)222,735
Payments for investment property: construction of retirement units and
village facilities
(133,598)6,986(126,612)
Net cash flow to investing activities(192,385)6,986(185,399)
Net (repayments of)/proceeds from borrowings(20,096)(32)(20,128)
Net cash flow (to)/from financing activities(33,791)(32)(33,823)
Net increase/(decrease) in cash equivalents3,545(32)3,513
Foreign currency translation adjustment-3232
Reconciliation of Operating Results and Operating Cash Flows
Increase in trade and other payables
12,234
(6,986)
5,248
Net cash flow from operating activities
229,721
(6,986)
222,735
12 MONTHS
DEC 2
021
AUDITED
12 MONTHS
DEC 2021
AUDITED
ReportedReclassReclassified
$000$000$000
Statement of Cash Flows
Net (repayments of)/proceeds from borrowings67,145(45)67,100
Net cash flow (to)/from financing activities34,202(45)34,157
Net increase/(decrease) in cash equivalents(7,395)(45)(7,440)
Foreign currency translation adjustment-4545
No other comparatives have been restated or reclassified in the current period.
2 3
Half Year Report 2022
Notes to the financial statements (continued)
2. Non-GAAP underlying profit
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
Ref$000$000$000
Profit for the period134,639263,803543,664
(Less)/add fair value movement of investment propertya)(136,660)(260,176)(537,497)
Add impairment of assetsb)--(3,431)
Add realised gain on resalesc)31,86529,40459,905
Add realised development margind)52,33740,67778,525
Add/(less) deferred tax expense/(credit)e)2821,809(27)
Underlying profit82,46375,517141,139
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Underlying profit does not have a standardised
meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented by other entities.
The Directors have provided an underlying profit measure in addition to IFRS profit to assist readers in determining the realised
and unrealised components of fair value movement of investment property, impairment and tax expense in the Group’s income
statement. The measure is used internally in conjunction with other measures to monitor performance and make investment
decisions. Underlying profit is a measure that the Group uses consistently across reporting periods. Underlying profit is used to
determine the dividend pay-out to shareholders.
This statement presented is for the Group, prepared in accordance with the Basis of preparation: underlying profit described below.
Basis of preparation: underlying profit
Underlying profit is determined by taking profit for the period determined under NZ IFRS, adjusted for the impact of the following:
a)Less fair value movement of investment property: reversal of investment property valuation changes recorded in NZ IFRS
profit for the period, which comprise both realised and non-realised valuation movements. This is reversed and replaced with
realised
development margin and realised resale gains during the period, effectively removing the unrealised component of
the fair value movement of investment property.
b)Less reversal of impairment on assets / add impairment of assets: remove the impact of non-cash care centre valuation
changes recorded in NZ IFRS profit for the period. Care centres are valued annually, with fair value gains flowing through to
the revaluation reserve unless the gain offsets a previous impairment to fair value that was recorded in NZ IFRS profit for the
period. Where there is any impairment of a care centre, or reversal of a previous impairment that impacts NZ IFRS profit for the
period, this is eliminated for the purposes of determining underlying profit.
c)Add realised gain on resales: add the realised gains across all resales of occupation rights during the period. The realised gain
for each resale is determined to be the difference between the licence price for the previous occupation right for a unit and the
occupation right resold for that same unit during the period. Realised resale gains are a measure of the cash generated from
increases in selling prices of occupation rights to incoming residents, less cash amounts repaid to vacated residents for the
repayment of the price of their refundable occupation right purchased in an earlier period, with the recognition point being
the cash settlement. Realised resale gains exclude deferred management fees and refurbishment costs.
d)Add realised development margin: add realised development margin across all new sales of occupation rights during the
period, with the recognition point being the cash settlement. Realised development margin is the margin earned on the first
time sale of an occupation right following the development of a unit. The margin for each new sale is determined to be the
licence price for the occupation right, less the cost of developing that unit.
Components of the cost of developing units include directly attributable construction costs and a proportionate share of the
following costs:
•Infrastructure costs
•Land cost on the basis of the purchase price of the land
•Interest during the build period
•Head office costs directly related to the construction of units
All costs above include non-recoverable GST
Development margin excludes the costs of developing common areas within the retirement village (including a share of the
proportionate costs listed above). This is because these areas are assets that support the sale of occupation rights for not just
2 4
the new sale, but for all subsequent resales. It also excludes the costs of developing care centres, which are treated as property,
plant and equipment for accounting purposes.
Where costs are apportioned across more than one asset, the apportionment methodology is determined by considering the
nature of the cost.
Where a unit not previously sold under occupation right agreement is converted to a unit sold under occupation right
agreement, realised development margin recognised on the new sale of these units includes the following costs:
•Conversion costs
•A fair value apportionment reflecting the value of the property immediately prior to conversion
e)Add/(less) deferred tax expense/(credit): reversal of the impact of deferred taxation.
Underlying profit does not include any adjustments for abnormal items or fair value movements on financial instruments that are
included in NZ IFRS profit for the period.
3. Operating expenses
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
$000$000$000
Employee expenses61,68246,852105,621
Property-related expenses10,1058,32918,543
Repairs and maintenance expenses3,5483,3377,118
Other operating expenses26,65520,43647,763
Total operating expenses101,99078,954179,045
4. Income tax
Tax expense comprises current and deferred tax, calculated using the tax rate enacted or substantively enacted at balance date and
any adjustment to tax payable in respect of prior years. Tax expense is recognised in the income statement, except when it relates to
items
recognised directly in the statement of comprehensive income, in which case the tax expense is recognised in the statement
of comprehensive income.
Deferred tax expense is recognised in respect of temporary differences between the carrying amounts of assets and liabilities in
the financial statements and the amounts used for taxation purposes. A deferred tax asset is recognised only to the extent that it is
probable it will be utilised. Temporary differences for the initial recognition of assets or liabilities that affect neither accounting nor
taxable profit, unless they arise from business combination, are not provided for.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and the Group
intends to settle its current tax assets and liabilities on a net basis.
a) Income tax recognised in the income statement
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
$000$000$000
Tax expense comprises:
Deferred tax relating to the origination and reversal of
temporary differences
2821,809(27)
Total tax expense/(credit) reported in income statement2821,809(27)
2 5
Half Year Report 2022
Notes to the financial statements (continued)
The prima facie income tax expense on pre-tax accounting profit from operations reconciles to the income tax expense in the
financial statements as follows:
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
$000
%
$000
%
$000
%
Profit/(loss) before income tax134,921265,612543,637
Income tax using the corporate tax rate37,77828.0%74,37128.0%152,21828.0%
Capitalised interest(2,815)(2.1%)(2,175)(0.8%)(4,722)(0.9%)
Non-deductible expenses950.1%950.0%1970.0%
Non-assessable investment
property revaluations
(34,130)(25.3%)(72,849)(27.4%)(150,339)(27.7%)
Transfer of investment property to property,
plant and equipment
-0.0%2,4720.9%2,4720.5%
Other(646)(0.5%)(105)(0.0%)1000.0%
Prior period adjustments-0.0%-0.0%470.0%
Total income tax expense/(credit)2820.2%1,8090.7%(27)(0.0%)
Total Group tax losses available amount to $395.7 million at 30 June 2022 ($111.2 million tax effected) (Jun 2
021: $292.3 million
($82.0 million tax effected), Dec 2021: $341.1 million ($95.8 million tax effected)). There are no unrecognised tax losses for the Group
at 30 June 2022 (Jun 2021 and Dec 2021: nil).
(b) Amounts charged or credited to other comprehensive income
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2
021
UNAUDITED
12 MONTHS
DEC 2
021
AUDITED
$000$000$000
Tax expense comprises:
Net gain on revaluation of property, plant and equipment--10,019
Fair value movement of interest rate swaps6,2112,7316,881
Total tax expense/(credit) reported in statement of
comprehensive income
6,2112,73116,900
(c) Amounts charged or credited directly to equity
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
$000$000$000
Tax expense comprises:
Deferred tax relating to employee share option plans1,375(14)233
Total tax credit reported directly in equity1,375(14)233
(d) Imputation credit account
There were no imputation credits received or paid during the half year and the balance at 30 June 2022 is nil (Jun 2021 and Dec
2
021: nil).
2 6
(e) Deferred tax
Movement in the deferred tax balance comprises:
BALANCE
1 JAN 2
022
RECOGNISED
IN INCOME
RECOGNISED
DIRECTLY IN
EQUITY
RECOGNISED
IN OCI*
BALANCE
30 JUN 2
022
UNAUDITED
$000$000$000$000$000
Property, plant and equipment28,896(233)--28,663
Investment property42,6648,025--50,689
Revenue in advance49,4658,211--57,676
Interest rate swaps(1,001)--6,2115,210
Income tax losses not yet utilised(95,779)(15,433)--(111,212)
Other items(4,309)(288)1,375-(3,222)
Net deferred tax liability19,9362821,3756,21127,804
BALANCE
1 JAN 2
021
RECOGNISED
IN INCOME
RECOGNISED
DIRECTLY IN
EQUITY
RECOGNISED
IN OCI*
BALANCE
30 JUN 2
021
UNAUDITED
$000$000$000$000$000
Property, plant and equipment14,1713,316--17,487
Investment property35,2313,178--38,409
Revenue in advance35,1596,903--42,062
Interest rate swaps(7,882)--2,731(5,151)
Income tax losses not yet utilised(70,309)(11,679)--(81,988)
Other items(3,540)91(14)-(3,463)
Net deferred tax liability2,8301,809(14)2,7317,356
BALANCE
1 JAN 2
021
RECOGNISED
IN INCOME
RECOGNISED
DIRECTLY IN
EQUITY
RECOGNISED
IN OCI*
BALANCE
3
1 DEC 2021
AUDITED
$000$000$000$000$000
Property, plant and equipment14,1714,706-10,01928,896
Investment property35,2317,433--42,664
Revenue in advance35,15914,306--49,465
Interest rate swaps(7,882)--6,881(1,001)
Income tax losses not yet utilised(70,309)(25,470)--(95,779)
Other items(3,540)(1,002)233-(4,309)
Net deferred tax liability2,830(27)23316,90019,936
* Other comprehensive income
2 7
Half Year Report 2022
Notes to the financial statements (continued)
5. Investment property
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
$000$000$000
Balance at beginning of period4,580,1963,638,7603,638,760
Additions235,949190,220434,643
Transfer (to)/from property, plant and equipment-(23,993)(18,718)
Disposals(4,999)-(12,034)
Fair value movement136,660260,176537,497
Foreign exchange movement7,36667048
Total investment property4,955,1724,065,8334,580,196
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
$000$000$000
Development land measured at fair value
1
559,021397,203485,225
Retirement villages measured at fair value4,004,8753,377,7203,772,522
Retirement villages under development measured at cost391,276290,911322,449
Total investment property4,955,1724,065,8334,580,196
1 Included in development land is land that was acquired close to balance date and as such was excluded from the valuation of investment property. This land has been
accounted for at cost, which has been determined to be fair value due to the proximity of the transaction to balance date. At 30 June 2022 the land at cost was $60.5 million
(Jun 2021: $64.0 million, Dec 2021: $95.3 million).
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2
021
UNAUDITED
12 MONTHS
DEC 2
021
AUDITED
$000$000$000
Manager's net interest2,818,4992,238,0862,606,955
Plus: revenue received in advance relating to investment property149,882129,129140,192
Plus: liability for residents' loans relating to investment property1,986,7911,698,6181,833,049
Total investment property4,955,1724,065,8334,580,196
The Group is unable to reliably determine the fair value of the non-land portion of retirement villages under development at 30 June
2
022 and therefore these are carried at cost. This equates to $391.3 million of investment property (Jun 2021: $290.9 million, Dec 2021:
$322.4 million).
The fair value of investment property as at 30 June 2022 was determined by independent registered valuers CBRE Limited ("CBRE
NZ") and Jones Lang LaSalle Limited ("JLL") for villages and land in New Zealand and CBRE Valuations Pty Limited ("CBRE AU") for
land in Australia. The fair value of the Group’s investment property is determined on a semi-annual basis, based on market values,
being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and a
willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and
without compulsion.
As required by NZ IAS 40 -
Investment Property, the fair value as determined by the independent registered valuer is adjusted for
assets and liabilities already recognised on the balance sheet which are also reflected in the discounted cash flow analysis.
To assess the fair value of the Group's interest in each New Zealand village, CBRE NZ and JLL have undertaken a discounted cash
flow analysis to derive a net present value. The Group's development land has been valued by CBRE NZ using the direct comparison
approach. A desktop valuation was completed as at 30 June 2022.
2 8
Each valuer continues to review market conditions in relation to the COVID-1
9 global pandemic. It is the valuers' view that the direct
impacts of COVID-19 on the wider property market are likely to soon diminish as a result of the Omicron outbreak seemingly peaking,
high vaccination rates and the reopening of New Zealand’s international borders. The most pressing issues now facing the property
market both nationally and globally are rising inflation. With these factors in mind, they still advise a degree of caution should be
exercised when relying upon the valuation.
Significant assumptions used by CBRE NZ and JLL in relation to the New Zealand investment property include a discount rate of
between 13.5% and 16.25% (Jun 2021 and Dec 2021: 13.5% to 16.5%), and a long-term nominal house price inflation rate (growth rate)
of between 0% and 3.5% (Jun 2021 and Dec 2021: 0% to 3.5%). Other assumptions used include the average entry age of residents
of between 73 years and 89 years (Jun 2021 and Dec 2021: 73 years and 89 years), and the stabilised departing occupancy periods
of units of between 3.7 years and 8.9 years (Jun 2021: 3.8 years and 8.9 years, Dec 2021: 3.5 years and 8.8 years).
Sites under development in Australia have been valued separately by CBRE AU under the same methodology as development land
in New Zealand.
As the fair value of investment property is determined using inputs that are significant and unobservable, the Group has categorised
investment property as Level 3 under the fair value hierarchy in accordance with NZ IFRS 13 –
Fair Value Measurement.
Classification between investment property and property, plant and equipment
Each period, the Group assesses the significance of ancillary services provided to residents who occupy accommodation under an
occupation right agreement. This assessment is conducted periodically to ensure property types from which the Group expects
to derive returns from ancillary services which are significant in the context of overall returns derived by holding that category
of property are classified as property, plant and equipment rather than investment property. For the purposes of this assessment
the Group considers deferred management fees and that portion of weekly fees revenue that does not give rise to a separate
performance obligation for the Group as lease income. In addition to a quantitative assessment, the business model (being the
provision of accommodation) is considered when determining the classification of the property as either investment property or
property, plant and equipment.
During 2021, memory care apartments and care suites were reclassified from investment property to property, plant and equipment.
There are no such reclassifications required in the six months to 30 June 2022.
Sensitivity analysis to significant changes in unobservable inputs within Level 3 of the hierarchy
To assess the market value of the Group's interest in a retirement village, CBRE NZ and JLL have undertaken a discounted cash flow
analysis to derive a net present value.
The sensitivities of the significant assumptions are shown in the table below:
Adopted
value
1
Discount rate
+5
0 bp
Discount rate
-5
0 bp
Growth rates
+5
0bp
Growth rates
-5
0bp
30 June 2022
Valuation ($000)1,633,375
Difference ($000)(45,645)49,12596,065(88,320)
Difference (%)
(2.8%)3.0%5.9%(5.4%)
30 June 2021
Valuation ($000)1,341,450
Difference ($000)(47,210)50,34580,460(73,920)
Difference (%)
(3.5%)3.8%6.0%(5.5%)
31 December 2021
Valuation ($000)1,574,940
Difference ($000)(55,660)59,76092,180(84,440)
Difference (%)
(3.5%)3.8%5.9%(5.4%)
1 Completed units excluding unsold stock.
Other key components in determining the fair value of investment property are the average entry age of residents and the average
occupancy of units. A significant decrease (increase) in the occupancy period of units would result in a significantly higher (lower) fair
value measurement, and a significant increase (decrease) in the average entry age of residents would result in a significantly higher
(lower) fair value measurement.
2 9
Half Year Report 2022
Notes to the financial statements (continued)
Security
At 30 June 2
022, all investment property relating to registered retirement villages under the Retirement Villages Act 2003 are
subject to a registered first mortgage in favour of the Statutory Supervisor to secure the Group’s obligations to the occupation right
agreement holders.
6. Residents' loans
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
$000$000$000
Balance at beginning of period2,276,9451,872,7361,872,736
Net receipts for residents' loans - resales of occupation right agreements14,26935,91163,832
Receipts for residents' loans - new occupation right agreements186,755188,099340,377
Total gross residents’ loans2,477,9692,096,7462,276,945
Deferred management fees and other receivables(469,474)(388,875)(429,809)
Total residents’ loans2,008,4951,707,8711,847,136
7. Interest-bearing loans and borrowings
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2
021
UNAUDITED
12 MONTHS
DEC 2
021
AUDITED
$000$000$000
Repayable within 12 months
Secured bank loansFloating
-
225,000-
Repayable after 12 months
Secured bank loansFloating521,89462,701374,940
Retail bond - SUM0104.78%100,000100,000100,000
Retail bond - SUM0204.20%125,000125,000125,000
Retail bond - SUM0302.30%150,000150,000150,000
Total loans and borrowings at face value896,894662,701749,940
Transaction costs for loans and borrowings capitalised:
Opening balance(5,096)(3,888)(3,888)
Capitalised during the period--(2,194)
Amortised during the period684435986
Closing balance(4,412)(3,453)(5,096)
Total loans and borrowings at amortised cost892,482659,248744,844
Fair value adjustment on hedged borrowings(6,326)11,5772,171
Carrying value of interest-bearing loans and borrowings886,156670,825747,015
The weighted average interest rate for the six months to 30 June 2022 was 2.97% (Jun 2021: 3.05%, Dec 2021: 3.00%). This includes
the
impact of interest rate swaps . Approximately 40.8% of the floating rate debt principal outstanding is hedged with interest rate
swaps at 30 June 2022 (Jun 2021: 47.5%, Dec 2021: 45.0%).
The secured bank loan facility at 30 June 2022 has a limit of approximately NZD$1,110.0 million (Jun 2021: $750.0 million, Dec 2021:
$1,110.0 million). Lending of AU$120.0 million expires in November 2023, lending of NZ$310.0 million expires in November 2024,
3 0
lending of $NZ50 million and AU$130 million expires in September 2025 and lending of NZ$315 million and AU$185 million expires
in September 2
026.
The Group has issued three retail bonds. The first retail bond was issued for $100.0 million in July 2017 and has a maturity date of
11 July 2023. This retail bond is listed on the NZX Debt Market (NZDX) with the ID SUM010. The second retail bond was issued for
$125.0 million in September 2018 and has a maturity date of 24 September 2025. This retail bond is listed on the NZDX with the ID
SUM020. The third retail bond was issued for $150.0 million in September 2020 and has a maturity date of 21 September 2027. This
retail bond is listed on the NZDX with the ID SUM030.
Security
The banks loans and retail bonds rank equally with the Group’s other unsubordinated obligations and are secured by the following
securities held by a security trustee:
•a first-ranking registered mortgage over all land and permanent buildings owned (or leased under a registered lease) by each
New Zealand-incorporated guaranteeing Group member that is not a registered retirement village under the Retirement Villages
Act 2003;
•a second-ranking registered mortgage over the land and permanent buildings owned (or leased under a registered lease) by each
New Zealand-incorporated guaranteeing Group member that is a registered retirement village under the Retirement Villages Act
2003 (behind a first-ranking registered mortgage in favour of the Statutory Supervisor);
•a first-ranking registered mortgage over all land and permanent buildings owned (or leased under a registered lease) by each
Australian-incorporated guaranteeing Group member;
•a General Security Deed, which secures all assets of the New Zealand- incorporated guaranteeing Group members, but in respect
of which the Statutory Supervisor has first rights to the proceeds of security enforcement against all assets of the registered
retirement villages to which the security trustee is entitled;
•a General Security Deed, which secures all assets of the Australian-incorporated guaranteeing Group members; and
•a Specific Security Deed in respect of each marketable security of Summerset Holdings (Australia) Pty Limited, held by
Summerset Holdings Limited.
8. Financial Instruments
Exposure to credit, market and liquidity risk arises in the normal course of the Group's business. The Board reviews and agrees on
policies for managing each of these risks and there has been no change to the policies presented in the Group's financial statements
for the six months ended 30 June 2
022. The Group has seen no material change in its exposure to credit, market and liquidity risk as
a result of the COVID-19 pandemic, but will continue to monitor the situation.
Fair values
The carrying amounts shown in the balance sheet approximate the fair value of the financial instruments, with the exception of retail
bonds. Two of the three retail bonds, SUM010 and SUM020, are designated in fair value hedge relationships, which means that any
change in market interest rates results in a change in the fair value adjustment of that debt. The fair value of retail bonds is based
on the price traded at on the NZX market as at balance date. The fair value of interest rate swaps is determined using inputs from
third parties that are observable, either directly (i.e. as prices) or indirectly (i.e. derived from prices). Based on this, the Company and
Group have categorised these financial instruments as Level 2 under the fair value hierarchy in accordance with NZ IFRS 13 – Fair
Value Measurement.
9. Earnings per share and net tangible assets
Basic earnings per share
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2
021
UNAUDITED
12 MONTHS
DEC 2
021
AUDITED
Earnings ($000)134,639263,803543,664
Weighted average number of ordinary shares for the purpose of earnings
per share (in thousands)
230,119227,599228,256
Basic earnings per share (cents per share)58.51115.91238.18
3 1
Half Year Report 2022
Notes to the financial statements (continued)
Diluted earnings per share
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2
021
UNAUDITED
12 MONTHS
DEC 2
021
AUDITED
Earnings ($000)134,639263,803543,664
Weighted average number of ordinary shares for the purpose of earnings
per share (diluted) (in thousands)
230,722229,141229,525
Diluted earnings per share (cents per share)58.36115.13236.86
Number of shares (in thousands)
6 MONTHS
JUN 2
022
UNAUDITED
6 MONTHS
JUN 2
021
UNAUDITED
12 MONTHS
DEC 2
021
AUDITED
Weighted average number of ordinary shares for the purpose of earnings
per share (basic)
230,119227,599228,256
Weighted average number of ordinary shares issued under employee
share plans
6031,5421,269
Weighted average number of ordinary shares for the purpose of earnings
per share (diluted)
230,722229,141229,525
At 30 June 2
022, there were a total of 472,310 shares issued under employee share plans held by Summerset LTI Trustee Limited (Jun
2021: 1,403,150, Dec 2021: 788,621 shares).
Net tangible assets per share
6 MONTHS
JUN 2022
UNAUDITED
6 MONTHS
JUN 2021
UNAUDITED
12 MONTHS
DEC 2021
AUDITED
Net tangible assets ($000)2,055,5841,612,5841,917,850
Shares on issue at end of period (basic and in thousands)230,624227,998229,427
Net tangible assets per share (cents per share)891.31707.28835.93
Net tangible assets are calculated as the total assets of the Group less intangible assets and less total liabilities. This measure is
provided as it is commonly used for comparison between entities.
10. Dividends
On 23 March 2022, a dividend of 8.6 cents per ordinary share was paid to shareholders (2021: on 22 March 2021 a dividend of 7.0
cents per ordinary share was paid to shareholders and on 2
0 September 2021 a dividend of 9.9 cents per ordinary share was paid
to shareholders).
A dividend reinvestment plan applied to the dividend paid on 23 March 2022 and 688,127 ordinary shares were issued in relation to
the plan (2021: 493,015 ordinary shares were issued in relation to the plan for the 22 March 2021 dividend and 608,493 ordinary shares
were issued in relation to the plan for the 20 September 2021 dividend).
11. Commitments and contingencies
Guarantees
As at 30 June 2
022, NZX Limited held a guarantee in respect of the Group, as required by the NZX Listing Rules, for $75,000 (Jun 2021
and Dec 2021: $75,000).
Summerset Retention Trustee Limited holds guarantees in relation to retentions on construction contracts on behalf of the Group.
As at 30 June 2022, $13.0 million was held for the benefit of the retentions beneficiaries (Jun 2021 and Dec 2021: $10.0 million).
3 2
Capital commitments
At 30 June 2
022, the Group had $293.5 million of capital commitments in relation to construction contracts (Jun 2021 $188.9 million,
Dec 2021: $210.5 million).
Contingent liabilities
There were no known material contingent liabilities at 30 June 2022 (Jun 2021 and Dec 2021: nil).
12. Subsequent events
On 18 July 2022, 167,188 shares were issued to participating employees under Summerset's all staff employee share scheme. The
shares are held by Summerset LTI Trustee Limited and vest to participating employees after a three-year period, subject to meeting
the criteria of the plan.
On 22 August 2
022, the Directors approved an interim dividend of $24.7 million, being 10.7 cents per share. The dividend record date
is 6 September 2022 with a payment date of 19 September 2022.
There have been no other events subsequent to 30 June 2022 that materially impact on the results reported.
3 3
Half Year Report 2022
Independent Auditor's Review Report
To the Shareholders of Summerset Group Holdings Limited (“The Company”) and its subsidiaries
(together “The Group”)
Conclusion
We have reviewed the interim financial statements of the Group on pages 1
6 to 33 which comprise the statement of financial position
as at 30 June 2022, and the income statement, statement of comprehensive income, statement of changes in equity and statement
of cash flows for the six month period ended on that date, and a summary of significant accounting policies and other explanatory
information. Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial
statements on pages 16 to 33 of the Group do not present fairly, in all material respects the financial position of the Group as at 30 June
2022, and its financial performance and its cash flows for the six month period ended on that date, in accordance with New Zealand
Equivalent to International Accounting Standard 34: Interim Financial Reporting.
This report is made solely to the Company's shareholders, as a body. Our review has been undertaken so that we might state to
the Company's shareholders those matters we are required to state to them in a review report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's
shareholders as a body, for our review procedures, for this report, or for the conclusion we have formed.
Basis for Conclusion
We conducted our review in accordance with NZ SRE 2410 (Revised) Review of Financial Statements Performed by the Independent
Auditor of the Entity. Our responsibilities are further described in the Auditor’s Responsibilities for the Review of the Financial
Statements section of our report. We are independent of the Group in accordance with the relevant ethical requirements in New
Zealand relating to the audit of the annual financial statements, and we have fulfilled our other ethical responsibilities in accordance
with these ethical requirements.
Ernst & Young provides other remuneration advisory services to the Group. Partners and employees of our firm may deal with the
Group on normal terms within the ordinary course of trading activities of the business of the Group. We have no other relationship
with, or interest in, the Group.
Directors' Responsibility for the Interim Financial Statements
The Directors are responsible, on behalf of the entity, for the preparation and fair presentation of the interim financial
statements in
accordance with New Zealand Equivalent to International Accounting Standard 34: Interim Financial Reporting and for such internal
control as the Directors determine is necessary to enable the preparation and fair presentation of the interim financial statements
that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibilities for the Review of the Interim Financial Statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2
410 (Revised) requires
us to conclude whether anything has come to our attention that causes us to believe that the interim financial statements, taken as
a whole, are not prepared in all material respects, in accordance with New Zealand Equivalent to International Accounting Standard
34: Interim Financial Reporting.
3 4
A review of interim financial
statements in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform
procedures, consisting of making enquiries, primarily of persons responsible for financial and accounting matters, and applying
analytical and other review procedures. The procedures performed in a review are substantially less than those performed in an
audit conducted in accordance with International Standards on Auditing (New Zealand) and consequently do not enable us to obtain
assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express
an audit opinion on those interim financial statements.
The engagement partner on the review resulting in this independent auditor’s review report is Grant Taylor.
Chartered Accountants
Wellington
22 August 2
022
3 5
Half Year Report 2022
Directory
New Zealand
Northland
Summerset Mount Denby
7 Par Lane, Tikipunga,
Whangārei 0
112
Phone (09) 470 0282
Auckland
Summerset Falls
31 Mansel Drive,
Warkworth 0
910
Phone (09) 425 1200
Summerset Milldale
1
Argent Lane, Milldale,
Wainui 0992
Phone (0800) 786 637
Summerset at Monterey Park
1 Squadron Drive, Hobsonville,
Auckland 0618
Phone (09) 951 8920
Summerset at Heritage Park
8 Harrison Road, Ellerslie,
Auckland 1060
Phone (09) 950 7960
Summerset by the Park
7 Flat Bush School Road,
Flat Bush 2019
Phone (09) 272 3950
Summerset at Karaka
49 Pararekau Road,
Karaka 2580
Phone (09) 951 8900
Summerset Parnell
1
23 Cheshire Street, Parnell,
Auckland 1052
Phone (09) 950 8212
Summerset Half Moon Bay
1
25 Thurston Place,
Half Moon Bay,
Auckland 2012
Phone (09) 306 1422
Summerset St Johns
188 St Johns Road, St Johns,
Auckland 10
72
Phone (09) 950 7982
Waikato – Taupō
Summerset down the Lane
206 Dixon Road,
Hamilton 3206
Phone (07) 843 0157
Summerset Rototuna
39 Kimbrae Drive,
Rototuna North 3210
Phone (07) 981 7822
Summerset by the Lake
2 Wharewaka Road, Wharewaka,
Taupō 3330
Phone (07) 376 9470
Summerset Cambridge
1 Mary Ann Drive,
Cambridge 3493
Phone (07) 839 9482
Bay of Plenty
Summerset by the Sea
181 Park Road,
Katikati 3129
Phone (07) 985 6890
Summerset by the Dunes
35 Manawa Road,
Pāpāmoa Beach, Tauranga 31
18
Phone (07) 542 9082
Summerset Rotorua
1
1
71-193 Fairy Springs Road,
Rotorua 3010
Phone (0800) 786 637
Hawke’s Bay
Summerset in the Bay
79 Merlot Drive, Greenmeadows,
Napier 4
112
Phone (06) 845 2840
Summerset in the Orchard
1228 Ada Street, Parkvale,
Hastings 4122
Phone (06) 974 1310
Summerset Palms
136 Eriksen Road,
Te Awa, Napier 4110
Phone: (06) 833 5852
Summerset in the Vines
249 Te Mata Road,
Havelock North 4130
Phone (06) 877 1185
Taranaki
Summerset Mountain View
35 Fernbrook Drive, Vogeltown,
New Plymouth 4310
Phone (06) 824 8900
Summerset at Pohutukawa Place
70 Pohutukawa Place, Bell Block,
New Plymouth 4312
Phone (06) 824 8532
Manawatū – Wanganui
Summerset in the River City
40 Burton Avenue, Wanganui East,
Wanganui 45
00
Phone (06) 343 3133
1Proposed villages
3 6
Summerset on Summerhill
1
80 Ruapehu Drive, Fitzherbert,
Palmerston North 4410
Phone (06) 354 4964
Summerset Kelvin Grove
1
Stony Creek, Kelvin Grove,
Palmerston North 4
470
Phone (06) 825 6530
Summerset by the Ranges
104 Liverpool Street,
Levin 5
510
Phone (06) 367 0337
Wellington
Summerset Waikanae
28 Park Avenue,
Waikanae 5
036
Phone (04) 293 0002
Summerset on the Coast
104 Realm Drive,
Paraparaumu 5032
Phone (04) 298 3540
Summerset on the Landing
1-3 Bluff Road, Kenepuru,
Porirua 5022
Phone (04) 230 6722
Summerset at Aotea
15 Aotea Drive, Aotea,
Porirua 5024
Phone (04) 235 0011
Summerset at the Course
20 Racecourse Road, Trentham,
Upper Hutt 5018
Phone (04) 527 2980
Summerset Lower Hutt
1 Boulcott Street,
Lower Hutt 5010
Phone (04) 568 1442
Summerset Masterton
1
Landsdowne
Masterton 5871
Phone (06) 370 1792
Nelson – Tasman
Summerset in the Sun
16 Sargeson Street, Stoke,
Nelson 7
011
Phone (03) 538 0000
Summerset Richmond Ranges
1 Hill Street North, Richmond,
Tasman 7
020
Phone (03) 744 3432
Marlborough
Summerset Blenheim
183 Old Renwick Road, Springlands,
Blenheim 72
72
Phone (03) 520 6042
Canterbury
Summerset Rangiora
1
141 South Belt, Waimakariri,
Rangiora 7400
Phone (03) 364 1312
Summerset at Wigram
135 Awatea Road, Wigram,
Christchurch 8025
Phone (03) 741 0870
Summerset at Avonhead
120 Hawthornden Road, Avonhead,
Christchurch 8042
Phone (03) 357 3202
Summerset on Cavendish
147 Cavendish Road, Casebrook,
Christchurch 8051
Phone (03) 741 3340
Summerset Prebbleton
578 Springs Road,
Prebbleton 7604
Phone (03) 353 6312
Otago
Summerset at Bishopscourt
36 Shetland Street, Wakari,
Dunedin 9010
Phone (03) 950 3102
Australia
Victoria
Summerset Cranbourne North
98 Mannavue Boulevard,
Cranbourne North VIC 3977
Phone (1800) 321 700
Summerset Torquay
1
Grossmans Road and Briody Drive,
Torquay VIC 322
8
Phone (1800) 321 700
Summerset Chirnside Park
1
266-268 Maroondah Hwy,
Chirnside Park VIC 31
16
Phone (1800) 321 700
Summerset Cragieburn
1
1480 Mickleham Road,
Craigieburn VIC 3064
Phone (1800) 321 700
Summerset Oakleigh South
1
52 Golf Road,
Oakleigh South VIC 3167
Phone (1800) 321 700
1Proposed villages
3 7
Half Year Report 2022
Company
Information
Registered offices
New Zealand
Level 27, Majestic Centre,
100 Willis Street, Wellington 6
011,
New Zealand
PO Box 5187,
Wellington 6140
Phone: +64 4 894 7320
Email: reception@summerset.co.nz
www.summerset.co.nz
Australia
Deutsche Bank Place,
Level 4, 1
26 Phillip Street,
Sydney, NSW, 2000
Australia
Auditor
Ernst & Young
Solicitor
Russell McVeagh
Bankers
ANZ Bank New Zealand Limited
Australia and New Zealand Banking Group Limited
Bank of New Zealand
National Australia Bank
Commonwealth Bank of Australia
Westpac New Zealand Limited
Westpac Banking Corporation
Industrial and Commercial Bank of China Limited
Bank of China (New Zealand) Limited
Statutory Supervisor
Public Trust
Bond Supervisor
The New Zealand Guardian Trust
Company Limited
Share Registrar
Link Market Services,
PO Box 9
1976, Auckland 1142,
New Zealand
Phone: +64 9 375 5998
Email: enquiries@linkmarketservices.co.nz
Directors
Mark Verbiest
Dr Marie Bismark
Stephen Bull
Venasio-Lorenzo Crawley
Gráinne Troute
Anne Urlwin
Dr Andrew Wong
Company Secretary
Robyn Heyman
3 8
11
Completed villages
In development
Proposed villages
4
Auckland Region
23
1
Northland
2
Waikato
2
11
Taranaki
3
Hawke’s Bay
1
3
Manawatū – Wanganui
3
Wellington Region
3
1
1
Nelson – Tasman
1
Marlborough
1
Canterbury
31
1
Otago
1
Our
villages
Bay of Plenty
1
1
4
Victoria
1
Torquay
Oakleigh South
Chirnside Park
Craigieburn
Cranbourne North
MELBOURNE
As at 30 June 2022, excludes Mernda
3 9
summerset.co.nz
summerset.com.au
---
Half year
results
presentation
Half Year Report 2022
Summerset on the Landing (Kenepuru, Wellington)
Agenda
Half Year Report 2022
Half year results presentation
Our highlights
Our community
New Zealand development
Australia development
Financial performance
Business performance
Appendix
01
02
03
04
05
06
07
2
Our
highlights
3
Half Year Report 2022
3
Record underlying profit of $82.5m up 9% on 1H21
Half Year Report 2022
Our highlights
Increase in underlying profit driven by strong performance across our core business functions
511
545
1H21
223
1H21
347
Total units
delivered in 1H22
$1.5b
Embedded value
$1.1b
1H21
1H216,123
6,947*
$134.6m
Net profit after tax
1H21
$263.8m
Underlying profit
1H21
1H21
$190.4m
$222.7m
29.4%
1H21
28.5%
$82.5m
$75.5m
$5.4b
1H21
$4.4b
Net operating cash flows
Total assetsGearing ratio
Sales of Occupation
Rights
New Zealand and Australia
land bank (including care)
4
* Land bank as at 30 June 2022, excludes Mernda
Record underlying profit of $82.5m up 9% on 1H21
Half Year Report 2022
Source: REINZ, June 2022, based on Summerset catchments
Our highlights
Auckland
Rest of New Zealand
33%
Continue to see strong demand across our villages, unit pricing remains well placed
REINZ median house priceSUM % of median
5
New sale settlements and total ORA unit delivery
Sales prices vs median house priceUnderlying profit
Half Year Report 2022
6
Our highlights
1H22 investor highlights
Our results at a glance
Record first half underlying profit of $82.5m, up 9% from
$75.5m in 1H21
Net profit after tax (NZ IFRS) of $134.6m, down from
$263.8m in 1H21, related to lower fair value movement in
investment property
Gearing ratio of 29.4%, up from 28.5% at 1H21
Achieved half year new and resale settlements of 511
total Occupation Rights units
A total of 223 villas delivered in the period across ten
villages, a record number of villa deliveries for a six
month period
Uncontracted new sale stock down 23% from FY21
Largest New Zealand land bank for a retirement village
operator of 5,646 units and beds (6,947 incl. Australia)
Three new sites acquired, Masterton (Wairarapa), Fairy
Springs (Rotorua) and Mernda (Melbourne)
On track to deliver approximately 600 homes in FY22
Summerset at Monterey Park (Hobsonville, Auckland)
Our highlights
Acquisitions –three new sites announced
Half Year Report 2022
7
Fairy Springs,
Rotorua
Approximately 267
independent homes
Rest home and
hospital-level care
Masterton,
Wairarapa
Mernda,
Melbourne
Memory
care centre
Approximately 304
independent homes
Rest home and
hospital-level care
Memory
care centre
Approximately 235
independent homes
Rest home and
hospital-level care
Memory
care centre
Our
community
8
Half Year Report 2022
8
COVID-19 update
Protection of staff and residents remains our focus
Half Year Report 2022
Our community
▪We continue to focus on ensuring our residents are well
protected against COVID-19
▪Our high rates of vaccination, and the vigilance of our staff,
enabled us to responded effectively to Omicron
▪We held vaccination clinics at each village for all residents to
get their COVID-19 booster (incl. second boosters from July)
▪Over 95% of residents are fully vaccinated against COVID-19,
with 49% of residents already receiving their second booster*
▪As added protection, we also ensured all residents and staff
had access to the flu vaccination at each village
▪In 1H22 we invested $3.4m into our COVID-19 response
▪To recognise our frontline team’s dedication during the
Omicron surge we provided a 7% average increase in pay
between March and May 2022
▪Other measures implemented to restrict the spread of Omicron
have included supplying, and ‘fit testing’ N95 masks for staff,
and the use of air purifiers within our care centres
▪To support our villages we introduced a Summerset Village
Reliever Programme where Head Office staff were trained to
step in and assist villages seriously affected by staffing
shortages during the height of the Omicron wave
9
* Residents are only eligible for COVID-19 Booster 2 six months after receiving Booster 1
Our residents
Bringing the best of life to residents every day
Half Year Report 2022
Our community
▪This year we committed to investing $4.5m in frontline staff
and new digital innovations –with a focus on keeping our
residents safer and improving their experiences every day
▪Developed a number of virtual events which included the
“Summerset Sessions” entertainment programme
▪Continued the roll out of our Summerset signature
exercise class CB Fit, hosting live virtual exercise classes
for residents while in restricted COVID-19 levels
▪Commenced the roll out of PainChek, a tool that gives a
voice to those who cannot reliably verbalise their pain -
Summerset is the first aged care provider in New Zealand
to use this technology
▪Our new Kaitiaki (Wellbeing Assistant) roles continue to
expand with 60 people recruited into these roles to support
our residents
▪Kaitiaki improve resident independence by providing
mobile therapy and also support access and
participation in recreational and diversional therapy,
especially for residents living with dementia
▪Completed bringing our food services in-house, enabling
us to improve consistency and develop clear service
standards to the benefit of our residents and their guests
10
Lumin–resident portal
Bringing the best of life to residents every day
Half Year Report 2022
Our community
▪Successfully completed Lumintrial at our Kenepuru village,
now underway with the roll out of the technology across our
villages
▪Luminis a purpose-built platform specifically aimed at
assisting our residents and designed to complement life in
modern retirement villages
▪Luminwill enhance resident experience by streamlining
communication and removing manual processes for
bookings of activities and meals
▪Key features of the portal include:
▪Providing residents access to village communications
(village manager announcements)
▪Allows for easy resident communication via video
calling and messaging between residents
▪Enables residents to book village activities, events,
meals and other services (e.g. hair appointments)
▪Greater building management capability including
integration with doorbells, lights and intercom systems
▪Call bell functionality that supports emergency duress
with pendants, buttons and remote sensors
▪Provides medication reminders and wellness module
including telemedicine
11
Our staff
Our staff are key to our success and we are immensely
proud of the work they do
Half Year Report 2022
Our community
▪As part of our three year wellbeing strategy and plan we
have implemented a range of wellbeing initiatives for staff,
a diversity and inclusion plan, and a wellbeing by design
process
▪Successfully piloted our Diversity Awareness and Inclusion
Leadership Programme. This will now be rolled out across
the business over the next 12 months
▪Continued our core leadership development programmes
with increased participation across the business. These
now include external courses that focus on talent and
succession planning
▪Aligned with ‘MATES in Construction’ to support both
mental and physical safety in the construction sector
▪Design team recognised as finalists in the Auckland
Property People Awards for Best Team and Young
Achiever of the Year
▪Construction team are finalists in the National Association
of Women in Construction Award –Outstanding
Achievement in Design
12
Our environment
Environmental performance and sustainability
Our community
Half Year Report 2022
Our Sustainability Policy, Supplier Code of Conduct and Modern Slavery Policy are all available on our website
▪This is the final year of our short term carbon reduction
target, being a 5% reduction in emissions intensity
▪We are on track to achieve this, and also our medium and
long term targets which include:
▪Reducing our emissions intensity per square metre by
over 60% by 2032
▪Continuing to drive our construction waste avoidance
initiative forward
▪We are the only retirement village operator in NZ to be
carbonzero
TM
certified and are a member of the Climate
Leaders Coalition
▪Staff and residents are actively involved in our sustainability
initiatives under our “Go Greener” programme
▪Undertook the first step of integrating solar panels into
existing and developing villages starting with Nelson’s
Summerset in the Sun village
▪Started to make the switch to electric vehicles (EVs) and
continued to introduce EV charging solutions to our villages
▪Progressed our innovative new main building design,
developed to achieve high levels of sustainability –both
operationally and in relation to embodied carbon
Arrival of our first EV
Our sustainability affiliations
13
New Zealand
development
14
Half Year Report 2022
14
Summerset at Monterey Park (Hobsonville, Auckland)
Half Year Report 2022
Development New Zealand
▪In 1H22 we delivered 223 total units over ten sites, our
second highest first half delivery programme ever
▪A total of 16 villages in construction across nine regions in
New Zealand in 1H22
▪Began construction at our Blenheim village in Marlborough
▪Good progress made on the four villages which started
construction in FY21 –being Lower Hutt, Cambridge,
Prebbletonand Waikanae
▪On track to deliver the main building at Kenepuruin 2H22
with first residents expected early in 2023
▪Construction costs have been tightly managed through our
strong procurement and supply agreements
▪Lodged plan change for our newly acquired site in
Masterton and have reached an out of court agreement
with the appellants to our Resource Consent decision at
Parnell, this is now with the Court for consideration
▪Now have 88% of our NZ land bank fully consented,
excluding Masterton and Rotorua (announced today)
▪On track to deliver approximately 600 homes in FY22
Summerset at Monterey Park (Hobsonville, Auckland)
Summerset St Johns (Auckland)
Development activity
New Zealand summary
15
Half Year Report 2022
Development New Zealand
Summerset Cambridge (WaipāDistrict)Summerset Mt Denby(Whangārei)
Summerset by the Dunes (PāpāmoaBeach, Tauranga)Summerset Rototuna (Hamilton)
16
Half Year Report 2022
Development New Zealand
Summerset Palms, Te Awa, Napier
Site progress -Mar 2018
Site progress -Dec 2020
Site progress -Jun 2022
Site acquired
Civils complete, 40 independent homes delivered
111 independent villas and show home delivered, main
building construction well underway
17
Site progress -Jun 2021
68 independent villas delivered, main building construction
underway
Half Year Report 2022
Development New Zealand
Summerset Boulcott (Lower Hutt, Wellington)Summerset at PōhutukawaPlace (Bell Block, New Plymouth)
Summerset Waikanae (KāpitiCoast)Summerset Richmond Ranges (Tasman District)
18
Half Year Report 2022
Development New Zealand
Summerset on the Landing, Kenepuru
Site progress -Jun 2019
Site progress -Jun 2022
Site progress -Jun 2021
Civils started, no independent homes delivered
51 independent villas and 24 apartments delivered, main
building under construction
82 independent villas and 48 apartments delivered, main
building nearing completion
19
Site progress -Jun 2020
29 independent villas delivered, apartment blocks under
construction
Half Year Report 2022
Development New Zealand
Summerset at Avonhead (Christchurch)
Summerset Prebbleton (Selwyn District)
20
Summerset on Cavendish (Casebrook, Christchurch)
Summerset Blenheim (Marlborough District)
* New sites purchased
** Excludes newly purchased sites (Masterton and Rotorua)
Half Year Report 2022
Development New Zealand
New Zealand development pipeline
Diversified development pipeline with 23 sites in 1H22, 88% of land bank fully consented**
21
Australia
development
22
Half Year Report 2022
22
Half Year Report 2022
Development Australia
▪WenowhavesixAustraliansiteswiththerecent
acquisitionofMernda
▪ContinuetolookforsuitablesitesaroundVictoriato
complementtheexistingproperties,withafocuson
broadacreopportunities
▪OurcurrentAustraliapipelinegivesusexcellentcapacity
tobuildover1,700units(includingMernda)
▪OurfirstretirementvillageinCranbourneNorthhasbeen
consented,andwehavecompletedmajorearthworks
onsite.Civilworksarenowunderwayandfirstvillasare
expectedtobeavailableinQ42023
▪ConsentingisalsoprogressingwellatourChirnsidePark
site,andwehavelodgedtheplanningapplicationfor
Torquay
▪Summersethasbeenapprovedtoprovideresidential
agedcareandhomecareservicesinAustralia
Development activity
Australia summary
Summerset Australia
Summerset Torquay
Summerset Cranbourne North
Summerset Oakleigh South
Summerset Chirnside Park
Summerset Craigieburn
Summerset Mernda
23
Summerset Cranbourne North (Melbourne)
Melbourne CBD
Half Year Report 2022
Development Australia
24
Artist impression: Summerset Chirnside Park (Melbourne)Artist impression: Summerset Craigieburn (Melbourne)
Artist impression: Summerset Oakleigh South (Melbourne)Artist impression: Summerset Torquay (Victoria)
Half Year Report 2022
Development Australia
Australia development pipeline*
Excellent progress made in growing our Australian land bank
*As at 30 June 2022, excludes Mernda
25
Financial
performance
26
Half Year Report 2022
26
Reported profit (IFRS)
Financial performance
27
▪IFRS NPAT of $134.6m, down from $263.8m 1H21
▪Fair value movement of investment property of
$136.7m, including $94.9m from new unit deliveries
▪Total revenue of $114.1m, up 20% relative to 1H21
▪Key movements in expenses include the following:
▪$10.1m relating to growth in our developing
villages
▪$3.6m on investment in staff, including new
roles, training and development
▪$2.3m associated with bringing food services
in-house
▪$1.5m on sales and marketing costs, including
a nationwide advertising campaign post
COVID-19
▪$0.5m associated with other property related
expenditure, Australia and one off initiatives to
upgrade our IT systems
▪$3.4m on COVID-19 related expenditure which
included $1.4m on personal protective
equipment and $1.9m on additional staffing
▪The increase in net finance costs mostly relates to the
increase in bank facility limit (refinanced October
2021)
Movementin total expenses: 1H21 vs 1H22
Half Year Report 2022
NZ$m
1H22
1H21
Variance
FY21
Total revenue
114.1
94.9
20%
205.3
Reversal of impairment on land &
buildings
-
-
-
3.4
Fair value movement of investment
property
136.7
260.2
(47%)
537.5
Total income
250.8
355.1
(29%)
746.3
Total expenses
108.6
84.1
29%
190.6
Net finance costs
7.3
5.3
36%
12.0
Net profit before tax
134.9
265.6
(49%)
543.6
Tax expense / (credit)
0.3
1.8
(84%)
(0.0)
Net profit after tax
134.6
263.8
(49%)
543.7
Fair value movement
Fair value movement of investment property 1H22
$136.7m
Financial performance
28
▪1H22 fair value movement of $136.7m, down 47%
on 1H21
▪Fair value movement has been driven by:
▪Unit pricing ($55.4m): Retirement unit price
inflation on existing units within the portfolio
▪New units built ($94.9m): Value of new units
delivered in 1H22
▪Stock discount assumptions: Reversal of
previous discount applied to stock settled in
1H22 ($13.0m)
▪Uplift in land bank ($15.4m): Valuation
movement on undeveloped land bank
▪Discount rates ($2.7m): Change in
assumptions used by the valuers
▪Growth rate assumptions (-$44.8m): Impact of
a reduction to short term growth rates within
the valuation
▪Refer to the appendices (slide 56 and 57) for key
assumptions associated with the investment
property valuation
Fair value movement
Increase from new
units delivered
$94.9m
Half Year Report 2022
Note: Fair value movement reflects the movement in villas, apartments and serviced apartments only
Underlying profit
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Underlying profit does not have a
standardised meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented
by other entities. The Directors have provided an underlying profit measure in addition to IFRS profit to assist readers in
determining the realised and unrealised components of fair value movement of investment property, impairment and tax
expense in the Group’s income statement. The measure is used internally in conjunction with other measures to monitor
performance and make investment decisions and has been reviewed by Ernst & Young. Underlying profit is a measure which
the Group uses consistently across reporting periods. Underlying profit is used to determine the dividend payout to
shareholders.
29
Financial performance
▪Underlying profit of $82.5m, a six month record and
up 9% on 1H21
▪Continue to achieve improved performance in
operating earnings across our core business
functions:
▪Care fees and village services of $68.7m, up
16%
▪Deferred management fee of $43.9m, up 24%
▪Realised gain on resales of $31.9m, up 8%
▪Realised development margin of $52.3m, a 29%
increase, average margin of $181k per unit
$82.5m
Underlying profit
9%
Increase on 1H21
Half Year Report 2022
29
NZ$m1H221H21VarianceFY21
Care fees and village services68.759.516%126.9
Deferred management fees43.935.424%75.2
Realised gain on resales31.929.48%59.9
Realised development margin52.340.729%78.5
Other income & interest received1.50.08871%3.3
Total income198.3165.020%343.8
Operating expenses102.079.029%179.0
Depreciation and amortisation6.65.228%11.6
Net finance costs7.35.336%12.0
Total expenses115.989.529%202.6
Underlying profit82.575.59%141.1
Cash flows
Financial performance
30
▪Net operating cash flows of $190.4m, down 14% from
$222.7m at 1H21 primarily due:
▪Slightly lower volumes of new sale settlements
compared to 1H21
▪Timing of resale cash flows relating to outgoing
residents. This impacted circa 30 additional
units relative to 1H21 but is expected to reverse
in 2H22 as a high proportion of these units are
now contracted and awaiting settlement
▪Increased operating costs relating to COVID-19,
new roles and cost pressures
▪Investing cash out flows of $267.0m, up 44% on
1H21, reflect the following:
▪Acquisition of land
▪Main building spend across six sites, including
increased spend on two additional sites
(Pāpāmoa and Bell Block)
▪Villa stages across 13 sites
▪Net financing cash flows of $104.6m, up $138.4m on
1H21 driven by higher net proceeds from borrowings
$190.4m
Net operating cash flows
14%
Decrease on 1H21
Half Year Report 2022
NZ$m
1H22
1H21
Variance
FY21
Net operating business cash flow
7.4
35.5
(79%)
45.8
Receipts for residents' loans - new
sales
183.0
187.2
(2%)
337.6
Net operating cash flow
190.4
222.7
(14%)
383.4
Purchase of land
(66.5)
(23.8)
180%
(72.0)
Construction of new IP & care
facilities
(177.4)
(142.1)
25%
(318.3)
Refurb of existing IP & care facilities
(5.5)
(4.1)
33%
(8.5)
Other investing cash flows
(3.8)
(5.6)
(32%)
(9.7)
Capitalised interest paid
(13.8)
(9.8)
42%
(16.5)
Net investing cash flow
(267.0)
(185.4)
44%
(425.0)
Net proceeds from borrowings
122.5
(20.1)
(709%)
67.1
Net dividends paid
(12.2)
(9.8)
25%
(23.7)
Other financing cash flows
(5.6)
(3.9)
44%
(9.2)
Net financing cash flow
104.6
(33.8)
(409%)
34.2
NZ$m
1H22
1H21
Variance
FY21
Investment property
4,955
4,066
22%
4,580
Other assets
420.0
309.3
36%
343.5
Total assets
5,375
4,375
23%
4,924
Residents' loans
2,008
1,708
18%
1,847
Face value of bank loans & bonds*
896.9
662.7
35%
749.9
Other liabilities
407.4
386.7
5%
402.1
Total liabilities
3,313
2,757
20%
2,999
Net assets**
2,062
1,618
27%
1,925
NTA (cents per share)
891.3
708.0
26%
835.9
Balance sheet
$1.7b
Retained
earnings
Total assets
*Facevalueofdrawnbankdebtandretailbonds.Excludescapitalisedandamortisedtransactioncostsforloansand
borrowing,andfairvaluemovementonhedgedborrowings.
**Netassetsincludessharecapital,reserves,andretainedearnings
$5.4b
Financial performance
31
▪Total assets of $5.4b, up 23% on 1H21 driven by
portfolio growth and the underlying value in our
existing villages
▪Investment property valuation of $5.0b, up 22% on
1H21
▪Retained earnings are now $1.7b, up 29% from
$1.3b at 1H21. This continues to positively impact
balance sheet strength and company gearing ratios
▪Other assets include buildings, which are primarily
care centres
▪Net tangible assets per share of $8.91, the highest
of all listed operators in the sector
29%
23%
Half Year Report 2022
Net tangible assets
Strong financial disciplines underpinning net tangible assets and gearing
Net tangible assets and gearing*
Summerset net tangible assets per share
* Peer results based on most recent results presentations and annual or half year reports
SUMNTApershareNTApershareGearingratio
Half Year Report 2022
Financial performance
32
Gearing ratio
32.9%
Bank & bond LVR
Gearing ratio
*Facevalueofdrawnbankdebtandretailbonds.Excludescapitalisedandamortisedtransactioncostsforloansand
borrowing,andfairvaluemovementonhedgedborrowingslesscashandcashequivalents
**Gearingratiocalculation(netdebt/netdebtplusbookequity)differsfromtheSummersetGroup’sbankandbond
LVRcovenant(TotaldebtoftheSummersetGroup/PropertyvalueoftheSummersetGroup)
33
Net debt to underlying assets
$742m
$860m
$836m
$979m
$94m excess assets
$119m excess assets
29.4%
Financial performance
33
▪Net debt of $860.3m* as at 30 June 2022, up from
$741.5m* at FY21
▪Uplift in gross debt driven by increased build rate
across our developing villages and land settlements
in the period
▪Gearing ratio of 29.4%, up from 28.5% at 1H21 and
27.8% at FY21
▪New Zealand gearing ratio with Australian growth
related debt excluded is 23.8%
▪Development assets exceed the value of net debt
by $119m, or 14%
Half Year Report 2022
1H22
1H21
Variance
FY21
Gearing ratio (%)**
29.4%
28.5%
3.5%
27.8%
Bank & bond LVR (%)**
32.9%
31.2%
5.4%
29.8%
Funding
$375m
Retail bonds
Bank facility
*Facevalueofdrawnbankdebtandretailbonds.Excludescapitalisedandamortised
transactioncostsforloansandborrowing,andfairvaluemovementonhedgedborrowings
lesscashandcashequivalents
**Gearingratiocalculation(netdebt/netdebtplusbookequity)differsfromtheSummerset
Group’sbankandbondLVRcovenant(TotaldebtoftheSummersetGroup/Propertyvalueof
theSummersetGroup)
34
$1.2b
Financial performance
▪Bank facility approximately $1.2b, with existing
$375.0m of retail bonds
▪Total facility (incl. bonds) has an average tenure of
3.2 years
▪Bank facility has undrawn capacity at $634.8m at
1H22
▪Increased capacity since October 2021 provides
sufficient headroom to fund growth in Australia, in
line with previously signalled plans
Gross borrowings and gearing
Funding maturity profile
Half Year Report 2022
34
Interimdividend
Financial performance
Dividend per share
Gross dividend payoutper year
Half Year Report 2022
▪The Board has declared an unimputed interim
dividend of 10.7 cents per share, being 30% of
underlying profit
▪This represents a payoutfor 1H22 of approximately
$24.7m, 30% of 1H22 underlying profit
▪The dividend reinvestment plan (DRP) will apply to
this dividend enabling shareholders to take shares in
lieu of the cash dividend
▪A discount of 2% will be applied when determining
the price per share of shares issued under the DRP
▪Eligible investors wishing to take up the DRP must
register by 5.30pm NZT on Wednesday 7 September
2022. Any applications received on or after this time
will be applied to subsequent dividends
▪The interim dividend will be paid on Monday 19
September 2022. The record date for final
determination of entitlements to the interim dividend
is Tuesday 6 September 2022
▪The dividend policy remains 30% to 50% of
underlying profit for the full year period. As
previously indicated, dividend payments are likely to
continue to be at the bottom end of this range given
the growth opportunities present for the business at
this time
Declared 1H22 interim dividend of 10.7 cents per
share
35
Cents per share
$ millions
Business
performance
36
Half Year Report 2022
36
Summerset by the Sea (Katikati, Bay of Plenty)
Retirement unit delivery
Retirement units delivered
▪A total of 223 retirement units delivered in the period
across ten villages
▪This is the second highest number of first half
deliveries for Summerset, and a record number of
villa deliveries for a six month period
▪The balanced delivery profile continues to highlight
our diversified construction programme operating
across ten regions in New Zealand
▪Expect to welcome our first residents into our
Prebbletonvillage in Q4 2022, marking the opening
of our fourth Canterbury village
▪Kenepurumain building nearing completion, will
include rec and admin areas, serviced apartments,
memory care apartments and a care centre
▪Kenepuruwill be the sixth village to provide our
market leading memory care in New Zealand
Second highest 1H deliveries of 223 total units
Business performance
37
22310
Half Year Report 2022
Regions in construction
Villas
Apartm ents
Serviced
apartm ents
Mem ory care
apartm ents
Care
suites
Care
beds
Avonhead
22
-
-
-
-
-
22
Bell Block
18
-
-
-
-
-
18
Casebrook
20
-
-
-
-
-
20
Hobsonville
16
-
-
-
-
-
16
Kenepuru
17
-
-
-
-
-
17
Pāpāmoa
26
-
-
-
-
-
26
Richmond
35
-
-
-
-
-
35
Rototuna
21
-
-
-
-
-
21
Te Awa
18
-
-
-
-
-
18
Whangārei
30
-
-
-
-
-
30
Total
223
-
-
-
-
-
223
Care units
Total
units
1H22 unit
delivery
▪Realised development margin of $52.3m, a record
half year result and up 29% from $40.7m in 1H21
▪Development margin of 28%, up from 22% in 1H21
driven by:
▪Further strengthening of margins on villa
stages with an average margin of around 35%,
up from 28% 1H21 and 31% 2H21
▪A lower weighting to apartment settlements
relative to 1H21
▪Fewer Auckland settlements across all unit
types
▪Expect development margin to normalise next year
in line with delivery mix that includes more serviced
apartments and care units
▪New sales benefitted from a balanced nationwide
settlement profile, no more than 28% of new sales
coming from a single region
▪We are expecting development margin for 2H22 to
remain consistent with 1H22
Development margin
$52.3m
Realised margin
Development margin
Realised development margin of $52.3m, with
a 28% development margin
Realised development margin
28%
Business performance
Half Year Report 2022
29%
38
New sales
39
289 new sales in the period, gross proceeds of
$186.8m
Business performance
39
▪289 new sales of Occupation Rights in 1H22, the
second highest number for a six month period
▪Gross proceeds of $186.8m, in line with the
$188.0m achieved in 1H21 -the increases in
average prices offsetting lower total volumes
▪Average gross proceeds per new sale settlement of
$646k, up from $623k on 1H21 (3.8%)
▪Seven regions secured more than 20 settlements
each
▪Looking ahead, we continue to see strong presales
with several stages to be delivered in 2H22 already
fully presold
Half Year Report 2022
$646k
Average gross
proceeds
New sales of
Occupation Rights
289
3.8%
New sales
1H22
1H21
Variance
FY21
Gross proceeds ($m)
186.8
188.0
(1%)
340.3
Villas
182
197
(8%)
335
Apartments
25
47
(47%)
79
Serviced apartments
49
45
9%
92
Memory care apartments
25
7
257%
19
Care suites
8
6
33%
15
Total Occupation Rights
289
302
(4%)
540
New sales stock
3.8%
40
Uncontracted stock levels down 23% from FY21
201
Business performance
40
▪Good progress made on selling down new sale stock
▪Uncontracted new sale stock of 201 units, down from
262 at FY21 (-23%)
▪Uncontracted stock as a % of portfolio of 3.8% is now
at the lowest level in five years
▪The decline in overall stock has been driven by:
▪Good apartment sales at Ellerslie and Kenepuru
▪The sale of serviced apartments, memory care
apartments and care suites at Avonhead,
Richmond and Rototuna. Over two thirds of
these main building units are now contracted or
settled
▪The sell down of remaining serviced apartment
stock in Auckland and Katikati
▪Increase in villa stock driven by high deliveries in the
last two months of 1H22, only 21% of all units
delivered in the period remain uncontracted
▪Like presales, we continue to maintain strong
contracted stock levels on delivered units which
positions us well for the remainder of the year
Percentage of
uncontracted stock
Percentage of uncontracted stock calculated off all units sold under Occupation Right Agreement
Half Year Report 2022
New sales stock
1H22
FY21
1H21
Contracted
113
115
93
Uncontracted
201
262
222
Total new sales stock
314
377
315
Contracted
59
54
48
Uncontracted
64
28
24
Villas
123
82
72
Contracted
18
19
17
Uncontracted
40
64
74
Apartments
58
83
91
Contracted
29
26
21
Uncontracted
64
116
79
Serviced apartments
93
142
100
Contracted
4
15
7
Uncontracted
14
28
28
Memory care apartments
18
43
35
Contracted
3
1
-
Uncontracted
19
26
17
Care suites
22
27
17
Uncontracted
new sale stock
Business performance
New sales performance
New sale settlements and total ORA unit delivery
Annual new sales contracts
Committed new sales pipeline
Half Year Report 2022
Uncontracted new sales stock as % of portfolio
41
Resales
$31.9m
Realised resale gain
Resales of Occupation
Rights
42
Realised gain of $31.9m, up 8%, embedded
value now $1.5b
222
Business performance
42
▪Total resales of 222 Occupation Rights in 1H22,
down from 243 in 1H21, but up from 195 in 2H21
▪Gross proceeds per resale settlement of $557k, up
7% from $521k in 1H21
▪Total gross proceeds of $123.7m, broadly in line
with 1H21 as higher average gross proceeds per
unit were offset by lower overall resales
▪Realised resale gain of $31.9m with an average
gain per unit of $144k, up 17% on 1H21
▪Realised resale gain of 26%, reflects a higher
proportion of resales in developing villages and a
higher weighting to serviced and memory care
apartments
▪Villa margins in existing villages continue to track
above 33%
Half Year Report 2022
8%
Resales
1H22
1H21
Variance
FY21
Gross proceeds ($m)
123.7
126.6
(2%)
231.3
Realised resale gains ($m)
31.9
29.4
8%
59.9
Realised resale gains (%)
26%
23%
11%
26%
DMF realisation ($m)
16.2
17.8
(9%)
32.0
Villas
96
125
(23%)
219
Apartments
27
35
(23%)
58
Serviced apartments
92
79
16%
151
Memory care apartments
6
4
50%
10
Care Suites
1
-
-
-
Total Occupation Rights
222
243
(9%)
438
▪Total embedded value now $1.5b, having increased
from $1.1b at 1H21, a 29% uplift
▪Embedded value comprised of:
▪$1.04b resale gains
▪$0.43b deferred management fees
▪Embedded value per unit is now $278k, up from
$240k at 1H21, which will provide a strong platform
for future earnings growth
▪Unrealised resale gain per unit now $197k,
compared to $164k at 1H21
Embedded value
$1.0b
Embedded value
Embedded value now $1.5b, up 29%
Embedded value
$1.5b
Business performance
43
Half Year Report 2022
Embedded resale gain
1H221H21VarianceFY21
DMF$432.6$360.020%$397.4
Resale gain$1,040.4$780.933%$967.3
Embedded value$1,473$1,14129%$1,365
Business performance
44
▪Resale stock has increased from 198 units at FY21
to 233 units at 1H22 (18%)
▪The increase in overall stock driven by a record
number of vacated units in the period, up 24% on
1H21
▪Almost 40% of units vacated in the period did so in
the last two months, impacting 1H22 resales cash
flow but providing a good platform for sales in 2H22
▪Contracted resale stock of 137 units is the highest
number of contracted resale units in Summerset’s
history
▪Waitlist numbers continue to be strong at over 1,300
Available resale stock remains at low levels
1.8%
Resale stock
96
Percentage of
uncontracted stock
Uncontracted
resale stock
44
Percentage of uncontracted stock calculated off all units sold under Occupation Right Agreement
Half Year Report 2022
Resale stock1H22FY211H21
Contracted13711887
Uncontracted968062
Total resale stock233198149
Contracted685237
Uncontracted40188
Villas1087045
Contracted181512
Uncontracted121512
Apartments303024
Contracted474836
Uncontracted374641
Serviced apartments849477
Contracted432
Uncontracted611
Memory care apartments1043
Contracted---
Uncontracted1--
Care suites1--
Business performance
Half Year Report 2022
Resale performance
Resale settlements
Realised resale gain
Annual resale contracts
Uncontracted resale stock as % of portfolio
45
Questions
46
46
Disclaimer
Half Year Report 2022
Disclaimer
▪This presentation may contain projections or forward looking statements regarding a variety of items. Such forward looking
statements are based upon current expectations and involve risks and uncertainties
▪Actual results may differ materially from those stated in any forward looking statement based on a number of important factors
and risks
▪Although management may indicate and believe the assumptions underlying the forward looking statements are reasonable,
any of the assumptions could prove inaccurate or incorrect and, therefore, there can be no assurance that the results
contemplated in the forward looking statements will be realised
▪Furthermore, while all reasonable care has been taken in compiling this presentation, Summerset accepts no responsibility for
any errors or omissions
▪This presentation does not constitute investment advice
47
48
48
Appendix
Summerset overview
Portfolio and land bank
Underlying profit reconciliation
Historical trends
Fair value movement
Demographics
Summerset growth
Customer profile and occupancy
07
06
04
05
03
02
01
08
Summerset overview
Half Year Report 2022
Appendix
Our people
Our care
Diversified portfolio throughout New Zealand
Our portfolio
7,100+
Residents
2,300+
Staff members
1,098
Care units in
portfolio
1,302
Care units in
land bank
5,153
Retirement units
in portfolio
5,645*
Retirement units
in land bank
$5.4b
Total assets
49
* Land bank as at 30 June 2022, excludes Mernda
Portfolio as at 30 June 2022
6,251 total units including 5,153 retirement units and 1,098 care units
Appendix
Half Year Report 2022
50
VillageVillasApartments
Serviced
apartments
Memory care
apartments
Care suitesCare beds
Whangārei33 -----33
Northland 33 -----33
Ellerslie38 218 57 --58 371
Hobsonville147 73 52 --52 324
Karaka182 -59 --50 291
Manukau89 67 27 --54 237
Warkworth202 2 44 --41 289
Auckland658 360 239 --255 1,512
Hamilton183 -50 --49 282
Rototuna184 -56 20 7 36 303
Taupō94 34 18 ---146
Waikato461 34 124 20 7 85 731
Katikati156 -30 --27 213
Pāpāmoa Beach76 -----76
Bay of Plenty232 -30 --27 289
Hastings146 5 ----151
Havelock North94 28 ---45 167
Napier94 26 20 --48 188
Te Awa111 -----111
Hawke's Bay445 59 20 --93 617
Bell Block78 -----78
New Plymouth108 -40 --52 200
Taranaki186 -40 --52 278
Existing portfolio - as at 30 June 2022
Retirement unitsCare units
Total units and
care beds
Village
Villas
Apartments
Serviced
apartments
Memory care
apartments
Care suites
Care beds
Levin
64
22
-
10
-
41
137
Palmerston North
90
12
-
-
-
44
146
Whanganui
70
18
12
-
-
37
137
Manawatū-Whanganui
224
52
12
10
-
122
420
Aotea
96
33
38
-
-
-
167
Kenepuru
82
48
-
-
-
-
130
Paraparaumu
92
22
-
-
-
44
158
Trentham
231
12
40
-
-
44
327
Wellington-Kāpiti
501
115
78
-
-
88
782
Nelson
214
-
55
-
-
59
328
Richmond
140
-
56
20
17
26
259
Nelson-Tasman
354
-
111
20
17
85
587
Avonhead
140
-
79
20
17
26
282
Casebrook
197
-
56
20
-
43
316
Wigram
159
-
53
-
-
49
261
Canterbury
496
-
188
40
17
118
859
Dunedin
61
20
20
-
-
42
143
Otago
61
20
20
-
-
42
143
Total
3,651
640
862
90
41
967
6,251
Existing portfolio - as at 30 June 2022
Retirement units
Care units
Total units and
care beds
Portfolio as at 30 June 2022
6,251 total units including 5,153 retirement units and 1,098 care units
Appendix
Half Year Report 2022
51
VillageVillasApartments
Serviced
apartments
Memory care
apartments
Care suitesCare beds
Total units and
care beds
Whangārei184 -602027 9300
Northland 184 -60 20 27 9 300
Half Moon Bay-218 33 20 49 -320
Hobsonville16 -----16
Milldale102 124 60 20 27 7 340
Parnell-216 36 20 44 -316
St Johns11 225 64 -41 -341
Auckland129 783 193 60 161 7 1,333
Pāpāmoa Beach135 -6020 25 11 251
Rotorua247 -20 20 10 20 317
Bay of Plenty382 -80 40 35 31 568
Cambridge260 -60 20 27 9 376
Rototuna4 -----4
Waikato264 -60 20 27 9 380
Bell Block144 -6020 25 11 260
Taranaki144 -60 20 25 11 260
Te Awa130 -5620 17 26 249
Hawke's Bay130 -56 20 17 26 249
Kelvin Grove240 -2020 10 20 310
Manawatū-Whanganui240 -20 20 10 20 310
Kenepuru32 -8620 17 26 181
Lower Hutt46 109 5814 12 12 251
Masterton215 -2020 10 20 285
Waikanae217 -6020 27 9 333
Wellington-Kāpiti-Wairarapa510 109 224 74 66 67 1,050
Landbank – as at 30 June 2022
Retirement unitsCare units
Future development
Largest New Zealand land bank for a retirement village operator of 5,646 units and beds
Appendix
Half Year Report 2022
52
Future development
Largest New Zealand land bank for a retirement village operator of 5,646 units and beds
Appendix
Half Year Report 2022
53
Village
Villas
Apartments
Serviced
apartments
Memory care
apartments
Care suites
Care beds
Total units and
care beds
Richmond
128
-
-
-
-
-
128
Nelson-Tasman
128
-
-
-
-
-
128
Blenheim
148
-
60
20
27
9
264
Marlborough
148
-
60
20
27
9
264
Avonhead
23
-
-
-
-
-
23
Casebrook
72
-
-
-
-
-
72
Prebbleton
221
-
60
20
27
7
335
Rangiora
260
-
60
20
27
7
374
Canterbury
576
-
120
40
54
14
804
Total NZ
2,835
892
933
334
449
203
5,646
Chirnside Park
175
-
50
36
36
-
297
Craigieburn
195
-
30
36
36
-
297
Cranbourne North
145
-
50
36
36
-
267
Oakleigh South
44
26
14
16
48
-
148
Torquay
203
-
53
18
18
-
292
Total Australia
762
26
197
142
174
-
1,301
Total NZ and Australia
3,597
918
1,130
476
623
203
6,947
Landbank – as at 30 June 2022
Retirement units
Care units
1H221H21VarianceFY21
Net profit before tax (IFRS)134.9265.6(49%)543.6
Net profit after tax (IFRS)134.6263.8(49%)543.7
Less reversal of impairment on land & buildings--n/a(3.4)
Less fair value movement of investment property(136.7)(260.2)(47%)(537.5)
Add realised gain on resales31.929.48%59.9
Add realised development margin52.340.729%78.5
Add/(less) deferred tax expense/credit0.31.8(84%)(0.0)
Underlying profit*82.575.59%141.1
Financial (NZ$m)
1H22 underlying profit reconciliation
Reconciliation of underlying profit to reported net profit after tax
*Underlyingprofitisanon-GAAPmeasureanddiffersfromNZIFRSprofitfortheperiod.UnderlyingprofitdoesnothaveastandardisedmeaningprescribedbyGAAPandthereforemaynotbe
comparabletosimilarfinancialinformationpresentedbyotherentities.TheDirectorshaveprovidedanunderlyingprofitmeasureinadditiontoIFRSprofittoassistreadersindeterminingtherealisedand
unrealisedcomponentsoffairvaluemovementofinvestmentproperty,impairmentandtaxexpenseintheGroup’sincomestatement.Themeasureisusedinternallyinconjunctionwithothermeasuresto
monitorperformanceandmakeinvestmentdecisionsandhasbeenreviewedbyErnst&Young.UnderlyingprofitisameasurewhichtheGroupusesconsistentlyacrossreportingperiods.Underlyingprofit
isusedtodeterminethedividendpayouttoshareholders.
Half Year Report 2022
Appendix
54
Half Year Results11 Year CAGR*1H222H211H212H201H20
FY11
NZX Listed
New sales of occupation rights16%289238302276128108
Resales of occupation rights12%222195243245136123
Total sales14%511433545521264231
New units delivered**13%223324347231182122
Retirement units in portfolio**13%5,1534,9304,6694,3854,1951,486
Care units in portfolio***12%1,0981,0981,035972931327
Total revenue ($m)19%114.1110.594.990.482.033.7
Net profit after tax ($m)46%134.6279.9263.8229.81.04.3
Underlying profit**** ($m)32%82.565.675.553.245.18.1
Net operating cash flow ($m)22%190.4160.7222.7174.092.843.7
Total assets ($m)22%5,3754,9244,3753,8933,433616.9
Total equity ($m)22%2,0621,9251,6181,3551,113233.4
Interest bearing loans and borrowings ($m)26%886.2747.0670.8687.1654.869.1
Cash and cash equivalents ($m)-36.68.419.415.813.09.0
Gearing ratio (Net D/ Net D+E)-29.4%27.8%28.5%32.6%35.8%20.5%
EPS (cents) (IFRS profit)42%58.5122.3115.9101.90.42.4
NTA (cents)21%891.3835.9707.3594.1491.3109.3
Development margin (%)-28%25%22%18%22%6%
Operational
Financial (NZ$m)
Historical trends
Underlying profit 11 year CAGR of 32%
*Compoundannualgrowthrate
**Newunitsdeliveredincludesallretirementunitsandcareunits
***Retirementunitsincludevillas,apartmentsandservicedapartments
****Careunitsincludememorycareapartments,caresuitesandcarebeds
*****UnderlyingprofitdiffersfromNZIFRSreportedprofitaftertax.ThemeasurehasbeenreviewedbyErnst&Young.Refertoslide54forareconciliationbetweenthetwomeasures,andnote2ofthe
financialstatementsfordetailonthecomponentsofunderlyingprofit
Appendix
Half Year Report 2022
55
Fair value movement
Fair value movement of investment property –key assumptions
Appendix
Half Year Report 2022
*Valueofnonlandcapitalworkinprogressnotrepresentedintheabovetable
56
Fair value movement of
investment property
Value of
investment
property*
Fair value
gain/(loss)
Key valuation assumptions
VillageLocationNZ$mNZ$m
Discount
rate
Growth rate
Yr 1
Growth rate
Yr 2
Growth rate
Yr 3
Growth rate
Yr 4
Growth rate
Yr 5+
Summerset by the ParkManukau167.6(1.5)13.50%0.0%1.0%2.0%2.5%3.5%
Summerset by the LakeTaupo85.61.315.50%0.0%1.0%2.0%2.5%3.5%
Summerset in the BayNapier92.4(0.8)13.75%0.5%1.0%2.5%3.0%3.5%
Summerset in the OrchardHastings102.30.514.75%0.5%1.0%2.5%3.0%3.5%
Summerset in the VinesHavelock North85.40.814.50%0.5%1.0%2.5%3.0%3.5%
Summerset in the River CityWhanganui42.00.515.13%1.0%1.3%2.5%2.8%3.0%
Summerset on SummerhillPalmerston North61.40.014.50%1.0%1.5%2.5%3.0%3.5%
Summerset by the RangesLevin38.91.114.88%0.5%1.3%2.5%3.0%3.5%
Summerset on the CoastParaparaumu77.2(0.9)14.25%1.0%1.5%2.5%2.8%3.5%
Summerset at AoteaAotea124.6(1.9)14.25%0.0%1.0%2.0%2.5%3.5%
Summerset in the SunNelson184.62.113.50%1.0%1.5%2.5%3.0%3.5%
Summerset at BishopscourtDunedin62.60.314.25%1.0%1.5%2.5%3.0%3.5%
Summerset down the LaneHamilton157.3(2.0)14.00%0.0%1.0%2.0%2.5%3.5%
Summerset Mountain ViewNew Plymouth90.00.614.50%1.0%1.5%2.5%2.8%3.5%
Summerset FallsWarkworth221.34.914.00%0.0%1.0%2.0%2.5%3.5%
Summerset at Heritage ParkEllerslie370.2(2.4)14.50%0.0%1.0%2.0%2.5%3.5%
Summerset at KarakaKaraka209.6(0.1)13.75%0.0%1.0%2.0%2.5%3.5%
Summerset at WigramWigram137.93.913.75%1.0%1.5%2.5%3.0%3.5%
Summerset at the CourseTrentham208.91.314.00%0.0%1.0%2.0%2.5%3.5%
Summerset by the SeaKatikati132.42.314.50%1.0%1.5%2.5%3.0%3.5%
Total for completed villages2,652.210.1
Fair value movement of
investment property
Value of
investment
property*
Fair value
gain/(loss)
Key valuation assumptions
VillageLocationNZ$mNZ$m
Discount
rate
Growth rate
Yr1
Growth rate
Yr2
Growth rate
Yr 3
Growth rate
Yr 4
Growth rate
Yr 5+
Summerset at Monterey ParkHobsonville310.25.613.75%0.0%1.0%2.0%2.5%3.5%
Summerset RototunaRototuna189.911.014.50%0.0%1.0%2.0%2.5%3.5%
Summerset on CavendishCasebrook180.110.315.00%0.0%1.0%2.0%3.0%3.5%
Summerset Richmond RangesRichmond149.616.415.00%0.0%1.0%2.0%2.5%3.5%
Summerset at AvonheadAvonhead157.817.815.00%0.0%1.0%2.0%3.0%3.5%
Summerset on the LandingKenepuru140.611.715.75%0.0%1.0%2.0%2.5%3.5%
Summerset PalmsTe Awa103.110.415.50%0.0%1.0%2.0%2.5%3.5%
Summerset by the DunesPapamoa80.115.115.75%0.0%1.0%2.0%2.5%3.5%
Summerset Pohutukawa PlaceBell Block65.95.715.75%0.0%1.0%2.0%2.5%3.5%
Summerset Mount DenbyWhangarei36.68.916.25%0.0%1.0%2.0%2.5%3.5%
Summerset PrebbletonPrebbleton13.00.3n/an/an/an/an/an/a
Summerset BoulcottLower Hutt17.40.6n/an/an/an/an/an/a
Summerset St JohnsSt Johns44.8(0.8)n/an/an/an/an/an/a
Summerset WaikanaeWaikanae15.6(0.2)n/an/an/an/an/an/a
Summerset CambridgeCambridge19.90.0n/an/an/an/an/an/a
Summerset BlenheimBlenheim6.5(0.0)n/an/an/an/an/an/a
Total for villages in development1,531.1112.6
Total for proposed villages380.613.9
Total for all villages4,563.9136.7
Fair value movement
Fair value movement of investment property –key assumptions
Appendix
Half Year Report 2022
*Valueofnonlandcapitalworkinprogressnotrepresentedintheabovetable
57
Demographics
Population over 75 years forecast to grow 214% from 2022 to 2073
Population growth 75 years and over
Per annum population growth 75 years and over
Appendix
Half Year Report 2022
58
Stats NZ DataStats NZ Data
Summerset growth
25 years of consistent delivery and growth
Summerset build rate
Appendix
New units delivered includes retirement units, memory care apartments, care suites and care beds
Half Year Report 2022
59
Customer profile & occupancy
Occupancy, tenure and resident demographic statistics
Occupancy –retirement villagesOccupancy –established care centres
Average entry age of residents (years)Average tenure (years)
Appendix
Half Year Report 2022
60
Ngā mihi
For more information:
Will Wright
Chief Financial Officer
will.wright@summerset.co.nz
021 490 251
61
---
Results announcement
(for Equity Security issuer/Equity and Debt Security
issuer)
Results for announcement to the market
Name of issuer Summerset Group Holdings Limited
Reporting Period 6 months to 30 June 2022
Previous Reporting Period 6 months to 30 June 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$114,137 20.3%
Total Revenue $114,137 20.3%
Net profit/(loss) from
continuing operations after
tax
$134,639 -49.0%
Total net profit/(loss) after tax $134,639 -49.0%
Underlying profit* $82,463 9.2%
Interim Dividend
Amount per Quoted Equity
Security
$0.107 per Ordinary Share
Imputed amount per Quoted
Equity Security
Not imputed
Record Date 6 September 2022
Dividend Payment Date 19 September 2022
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$8.91 $7.07
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
See also other attached documents (half year report, media
release, results presentation and distribution notice).
* Underlying profit is a non-GAAP measure and differs from
NZ IFRS profit for the period. Underlying profit does not have
a standardised meaning prescribed by GAAP and therefore
may not be comparable to similar financial information
presented by other entities. The Directors have provided an
underlying profit measure in addition to IFRS profit to assist
readers in determining the realised and unrealised
components of fair value movement of investment property,
impairment and tax expense in the Group’s income statement.
The measure is used internally in conjunction with other
measures to monitor performance and make investment
decisions. Underlying profit is a measure which the Group
uses consistently across reporting periods. Underlying profit is
used to determine the dividend pay-out to shareholders.
Authority for this announcement
Name of person
authorised
to make this announcement
Robyn Heyman
Contact person for this
announcement
Robyn Heyman
Contact phone number 027 506 5562
Contact email address robyn.heyman@summerset.co.nz
Date of release through MAP
23 August 2022
Unaudited financial statements accompany this announcement.
---
Distribution Notice
Please note: all cash amounts in this form should be provided to 8 decimal places, including zeros (ie 0.01001000)
Section 1: Issuer information
Name of issuer Summerset Group Holdings Limited
Financial product name/description Ordinary Shares
NZX ticker code SUM
ISIN (If unknown, check on NZX
website)
NZSUME0001S0
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies X
Record date 06/09/2022
Ex-Date (one business day before the
Record Date)
05/09/2022
Payment date (and allotment date for
DRP)
19/09/2022
Total monies associated with the
distribution
1
$24,745,227.24200000
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.10700000
Gross taxable amount
3
$0.10700000
Total cash distribution
4
$0.10700000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.00000000
Section 3: Imputation credits and Resident Withholding Tax
5
Is the distribution imputed
No imputation
1
Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
3
“Gross taxable amount” is the gross distribution minus any excluded income.
4
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
5
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
If fully or partially imputed, please
state imputation rate as % applied
6
N/A
Imputation tax credits per financial
product
N/A
Resident Withholding Tax per
financial product
$0.035310000
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
2%
Start date and end date for
determining market price for DRP
07/09/2022 13/09/2022
Date strike price to be announced (if
not available at this time)
14/09/2022
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New issue
DRP strike price per financial product
TBA
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
07/09/2022
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Robyn Heyman
Contact person for this
announcement
Robyn Heyman
Contact phone number +64 27 506 5562
Contact email address robyn.heyman@summerset.co.nz
Date of release through MAP
23/08/2022
6
Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
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Other issuers discussed similar conditions around this time
Matched by meaning across NZX announcement text, not keywords — based on our semantic index of announcement bodies.
- RYM — Ryman Healthcare Limited: Ryman Healthcare Limited – Annual Report 20222022-06-16
“A strong result in a tough year Strong demand for our continuum of care model, which delivers both peace of mind and security, helped to underpin our strong result this year. The 63.8 percent increase in our reported IFRS profit to $692.9 million was also driven by movemen…”
- KFL — Kingfish Limited: KFL – June 2022 Quarterly Newsletter2022-07-24
“A stark divide between share prices and underlying earnings Stock prices have fallen sharply, but the real-time earnings picture for most of our portfolio companies continues to hold up well. As always, the market is forward-looking, but share prices seem to be factoring a fai…”
- RYM — Ryman Healthcare Limited: Ryman unaudited first half underlying profit of $138.8m2022-11-17
“RYMAN HEALTHCARE LIMITED KEY STATISTICS Sept 22 Sept 21 Mar 22 Half Year Half Year Full Year Unaudited Unaudited Audited Underlying profit (non-GAAP) 1 $m 138.8 95.9 255.0 Unrealised fair-value movement on retirement-village units $m 89.3 178.7 467.1 Defe…”