Financial Results for the Year Ended 31 December 2024
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
28 February 2025
SUMMERSET POSTS $206.4M FULL YEAR UNDERLYING PROFIT
Retirement village operator Summerset Group Holdings Limited today announced a record full
year underlying profit for the year ending 31 December 2024 of NZ$206.4 million, up 8% on
FY23. IFRS net profit after tax was down to $339.8 million with the change largely reflective of
the fair value movement of investment properties recognised in 2024, relative to 2023.
Summerset Board Chair Mark Verbiest said Summerset was pleased with the business’
underlying operating performance in light of 2024’s tough macroeconomic environment.
“We have continued to deliver value for our residents and shareholders during a year which has
been one of the most challenging we’ve seen as a company. Like most other businesses in 2024
we had to work within an environment where higher costs, inflation and the subdued residential
property market all made our work harder. Despite these challenges, we have continued to
grow,” Mr Verbiest said.
Summerset delivered its highest ever sales with 1,238 ORA homes contracted for 2024, up 12%
on FY23.
Summerset CEO Scott Scoullar said the company’s broadacre build strategy was a continued
strength.
“We continue to see the benefits of our regionally diverse portfolio with eight regions seeing over
30 sales settlements across 2024, highlighting the broad appeal and strength of our villages
nationwide. When we exclude the three new village centre buildings we opened this year our
• Underlying profit for FY24 of NZ$206.4m, up 8% on FY23
• Total revenue of NZ$319.9m up 18% on FY23
• Total assets of NZ$8.1b, up 16% on FY23
• Three new sites and two land extensions acquired this year in New Zealand
• 1,238 total sales of occupation rights, up 12% on FY23
• 708 new homes under occupation right agreement (ORA) delivered (676 in New Zealand
and 32 in Australia)
• Land bank total of 6,147 retirement homes and 1,396 care homes across NZ and
Australia
• Gearing ratio at 36.4%
• Development margin of 28.9%
• Final dividend of NZ13.2 cents per share
• Village and care resident satisfaction 97%
• Staff retention 81% up 4% on FY23
• F
uncontracted stock is down between 20-50% year-on-year across our home types, a very
pleasing result in a tough market,” Mr Scoullar said.
Mr Scoullar said Summerset had continued to live the company’s purpose and ‘bring the best of
life’ to its residents with continued high satisfaction scores and external acknowledgement of
their work.
“Our resident satisfaction scores have remained extremely high for both village and care
reflecting the work our team have put in to provide the best retirement living experience we can.
“We’ve also won a number of awards this year including Gold for the Reader’s Digest 2025
Quality Service Award in the Retirement Villages category, the second year in a row we’ve won
this award.”
Construction
Summerset again met its forecast build target, delivering 676 homes under ORA in New Zealand
and 32 in Australia, up 10 percent on FY23. The company’s New Zealand deliveries was
consistent with guidance provided at the Half Year result where Summerset indicated it would
deliver at the lower end of the 675-725 forecast range.
The company was building on 20 sites across New Zealand and Australia in 2024 and delivered
some significant projects including the main buildings at its Boulcott (Lower Hutt) and St Johns
(Auckland) villages.
Mr Scoullar said Summerset reported a development margin of 28.9% down from 31.6% in
FY23, driven by a change in the company’s sales mix with a higher proportion of care and
memory care suites sold than previous years.
St Johns village opened on time and on budget
Summerset’s flagship village, St Johns, was delivered on time and on budget in October 2024
and opened officially by New Zealand Prime Minister, Rt. Hon. Christopher Luxon in December.
This complex build on the 2.6ha site, in the heart of Auckland, features six multi-storey buildings
with excellent views of Auckland city and Rangitoto.
Mr Scoullar said St Johns was a unique opening for the company, delivering a large percentage
of the village’s homes in the first stage, along with facilities such as the indoor pool, café and
library.
“We typically develop broadacre villages where we deliver homes in a staggered process across
multiple years. However, the nature of St Johns has meant we have delivered 60% of its homes
on day one. Having care available immediately, along with its facilities increases the appeal to
our prospective residents, however it does mean we have higher levels of uncontracted stock
than normal.
“So far we have approximately 30% of St Johns’ available homes under contract, a figure we’re
pleased with, and which compares very favourably with similar retirement villages in the area
which have been open much longer.”
Continued progress in Australia
Mr Scoullar said the company’s Australian development continues to progress, with another
milestone achieved in 2024, the first Australian residents moving into its Cranbourne North
village in March.
“Our Cranbourne North village is on track and we’ve commenced construction on the village’s
main building which will be home to our first Australian care residents when complete. We’ve
also started construction at our second village in Chirnside Park and we have been granted
planning permits for our Torquay and Oakleigh South villages.
“We continue to take a measured and cautious approach to our Australian development as we
build our knowledge of that market.”
New land in New Zealand
Summerset announced the purchase of three new village sites and two extensions to existing
villages in 2024.
The three proposed village sites at Belmont (Auckland), Otaihanga (Kāpiti Coast) and Mission
Hills (Napier) are in high demand areas, while the two village extensions at Boulcott (Lower Hutt)
and Blenheim will allow Summerset to add profitable new homes to villages where the upfront
cost of the village infrastructure has been paid.
“While 2024 has presented business challenges, the softer property market has provided us with
opportunities for well-priced acquisitions. We are pleased to have added more than 1,100 new
homes to our very strong land bank,” says Mr Scoullar.
Aged care funding
Mr Scoullar said that Summerset was considering changes to its care model due to the state of
aged care underfunding in New Zealand.
“While we’ve created greater financial certainty for ourselves, and our residents, by moving to
care ORAs at many of our villages there is still a major gap between our aged care funding and
the costs of running our care centres.
“We are currently reviewing our policies and where this funding gap is leaving us. We will have
to consider making our care centres available to our village residents only and no longer
accepting referrals from the public health system.
“It’s not a step we want to take but we need to focus our limited funding and staffing resources
on our village residents and their needs. We don’t want to end up overstretching our staff. We
know this will mean a bigger burden will be placed on the public health system, but we can’t
keep taking the strain.”
Looking forward
“During 2024 we showed the strength of Summerset’s balance sheet despite trading in
conditions labelled by some commentators as worse than the Global Financial Crisis. We have
worked hard to control our costs, our cash flow is improving, our asset base is strong and our
balance sheet is well positioned
“We will continue to grow and bring more New Zealanders and Australians into our retirement
villages.”
The Board has declared a final dividend of NZ13.2 cents per share, bringing the total dividend
payable for FY24 to NZ24.5 cents per share.
ENDS
For investor relations enquiries: For media enquiries:
Sarah Theodore Louise McDonald
Acting Chief Financial Officer Senior Communications & Media Advisor
sarah.theodore@summerset.co.nz louise.mcdonald@summerset.co.nz
+64 21 246 3793
ABOUT SUMMERSET
• Summerset is one of the leading operators and developers of retirement villages in New
Zealand, with 40 villages completed or in development nationwide
• In addition, Summerset has seven proposed sites at Belmont (Auckland), Rotorua (Bay
of Plenty), Mission Hills (Napier), Masterton (Wairarapa), Otaihanga (Kāpiti Coast),
Rolleston (Canterbury) and Mosgiel (Dunedin)
• Summerset also has three villages in development (Cranbourne North, Chirnside Park
and Torquay) and four other properties in Victoria, Australia (Craigieburn, Drysdale,
Mernda, and Oakleigh South)
• Summerset provides a range of living options and care services to more than 8,700
residents
---
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 12 months to 31 December 2024
Previous Reporting Period 12 months to 31 December 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$319,903 17.5%
Total Revenue $319,903 17.5%
Net profit/(loss) from
continuing operations
$339,838 (20.1%)
Total net profit/(loss) after tax $339,838 (20.1%)
Underlying profit * $206,350 8.4%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.132 per Ordinary Share
Imputed amount per Quoted
Equity Security
Not imputed
Record Date 14 March 2025
Dividend Payment Date 27 March 2025
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$12.53 $11.09
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
See also other attached documents (annual 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
28 February 2025
Audited financial statements accompany this announcement.
---
Distribution Notice
Please note: all cash amounts in this form should be provided to 8 decimal places
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 X Quarterly
Half Year Special
DRP applies X
Record date 14/03/2025
Ex-Date (one business day before the
Record Date)
13/03/2025
Payment date (and allotment date for
DRP)
27/03/2025
Total monies associated with the
distribution
1
$31,634,896.12800000
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
2
$0.13200000
Total cash distribution
3
$0.13200000
Excluded amount (applicable to listed
PIEs)
$0.00000000
Supplementary distribution amount $0.00000000
Section 3: Imputation credits and Resident Withholding Tax
4
Is the distribution imputed No imputation
If fully or partially imputed, please
state imputation rate as % applied
N/A
Imputation tax credits per financial
product
N/A
Resident Withholding Tax per
financial product
$0.04356000
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
“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.
4
The imputation credits plus the RWT amount is 33% of the gross distribution for the purposes of this form. If the distribution is fully
imputed the imputation credits will be 28% of the gross distribution with remaining 5% being RWT. This does not constitute advice
as to whether or not RWT needs to be withheld.
Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
2%
Start date and end date for
determining market price for DRP
17/03/2025 21/03/2025
Date strike price to be announced (if
not available at this time)
24/03/2025
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
17/03/2025
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
28/02/2025
---
Results presentation
For the year ended 31 December 2024
Summerset Group Holdings Ltd
Summerset at Pōhutukawa Place (Bell Block, New Zealand)
Agenda
Full Year Report 2024
Trading update
About Summerset
02
03
04
05
06
07
2
01
08
09
Our highlights
Our environment
New Zealand development
Australia development
Financial performance
Business performance
Questions
Appendix
10
Trading update
Trading update
Market conditions are stable with some early signs of improvement. We are seeing steady settlements to start
FY25 with contract levels lifting
Trading update
3
Full Year Report 2024
•Summerset achieved a 12% increase in settlement volumes year on year despite a challenging operating environment across FY24
•We expect Q1 2025 settlements to be in line with Q1 2024 and have not seen any drop off relative to the prior year
•We remain cautious given we are only eight weeks into the year, however, sales contract rates appear to be improving across the
portfolio - up circa 30% year to date. We now have 430 units under contract across our new sales and resales stock
•Closing balance of repurchased units in line with FY23 at $17.8m, proportionally lower relative to our closing portfolio size
•Summerset’s level of incentive usage on a per settlement basis over the last six months is lower than what we have historically seen
on average over the last seven years
•Independent market reporting from Neilson Ad Intel on media spend across the RV sector shows aggregate sector spend remains at
consistent levels over the last 12 months
•New St Johns sales contracts tracking at around two per week to start FY25
•67 of 196 units delivered either under contract or settled, including over 50% of care suites in the care centre
•Full calendar of events in place and almost 30 new enquiry per week seen across January and February 2025
•We continue to have a strong brand, high customer satisfaction, the lowest deferred management fee in the market and a clear
proposition on weekly fees that is well understood by prospective residents
•As closing new sale stock reduces to levels seen at FY20 and FY21 we expect to release around $200m in additional new sales
receipts
•FY25 build rate guidance of 600 to 650 units to be sold under Occupation Right in New Zealand and 50 to 80 in Australia, a similar
rate to FY24 and we will assess this in line with market conditions throughout the year
4
Summerset St Johns (Auckland, New Zealand)
01
About Summerset
Full Year Report 2024
5
About Summerset
Who we are
What we do
▪Summerset is the second largest and fastest growing retirement village operator in New Zealand with a portfolio of 6,600+
retirement units and 1,200+ care units, including our first 42 in Australia
▪We are vertically integrated – this means we are responsible for land acquisition, construction and procurement through to
asset management and operations
▪We have villages in New Zealand and Australia and make money through three core areas – village development, operating
the retirement villages we’ve built and finally from our care centres
Full Year Report 2024
About Summerset
The sector and our residents
▪The RV sector in both New Zealand and Australia benefits from compelling demographics, driven by an ageing population,
increasing market penetration and a contraction of new units being delivered
▪A typical resident joins one of our villages in their 80s. The decision is driven by life events (e.g. changes in health or the family
home being too large) – these factors don’t change
▪Residents choose Summerset for the community, security, support and availability of care when they need it
▪The demographic tailwinds create a real opportunity for well established operators, like Summerset, to continue to grow
▪We are well positioned to execute on this growth, having New Zealand’s largest retirement village land bank and a
successful track record of delivering new units
Summerset builds, owns and operates integrated retirement villages,
creating vibrant, happy communities for residents and our people
6
About Summerset
Who we are
What makes us different
▪We have a diversified land bank – this means we are less exposed to changes in individual property markets and can quickly
adapt to changes in market conditions
▪We have a well established internal development and construction model. Summerset is the leader in this field in New
Zealand
▪We focus on broad acre development – by primarily selecting sites that are 8ha to 10ha in size and include 220 to 250 villas
and a main building with a small care centre that has enough care for village residents
▪This approach ensures peak working capital is minimised and revenue can be earned early in the development lifecycle
as units are delivered in stages
▪We have no core debt – we focus on capital recycling which means we fully pay for the costs of developing a village through
the first sell down, leaving us with a free asset* and the ongoing future cash flows from that village
▪We have a strong balance sheet with quality assets, a prudent approach to capital management and positive capital recycling
▪Offering a continuum of care is vital to the customer value proposition and we will continue to ensure there is care available for
our residents when then need it. This is a key differentiator as we grow our footprint in Australia
▪Australia is a substantial opportunity to replicate the growth and success in New Zealand – we already have capacity to build
over 2,100 units across seven villages. Queensland identified as the next logical step for expansion
Full Year Report 2024
About Summerset
Summerset builds, owns and operates integrated retirement villages,
creating vibrant, happy communities for residents and our people
* A village that has repaid all costs associated with development
upon first sell down of units, noting we have a resident obligation
to repay when they leave
angiora
lenheim
asebroo
vonhead
igram
rebbleton
olleston
osgiel
unedin
a leigh South
or ua
ranbourne orth
hirnside ar
ernda
raigieburn
r sdale
enepuru
otea
oulcott
rentham
asterton
elvin rove
aveloc orth
astings
e wa
apier
ission ills
otorua
aup
p moa each
ati ati
anu au
alf oon a
St ohns
elmont
hang rei
ell loc
ew l mouth
ambridge
amilton
ototuna
ara a
llerslie
obsonville
illdale
ar worth
hanganui
almerston orth
evin
ai anae
taihanga
araparaumu
elson
ichmond
7
Diversified portfolio throughout New Zealand and Australia
Portfolio composition
Portfolio composition
Full Year Report 2024
About Summerset
6,671
Retirement units
in portfolio
6,147
Retirement units
in land bank
1,396
Retirement
village occupancy
94%
Care units in
portfolio
8,700+1,299
Residents
3,000+
Staff membersCare units in
land bank
94%
Care centre
occupancy
54
Villages in
portfolio
$8.1b
Total assets
$12.53
NTA per share
Summerset builds, owns and operates integrated retirement villages,
creating vibrant, happy communities for residents and our people
Proposed villages
In development
Completed villages
Care centre upgrades
About Summerset
Full Year Report 2024
8
02
Our highlights
Full Year Report 2024
Summerset St Johns (Auckland, New Zealand)
Our highlights
Full Year Report 2024
Record underlying profit of $206.4m, up 8% on FY23 with record total settlements of 1,238, up 12% on FY23
1,238
1,103FY23
676
FY23633
NZ units delivered to be sold
under Occupation Right
$1.7b
Embedded value
$1.6bFY23
FY236,909
7,543
$206.4m
Underlying profit
FY23$190.3m
Operating cash flows
FY23FY23
$339.8m
$425.3m
34.6%
FY2336.5%
$443.2m
$398.2m
28.9%
FY2331.6%
Net profit after tax
Development marginResales cash margin
Sales of
Occupation Rights
New Zealand and Australia
land bank (including care)
9
Our highlights
FY24 year in review
Record total settlements of 1,238, up 12% on FY23, supported by strong cost and balance sheet management
Our highlights
10
Full Year Report 2024
Financial performance
Sales results and
St Johns update
Record underlying profit
▪Underlying profit of $206.4m, up 8%
▪Net profit after tax of $339.8m, with total
revenue of $319.9m, up 18% on FY23
▪Record net operating cash flow of $443.2m, up
11%, including record resales cash flow of
$138.2m
▪Achieved realised development margin of
$118.4m, with a margin of 29% per unit
▪The Board has declared an unimputed final
dividend of 13.2cps
Robust balance sheet management
▪Total assets now $8.1b, up 16% with total
equity of $3.0b, up 14%
▪Gearing ratio of 36.4% and interest cover ratio
of 3.98x (vs covenant of 1.75x)
▪The business has no core debt with surplus
cash above asset backing of $317.8m
▪Undrawn debt capacity of $784.9m
▪Embedded value within portfolio of $1.7b, up
7% on FY23
Strong sales across FY24
▪Record 1,238 total settlements, up 12%,
comprising 588 new sales and 650 resales
▪Resales cash margin of 34.6%
▪Committed sales pipeline of 355 units at FY24,
increasing to 430 in February 2025, up 21%
▪FY24 gross proceeds from St Johns of $35.2m,
with gross proceeds per apartment of $2.6m
▪22 units settled at St Johns with a further 35
units contracted at FY24
Balance sheet and
cost control
FY24 year in review
Excellent resident satisfaction of 97% with high occupancy achieved across both village and care
Our highlights
11
Full Year Report 2024
Bringing the best of life
Development and
land bank
Australia update
Continue to prioritise resident experience
▪Excellent resident satisfaction of 97% achieved
in 2024
▪Strong occupancy of 94% for both retirement
villages and care centres
▪ inner of the eader’s igest Qualit Service
Award
▪Named as finalist for Best Provider Nationwide
in the ged dvisor eople’s hoice wards
▪High staff engagement, scoring of 8.1 out of 10
▪Supported over 200 community groups that
align with our residents’ values
Sector leading development
▪Delivered 676 units in New Zealand to be sold
under Occupation Right Agreement along with
21 care beds
▪Five new sites acquired, comprising three new
villages and two extensions
▪Portfolio of 7,928 units and a land bank of
5,377 units across New Zealand
▪15 villages in construction with almost 80% of
New Zealand land bank consented*
▪Achieved an FY24 development margin of
29%, above target range of 20% to 25%
First village opens in FY24
▪First Australian residents moved into our
Cranbourne North village in March
▪Delivered 32 villas at Cranbourne North
bringing our Australian portfolio to 42 units
▪Australian land bank of 2,166 units, with
development plan approved for Torquay along
with the planning permit for Oakleigh South
▪Country and smoking ceremony held at
Torquay prior to construction starting
▪Main building welladvancedat Cranbourne
North and construction underwayat Chirnside
Park
*Excludes sites acquired in FY24
Our highlights
12
Full Year Report 2024
Acquisitions – three new sites and two extensions announced
Over 1,150 total units added to the land bank in 2024, across four separate regions in New Zealand
Belmont, AucklandMission Hills, Hawkes BayOtaihanga, Kāpiti Coast
Extension - Blenheim, Marlborough
Approximately 330
independent homes
Rest home and
hospital-level care
35 bed
care centre
Approximately 270
independent homes
Approximately 320
independent homes
35 bed
care centre
35 bed
care centre
Rest home and
hospital-level care
Rest home and
hospital-level care
Approximately 100 independent homesAdditional amenities: pickleball, croquet, pétanque and clubhouseApproximately 48 independent homesAdditional amenities: pickleball, croquet, pétanque and clubhouse
Extension - Boulcott, Lower Hutt
Extension land
Extension land
Existing village
Existing village
To match our customers' expectations we strive to
create new products, amenities and services with a
continuum of care at the heart of our offering. Our
products are tailored to the needs of individual
communities, but will always look to exceed the demands
of customers who may want more
Summerset’s people are vital to its success.
We are committed to providing sustainable, meaningful
career pathways and opportunities. We are focused on
the health, safety and the wellbeing of our employees
to ensure they can be at their best at work, and at home
We create vibrant, connected communities with skilled,
caring and dedicated people right across New Zealand.
We want to grow the reach of our villages by making them
available to more retirees in more locations throughout
New Zealand
Progress against our strategy
Full Year Report 2024
About Summerset
Summerset builds, owns and operates integrated retirement villages, creating vibrant, happy communities
for residents and our people that delivers on our purpose – bringing the best of life
DELIVER NEW
ZEALAND’S
BEST RETIREMENT
VILLAGES
Our strategic goals are underpinned by our desire to bring increased
wellbeing to our customers and our people by harnessing the power of
innovation and weaving sustainability into our work
13
FY24 progress
•Delivered our flagship village, St Johns, on time and on
budget with first residents moving in during October 2024
• inner of the eader’s igest Qualit Service ward for the
second year running
•Finalist in the ‘ est rovider ationwide’ categor of the ged
dvisor annual eople’s hoice wards
•Three new sites and two extensions announced along with
three new care centres delivered in FY24
•Successfully launched new brand campaign emphasising the
benefits of life in our villages, named as finalist in the 2024 NZ
Marketing awards
•Achieved record resident satisfaction of 97% (village & care)
INVEST IN
OUR PEOPLE
CREATE
ATTRACTIVE
NEW PRODUCTS
AND SERVICES
FY24 progress
•Maintained our high staff engagement scores - Summerset is
in the top quartile for New Zealand healthcare providers
•Gifted staff an additional day of leave as a thank you for their
hard work undertaken across 2024
•Provider of wide range of employee benefits including free
healthcare and $1,000 in shares annually for permanent staff
•Introduced health and safety platform HIS Donesafe as part of
our three year health and safety strategy
•Member of Pride Pledge, publicly committing to a workplace
where LGBTTQIA+ people are safe, included and visible
•Commenced new partnership with TELUS Health, providing
staff and their families with a broad range of wellbeing tools
FY24 progress
•Villa refresh design project and second generation of award
winning main building design both now complete
•New single storey main building design for regional areas also
complete, reduces capital outlay without impacting on the
resident experience
•First tranche of care centre upgrades near completion at
Havelock North and Trentham, both will reopen in 1H25
•Additional amenities incorporated into future masterplans
including golf simulators, pickleball courts, dog washes, wine
cellars, more green spaces and outdoor BBQ areas
•Popularity of our villages remains high with 94% occupancy
for both our retirement villages and care centres
Technology will provide significant opportunities to
make us more effective and efficient in how we deliver
services to residents, without losing the human touch and
care that we’re nown for. t will be used to ma e the lives
of our residents simpler, giving them more time to enjoy
retirement
We are proud of our industry leading approach to
sustainability, making significant improvements in this
space over the last five years. This is the start of our
journey - we will continue to focus on finding new
opportunities to better ourselves, utilise sustainable lending
and meet our growing disclosure obligation
Summerset is ambitious about its future in Australia. We
are excited to be taking our established brand of
retirement village living into the Australian market - we plan
to deliver thriving communities, grow our team, and
expertise as we open villages in Victoria
FY24 progress
•Winner of the Transformation of the Year award at the NZ
Procurement Excellence Forum
•Resident platform, Lumin, now in 17 villages allowing
residents to communicate with each other, book activities,
access entertainment, receive messages and book services
on specially designed system for elderly users
•Rolled out the app based version of our resident care system
VCare, keeping staff on the floor spending more time with
residents
•Piloted a remote nursing service called the National Clinical
Support Service to provide an extra layer of support for staff
when caring for residents
Progress against our strategy
Summerset builds, owns and operates integrated retirement villages, creating vibrant, happy communities
for residents and our people that delivers on our purpose – bringing the best of life
GROW IN
AUSTRALIA
Our strategic goals are underpinned by our desire to bring increased
wellbeing to our customers and our people by harnessing the power of
innovation and weaving sustainability into our work
14
FY24 progress
•Welcomed first residents into Cranbourne North in March
•Cranbourne North main building under construction with
delivery expected late in 2025 and residents to move in early
2026
•Chirnside Park under construction, first units due in late 2025
•Oakleigh South planning permit approved and the
development plan for Torquay also now granted
•Torquay sod turning ceremony held in November
•Continue to see Australia as a significant growth opportunity
and are actively investigating new sites in Victoria and
Queensland to complement our existing pipeline of over 2,100
units
BE A GOOD
CORPORATE
CITIZEN
BE A MORE
EFFICIENT AND
EFFECTIVE
BUSINESS
FY24 progress
•Winner of the 2024 Ethical and Sustainable Business Awards
for ethical and sustainable practices in wealth and wellbeing
creation
•Named a Sustainability Leader in the 2024 Australian
Financial Review Property and Construction category
•Diverted 4,409 tonnes of construction waste from landfill
•Sponsor over 200 local clubs that align with our residents’
interests and Summersets’ brand and values
•Achieved all three of our sustainability linked lending
performance targets
•Added over 1,000 solar panels to main buildings and over 80
charging bays for electric vehicles
About Summerset
Full Year Report 2024
15
03
Our environment
Full Year Report 2024
Sustainability snapshot
Our environment
16
Full Year Report 2024
total greenhouse gas emissions from 1 January
to 31 December 2024
Solar panels installed on the main buildings of
our Boulcott, p moa Beach, Richmond and
Rototuna villages
Expanded our network of electric vehicles
nationwide providing convenient access for
residents, staff and visitors
of waste diverted from landfill, exceeding both
metro and regional diversion targets through
our construction waste avoidance programme
in the upfront embodied carbon of our
townhouse typology
Achieved all three of our sustainability linked
lending performance targets, attracting an
interest margin discount
Transitioned to using low carbon concrete as
the standard for all new build concrete
applications
in utilising biomass fuel installing a wood pellet
boiler at our St Johns village
planted at our Waikanae village to enhance
biodiversity and restore natural habitats
Invested in voluntary carbon offsetting and
renewable energy certificates to support
emissions reduction and demonstrate our
commitment to 100% renewable electricity
at a series of partner and supplier forums to
strengthen relationships and drive progress
towards our supplier engagement target
72,925 tCO
2
e
1,000+
80+ charging bays
4,409 tonnes
100%
28% reduction
Took our first step80,000+ natives
30% reduction
400+ attendeesElectric vehicles
Carbon offsets
15 villages now have an electric vehicle
available for residents to use
Further details available in our 2024 Sustainability Review report (www.summerset.co.nz/investor-centre)
0.000
0.002
0.004
0.006
0.008
0.010
0.012
0.014
0.016
0.018
-
10
20
30
40
50
60
-
0.002
0.004
0.006
0.008
0.010
0.012
0.014
0.016
0.018
-
10
20
30
40
50
60
FY17
(foundation
year)
FY18FY19FY20FY21FY22
(base year)
FY23FY24
TCO
2
e per sqm
TCO
2
e per $m revenue
Key metrics
Environmental performance and sustainability
Our environment
17
Full Year Report 2024
2017 - 2022
Original short-term target
2023 – 2028*
Near-term target
2017 – 2032*
Longer-term target
5%49%62%
Reduction in emissions intensity
per $1m of revenue by 2022
(2017 base year)
Reduction in emissions intensity
per square metre by 2028
(2022 base year)
Reduction in emissions intensity
per square metre by 2032
(2017 base year)
16%20%22%
Reduction achievedReduction to dateReduction to date
▪Summerset strives to develop, build and operate more
sustainable retirement villages in New Zealand and
Australia
▪We have been successfully measuring, managing and
reporting on our carbon footprint since 2017 (our
foundation year)
▪Consistently recognised as a sustainability leader,
including by the Australian Financial Review, the
Retirement Villages Association of New Zealand, Money
Matters and Catalyst Leadership
▪Our near-term emissions reduction target is validated by
the Science-Based Targets initiative, ensuring a
science-backed approach to achieving emission
reductions
▪We are on track to achieve our targets and to implement
our decarbonisation pathway
▪Key areas of focus are expanding solar adoption,
enhancing energy efficiency, increasing EV
infrastructure and embedding sustainability into
our supply chain
▪Our Sustainability Review report and climate related
disclosures are available on our website
(www.summerset.co.nz)
* Science-based targets
tCO
2
e emissions reduction
TCO
2
e per $m revenueTCO
2
e per sqm
Our sustainability framework and targets
Our vision is to develop villages responsibly, creating a sustainable future for all
Our environment
18
Full Year Report 2024
STRATEGIC
GOALS
Reduce our impact on the planet
through efficiency and innovation
•Reduce carbon footprint
•Reduce landfill waste
•Energy efficiency
•Measure water take
•Sustainable design and construction
practices
•Embrace technology including solar
5 year – Short term carbon target:
Reduce Scope 1 and 2 emissions intensity by
49% per sqm by 2028 from an FY22 baseline
10+ year – Long term carbon target:
Reduce emissions intensity per sqm by 62% by
2032
15+ year – Carbon net zero by 2050
OUR FOCUS
AR EAS
OUR
TARGETS
Contribute to the economic
prosperity of New Zealand and
Australia
Create caring communities for our
residents and employees
•Adapt to economic conditions
•Fulfil sustainability-linked lending criteria
•Provide a secure and sustainable business
for shareholders
•Fulfil governance and compliance
obligations
•Act ethically and responsibly
•Support local communities
•Provide a safe workplace
•Staff wellbeing
•Diversity and inclusion
•Grow stakeholder understanding of
sustainability
Sustainability Linked Loans:
Ongoing dementia certification and increase
dementia beds
5% year on year reduction in carbon intensity
per sqm scopes 1, 2, 3 net full value chain
Diversion of construction waste from landfill
(selected scopes)
1.
2.
3.
Scope 3 target:
70% of Summerset’s suppliers, b emissions, will
have science-based targets by 2028
O u r a f f i l i a t e s
S U S T AI N A B L E
D E V E L O P M E N T
G O AL S
Our climate action plan
Our climate action plan summarises how we are tackling the challenge of decarbonisation and transition
Our environment
19
Full Year Report 2024
O U R
P R I O R I T I E S
D E S I G N &
C O N S T R U C T I O N
D E C AR B O N I S AT I O N O F
V I L L AG E S
M AN AG I N G O P E R AT I O N AL
E F F I C I E N C I E S
O U R
I N I TIAT I V E S
Design and Construction
▪ e’re ta ing a holistic, sustainable design
approach where designing for operational
needs is considered up-front, and where we
actively look to utilise low carbon construction
processes, materials and products
Smart Water Management
▪Adopting smart water management practices
across our villages’ entire lifec cle
Solar Generation
▪Installation of solar panels on new and
existing villages reduces our emissions and
reliance on the national grid
Gas Transition
▪Staged transition of existing villages off gas to
a more sustainable alternative
Embodied Carbon
▪We are calculating the embodied carbon of
standard typologies within our built
environment to assist in identifying
opportunities and ways where we can reduce
our impact
Electrification of Fleet
▪Transitioning our fleet vehicles away from
fossil fuels to electric vehicles and hybrid
alternatives
Minimising Waste
▪Continued focus on waste minimisation
through recovery and diversion and
advancing a circular economy mindset
Energy Efficiency
▪Optimisation and fine tuning of our building
management systems coupled with energy
efficient technology to reduce overall energy
use
20
Summerset at Pōhutukawa Place (Bell Block, New Zealand)
04
New Zealand development
Full Year Report 2024
New Zealand development
▪Delivered 676 units to be sold under Occupation Right and
21 care beds across 13 sites
▪Strong cost management in place - Procurement team
named as winners of the Transformation of the Year award
at the NZ Procurement Excellence Forum
▪Significant milestone at St Johns with 196 units delivered,
including main building and penthouses
▪Currently have 15 villages in construction across ten
regions in New Zealand, with a further three care centre
upgrades underway at Havelock North, Levin and Trentham
▪Half Moon Bay civils and stage one progressing well and
civils now underway at Kelvin Grove
▪Five main buildings under construction and on track for
delivery across 2025 and 2026 - at Blenheim, Cambridge,
Milldale, Waikanae and Warkworth
▪Almost 80% of the NZ land bank is consented* setting the
business up to continue to deliver in 2025
▪First deliveries expected at Rangiora in 2H25
Summerset Half Moon Bay (Auckland)
Summerset St Johns (Auckland)
Development activity
New Zealand summary
21
Full Year Report 2024
* Excludes sites acquired in FY24
New Zealand development
Summerset Milldale (Auckland)Summerset Mt Denby (Whangārei)
Summerset at Pōhutukawa Place (New Plymouth)Summerset by the Dunes (Pāpāmoa Beach, Tauranga)
22
Full Year Report 2024
Summerset Cambridge (Waipā District)
80 independent villas delivered
23
Main building with the village recreation amenity, 60 serviced apartments,
20 memory care apartments and 36 care units on track to be delivered in 2H25
Site progress – December 2024
Full Year Report 2024
New Zealand development
New Zealand development
Summerset Kelvin Grove(Palmerston North)Summerset Palms (Te Awa, Napier)
Summerset Waikanae (Kāpiti Coast)Summerset Boulcott (Lower Hutt)
24
Full Year Report 2024
Summerset on Cavendish (Casebrook, Christchurch)
270 independent villas
delivered
25
Project cash profit of $34.7m and cash margin
of 18.0% returned to the business
Main building with 56 serviced apartments, 20 memory care
apartments and 43 care beds delivered
Village completed in 2024
Full Year Report 2024
New Zealand development
New Zealand development
Summerset Blenheim (Marlborough District)Summerset Richmond Ranges (Tasman District)
Summerset Rangiora (Waimakariri District)
26
Full Year Report 2024
Summerset Prebbleton (Selwyn District)
New Zealand development pipeline
New Zealand development
Diversified development pipeline of 22 sites*
27
Full Year Report 2024
* Excludes care centre upgrades at three sites (Havelock North, Levin and Trentham)
** New site purchased
Project cash profits
New Zealand development
28
▪Summerset developments produce positive net cash
flows (net cash position) upon completion, this
means they carry no debt after first sell down
▪All feasibility expense and revenue inputs are
updated regularly as part of our internal
development management processes
▪New Zealand villages currently under development
are expected to return over $280m in positive net
cash profits on completion
▪Villages in early-stage development are likely to
experience at least one residential property cycle
during construction, improving the net cash position
significantly over the life of the project
▪ verall, the four villages in the ‘last stage’ of
development are forecast to return between $30m
and $50m per project – in line with Casebrook that
completed in FY24, achieving a project cash profit of
$34.7m
Full Year Report 2024
Project cash profit:
The final cash return from developing a village. Incorporates the land cost, independent living
unit (ILU) costs, recreation and administration facility costs, care centre costs, management
fees (incl. a share of corporate overheads), interest costs and the first-time sales proceeds for
all units sold under Occupation Right
$280m+
Projected net cash
position
Cash margin on recently
completed villages
Completed villages
Year
complete
ORA
units
Non-ORA
units
Project cash
profit
Cash
margin
Previously completed2018 to 20232,154324$195.2m14.1%
Casebrook202434643$34.7m18.0%
Total 2,500367$229.9m14.6%
14.6%
Development stageVillage
Forecast capital
investment
Forecast net cash
position
Last stages
Bell Block
$150m - $250m$30m - $50m
p moa each
Richmond
Te Awa
Last stage villages$0.7b+$150m+
Mid stages
Cambridge
$200m - $500m($15m) - $100m
Boulcott
Prebbleton
St Johns
Whangarei
Mid stage villages$1.5b+$125m+
Early stages
Blenheim
$200m - $500m($25m) - $30m
Half Moon Bay
Kelvin Grove
Milldale
Rangiora
Waikanae
Early stage villages$1.6b+$5m+
Total New Zealand$3.9b+$280m+
29
Summerset Cranbourne North (Melbourne, Victoria)
05
Australia development
Full Year Report 2024
Development Australia
Australia development
30
Full Year Report 2024
$3.0m+
Projected net cash
position
Villages under
construction
Three
Australia summary
▪Summerset continues to make good progress at our
first Australian village, Cranbourne North, in 2024
▪Welcomed our first residents in March
▪Delivered 32 villas, bringing the Australian
portfolio to 42 villas
▪Main building construction progressing well,
with delivery expected late in 2025 with care
centre operations to commence in 2026
▪Hilltop Reserve, adjacent to the village, gifted
to local community in November
▪At our second site, Chirnside Park, civil construction
well progressed and construction of stage one villas
to begin in 1H25, first deliveries expected in Q4
2025
▪Sod turning ceremony held at Torquay in November
with enabling works now underway
▪Project cash profit from our first three sites, all in
early-stage construction, currently forecast to return
a combined forecast net cash position of over $3m
▪Almost 50% of the Australian land bank is now
consented with capacity to build over 2,100 units
(including over 450 beds)
Main building - Summerset Cranbourne North (Melbourne) – due Q4 2025
Development stageVillage
Forecast capital
investment
Forecast net cash
position
Early stages
Chirnside Park
$200m - $350m($15m) - $20mCranbourne North
Torquay
Total Australia$800m+$3m+
Summerset Cranbourne North, Melbourne
6.8 hectare site announced to market
10 independent villas delivered
42 independent villas delivered, main building
under construction
31
Civils and earthworks near completion, first
villa foundations underway
Site progress – December 2024Site progress – December 2023
Acquisition – September 2019Site progress – December 2022
Full Year Report 2024
Australia development
Australia development
Summerset Chirnside Park, Melbourne
Civil construction underway,
villa construction to start in 1H25
32
Full Year Report 2024
Rest home and hospital level care
will be available
Village will have 185 villas, 28 assisted living apartments
and a 72 bed care centre on completion
Site progress – December 2024
Australia development
Australia development pipeline
Seven villages in planning and development across Victoria
33
Full Year Report 2024
34
06
Financial performance
Full Year Report 2024
Reported profit (IFRS)
Financial performance
35
▪Net profit after tax of $339.8m with total revenue of
$319.9m (up 18% on FY23) reflecting strong
occupancy in both village and care
▪Fair value movement of investment property of
$372.6m. Key movements:
▪New units delivered of $111.8m compared to
$159.1m in FY23. The decrease includes fewer
new units valued relative to FY23
▪Uplift in retirement unit pricing of $131.7m
▪Total expenses of $310.4m, up from $263.8m in
FY23. The main drivers were:
▪an increase of approximately $24.9m relating
to new villages and growth
▪$8.4m on inflationary cost pressures (e.g.
wages, insurance, rates, etc)
▪$7.1m impairment loss on assets
▪Tax expense of $15.9m, up from $13.8m tax credit in
FY23, due to a change in New Zealand tax rules
removing depreciation for ‘non-residential’ buildings
in New Zealand
Full Year Report 2024
Total revenue
$339.8m
Net profit after tax
$319.9m
18%20%
* Fair value movement of Investment property has been restated for FY23. Refer to appendix (slide 67) for further details
NZ$mFY24FY23*VarianceFY22
Total revenue319.9272.218%238.7
Fair value movement of investment property372.6430.6(13%)268.8
Total income692.5702.8(1%)507.5
Total expenses310.4263.818%225.4
Net finance costs26.427.5(4%)17.0
Net profit before tax355.8411.5(14%)265.1
Tax expense / (credit)15.9(13.8)(215%)(4.0)
Net profit after tax339.8425.3(20%)269.1
Fair value movement of investment property
$372.6m
$111.8m
$131.7m
$32.2m
$53.9m
$45.8m
$14.8m
$17.6m
-
$50m
$100m
$150m
$200m
$250m
$300m
$350m
$400m
Value of new
retirement
units built
Retirement
unit pricing
Reversal of
valuers'
stock
discount
assumptions
Movement
in land
bank
Growth rate
assumptions
Discount
rate
assumptions
OtherFair value
movement
FY24
Underlying profit
Financial performance
$206.4m
Underlying profit
36
Full Year Report 2024
•Record underlying profit of $206.4m, up 8% on
FY23 with improved performance in both care and
village operations
•Care EBITDA of $2.7m, with more units sold under
Occupation Right Agreement as our portfolio
transitions away from traditional care beds
•Village EBITDA of $193.2m, up 11% on FY23 with
strong growth in village services, deferred
management fees and realised gain on resales
•Head office expenditure of $68.1m, broadly in line
with FY23 - our review of operating expenses
undertaken in 1H24 resulted in savings of
approximately $4.7m within corporate overheads
(out of total savings of approximately $10.0m)
•Realised development margin of $118.4m, slightly
down from the $121.2m achieved in FY23, due to
unit mix of settlements having a higher weighting
towards care units
Definition:
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 roup’s income statement. The measure is used internally in conjunction with other measures to monitor
performance and make investment decisions and has been audited 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.
$133.4m
Annuity EBITDA
8%19%
NZ$mFY24FY23VarianceFY22
Care fees131.4109.620%96.2
Deferred management fees7.24.752%3.3
Realised gain on resales0.40.263%0.6
Care operating expenses(136.3)(115.2)18%(100.5)
Care EBITDA2.7(0.6)560%(0.4)
Village services61.552.817%45.7
Deferred management fees114.299.814%89.0
Realised gain on resales95.587.99%69.6
Village operating expenses(78.0)(66.7)17%(57.9)
Village EBITDA193.2173.811%146.4
Interest and other revenue5.55.43%4.8
Head office expenditure (post capitalisation)(68.1)(66.1)3%(53.7)
Annuity EBITDA133.4112.519%97.1
Realised development margin118.4121.2(2%)104.9
Underlying EBITDA251.8233.78%202.0
Depreciation and amortisation(19.1)(15.8)21%(13.6)
Finance costs(26.4)(27.5)(4%)(17.0)
Underlying profit206.4190.38%171.4
Refurbishment costs(16.9)(11.6)45%(4.6)
Profit after refurbishment costs189.5178.86%166.8
Segment earnings
Financial performance
$130.2m
Retirement village
operations
$76.2m
Construction activity
37
Full Year Report 2024
•Two core segments of earnings - being retirement
village operations and construction activity
•For FY24 retirement village operations contributed
$130.2m to underlying profit. These are the ongoing
earnings derived from operating villages and care
centres and were up 16% from FY23
•Underlying profit from construction activity of
$76.2m, in line with FY23, with development margin
impacted by sales mix as units in the five main
buildings delivered across the last 18 months settled
Definition:
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the period. Underlying profit does not have a
standardised meaning prescribed by GAAP and therefore may not be comparable to similar financial information presented
by other entities. The Directors have provided an underlying profit measure in addition to IFRS profit to assist readers in
determining the realised and unrealised components of fair value movement of investment property, impairment and tax
expense in the roup’s income statement. The measure is used internally in conjunction with other measures to monitor
performance and make investment decisions and has been audited by Ernst & Young. Underlying profit is a measure which
the Group uses consistently across reporting periods. Underlying profit is used to determine the dividend payout to
shareholders.
16%2%
NZ$m
Retirement
village operations
Construction
activity
FY24
Care fees131.4-131.4
Deferred management fees7.2-7.2
Realised gain on resales0.4-0.4
Care operating expenses(136.3)-(136.3)
Care EBITDA2.7-2.7
Village services61.5-61.5
Deferred management fees114.2-114.2
Realised gain on resales95.5-95.5
Village operating expenses(78.0)-(78.0)
Village EBITDA193.2-193.2
Interest and other revenue5.5-5.5
Head office expenditure (post capitalisation)(52.2)(15.9)(68.1)
Annuity EBITDA149.3(15.9)133.4
Realised development margin-118.4118.4
Underlying EBITDA149.3102.6251.8
Depreciation and amortisation(19.1)-(19.1)
Finance costs-(26.4)(26.4)
Underlying profit130.276.2206.4
Refurbishment costs(16.9)-(16.9)
Profit after refurbishment costs113.376.2189.5
NZ$mFY24FY23VarianceFY22
Employee expenses222.6188.318%158.4
Building and grounds43.037.415%31.4
Sales and marketing25.127.0(7%)21.6
Software and technology9.67.528%5.9
Administration5.59.1(39%)6.1
Other operating expenses37.136.91%35.2
Gross operating expenses342.8306.212%258.7
Capitalised to projects(60.4)(58.2)4%(46.9)
Reported operating expenses282.4248.014%211.8
Care expenses136.3115.218%100.5
Village expenses78.066.717%57.9
Corporate overheads68.166.13%53.3
Reported operating expenses282.4248.014%211.8
Care
expenses
Village
expenses
Corporate
overheads
Employee expensesBuilding and groundsSales and Marketing
Software and technologyAdministrationOther operating expenses
Operating expenses
Financial performance
38
Full Year Report 2024
•Gross operating expenses grew 12% to $342.8m,
lower than total revenue growth of 18%
•Care expenses of $136.3m, included the opening of
three new care centres in the year and increasing
occupancy rates at recently delivered care centres
•Corporate overheads were broadly flat relative to
FY23, reflecting the strong cost management
initiatives undertaken throughout 2024
•Gross employee expenses, the largest operating
cost for the business, were $222.6m, up 18% on
FY23
•Of the uplift in employee expenses - 76% was for
new roles directly related to growing the business
and 24% was for increases for existing staff
FY24 Gross operating expenses
Loss on disposal of assets, included in IFRS operating expenses but excluded from underlying profit
Cash flows
Financial performance
39
$443.2m
Operating cash flows
Net resales receipts
Full Year Report 2024
•Record operating cash flows of $443.2m, up 11% on
FY23
•Operating cash flow growth driven by increases
from ongoing operations, being care and village
services (up 18% on FY23) and net receipts for
residents' loans – resales, up $33.6m on FY23 (or
32%)
•Investing cash outflows of $683.1m, up 2% on
FY23, compared to 11% growth in operating cash
flows
•Construction of new investment property (IP) & care
facilities includes good progress on main buildings
at Cambridge, Milldale, Waikanae and hang rei
alongside construction spend at St Johns and
Boulcott
•Capitalised interest has increased in line with
construction, and land consented over the period
$138.2m
NZ$mFY24FY23VarianceFY22
Receipts from residents:
Care fees and village services194.7165.318%142.5
Receipts for residents' loans - new sales388.0362.77%347.3
Net receipts for residents' loans - resales138.2104.632%85.9
Interest received1.11.7(34%)0.4
Payments to suppliers and employees(278.9)(236.2)18%(206.9)
Operating cash flows443.2398.211%369.2
Sale / (purchase) of land(19.7)(56.5)(65%)(179.1)
Construction of new IP & care facilities(532.8)(523.3)2%(427.9)
Refurb of existing IP & care facilities(25.2)(19.5)29%(11.0)
Care centre upgrades(18.4)(1.7)980%-
Other investing cash flows(17.7)(14.6)21%(9.5)
Capitalised interest paid(69.2)(52.8)31%(24.2)
Investing cash flows(683.1)(668.5)2%(651.7)
Net proceeds from borrowings299.9322.9(7%)342.2
Net dividends paid(33.5)(34.3)(2%)(28.2)
Other financing cash flows(29.1)(31.0)(6%)(14.5)
Financing cash flows237.2257.7(8%)299.5
11%
32%
Total assets
$8.1b
Balance sheet
Retained earnings
Financial performance
40
▪Management continues to emphasise a prudent
approach to balance sheet management
▪With economic conditions remaining restrictive, we
will continue to manage stock levels, while still
growing in Australia
▪Total assets now $8.1b, up 16% on FY23, driven by
portfolio growth and the underlying value in our
existing villages
▪Net tangible assets per share now $12.53, up 13%
13%16%
Full Year Report 2024
Definitions:
Face value of bank loans and retail bonds - excludes capitalised and amortised transaction
costs for loans and borrowing, and fair value movement on hedged borrowings
Net assets includes share capital, reserves, and retained earnings
Summerset net tangible assets per share
$2.4b
* Investment property and other assets have been restated for FY23. Refer to appendix (slide 67) for further details
NZ$mFY24FY23*VarianceFY22
Investment property7,3296,39415%5,418
Other assets737.3547.635%422.6
Total assets8,0666,94216%5,840
Resident's loans2,8812,50715%2,165
Face value of bank loads & bonds1,7091,39922%1,074
Other liabilities506.5433.317%407.5
Total liabilities5,0974,33917%3,647
Net assets2,9692,60214%2,193
Embedded value1,7391,6207%1,488
NTA (cents per share)1,2531,10913%943.9
Retained earnings2,4212,13913%1,766
$12.53
-
$2
$4
$6
$8
$10
$12
$14
FY15FY16FY17FY18FY19FY20FY21FY22FY23FY24
NTA per share
Capital management framework
Guiding principles to sustainably grow the business over the short to medium term
41
Balance sheet management
Investment decisions
Distributions
•Grow the business by delivering sustainable expansion opportunities in New Zealand and Australia, that
produce competitive returns for shareholders
•Retain flexibility in our growth plans – ensure we can adapt our growth objectives as conditions allow
Guiding principles
FY24 in review
•NZ villages in construction forecast to be
over $280m in positive net cash profits on
completion and first sell down
•Land bank appropriately spread across 12
NZ regions, plus Australia
•New refurbishment standards in place, care
centre upgrades well advanced
•Customer satisfaction of 97% and occupancy
of 94% for care and village
•Net debt of $1,697m with a gearing ratio of
36.4%
•Total debt facilities of $2.5b with undrawn
capacity of $784.9m
•Development assets exceed the value of net
debt by $317.8m, or 19%
•Final dividend of 13.2 cents per share
•This represents a payout for FY24 of
approximately $58.3m (before DRP), being
28.2% of underlying profit
Full Year Report 2024
Financial performance
•Summerset developments deliver positive net cash flows (net cash position) on completion
•Focus on diversification of location and broad acre investment, ensuring the business carries no core debt
•New investments must meet all internal hurdle rates (including development margin, net funding position, IRR,
population and penetration thresholds) on an individual and portfolio basis
•Disciplined approach to maintaining and improving existing asset base, ensuring its attractiveness to future residents
•Prudent approach to balance sheet management, retain gearing ratio within a target operating range of 30% to 40%
•Actively manage our stock levels, while still growing in Australia and moderating build rates as appropriate
•Expect a maximum debt band of $2.0b to $2.5b over the short to medium term
•Ordinary dividend payout range to 20% to 50% of underlying profit
•Used to deliver long-term financial health, while giving its investors an appropriate return on their investment
-
$200m
$400m
$600m
$800m
$1,000m
FY25FY26FY27FY28FY29FY30
Bank facilityNZ bonds
$784.9m
Funding
Gearing ratio
Undrawn capacity
Financial performance
▪Total debt facilities of $2.5b, including $0.6b of retail
bonds on issue
▪Total facility (incl. bonds) has an average tenor
of 3.6 years
▪Bank facility has undrawn capacity of $784.9m with
a gearing ratio of 36.4% (near the midpoint of our
target band of 30% to 40%)
▪Summerset proactively manages hedging levels - as
at 31 December 2024, 51% of total debt was hedged
at fixed interest rates
▪The weighted average interest rate for FY24
was 5.4%
42
Full Year Report 2024
Funding maturity profile
36.4%
Definitions:
Face value of bank loans and retail bonds - excludes capitalised and amortised transaction
costs for loans and borrowing, and fair value movement on hedged borrowings
Gearing ratio calculation (net debt / net debt plus book equity) differs from the Summerset
roup’s bank and bond LVR covenant (total debt of the Summerset Group / property value of
the Summerset Group)
$452m
$587m
$673m
$750m
$1,074m
$1,399m
$1,709m
31.2%
33.3%
32.6%
27.8%
32.4%
34.8%
36.4%
0%
10%
20%
30%
40%
50%
-
$500m
$1,000m
$1,500m
$2,000m
FY18FY19FY20FY21FY22FY23FY24
Face value of bank loans & retail bondsGearing ratio (%)
Gross borrowings and gearing
38.0%
Covenants
Interest coverage ratioBank & bond LvR
Financial performance
▪Strong financial discipline has ensured Summerset
is compliant with all lending covenants and
obligations
▪Loan to value ratio of 38.0%, relative to a 50% limit
▪Interest cover ratio of 3.98x, more than twice the
covenant limit
43
Full Year Report 2024
3.98x
Definitions:
Property value is calculated as the valuation amount of all properties that have been externally valued, plus the cost of all
properties not externally valued, plus 50% of the costs incurred to date on developments that are not complete, net of
residents’ loans
Loan to value ratio is the gross borrowings at face value divided by property value
Adjusted EBIT is EBIT less fair value movement of investment property, less deferred management fees (calculated under
NZ GAAP), plus net cash from resales, plus development margin, less/plus other one off adjustments
Adjusted EBITDA is Adjusted EBIT plus amortisation and depreciation
Interest expense is the total interest and line fee costs prior to capitalisation of any interest and line fees, excluding any
interest and line fees incurred in relation to development tranches of bank debt facilities
Interest cover ratio is Adjusted EBITDA divided by interest expense, calculated on a 12-month rolling basis
Interest coverage ratioFY24FY23Variance
Adjusted EBITDA ($m)182.6170.67%
Interest expense ($m)45.948.5(6%)
Interest coverage ratio3.98x3.51x13%
Covenant limit1.75x1.75x
CovenantsFY24FY23Variance
Gross debt at face value ($m)1,7091,39922%
Property value ($m)4,4963,84417%
Loan to value ratio38.0%36.4%4%
Covenant limit50.0%50.0%
$552.8m
$545.5m
$765.1m
$786.6m
$457.7m
$683.0m
-
$500m
$1,000m
$1,500m
$2,000m
$2,500m
Net debt
1H24
Underlying assets
1H24
Net debt
FY24
Underlying assets
FY24
Net debtUndeveloped landDevelopment WIPUnsold new stock
$2.0b
Development assets
$317.8m
Excess assets
Underlying development
assets
Definitions:
Net debt is the face value of drawn bank loans and retail bonds less cash and cash equivalents. Excludes capitalised and
amortised transaction costs for loans and borrowing, and fair value movement on hedged borrowings
Gearing ratio calculation (net debt / net debt plus book equity) differs from the Summerset roup’s bank and bond LVR
covenant (total debt of the Summerset Group / property value of the Summerset Group)
Net debt to underlying assets
Financial performance
44
▪Summerset has no core debt – this means that the
value of our land bank, development WIP and units
that have been delivered but not settled significantly
exceeds the debt we have used to hold them (e.g.
land), or turn into village assets
▪At 31 December 2024, net debt was $1,697m and
the value of development assets exceeded the value
of net debt by $317.8m, or 19%
▪Development assets comprise:
▪$545.5m relating to undeveloped land, being the
fair value of our Australia and New Zealand land
bank
▪$786.6m for development WIP at cost (villages
under construction), and
▪$683.0m from unsold new sale stock, which is all
delivered new sale stock that is yet to settle
▪$157.4m of delivered stock was contracted
and awaiting settlement at 31 December
2024
▪Excess assets of $317.8m is also conservative as it
excludes any margin on development WIP or
undeveloped land, which is realised on delivery
Full Year Report 2024
$248m excess assets
$1,527m
$1,776m
$318m excess assets
$1,697m
$2,015m
$13.5m
$14.5m
$13.7m
$22.7m
$24.7m
$26.3m
$26.6m
$16.2m
$17.5m
$16.0m
$19.8m
$26.9m
$30.9m
$31.6m
-
$10m
$20m
$30m
$40m
$50m
$60m
$70m
FY18FY19FY20FY21FY22FY23FY24
$millions
InterimFinal
6.0
6.4
6.0
9.9
10.7
11.311.3
7.2
7.7
7.0
8.6
11.6
13.213.2
-
5
10
15
20
25
30
FY18FY19FY20FY21FY22FY23FY24
Cents per share
InterimFinal
Final dividend
Financial performance
Dividend per share
Gross dividend payout per year
▪The Board has declared an unimputed final dividend
of 13.2 cents per share
▪This represents a payout for FY24 of approximately
$58.3m, being 28.2% of 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
▪The final dividend will be paid on Thursday 27 March
2025. The record date for final determination of
entitlements to the dividend is Friday 14 March 2025
Declared FY24 final dividend of 13.2 cents
per share
45
Full Year Report 2024
46
07
Business performance
Full Year Report 2024
Retirement unit delivery
FY24 deliveries managed to market
conditions
Business performance
47
Full Year Report 2024
▪676 units to be sold under Occupation Right
Agreement delivered in New Zealand along with 21
care beds, across 13 villages and ten regions
▪Delivered 196 units at St Johns, including the main
building and penthouse apartments
▪32 villas delivered in Australia at Cranbourne North,
bringing the total Australian portfolio to 42 villas
▪Main building at Cambridge is progressing well with
delivery expected in 2H25
▪Expect a New Zealand build rate of approximately
600 to 650 units to be sold under Occupation Right
Agreement in FY25
▪For Australia we expect a FY25 build rate of 50 to 80
units to be sold under Occupation Right Agreement -
including the main building at Cranbourne North (that
will deliver late in FY25 but not open to residents
until FY26)
FY24 unit delivery
Retirement unitsCare units
Total
units
VillasApartments
Serviced
apartments
Memory care
apartments
Care suitesCare beds
Bell Block43 -----43
Blenheim48 -----48
Boulcott5 -35 15 --55
Cambridge35 -----35
Casebrook6 -----6
Milldale33 -----33
p moa each33 -56 20 19 21 149
Prebbleton30 -----30
Richmond11 -----11
St Johns-92 36 19 49 -196
Te Awa38 -----38
Waikanae26 -----26
hang rei27 -----27
Total NZ335 92 127 54 68 21 697
Cranbourne North32 -----32
Total Australia32 -----32
Total Group367 92 127 54 68 21 729
28.9%
Development margin
▪Realised development margin of $118.4m, down 2%
from a record of $121.2m in FY23
▪Development margin of 29%, down from 32% in
FY23, with lower margin care suites comprising 16%
of new sales, up from 9% in FY23
▪Villa margins of 36%, in line with the 38%
achieved in FY23
▪Apartment margins of 29%, up on the 22%
achieved in FY23
▪Average margin of 9% on serviced apartments,
memory care apartments and care suites
▪Unit margins continue to track above medium term
guidance of 20% to 25%
▪Average development margin on retirement units
was $314k per unit
$118.4m
Development margin reflective of changes in
sales mix
Realised development margin
Business performance
2%
48
Full Year Report 2024
Development margin
Realised margin
$64m
$61m
$48m
$79m
$105m
$121m
$118m
33%
28%
20%
23%
30%
32%
29%
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
-
$20m
$40m
$60m
$80m
$100m
$120m
$140m
FY18FY19FY20FY21FY22FY23FY24
Realised development margin ($m)Development margin (%)
-
50
100
150
200
250
300
350
FY18FY19FY20FY21FY22FY23FY24Feb-25
Contracts on new units deliveredPresales contracts
588
Growth in gross proceeds of 7% with 588
new sales achieved in FY24
Business performance
49
▪A record 588 new sales of Occupation Rights, up 5%
on the 560 settled in FY23
▪Record gross proceeds of $409.4m, up 7% on FY23,
with an average gross proceed per new sale of
$696k
▪St Johns, which opened in October, achieved 22
new sales and gross proceeds of $35.2m
▪New sales growth driven by care suites (+90%)
▪Best performing villages were Te Awa (109 new
sales), p moa each (85 new sales) and ell
Block (69 new sales)
▪Eight regions secured over 30 settlements each,
highlighting the benefits of regional diversification
▪Sales contract rates have lifted in Q1 2025. Our
contracted new sale pipeline increasing over 30%
since 31 December 2024 – these contracts will
benefit settlements from Q2 2025 onwards
Full Year Report 2024
New sales of Occupation
Rights
$696k
Average gross
proceeds
2%
New sales
New salesFY24FY23VarianceFY22
Gross proceeds ($m)409.4384.07%353.4
Villas315329(4%)350
Apartments312055%46
Serviced apartments114132(14%)87
Memory care apartments332914%37
Care suites955090%17
Total occupation rights5885605%537
Committed new sales pipeline
155
Increase in stock driven by St Johns with 196
units delivered in Q4
Business performance
50
Full Year Report 2024
New sales stock
Delivered units
under contract
196
Units delivered at
St Johns
▪Good progress made on selling down new sale stock
across 2H24
▪Closing stock impacted by Q4 deliveries which
included 196 units at St Johns and 97 villas
▪Excluding these, closing stock reduced by
between 20% and 50% across all unit types
▪Now have $157.4m of new sale stock under
contract, up from $123.3m at FY23
New Zealand new sales stockFY24FY23
Contracted146163
Uncontracted526372
Total new sales stock672535
Contracted78111
Uncontracted270209
Villas348320
Contracted249
Uncontracted7225
Apartments9634
Contracted2635
Uncontracted10585
Serviced apartments131120
Contracted82
Uncontracted3735
Memory care apartments4537
Contracted106
Uncontracted4218
Care suites5224
Australia new sales stockFY24FY23
Contracted92
Uncontracted218
Total new sales stock3010
-
50
100
150
200
FY18FY19FY20FY21FY22FY23FY24Feb-25
650
Resales of Occupation
Rights
$95.9m
Record gross proceeds of $377.7m achieved
in FY24
Business performance
51
▪Record 650 resales settled in FY24, up 20% from
543 in FY23
▪Realised resale gain of $95.9m, up 9% from FY23
▪Realised DMF of $52.3m, up 26% on FY23, with
villas contributing $29.6m
▪Average gross proceeds per resale of $581k, in line
with the $587k achieved in FY23
▪Average villa resale price of $767k, up from
$757k at FY23
▪75% of regions in New Zealand had over 30 resales
each
▪Unit pricing continues to be reviewed on a monthly
basis, ensuring we remain appropriately aligned to
the market
9%
Full Year Report 2024
Realised resale
gains
Resales
Committed resales pipeline
ResalesFY24FY23VarianceFY22
Gross proceeds ($m)377.7318.619%263.6
Realised resale gains ($m)95.988.19%70.2
Realised resale gains (%)25%28%(8%)27%
DMF realisation ($m)52.341.526%34.5
Villas28823821%201
Apartments5555-51
Serviced apartments22920810%185
Memory care apartments362924%26
Care suites4213223%7
Total Occupation Rights65054320%470
$148k
$80k
$23k
$4k
$201k
-
$50k
$100k
$150k
$200k
$250k
Realised resale
gain
Realised
DMF
Refurb
costs
Sales and
marketing costs
Resales cash
margin
Resales cash marginFY24FY23VarianceFY22
Gross proceeds ($m)377.7318.619%263.6
Realised resale gains ($m)95.988.19%70.2
DMF realisation ($m)52.341.526%34.5
Refurb of existing IP* ($m)(16.9)(11.6)45%(4.6)
Sales and marketing costs ($m)(2.4)(2.3)4%(2.1)
Cash margin on resale ($m)128.9115.711%98.0
Gross proceeds per unit ($000)581.1586.8(1%)560.8
Net cash per unit ($000)228.0238.8(5%)222.7
Average refurb cost per rollover ($000)(23.5)(20.1)17%(8.1)
Sales and marketing costs per unit ($000)(3.7)(4.3)(15%)(4.4)
Cash margin on resale per unit ($000)200.9214.4(6%)210.2
Cash margin (%)35%37%(5%)37%
$128.9m
Cash margin on
resales
$201k
Cash margin on resales of 35% with $128.9m
realised in FY24
Business performance
52
▪Resales cash margin of 35% per unit with an
average margin of $201k, down from $214k per unit,
driven by a change in mix that included a higher
proportion of care units
▪Average refurbishment costs of $23k per unit, up
from $20k in FY23, due to a higher number of full
refurbishments on stock with long tenures
▪Sales and marketing costs reflect costs associated
with commissions, sales manager salaries and direct
marketing costs (e.g. local radio and print, billboards,
event open days) for our resale villages
Realised resale cash
margin per unit
Resales cash margin
* Excludes refurbishment costs relating to common areas
Full Year Report 2024
Resales cash margin per unit
$1.7b
▪Total embedded value now $1.7b, up 7% from $1.6b
at FY23
▪Embedded value comprised of:
▪$1.09b resale gains
▪$0.65b deferred management fees
▪Embedded value of per unit $244k, including villas at
$300k per unit
▪Record $148.2m of embedded value realised during
FY24, up 14% from $128.7m in FY23
▪Unrealised gain per unit of $153k, in line with the
$148k achieved on the 650 resales in FY24
▪Embedded value continues to increase with portfolio
growth, providing a platform for strong future resale
cash flows
Embedded value
$650.4m
Embedded value now $1.7b, up 7% on FY23
Embedded value
Business performance
53
Embedded DMF
Full Year Report 2024
Embedded value
7%
Embedded valueFY24FY23VarianceFY22
DMF ($m)$650.4$554.317%$472.7
Resales gain ($m)$1,088$1,0662%$1,016
Embedded value ($m)$1,739$1,6207%$1,488
$392m
$483m
$557m
$967m
$1,016m
$1,066m
$1,088m
$217m
$270m
$327m
$397m
$473m
$554m
$650m
-
$200m
$400m
$600m
$800m
$1,000m
$1,200m
$1,400m
$1,600m
$1,800m
FY18FY19FY20FY21FY22FY23FY24
Resale gainDMF
Contracted
resale stock
Business performance
54
▪Total resale stock of 372 units, up from 292 units
▪Increase was driven by a record 720 units vacated in
FY24, up 24% on FY23
▪Contracted resale stock now at 164 units, up from
148 at FY23, providing the basis for strong resale
cash flows in FY25
▪Uncontracted stock at 3.0% of portfolio
▪Almost 70% of uncontracted stock is less than six
months old
▪Demand remains strong for our villages, with almost
1,500 on our waitlists across the country
Record number of resale units under
contract at FY24
3.0%
Resale stock
164
Percentage of
uncontracted stock
Percentage of uncontracted stock calculated off all units sold under Occupation Right Agreement
Full Year Report 2024
Resales stockFY24FY23
Contracted164148
Uncontracted208144
Total resales stock372292
Contracted10492
Uncontracted11783
Villas221175
Contracted1417
Uncontracted2015
Apartments3432
Contracted3836
Uncontracted5634
Serviced apartments9470
Contracted52
Uncontracted106
Memory care apartments158
Contracted31
Uncontracted56
Care suites87
55
Summerset St Johns (Auckland, New Zealand)
08
Questions
Full Year Report 2024
Disclaimer
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
56
Full Year Report 2024
57
Summerset Cranbourne North (Melbourne, Victoria)
09
Appendix
Full Year Report 2024
Appendix contents
Full Year Report 2024
Appendix
Key terms
02
03
04
05
06
08
58
01
09
Portfolio and land bank
Underlying profit reconciliation
Historical trends
Investment property valuations
Sales price relativity
Summerset growth and demographics
Customer profile and occupancy
07
Care centre valuations
10
FY23 Comparative information
Key terms
Full Year Report 2024
Summerset key terms
59
Underlying profit
Non-GAAP financial measure used by Summerset to monitor financial performance and determine dividend distributions. Calculated by
making the following adjustments to IFRS net profit after tax: remove fair value movement on investment property, remove impairment
expense and other one-off costs, add realised gain on resales, add realised development margin, remove deferred tax
Annuity EBITDA
EBITDA from care and village operations with adjustments for interest income, other revenue and head office expenditure. It excludes any
earnings from development
Development margin
The first time ORA sales receipt less the cost for developing each unit sold under ORA. Costs incorporate the land cost, share of
infrastructure costs (e.g. roading, civils), direct independent living unit (ILU) costs, share of other costs (e.g. landscaping, FF&E),
management fees (incl. a share of corporate overheads) and interest costs. Development margin excludes recreation and administration
facility costs and care centre costs (for non-ORA units)
Project cash profit
The final cash return from developing a village. This incorporates the land cost, independent living unit (ILU) costs, recreation and
administration facility costs, care centre costs, management fees (incl. a share of corporate overheads), interest costs and the first-time sales
proceeds for all units sold under Occupation Right
Cash margin from village
development
The project cash profit from a village development divided by gross new sales receipt from first sell down
Retirement village operations
Earnings from operating villages and care centres. This incorporates care and village EBITDA, head office support (e.g. management time, IT,
sales and marketing costs, administration), other revenue, refurbishment costs, depreciation and amortisation
Construction activity
Earnings from the construction and first-time sale of ORA units. This incorporates realised development margin, direct head office expenditure
(sales and marketing costs for first time sell down) and expensed finance costs
Completed villagesVillages where all units, the care centre and common facilities have been completed and delivered
Realised resale gain
The difference in resale unit sales price between the incoming resident and the previous resident. This excludes DMF (shown separately) and
forms part of underlying profit and annuity EBITDA
Resale cash margin
The realised cash margin on resale of a unit – includes realised resale gain, realised deferred management fee, refurbishment costs and
sales and marketing expenditure relating to the resale of the unit
Appendix
Key terms
Full Year Report 2024
Summerset key terms
60
Care EBITDA
Care fees from providing care (e.g. rest home and hospital care), deferred management fees from care units and realised resale gain from
care units less costs of operating the care centres. This excludes any allocation of head office cost
Village EBITDA
Village services revenue (e.g. weekly fees), deferred management fees from retirement units and realised resale gain from retirement units
less costs of operating retirement villages. This excludes any allocation of head office cost
Head office costs
Head office functions that support the business in effectively operating our retirement villages and care centres. These include employee
expenses (e.g. management), sales and marketing costs for the villages, software and technology costs, travel costs, directors' fees,
consultancy costs and compliance costs
Employee expensesStaff wages for villages, care and head office, excludes sales team salaries included below under sales and marketing costs
Building and grounds expensesInsurance costs, council rates, utilities and repairs and maintenance costs
Sales and marketing costsLocal and national advertising costs, sales commissions, sales incentives and wages for sales staff and sales management
Software and technology costsGeneral IT operating expenditure including investment in software costs, hardware costs and licence fees
Other operating costsAll other operating costs which includes food costs, medical costs, legal fees, consultancy, travel costs and directors' fees
Deferred management fees
Resident fee charged under ORA (the standard rate is 25% of the ORA price) which is deducted from the amount repaid to the outgoing
resident upon resale of the unit. The fee is in consideration for the right to accommodation and the use of communal facilities over the entire
length of a resident’s stay
Embedded value
Non-GAAP measure that reflects the balance of DMF accrued by the resident and the resale gain (being the difference between the price
paid by the last resident and the price that would be paid by an incoming resident across the portfolio) at reporting date
ORA unit
Any retirement or care unit sold under an Occupation Right. This includes villas, apartments, serviced apartments, memory care apartments
and care suites
Retirement unitVilla, apartment or serviced apartment sold under ORA
Care unitMemory care apartment, care suite or care bed either sold under ORA or available on a daily charge
Appendix
Key terms
Full Year Report 2024
Summerset key terms
61
Face value of bank loans
and retail bonds
Face value of bank debt and retail bonds excludes capitalised and amortised transaction costs for loans and borrowing, and fair value
movement on hedged borrowings
Gearing ratioGearing ratio is calculated as net debt divided by net debt plus book equity
Property value
Property value is calculated as the valuation amount of all properties that have been externally valued, plus the cost of all properties not
externally valued, plus 50% of the costs incurred to date on developments that are not complete, net of residents’ loans
Loan to value ratioLoan to value ratio is the gross borrowings at face value divided by property value
Adjusted EBIT
Adjusted EBIT is EBIT less fair value movement of investment property, less deferred management fees (calculated under NZ GAAP), plus
net cash from resales, plus development margin, less/plus other one off adjustments
Adjusted EBITDAAdjusted EBITDA is Adjusted EBIT plus amortisation and depreciation
Interest expense
Interest expense is the total interest and line fee costs prior to capitalisation of any interest and line fees, excluding any interest and line fees
incurred in relation to development tranches of bank debt facilities
Interest cover ratio
Interest cover ratio is Adjusted EBITDA divided by interest expense, calculated on a 12-month rolling basis
Appendix
Portfolio as at 31 December 2024
7,970 total units including 6,671 retirement units and 1,299 care units
Appendix
62
Full Year Report 2024
*Care centre upgrade in progress
Existing portfolio - as at 31 December 2024
Retirement unitsCare units
Total
units
VillageVillasApartments
Serviced
apartments
Memory care
apartments
Care
suites
Care
beds
hang rei145 -----145
Northland145 -----145
Ellerslie38 218 57 --58 371
Hobsonville163 73 52 --52 340
Karaka182 -59 --50 291
Manukau89 67 27 --54 237
Milldale52 -----52
St Johns-92 36 19 49 -196
Warkworth202 2 44 --41 289
Auckland726 452 275 19 49 255 1,776
Cambridge80 -----80
Hamilton183 -50 --49 282
Rototuna188 -56 20 7 36 307
aup 94 34 18 ---146
Waikato545 34 124 20 7 85 815
Katikati156 -30 --27 213
p moa each185 -56 20 19 21 301
Bay of Plenty341 -86 20 19 48 514
Hastings146 5 ----151
Havelock North*94 28 ----122
Napier94 26 20 --48 188
Te Awa219 -56 20 15 28 338
Hawke's Bay553 59 76 20 15 76 799
Bell Block187 -56 20 19 21 303
New Plymouth108 -40 --52 200
Taranaki295 -96 20 19 73 503
Levin*64 22 -10 --96
Palmerston North90 12 ---44 146
Whanganui70 18 12 --37 137
Manawatū-Whanganui224 52 12 10 -81 379
Portfolio as at 31 December 2024
7,970 total units including 6,671 retirement units and 1,299 care units
Appendix
63
Full Year Report 2024
*Care centre upgrade in progress
Existing portfolio - as at 31 December 2024
Retirement unitsCare units
Total
units
VillageVillasApartments
Serviced
apartments
Memory care
apartments
Care
suites
Care
beds
Aotea96 33 38 ---167
Boulcott14 20 35 15 --84
Kenepuru112 48 84 20 19 26 309
Paraparaumu92 22 ---44 158
Trentham*231 12 40 ---283
Waikanae53 -----53
Wellington-Kāpiti-Wairarapa598 135 197 35 19 70 1,054
Nelson214 -55 --59 328
Richmond225 -56 20 17 26 344
Nelson-Tasman439 -111 20 17 85 672
Blenheim63 -----63
Marlborough63 -----63
Avonhead165 -79 20 17 26 307
Casebrook270 -56 20 -43 389
Prebbleton108 -----108
Wigram159 -53 --49 261
Canterbury702 -188 40 17 118 1,065
Dunedin61 20 20 --42 143
Otago61 20 20 --42 143
Total NZ4,6927521,185204 1629337,928
Cranbourne North42 -----42
Total Australia42 -----42
Total NZ and Australia4,734 752 1,185 204 162 933 7,970
Future development
Largest New Zealand land bank for a retirement village operator of 5,377 units
Appendix
64
Full Year Report 2024
Land bank – as at 31 December 2024
Retirement unitsCare units
Total
units
VillageVillasApartments
Serviced
apartments
Memory care
apartments
Care
suites
Care
beds
hang rei73-60201521189
Northland 73 -60 20 15 21 189
Belmont170905020305365
Half Moon Bay-227172026-290
Milldale813660201521233
St Johns11132----143
Auckland262 485 127 60 71 26 1,031
Cambridge180-60201521296
Waikato180 -60 20 15 21 296
p moa each26-----26
Rotorua260-20201020330
Bay of Plenty286 -20 20 10 20 356
Havelock North----26834
Mission Hills270---35-305
Te Awa22-----22
Hawke's Bay292 ---61 8 361
Bell Block35-----35
Taranaki35 -----35
Kelvin Grove253-20-1020303
Manawatū-Whanganui253 -20 -10 20 303
Boulcott858922-24-220
Levin7---15527
Masterton236-20201020306
Otaihanga260-40202010350
Trentham----26834
Waikanae204-60201521320
Wellington-Kāpiti-Wairarapa792 89 142 60 110 64 1,257
Richmond33-----33
Nelson-Tasman33 -----33
Future development
Largest New Zealand land bank for a retirement village operator of 5,377 units
Appendix
65
Full Year Report 2024
Land bank –as at 31 December 2024
Retirement unitsCare units
Total
units
VillageVillasApartments
Serviced
apartments
Memory care
apartments
Care
suites
Care
beds
Blenheim174-30201010244
Marlborough174 -30 20 10 10 244
Prebbleton113-60201521229
Rangiora260-4020237350
Rolleston267-20201020337
Canterbury640 -120 60 48 48 916
Mosgiel286-20201020356
Otago286 -20 20 10 20 356
Total NZ3,306574599280 3602585,377
Chirnside Park185-28--72285
Craigieburn267-34--72373
Cranbourne North119-34--72225
Drysdale300-34--72406
Mernda284-20--72376
Oakleigh South5044---66160
Torquay2093030--72341
Total Australia1,41474180--498 2,166
Total NZ and Australia4,7206487792803607567,543
FY24 underlying profit reconciliation
Reconciliation of underlying profit to reported net profit after tax
Appendix
66
Full Year Report 2024
Definition:
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 roup’s income statement. The measure is used internally in conjunction with other measures to monitor performance and make investment decisions and has been audited
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.
* Fair value movement of Investment property and Net profit after tax have been restated for FY23. Refer to appendix (slide 67) for further details
NZ$mFY24FY23VarianceFY22
Net profit after tax (IFRS)*339.8425.3(20%)269.1
Less fair value movement of investment property*(372.6)(430.6)(13%)(268.8)
Add impairment of assets and other one-off costs8.8---
Add realised gains on resales95.988.19%70.2
Add realised development margin118.4121.2(2%)104.9
Add/(less) deferred tax expense/(credit)15.9(13.8)(215%)(4.0)
Underlying profit206.4190.38%171.4
FY23 Restated comparative information
Reclassification of fair value movements in investment property and property, plant and equipment
Appendix
67
Full Year Report 2024
NZ$m
FY23
reported
Amendment
FY23
restated
Income Statement
Fair value movement of investment property 441.6(11.0)430.6
Profit for the period436.3(11.0)425.3
Statement of Comprehensive Income
Net revaluation of property, plant and equipment33.811.044.8
Tax on items of other comprehensive income(9.5)(3.1)(12.5)
Other comprehensive income24.37.932.2
Net transfer to shareholders equity442.9(3.1)439.8
Statement of Financial Position
Property, plant and equipment403.211.0414.2
Investment property6,407(11.0)6,396
Net change to total assets 6,942-6,942
Deferred tax liability16.03.119.1
Net change to total liabilities4,3363.14,339
Retained earnings2,150(11.0)2,139
Revaluation reserve87.97.995.8
Net change to total equity 2,605(3.1)2,602
NZ$m
FY23 reported
(inc. amendment)
Reclass
FY23
reclassified
Statement of Financial Position
Property, plant and equipment414.22.0416.3
Investment property6,396.2(2.0)6,394.1
Statement of Cash Flows
Payments for investment property:
Construction of new IP(479.8)2.0(477.8)
Payments for property, plant and equipment:
Construction of care centres(45.2)(2.0)(47.3)
▪Summerset has restated its financial information for
FY23 to reflect a reclassification of $11.0m in fair
value relating to care centre developments which
were previously included in investment property
▪This has resulted in a reallocation of fair value
movements from the income statement to the
statement of comprehensive income
▪The restatement has no impact on underlying profit,
total assets or cash flows. Shareholders' equity has
decreased slightly by $3.1m
▪Comparative information has also been updated with
$2.0m of work in progress for care centres under
development reclassified from investment property to
property, plant & equipment, to reflect their intended
use
Definitions:
▪New units delivered includes all retirement units and care units
▪Retirement units include villas, apartments and serviced apartments
▪Care units include memory care apartments, care suites and care beds
▪Underlying profit differs from NZ IFRS reported profit after tax. The measure has been audited by Ernst & Young. Refer to slide 66 for a reconciliation between the two measures, and note 2 of the financial statements for
detail on the components of underlying profit
Historical trends
Historical trends across operational and financial metrics
Appendix
68
Full Year Report 2024
Full year resultsFY24FY23FY22FY21FY20FY19FY18
Operational
New sales of Occupation Rights588560537540404329339
Resales of Occupation Rights650543470438381323301
Total sales1,2381,1031,007978785652640
New units delivered729692651671413354506
Retirement units in portfolio6,6716,0875,5184,9304,3854,0763,722
Care units in portfolio1,2991,2841,1611,098972868868
Financial (NZ$m)
Care fees131.4109.696.284.875.168.361.2
Deferred management fees7.24.73.31.2---
Realised gain on resales0.40.20.60.20.2-0.1
Care operating expenses(136.3)(115.2)(100.5)(82.9)(68.4)(57.0)(51.5)
Care EBITDA2.7(0.6)(0.4)3.47.011.39.8
Village services61.552.845.739.333.930.626.9
Deferred management fees114.299.889.074.060.852.545.6
Realised gain on resales95.587.969.659.745.836.928.6
Village operating expenses(78.0)(66.7)(57.9)(46.6)(41.3)(34.3)(29.3)
Village EBITDA193.2173.8146.4126.499.285.771.7
Interest and other revenue5.55.44.86.02.72.63.3
Head office expenditure (post capitalisation)(68.1)(66.1)(53.7)(49.5)(37.2)(31.2)(31.6)
Annuity EBITDA133.4112.597.186.271.6768.453.2
Realised development margin118.4121.2104.978.548.261.063.7
Underlying EBITDA251.8233.7202.0164.7119.9129.4116.9
Depreciation and amortisation(19.1)(15.8)(13.6)(11.6)(8.1)(7.8)(6.7)
Finance costs(26.4)(27.5)(17.0)(12.0)(13.5)(15.4)(11.6)
Underlying profit206.4190.3171.4141.198.3106.298.6
Refurbishment costs(16.9)(11.6)(7.5)(5.5)(5.5)(3.9)(2.9)
Profit after refurbishment costs189.5178.8163.9135.692.8102.295.6
Operating cash flow443.2398.2369.2383.4266.8237.9217.8
Total assets8,0666,9425,8404,9243,8933,3382,766
Total equity2,9692,6022,1931,9251,3551,132979
EPS (cents) (IFRS profit)144.7182.7116.7238.2102.378.697.1
NTA (cents)1,2531,109944836594502438
Investment property valuations
Investment property valuations – key assumptions
Appendix
Note: Value of non-land capital work in progress not represented in the above table
69
Full Year Report 2024
Fair value movement of investment propertyValuationGain/(loss)Key valuation assumptions
VillageLocation
NZ$mNZ$mDiscount rate
Growth rate
Yr 1
Growth rate
Yr 2
Growth rate
Yr 3
Growth rate
Yr 4
Growth rate
Yr 5+
Summerset by the ParkManukau185.06.413.50%2.00%2.50%3.00%3.25%3.50%
Summerset by the Lake aup 107.95.814.50%2.00%2.50%3.00%3.25%3.50%
Summerset in the BayNapier112.48.913.75%2.00%2.50%3.00%3.25%3.50%
Summerset in the OrchardHastings116.34.014.50%2.00%2.50%3.00%3.25%3.50%
Summerset in the VinesHavelock North93.11.014.25%2.00%2.50%3.00%3.25%3.50%
Summerset in the River CityWhanganui51.52.414.88%2.00%2.50%3.00%3.25%3.50%
Summerset on SummerhillPalmerston North74.13.914.50%2.00%2.50%3.00%3.25%3.50%
Summerset by the RangesLevin45.72.314.75%2.00%2.50%3.00%3.25%3.50%
Summerset on the CoastParaparaumu92.23.614.25%2.00%2.50%3.00%3.25%3.50%
Summerset at AoteaAotea141.74.714.00%2.00%2.50%3.00%3.25%3.50%
Summerset in the SunNelson199.09.913.50%2.00%2.50%3.00%3.25%3.50%
Summerset at BishopscourtDunedin73.65.214.25%2.00%2.50%3.00%3.25%3.50%
Summerset down the LaneHamilton158.2(4.0)14.00%1.50%2.00%2.50%3.00%3.50%
Summerset Mountain ViewNew Plymouth104.37.014.50%2.00%2.50%3.00%3.25%3.50%
Summerset FallsWarkworth236.92.014.00%1.50%2.00%2.50%3.00%3.50%
Summerset at Heritage ParkEllerslie397.923.114.00%2.00%2.50%3.00%3.25%3.50%
Summerset at KarakaKaraka232.17.913.75%1.50%2.00%2.50%3.00%3.50%
Summerset at WigramWigram162.611.113.75%2.00%2.50%3.00%3.25%3.50%
Summerset at the CourseTrentham223.45.514.00%1.50%2.00%2.50%3.00%3.50%
Summerset by the SeaKatikati143.34.414.50%1.50%2.50%3.00%3.25%3.50%
Summerset RototunaRototuna212.87.713.75%1.50%2.00%2.50%3.00%3.50%
Summerset at AvonheadAvonhead211.47.613.75%1.50%2.00%2.50%3.00%3.50%
Summerset at Monterey ParkHobsonville368.63.413.50%1.50%2.00%2.50%3.00%3.50%
Summerset on the LandingKenepuru249.310.613.75%1.50%2.00%2.50%3.00%3.50%
Summerset on CavendishCasebrook272.815.413.75%1.50%2.00%2.50%3.00%3.50%
Total for completed villages4,266160.0
Investment property valuations
Investment property valuations – key assumptions
Appendix
Note: Value of non-land capital work in progress not represented in the above table
70
Full Year Report 2024
Fair value movement of investment propertyValuationGain/(loss)Key valuation assumptions
VillageLocation
NZ$mNZ$mDiscount rate
Growth rate
Yr 1
Growth rate
Yr 2
Growth rate
Yr 3
Growth rate
Yr 4
Growth rate
Yr 5+
Summerset Richmond RangesRichmond236.19.614.25%1.50%2.00%2.50%3.00%3.50%
Summerset PalmsTe Awa256.637.114.25%1.50%2.00%2.50%3.00%3.50%
Summerset by the Dunes p moa each219.733.914.25%1.50%2.00%2.50%3.00%3.50%
Summerset at Pohutukawa PlaceBell Block214.332.914.25%1.50%2.00%2.50%3.00%3.50%
Summerset Mount Denby hang rei134.65.415.00%1.50%2.00%2.50%3.00%3.50%
Summerset CambridgeCambridge93.57.516.25%1.50%2.00%2.50%3.00%3.50%
Summerset PrebbletonPrebbleton101.912.616.00%1.50%2.00%2.50%3.00%3.50%
Summerset BlenheimBlenheim54.86.916.50%1.50%2.00%2.50%3.00%3.50%
Summerset MilldaleMilldale83.26.616.00%1.50%2.00%2.50%3.00%3.50%
Summerset BoulcottBoulcott105.421.515.25%1.50%2.00%2.50%3.00%3.50%
Summerset WaikanaeWaikanae73.513.416.50%1.50%2.00%2.50%3.00%3.50%
Summerset St JohnsSt Johns458.755.415.50%1.00%1.50%2.50%3.00%3.50%
Summerset RangioraRangiora13.72.2n/an/an/an/an/an/a
Summerset Half Moon BayHalf Moon Bay35.4(2.1)n/an/an/an/an/an/a
Summerset Cranbourne NorthMelbourne - Cranbourne North58.7(2.1)n/an/an/an/an/an/a
Summerset Chirnside ParkMelbourne - Chirnside Park50.9(2.7)n/an/an/an/an/an/a
Total for villages in development2,191238.3
Total for proposed villages333.3(25.8)
Total for all villages6,790372.6
Care centre valuations
Care centre valuations – key assumptions
Appendix
71
Full Year Report 2024
Value of care facilities
Total care
Valuation*Gain/(loss)Non-ORAKey ORA valuation assumptions
VillageLocation
units
NZ$mNZ$m
Capitalisation
rate
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 ParkManukau5415.15.112.75%15.50%0.50%1.00%1.50%2.50%3.00%
Summerset in the BayNapier486.7(0.0)13.50%n/an/an/an/an/an/a
Summerset in the River CityWhanganui372.5(0.1)15.75%n/an/an/an/an/an/a
Summerset on SummerhillPalmerston North443.9(0.3)15.00%n/an/an/an/an/an/a
Summerset by the Ranges*Levin107.11.413.75%15.50%0.50%1.00%1.50%2.50%3.00%
Summerset on the CoastParaparaumu444.20.314.50%n/an/an/an/an/an/a
Summerset in the SunNelson599.90.413.25%n/an/an/an/an/an/a
Summerset at BishopscourtDunedin426.20.413.50%n/an/an/an/an/an/a
Summerset down the LaneHamilton497.50.513.00%n/an/an/an/an/an/a
Summerset Mountain ViewNew Plymouth527.80.513.50%n/an/an/an/an/an/a
Summerset FallsWarkworth416.60.313.50%n/an/an/an/an/an/a
Summerset at KarakaKaraka5015.65.712.75%15.50%0.50%1.00%1.50%2.50%3.00%
Summerset at WigramWigram498.30.013.00%n/an/an/an/an/an/a
Summerset by the SeaKatikati274.40.314.25%n/an/an/an/an/an/a
Summerset at Heritage ParkEllerslie5817.66.313.00%15.50%0.50%1.00%1.50%2.50%3.00%
Summerset at Monterey ParkHobsonville5215.55.912.50%15.50%0.50%1.00%1.50%2.50%3.00%
Summerset RototunaRototuna6331.57.512.75%14.50%0.50%1.00%1.50%2.50%3.00%
Summerset on CavendishCasebrook6326.56.012.75%14.75%0.50%1.00%1.50%2.50%3.00%
Summerset Richmond RangesRichmond6329.02.712.75%14.75%0.50%1.00%1.50%2.50%3.00%
Summerset at AvonheadAvonhead6330.05.712.75%14.75%0.50%1.00%1.50%2.50%3.00%
Summerset PalmsTe Awa6335.08.712.75%14.75%0.50%1.00%1.50%2.50%3.00%
Summerset Pohutukawa PlaceBell Block6033.83.213.00%14.75%0.50%1.00%1.50%2.50%3.00%
Summerset on the LandingKenepuru6538.05.312.50%14.75%0.50%1.00%1.50%2.50%3.00%
Total for existing care facilities1,156362.865.9
* Includes memory care only, remaining care centre under upgrade
Note: value of non-land capital work in progress not represented in the above table
Care centre valuations
Care centre valuations – key assumptions
Appendix
72
Full Year Report 2024
** Built subsequent to the last care centre valuation as at 31 December 2023
Note: value of non-land capital work in progress not represented in the above table
Value of care facilities
Total care
Valuation*Gain/(loss)Non-ORAKey ORA valuation assumptions
VillageLocation
units
NZ$mNZ$m
Capitalisation
rate
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 Dunes p moa each6033.812.012.75%15.00%0.50%1.00%1.50%2.50%3.00%
Summerset BoulcottBoulcott1512.37.213.00%15.25%0.50%1.00%1.50%2.50%3.00%
Summerset St JohnsSt Johns6865.716.811.00%15.00%0.50%1.00%1.50%2.50%3.00%
Total for new care facilities***143111.836.0
Total for all care facilities1,299474.7101.9
93%
46%
26%
100%
58%
30%
103%
58%
34%
-
$0.2m
$0.4m
$0.6m
$0.8m
$1.0m
$1.2m
$1.4m
$1.6m
REINZ Two bed
ILU
Serviced
apartment
Care
suite
REINZ Two bed
ILU
Serviced
apartment
Care
suite
REINZ Two bed
ILU
Serviced
apartment
Care
suite
Sales price relativity
Source: REINZ, December 2024, based on Summerset catchments
Appendix
Auckland
NZ main centres
Continue to watch the residential market closely, remain comfortable with where pricing sits
REINZ median house priceSUM % of median
Long term sales price relativity
Full Year Report 2024
Sales price relativity vs median house price
Regional NZ
REINZ median house price (Auckland)SUM Two bed independent (Auckland)
REINZ median house price (Rest of NZ)
SUM Two bed independent (Rest of NZ)
73
-
$0.2m
$0.4m
$0.6m
$0.8m
$1.0m
$1.2m
$1.4m
$1.6m
2015201620172018201920202021202220232024
Summerset growth and key demographics
26 years of consistent delivery and growth
Summerset build rate
Appendix
New units delivered includes retirement units, memory care apartments, care suites and care beds
74
Full Year Report 2024
New Zealand population growth 75 years and over
Victoria population growth 75 years and over
-
2%
4%
6%
8%
10%
12%
14%
16%
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
20022007201220162022202420282033203820432048205320582062
VIC population 75+ (LHS)% population 75+ (RHS)
Source: Australian Bureau of Statistics and Statistics New Zealand
7,970
-
2%
4%
6%
8%
10%
12%
14%
16%
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
20022007201220162022202420282033203820432048205320582063
NZ population 75+ (LHS)% population 75+ (RHS)
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
1997199819992000200120022003200420052006200720082009201020112012201320142015201620172018201920202021202220232024
Units
Existing unitsNew units delivered
Customer profile & occupancy
Occupancy, tenure and resident demographic statistics
Occupancy – retirement villages
Occupancy – established care centres
Average entry age of residents (years)
Appendix
75
Full Year Report 2024
Average tenure (years)
96%
97%
93%
93%
94%
-
20%
40%
60%
80%
100%
FY20FY21FY22FY23FY24
96%96%
95%95%
94%
-
20%
40%
60%
80%
100%
FY20FY21FY22FY23FY24
79.3
78.9 78.9
79.4
79.8
78.8
84.6
85.1
85.2
83.6
85.5
85.5
60.0
65.0
70.0
75.0
80.0
85.0
90.0
FY22FY23FY24
VillasApartmentsServiced and memory care apartmentsCare suites
6.1
7.1
6.7
4.6
5.3
4.7
2.4
2.5
2.4
0.71.00.7
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
FY22FY23FY24
VillasApartmentsServiced and memory care apartmentsCare suites
Ngā mihi
For more information:
Sarah Theodore
Chief Financial Officer (Acting)
sarah.theodore@summerset.co.nz
021 128 4206
Stephen Richards
GM Strategy
stephen.richards@summerset.co.nz
021 023 96585
76
---
A nnual
Report
2024
ABOUT THIS REPORT
This Annual Report of
Summerset Group Holdings
Limited (Summerset) is
prepared in accordance with
New Zealand equivalents
to International Financial
Reporting Standards (NZ
IFRS), the NZX Listing Rules
and Corporate Governance
Code, the ASX Listing Rules
(as relevant for foreign exempt
listings) and the Companies
Act 1993.
It covers all our business
operations for the year ended
31 December 2024 and was
released on 28 February
2025. We are aligning our
reporting to the International
Integrated Reporting
Framework to improve the way
we communicate and improve
transparency.
We will continue to build
on this approach.
Cover: Our Summerset on the Landing residents enjoy sharing
good food and company at the village’s Divine Café
Inside cover: Summerset St Johns, Auckland
0 2
Contents
Glossary of terms04
Glossary of terms
04
Chair and CEO’s report06
Summerset St Johns case study
14
FY24 Land Acquisitions
15
Value creation
16
Highlights20
Snapshot
20
2024 highlights
22
Our people and community26
Our villages36
Our commitment to sustainability46
Our performance52
Five-year summary56
Financial statements57
Governance
97
Board of Directors
110
Executive Leadership Team
112
Remuneration
114
Disclosures
124
Directory
135
Company information
138
0 3
Annual Report 2024
Glossary of terms
TermDefinition
Broadacre siteA br
oadacre site refers to a large area of land which can be used for large scale projects. In Summerset’s
case, we typically select sites of 8-10 hectares where we can build 220-250 villas as well as a village centre
building with care centre
Care bedA bed/room at Summerset that allows a resident to have rest home, hospital or dementia level care
Care suiteRest home
, hospital or dementia level care rooms/apartments that are subject to an ORA with a DMF. Care
suites are typically larger than a standard care room
Care centreThe area in a Summerset village where Summerset provides care to residents with a team of 24/7
r
egistered nurses and caregivers. Rest home, hospital and dementia level care or other specialist care is
provided in the care centre (subject to availability)
Completed
village
Villages where all units, the care centre and common facilities have been completed and delivered
Continuum
of car
e
The ongoing levels/progression of care offer
ed by Summerset to our residents. Summerset's model is
to provide options for our residents should their health needs change. This means residents can move
from an independent home or apartment into care within the same village (subject to availability and
eligibility criteria)
Deferred
management
f
ee (DMF)
This is the f
ee charged by Summerset to residents in our villages under their ORA (the standard rate is 25%
of the ORA price, which accumulates over a five-year period). The calculated DMF which is applicable in
each case is deducted from the amount repaid to the outgoing resident upon resale of the unit. The fee is
in consideration for the right to accommodation and the use of communal facilities over the entire length
of a resident's stay
Developing
village
These are Summerset villages that have commenced construction or are still in the construction
phase
. Some developing villages may be open to residents
Development
mar
gin
This is calculated using the fir
st ORA sales receipt for the applicable unit, less the cost for developing
the applicable unit sold under ORA. Costs incorporate the land cost, share of infrastructure costs, direct
costs, share of other costs (e.g. landscaping), management fees and interest costs. The development
margin excludes recreation and administration facility costs and care centre costs (for non-ORA units)
FYRefers to Summerset's financial y
ear
Hospital-
le
vel care
This refers to a higher level of care offer
ed to residents in our care centres that provide nursing care 24
hours a day to assist residents who require fulltime assistance
Independent
r
esident
Residents who live in a Summerset village with minimal or no care or assistance required. Some
independent r
esidents may have a services agreement, which provides additional support such as
personal services, meals, housekeeping or laundry, in addition to their ORA depending on their
individual circumstances
Land bankThis refers to land purchased by Summerset that it has available to build on and grow future or
ongoing de
velopments
Memory careThis refers to an increased level of care for residents with dementia who choose Summerset as their
home
. Memory care has been developed to enable people living with dementia to continue to lead active
lives in a safe and homely environment. Some villages have secure memory care centres for residents
who require this level of care
New villageA new village registered or being commissioned by Summerset. Often, a new village will still be under
construction, wher
e brand new homes are being sold to new residents
Occupation right
agr
eement (ORA)
This is the principal agr
eement that Summerset has with the majority of residents that occupy a home in
our villages. An occupation right agreement within the meaning of the Retirement Villages Act 2023 (for
villages in New Zealand) or a residence contract within the meaning of the Retirement Villages Act 1986
0 4
G L O S S A R Y O F T E R M S
TermDefinition
(Vic) (for villages in Australia): gives residents the right to live in a home at their Summerset village, and
outline
s the terms and conditions of their residency
Proposed villageA planned Summerset village where resource consent has not yet been granted and construction has not
yet started
Resale villageA completed Summerset village where all homes have been sold. A resale village typically would be
r
eselling homes on ORA as residents leave
ResidentAny person who lives at a Summerset village independently, in a serviced apartment or care unit under
a contr
act with Summerset
Rest home-
le
vel care
An increased level of care offer
ed to our residents with care provided to residents by our caregivers
with oversight of registered nurses. Depending on a resident's needs this can include daily personal care
and meals
Uncontracted
stock
Summerset retirement village homes that are for sale and not currently under a contract for occupation
or sale
Underlying pr
ofit
Non-GAAP financial me
asure used by Summerset to monitor financial performance and determine
dividend distributions. Calculated by making the following adjustments to reported net profit after
tax: Removing the change in fair value in investment properties, removing any impairment, removing
non-operating one-off items, adding back realised gains from resales, adding back realised development
margin from new sales, removing the deferred taxation component of taxation expense so only the
current tax expense is reflected
Village centreThis is sometimes referred to as the "main building", and generally is the communal two- to three-storey
building
in the village which can include the care centre, serviced apartments, staff offices and resident
amenities such as the libary, cafe, theatre and pool
Weekly feesFees residents pay towards the costs of running the village, such as staffing, insurance, council rates,
maintenance, landscaping and rubbish removal at the respective Summerset village where they are
a resident
Sustainability
TermDefinition
Embodied carbonThe total greenhouse gas emissions associated with the production of a building's materials, from
e
xtraction through manufacturing, transportation, construction and deconstruction
Greenhouse
gase
s (GHG)
Gases that trap heat energy from the Earth's surface and radiate it back, contributing to the
gr
eenhouse effect
Science-
based t
arget
A t
arget to reduce greenhouse gas emissions in line with climate science which has been reviewed and
validated by the Science Based Target Initiative (SBTi)
Scope 1 emissionsEmissions that are directly produced by an organisation through its day-to-day operations (e.g. fuel
used to run vehicles)
Scope 2 emissionsIndirect GHG emissions from purchased electricity, steam, heating and cooling (e.g. electricity used
to run village centr
es or offices)
Scope 3 emissionsGHG emissions that occur indirectly from a business's activities, but are not directly caused by the
busine
ss (e.g. emissions associated with business travel)
Total emissionsThe sum of direct and indirect GHG emissions, defined b
y three different scopes
Value chainThe various business activities and processes involved in creating a product or performing a service
with e
ach stage adding value
Waste hierarchyFramework for managing waste that prioritises waste prevention and reduction, often represented as
a p
yramid, with the best options to reduce waste at the top and the least favourable at the bottom
0 5
Annual Report 2024
Chair and CEO’s
r
eport
Mark Verbiest
Chair
Scott Scoullar
Chief Ex
ecutive Officer
Welcome to Summerset’s annual
r
eport for the 12 months ended
31 December 2024. We have
been managing one of the most
challenging business environments
we’ve seen as a company, and
in the circumstances we believe
Summerset has shown considerable
resilience and has delivered value for
residents and investors.
Through much of 2024, inflation,
weak consumer confidence, a softer
than anticipated property market
and rising costs all combined
to make trading conditions
extremely challenging.
Despite these challenges we saw
1,238 sales of ORAs, our highest
year. We were pleased to see the
strength of our diversified portfolio
in 2024 also, with eight different
regions seeing 30 or more sales.
We have continued to see strong
demand across the country and
have again seen high levels of
enquiry from prospective residents.
Our customers are highly motivated,
however the property market,
which was undoubtedly subdued
throughout 2024, restricted some of
our residents from selling their home
as quickly as they would like, slowing
some moves to our villages.
Even during an economic
downturn, we have highly motivated
customers, and it is clear a
move to our villages is, ultimately,
not solely dependent upon the
property market. Our prospective
residents' motivations to join
our village communities remain,
including security, community,
he
alth concerns and much more.
The past year has also shown us
the benefits of our broadacre build
strategy. We are able to recycle
cash effectively across our ongoing
developments and with the benefit
of in-house construction in New
Zealand we have flexed our build
programme to reduce construction
where demand has been lighter and
focus our work in other areas.
With demand continuing to
appear robust, we have further
strengthened our development
pipeline in New Zealand with the
purchase of three new parcels of
land to build future villages, and
two land purchases to expand
existing villages. While 2024 has
presented business challenges,
the softer property market has
provided us with opportunities for
well-priced acquisitions.
Our Australian development also
continues to progress with another
milestone achieved this year: our
first residents moving into our
Cranbourne North village. Our
Cranbourne village is on track and
we’ve begun construction on the
village’s main building which will
be home to our first Australian
care residents when complete. We
continue to take a measured and
cautious approach to our Australian
development as we build our
knowledge of that market.
Our hard work has been recognised
externally with Summerset receiving
a number of awards this year
from industry bodies, consumers
0 6
C H A I R A N D C E O ’ S R E P O R T
and financial bodie
s including
winning Gold for the Reader's Digest
2025 Quality Service Award in the
Retirement Villages category for the
second year in a row, and an Ethical
and Sustainable Business Award.
Business performance
Underlying profit for 2024 is
$206.4 million, an increase of 8%
on 2023. Our IFRS net profit after
tax is $339.8 million, down 20%
on 2023, this change is largely
reflective of the fair value movement
of investment properties recognised
in 2024, relative to 2023.
Operating cash flows of
$443.2 million have increased 11%
from last year. The value of
our investment property is now
$7.3 billion, up 14% on 2023, largely as
a result of additions to our retirement
unit portfolio across New Zealand
and Australia and favourable fair
value movements.
We believe that we've managed the
business effectively through very
challenging market conditions.
Levels of uncontracted stock have
increased on FY23 by 40% but
this is unsurprising as we opened
our flagship St Johns village in
Auckland, the village centre building
at our Pāpāmoa village and our new
Boulcott village in Lower Hutt in
2
024. All three villages have strong
demand but it takes time to sell down
three large scale initiatives like these.
At a typical village we open a number
of stages of villas before building
the village centre, which is home
to a large number of homes, in
addition to the village amenity such
as the pool, café and theatre. At our
St Johns and Boulcott sites we’ve
opened the village centres in the
early stages of the villages' lives
as planned.
Having care available immediately,
along with the communal facilities,
increases the village's appeal to
our prospective residents, but it
means we have higher levels of
uncontracted stock than normal due
to the village centres being home to
a large number of apartments and
care suites. When we exclude the
new village centre building homes
our uncontracted stock is down
between 20-50% across all unit
types year-on-year, a very pleasing
result in a tough market.
The Board is pleased to declare
a final dividend of 13.2 cents
per share, payable on 27 March
2025. Combined with our interim
dividend of 11.3 cents per share,
shareholders have received 24.5
cents per shar
e for the 2024 financial
year, consistent with 2023.
Costs
With market conditions constrained
we have worked hard to reduce our
costs. In the first half of the year a full
review of operating expenses was
undertaken to assist in managing our
balance sheet through the tougher
economic conditions.
Construction costs are an ongoing
focus for us and we are benefitting
from the subcontract tender market
reductions in line with reduced
sector activity. Our Procurement
team, which won the prestigious
Transformation of the Year award
at the annual New Zealand
Procurement Excellence Forum
(NZPEF) Awards in 2024, has worked
hard to secure value-for-money
long-term contracts through strong
relationships with our key suppliers.
Our hard work has seen us deliver
a healthy development margin
through 2024 of 28.9%, well above
the 20–25% guidance we gave
last year.
We have long felt our weekly
fees policy is an appropriate and
sustainable model. Costs such as
rates and insurance at our villages
increased markedly in 2024 which
Boulcott opened its village centre building during the year
0 7
Annual Report 2024
we were able to offset some
what
with our flexible weekly fees.
Our New Zealand weekly fees
are linked to Superannuation and
any increase does not exceed
the percentage increase to NZ
Superannuation. This year, while NZ
Superannuation increased by 4.65%,
our weekly fees increased by 3.75%.
We made the decision to keep our
2024 weekly fee increase below the
percentage increase of NZ Super to
try and balance the ongoing cost-
of-living crisis that was impacting
our residents, while looking to offset
the increasing operating costs of
our villages.
In Australia our fees are linked to the
Consumer Price Index (CPI) and do
not exceed the percentage increase
of CPI to provide Australian residents
with the same peace of mind when
budgeting for their retirement.
New Zealand land acquisitions
and de
velopment
Our New Zealand land bank is well-
diversified with proposed village
sites from Auckland to Dunedin. To
enable growth, approximately 80%
of our land bank has been consented
(excluding sites acquired in 2024).
The diversity of our land bank gives
us flexibility in the rate and location
of development, so we can respond
to localised demand and supply, and
the changing economic conditions.
This year our proposed village at
Masterton received consent, and our
proposed Mosgiel village is on the
list of projects in the Government’s
Fast-track Approvals Act.
While we have experienced a market
downturn in 2024, by exercising
careful due diligence we continue
to find well-priced land in high-
demand areas.
During the year we acquired three
new sites for proposed villages
and two extensions to existing
villages. These opportunities have
strengthened our development
pipeline and ha
ve increased our land
bank by more than 1,100 new units.
The new land for proposed
villages is:
•Mission Hills in Napier - in August
we announced the purchase
of our site in the Mission Hills
subdivision. The new subdivision
will offer excellent facilities
and amenitites for residents
including parks, shopping and
dining, and the village will be a
short drive from central Napier.
•Otaihanga on the Kāpiti Coast
– this new 12.6-hectare site
is in a very popular area for
retirees and will complement
our existing Paraparaumu and
Waikanae villages.
•Belmont in Auckland - just
minutes north of Devonport, an
extremely desirable location for
our prospective residents. The
5.7-hectare block has great views
of the city, and the proposed
village will predominantly feature
low-rise homes which will
help it stand out in an
area where apartment-heavy
retirement villages are the norm.
Our two village extensions are at our
Boulcott (Lower Hutt) and Blenheim
sites where we’ve acquired land
adjacent to the village to develop
more homes. Village extensions are
very profitable and allow Summerset
to add high-value homes, in high-
demand villages where we already
have capacity in the supporting
village infrastructure.
As we have a reasonably sized
land bank for future development,
we regularly review the portfolio
to ensure the economics of
development continue to meet,
or better, the original assumptions
relied on at purchase. We will
remain disciplined to ensure the
appropriate allocation of capital,
and on the odd occasion may sell
parcels purchased.
New Zealand construction
During 2
024 we have been very
deliberate about how we manage
our portfolio. This past year has
been an excellent example of the
flexibility we can bring to our build
programme - we slowed down
some of our work where demand
was lighter and concentrated our
efforts elsewhere.
As we signalled in our Half
Year Report we have deliberately
delivered at the lower end of our
675–725 build guidance, delivering
676 homes under ORA and 21
care beds in New Zealand. This
reflects growth of around 2% in
construction numbers.
Our Construction team worked
across 18 New Zealand sites this year,
including delivering our two new
village centre buildings at Boulcott
and St Johns and upgrades to
modernise the care offering for
residents at three of our oldest
villages – Levin, Havelock North
and Trentham.
We also commenced construction at
our Kelvin Grove (Palmerston North)
village and the extension at our
Cambridge village.
We delivered our flagship
Summerset St Johns village on time
and on budget in Q3. This complex
build on the 2.6 hectare site, in the
heart of Auckland, features six multi-
storey buildings with excellent views
of Auckland city and Rangitoto. The
village was officially opened by New
Zealand Prime Minister the Rt. Hon.
Christopher Luxon in December.
We continue to believe our
broadacre construction strategy is
the best short- and medium-term
option for us, which is why we plan
to only run one or two metropolitan
builds like St Johns at a time so we
can prudently manage our debt.
The other major metropolitan build
we now have underway is our Half
Moon Bay site in Auckland where
construction began in Q3.
0 8
C H A I R A N D C E O ’ S R E P O R T
Our advanced build programme
me
ans that we can flex our
construction as we need to and
we expect to build 600-650 homes
in FY25. We are taking a prudent
approach to the current economic
situation but will monitor this
throughout 2025.
Australia
Our development and expansion
in Australia is continuing as we
continue to look to prudently expand
our footprint and consent our land
bank to grow and allow us to meet
the forecast demand in this market.
In FY25 we expect to deliver between
50-80 homes to be sold under
ORA including the village centre at
Cranbourne North (which will be
delivered late in FY25 and open to
residents in FY26).
In addition to the major milestone
of welcoming our first Australian
residents at Cranbourne North and
commencing construction on the
village centre building, the second
stage of the village was handed
over in December and we delivered
a public park as part of our
development in October.
Construction also started in FY24
on our second Australian village,
Chirnside Park, which is scheduled
to deliver its first homes at the
end of 2025, and in late 2024
we started enabling works on our
Torquay village on the Surf Coast.
We continue to see Australia
as a huge growth opportunity
for Summerset, and we are
investigating land opportunities in
Victoria and Queensland.
Our people
Throughout FY24 we’ve invested
in our people to give them
opportunities, provide a better
workplace and to give them
tools and services that help them
professionally and personally.
To thank our people for their hard
work over the year, every permanent
Summerset staff member was
gifted an additional day of paid
leave to take some extra time for
themselves over the Christmas and
New Year period.
We are pleased to report that
728 permanent staff received free
Summerset shares this year as
part of the vesting of our annual
staff share scheme, and 2,060
eligible staff received $1,000 of
Summerset shares which vest in
September 2027.
In Q1 we changed our employee
assist
ance partner to TELUS Health
which provides our staff with
free and confidential counselling,
coaching and support as well as
a wellbeing platform and app with
numerous resources, courses and
health assessments for mental,
physical and financial health. These
services have been made available
to our staff’s families as well.
The health and safety of everyone
at Summerset, is of course, a top
priority for the business. In FY24,
we entered the second year of
our Safe People, Safe Process, Safe
Places strategy, achieving significant
progress in key areas of health
and safety. A major milestone
was the successful implementation
of a new health and safety
reporting, recording and assurance
system – HSI Donesafe. Donesafe
allows us to get even better
at recording and analysing any
incidents, issues or near misses, and
continously improve how we keep
our people safe.
Care and funding
Summerset is committed to
in
vesting in, and providing, high-
quality care. We have invested, and
will continue to invest, in the care
that our residents expect.
Our quality amenity at St Johns is immediately apparent on entering the village centre lobby
0 9
Annual Report 2024
However, we are acutely aware
that car
e is underfunded in New
Zealand. Health New Zealand – Te
Whatu Ora increased aged care
funding by 3.2% in 2024. This is far
below the New Zealand Aged Care
Association’s (NZACA) estimate that
an 11% increase was required for
providers to cover escalating costs
over the year.
This funding gap has prompted us
to make some changes to how we
sell care, and the size of our future
care centres.
Our newest care centres, and our
future builds, are smaller with fewer
beds available. They typically house
30 residents compared to the
approximately 50 in our older care
centres. These care centres are
focused on meeting the needs of our
village residents and providing them
with a continuum of care if their care
requirements change. We will accept
far fewer care residents from the
public health system, or from outside
the village, than we did before
because the aged care funding gap
means that we cannot continue
to incur losses by accepting non-
village residents into care.
Also, to protect ourselves financially
we are increasing the number of care
suites we sell under ORA, rather than
offering only a daily premium charge
model. This gives both Summerset
and our residents greater financial
certainty while recognising what is
necessary for economic viability. Our
residents have supported the move
and we’ve seen the number of care
suites selling under ORAs increase
steadily year-on-year.
While these changes have helped to
make our model more sustainable
long-term, we are considering other
changes. Currently we take a large
number of care resident referrals
from public health, but the funding
we receive is far less than is
required to provide quality aged
care services.
We are currently reviewing our
policie
s and where this funding gap
is leaving us, we feel we need to
focus the limited funding we have
and our staff resources on our village
residents and their needs only. This
review could result in us no longer
accepting referrals from the public
health system.
It’s not a step we want to take but
we can’t create a system where we
overstretch our staff. We know this
will mean a bigger burden will be
placed on the public health system,
but we can’t keep taking the strain.
We will continue to strongly support
the NZACA’s work to highlight the
underfunding of aged care in New
Zealand and the consequences for
us all if a growing elderly population
does not have access to quality
care. Summerset is now represented
on the NZACA board, a first for
Summerset, by CEO Scott Scoullar.
While we are not yet offering care in
Australia, we plan to from 2026, and
we note the funding environment
is less challenging for providers,
with federal law makers approving
a significant boost in aged care
funding during 2024.
Regulation
Both the Australian and New
Z
ealand governments have been
considering changes to legislation
relevant to Summerset’s operations.
From what we understand of
the proposed legislative changes
currently articulated, our practices
already align with the proposed
changes and we don’t anticipate any
material changes to our operations
in either country.
In New Zealand the government
has indicated that they would like
to consider greater transparency
for a Retirement Villages’ Code
of Practice, increase protections
for residents such as restrictions
on passing on insurance excesses,
and that they will take advice
on three key areas: passing on
the cost of maintaining operator-
o
wned chattels, the management
of complaints and disputes,
and incentivising earlier capital
repayments when residents leave
the village.
Summerset supports practicable
measures that require operators
to lift standards. We have worked
hard to provide plain English
documentation, we cap insurance
excesses at $250, we don’t charge
for the maintenance or repairs of
chattels in our village that we own,
and we pay interest to a resident,
or their estate, if their home hasn’t
sold after six months of leaving
the village.
We also support a fair and
transparent disputes resolution
option if we can’t agree with a
resident or their family on an issue.
In Australia a new Aged Care Act
has been passed by Parliament
and will commence from 1 July
2025. The reforms will increase
accountability for operators through
strengthened standards and include
the introduction of user pays
provisions for funding models.
It is our view that Summerset
is well placed to benefit from
the reforms when our care
operations commence.
Resident initiatives and events
We have continued to evolve our
offering t
o our residents to provide
them a unique retirement living
offering and to shape what we
do in our villages to meet the
changing needs and expectations of
our residents.
Our work has been recognised by
our residents, with our satisfaction
score hitting an all-time high in 2024,
at 97% for both village and care.
We have continued to build on our
"Summerset sessions", a range of
in-person and online events and
experiences to engage residents
and we introduced new resident
1 0
C H A I R A N D C E O ’ S R E P O R T
events such as the Summerset
Game
s and the Summerset's Best
Garden competition.
We have continued to expand our
Holiday Homes programme, which
offers residents and their families a
fully furnished apartment in one of
our villages to rent. Six villages from
Auckland to Christchurch now offer
a holiday home.
In care we know that our
menus and food offering are
a crucial part of our residents’
experience. We have significantly
changed our menus for our care
and serviced apartment residents
following residents’ feedback to
ensure we provide more choice.
We also piloted a remote nursing
service at a number of our villages
throughout the year to assist our
care centre staff. The 24/7 team
of Summerset registered nurses
support village teams online or by
phone. Our safe staffing ratios in our
care centres (our registered nurses
and caregivers to resident ratios),
remain the same and the remote
nurses provide an extra layer of
support when caring for residents.
It also allows us to share the expertise
of highly qualified registered nurses
among a number of villages.
Design and technology
The design and features of our
village have evolved further over the
last year as we change our offering
to meet resident expectations and to
provide more points of interest and
difference that increase the vibrancy
of our villages.
Throughout the country we’ve
investigated how we can add new
features for residents to enjoy, and in
2024 we installed or piloted features
such as golf simulators, dog washes,
shuffle boards, pétanque pistes and
more green spaces.
We’ve also further developed our
technology to make residents’ lives
easier. Our Lumin technology is now
installed at 17 villages. Lumin allows
residents to communicate with
each other, book activities, access
entertainment, receive messages
from their Village Manager and
much more, all on a specially
designed system for elderly users.
We are currently piloting the use of
Lumin for emergency call bells at our
Paraparaumu village too.
We’ve installed technology to
allow our staff to spend more
time with their residents. We’ve
rolled out the app version of our
resident care system – VCare –
which means our staff can update
records in a resident’s room and
input an
y necessary information
without having to return to the
nurses’ station.
Sustainability
We are proud of our industry-leading
approach to sustainability and we
made further improvements during
FY24 in how we measure, reduce and
report on our impacts.
We’re committed to fully
meeting our reporting requirements
on sustainability and we’ve
released our second Sustainability
Review and Climate-related
Disclosures document alongside
this Annual Report.
Two of our major achievements
this year are our work to move
our emissions target to a science
based target and our work around
embodied carbon.
Embodied carbon is a recent
focus for the business. We have
calculated the embodied carbon
for two of our standard build
typologies, establishing baseline
measurements for both. Already
we’ve seen significant reductions in
embodied carbon in the design of
our new three-bedroom townhouses
against this baseline.
Winner of Summerset's Money Can't Buy Silver Ferns experience, Jan Heffor
d
1 1
Annual Report 2024
To align with current best practice
w
e underwent the rigorous process
of having our emissions target
upgraded and validated by the
Science Based Targets Initiative
(SBTi). This validation ensures
our target is grounded in the
latest climate science, utilising
standardised methodologies and
independent verification.
Other major initiatives and
milestones this year to reduce our
carbon footprint and improve our
resilience include:
•Installing more than 1,000
solar panels
•Reducing the upfront embodied
carbon of our townhouse homes
by 28%
•Planted 80,000 native plants
•Meeting all three of our
sustainability linked lending
performance targets
•Continuing to focus on waste
diversion, we diverted than 4,400
tonnes of construction waste
this year
Our sustainability work has
been recognised again with our
construction waste avoidance
initiative and our Richmond Ranges
village solar panels installation
both being named finalists for
the Retirement Village Association’s
Sustainability Awards. We were
named a Sustainability Leader in the
Property & Construction category by
the
Australian Financial Review, and
an Ethical and Sustainable Business
Award from Money Matters and
Catalyst Leadership.
Outside of awards, we were pleased
to be recognised by Forsyth Barr
again in their third Carbon and ESG
Ratings for NZX listed companies.
They have rated us in the top 10
of NZX-listed companies based on
their criteria.
Further information is available
in the Sustainability section
of this report (page 47) and
in our Sustainability Review
and Climate-related Disclosures
FY2
4 report on the Summerset
website at www.summerset.co.nz/
investorcentre/esg-reporting/.
Executive changes
The importance of technology in
Summerset’s success going forward
led us to elevate the Head of Group
Technology role to report to the
CEO directly, creating a Chief Digital
Officer role. Robyn Gillespie joined
Summerset in October to take on
this new role.
Robyn has over 30 years in senior
tech roles and joined us from WSP
where she was Chief Information
and Operating Officer for nine years.
Prior to that, Robyn spent four years
as General Manager Information
Technology at Downer.
We also appointed Margaret
Warrington as our new CFO
following Will Wright's departure
to rejoin Fletcher Building as their
Group CFO. Will grew a highly
capable and valued team in his time
at Summerset and fostered great
relationships with our investors and
other stakeholders.
Margaret has many years'
experience in CFO roles across
the public and private sectors
and joins Summerset from NZX-
listed company EROAD. Margaret
was formerly Summerset's Head
of Finance and brings a strong
knowledge of the sector to her new
role – she rejoins Summerset in
February 2025.
Looking forward
While the short-term economic
outlook r
emains uncertain, we are
optimistic for the coming year. We
have come through one of the most
challenging years in Summerset’s
history with solid demand, high sales
numbers, and have significantly
bolstered our land bank.
In addition, we have met our
targeted build rate, welcomed
our first Australian residents, and
continued t
o invest in our people and
in our residents' experience.
During 2024 we showed the
strength of Summerset’s position
and balance sheet despite trading
in conditions labelled by some
commentators as worse than the
Global Financial Crisis. Our total
assets have grown 16% in the last
year to $8b, total equity has grown
14% to $3b and net tangible assets
per share are now $12.53, up 13%.
We will continue to take a
prudent approach to our balance
sheet management in FY25.
While economic conditions remain
restrictive we will manage our New
Zealand build rate and adjust where
we need to, while still growing
in Australia.
Subject to economic conditions,
which at this point we do think could
linger through the first half of 2025,
we look forward to continued strong
performance in the year ahead.
Finally, on behalf of the Summerset
Board and management, we’d like
to thank our investors, residents and
partners for your commitment to,
and belief in, Summerset’s goals and
future. We’d also like to thank our
Summerset team and their families
for another successful year.
Mark Verbiest
Chair
Scott Scoullar
Chief Ex
ecutive Officer
1 2
C H A I R A N D C E O ’ S R E P O R T
1 3
St Joh ns
Summerset St Johns is our flagship village which was
delivered on time and on budget in October FY24.
This complex build on a 2.6ha site
in the heart of Auckland features
six multi-storey buildings with
excellent views of Auckland city
and Rangitoto.
We purchased the 127-year lease on
our St Johns site in 2015 and after
a lengthy consenting process we
began the build in 2020. Despite
multiple Covid lockdowns and
supply chain obstacles our design
and construction teams have
delivered a breathtaking village.
The first stage of the village, which
welcomed its first residents in
October 2024, contains 60% of the
homes. The village features a mix
of one-, two- and three-bedroom
apartments and includes several
penthouses with views across
the city. The penthouses, valued
up to $6m, are some of the most
valuable retirement village homes
sold in the country to date.
This stage also included all of the
village amenity, which means
residents can use their facilities such
as the pool, library, café and theatre
from the moment they move in. This
is a feature unique to Summerset
St Johns as typically, with our
broadacre offering, the village
centre building isn’t opened until a
number of stages are complete.
The second and third stages are
underway with stage two to be
completed in 2025 and stage
three to follow, which will include a
number of high-value villas. When
complete the village will be home
to approximately 450 residents.
In recognition of the needs and
demands of our target audience
for this village we’ve added
unique features including the
café, which will turn into a bistro
for evening dining, our chauffeur-
driven Summerset St Johns vehicle
for residents to book, and roles
unique to the villages including
an executive chef and resident
experience manager to provide an
enhanced experience.
The village also includes care
suites, care apartments and
memory care centre providing
continuum of care options for our
residents if their needs change.
Summerset St Johns was officially
opened by the Prime Minister,
Rt. Hon. Christopher Luxon,
on 6 December 2024.
Annual Report 2024
1 4
FY24
Land Acquisitions
We have added some excellent property to our New
Zealand land bank in FY24 with the acquisition of three
new sites and two village land extensions.
See below for aerial shots of the our new land and for more information on these
excellent sites see page 39.
NEW SITESVILLAGE EXTENSIONS
We’ve been able to secure great land next to existing
villages to add homes at high-demand sites
MISSION HILLS
BELMONT
OTAIHANGA
BLENHEIM
BOULCOTT
In a very high demand area of Auckland this village will be
a mix of villas and apartments with excellent city views
Located in the heart of the Kāpiti Coast this new village
will complement our current Waikanae and Paraparaumu
villages which have high demand
The purchase will allow us to add up to 100 new homes
and additional amenities
Our third Napier village will be in the Mission Hills
development with excellent amenities and access to all
the Hawke’s Bay has to offer
We plan to add 48 new homes to the village
C H A I R A N D C E O ’ S R E P O R T
1 5
DIVERSIFIED PORTFOLIO
We benefit from a geographically
diverse portfolio that gives us the
flexibility to adapt our build rate
depending on local market conditions.
BUILD HIGH-QUALITY ASSETS
We pride ourselves on building and
maintaining villages that are well
designed, well located, and that
enable our residents to interact with
the community. Our expanding
geographical presence is based on
being in growing regions with strong
potential for investment gains.
HIRE SKILLED STAFF AND
HELP THEM THRIVE
We recognise our people as our
most important asset. They underpin
our ability to deliver the best of
life to our residents. We celebrate
their diversity and are committed
to ensuring all our staff are well
remunerated, motivated and safe.
LOOK AFTER OUR RESIDENTS
We want our residents to feel
secure and respected, and our
consistently high satisfaction rates
reflect that. We are also committed
to our continuum of care model
and providing residents high-quality
assistance if their needs change as
they age.
PROTECT THE ENVIRONMENT
We have near, medium and longer
term sustainability plans in place
to reduce our carbon emissions
intensity over time and to monitor
our progress and performance. We
significantly overachieved our first
short-term goal by reducing our
emissions intensity by 16% from
2018-2022.
DELIVERING VALUE TO OUR STAKEHOLDERS
O
N
E
T
E
A
M
S
T
R
O
N
G
E
N
O
U
G
H
T
O
C
A
R
E
S
T
R
I
V
E
T
O
B
E
T
H
E
B
E
S
T
BUY LAND IN DESIRABLE
PLACES WHERE PEOPLE
WANT TO RETIRE
BUILD AND MAINTAIN
HIGH-QUALITY VILLAGES
HIRE SKILLED STAFF
AND HELP THEM THRIVE
L
OOK AFTER OUR
RESIDENTS AND PROVIDE
E
XCELLENT CARE
CREATE SUSTAINABLE
VALUE FOR STAKEHOLDERS
W
HILE PROTECTING
THE ENVIRONMENT
Bringing the
best of life
PUBLICREGULATORSCOMPETITORSSTATUTORY SUPERVISOR
RESIDENTS
AND FAMILIES
INVESTORSCOMMUNITIESEMPLOYEESSUPPLIERSGOVERNMENT
INFLUENCE AND BENEFIT FROM THE VALUE WE CREATE
INFLUENCE WHAT WE DO
Annual Report 2024
1 6
SUMMERSET STRATEGY
Summerset’s strategy was
set in 2023 and has short
and long-term goals for the next
10 years. It help us prioritise our
work to ensure we stay on the
path that points toward our
purpose: to bring the best of life.
Three principles guide us
in the strategy:
• Our people lead the change
• Provide our residents with the
best life
• Deliver appropriate returns
to the shareholders who help
fund our business
We have six strategic pillars, each
with a number of initiatives under
them, that we’ll pursue over the
next 10 years to grow and
continue delivering great
experiences for our residents.
Our pillars are: Invest in our
People, Deliver New Zealand’s
best retirement villages, Grow
in Australia, Be a good corporate
citizen, Create attractive new
products and services and
Be a more efficient and
effective business.
C H A I R A N D C E O ’ S R E P O R T
1 7
DELIVER NEW ZEALAND’S
BEST RETIREMENT VILLAGES
We create vibrant, connected
communities with skilled, caring
and dedicated people right
across New Zealand. We want
to grow the reach of our villages
by making them available to
more retirees in more locations
throughout New Zealand.
FY24 progress
•
Delivered our flagship village, St
Johns, on time and on budget
with first residents moving in
during October 2024
• Announced as winner of the
Reader’s Digest 2025 Quality
Service Award for the second
year running
•
N
amed as finalist in the ‘Best
Provider Nationwide’ category
of the Aged Advisor annual
People’s Choice Awards
•
A
nnounced acquisition of three
new sites. and two extensions,
along with delivering three new
care centres in FY24
•
S
uccessfully launched new
brand campaign emphasising
the benefits of life in our villages,
named as finalist in the 2024 NZ
Marketing Awards
INVEST IN OUR PEOPLE
Summerset’s people are vital to
its success. We are committed
to providing sustainable,
meaningful career pathways and
opportunities. We are focused
on the health, safety and the
wellbeing of our employees to
ensure they can be at their best at
work, and at home.
FY24 progress
• Maintained our high engagement
scores - Summerset is in the
top quartile for New Zealand
healthcare providers
• Gifted staff an additional day of
leave as a thank you for all their
hard work undertaken across 2024
•
P
rovided a wide range of
employee benefits including free
healthcare and $1,000 in shares
annually for all permanent staff
•
I
ntroduced health and safety
platform HSI Donesafe as part
of our three year health and
safety strategy
•
B
ecame a member of Pride
Pledge, publicly committing to a
workplace where LGBTTQIA+ are
safe, included and visible
•
C
ommenced new partnership with
TELUS Health, providing staff a with
a broader range of wellbeing tools
C RE ATE AT TR ACTIVE N E W
PRODUCTS AND SERVICES
To match our customers’
expectations we strive to create
new products, amenities and
services with a continuum of care
at the heart of our offering. Our
products are tailored to the needs
of individual communities, but will
always look to exceed the demands
of customers who may want more.
FY24 progress
•
Completed our villa refresh
design project and second
generation of award winning
village centre design
• Completed our new single
storey village centre design for
regional areas, that will reduce
capital outlay without impacting
on the resident experience
•
N
eared completion of the first
tranche of care centre upgrades
at Havelock North and Trentham,
both will reopen in 1H25
•
I
ncorporated additional
amenities into future
masterplans including golf
simulators, pickleball courts, dog
washes, wine cellars, more green
spaces and outdoor BBQ areas
•
R
ecorded 94% occupancy
for our retirement villages and
care centres
Progress against
our strateg y
Annual Report 2024
1 8
GROW IN AUSTRALIA
Summerset is ambitious about its
future in Australia. We are excited
to be taking our established brand
of retirement village living into
the Australian market – we plan
to deliver thriving communities,
grow our team, and expertise as
we open villages in Victoria.
FY24 progress
•
Welcomed first residents into
Cranbourne North in March
•
C
ommenced construction of the
Cranbourne North village centre,
with delivery expected late in
2025 for residents to move into
early in 2026
•
Commenced construction at
Chirnside Park village, with first
units due in late 2025
•
Received approval for planning
permit at Oakleigh South, and the
development plan for Torquay
also granted
•
Held a sod turning ceremony at
Torquay in November
•
C
ontinued to look for new sites
in Victoria and Queensland
to complement our existing
pipeline of over 2,100 units
BE A GOOD
CORPORATE CITIZEN
We are proud of our industry
leading approach to sustainability,
making significant improvements
in this space over the last five
years. This is the start of our
journey – we will continue to focus
on finding new opportunities to
better ourselves, utilise sustainable
lending and meet our growing
disclosure obligation.
FY24 progress
•
Won the 2024 Ethical and
Sustainable Business Awards
• Named a Sustainability
leader in the 2024 Australian
Financial Review Property and
Construction category
• Diverted 4,409 tonnes of
construction waste from landfill
• Sponsored over 200 local clubs
that align with our residents’
interests and Summersets’ brand
and values
•
A
chieved all three of our
sustainability linked lending
performance targets
•
A
dded over 1,000 solar panels
to main buildings and over 80
charging bays for electric vehicles
BE A MORE EFFICIENT AND
EFFECTIVE BUSINESS
Technology will provide significant
opportunities to make us more
effective and efficient in how
we deliver services to residents,
without losing the human touch
and care that we’re known for. It
will be used to make the lives of our
residents simpler, giving them more
time to enjoy retirement.
FY24 progress
•
Won the Transformation of the
Year award at the NZ Procurement
Excellence Forum
•
C
ontinued the installation of our
resident platform, Lumin, now
in 17 villages allowing residents
to communicate with each
other, book activities, access
entertainment, receive messages
and book services on a specially
designed sytem for elderly users
•
R
olled out the app based version
of our resident care system
VCare, keeping staff on the floor
spending more time with residents
•
P
iloted a remote nursing service
called the National Clinical
Support Service to provide an
extra layer of support for staff
when caring for residents
C H A I R A N D C E O ’ S R E P O R T
1 9
Annual Report 2024
Snapshot
Our people
8,700+
Residents
3,000+
Staff member
s
97%
Village resident
satisf
action
Our care
97%
Care resident
satisf
action
1,299
Care units
(which include
s beds)
in portfolio
1,396
Care units
(which include
s beds)
in land bank in
New Zealand and Australia
Our portfolio
6,671
Retirement units
$8.1b
Total assets
FY23 $
6.9b
6,147
Retirement units
in land bank in
Ne
w Zealand
and Australia
43
Villages completed or
under de
velopment
1,238
Sales of
Occupation Rights
11
Greenfield sit
es
Our performance
$339.8m
Net pr
ofit after tax
FY23 $425.3m
$206.4m
Underlying pr
ofit
FY23 $190.3m
$443.2m
Operating cash flo
w
FY23 $398.2m
2 0
H I G H L I G H T S
2 1
2024
Highlights
JAN
FEB
MAR
JANUARY
Launched our new health and safety system
HSI Donesafe
We welcomed our first residents to our
Milldale village
FEBRUARY
We opened our new main building at
Summerset by the Dunes (Pāpāmoa)
MARCH
We celebrated Frontliner Day – Summerset
recognises the hard work and dedication of
our frontline workforce in our villages with
gifts and kind messages from residents and
their families
Our first Australian residents moved into our
Cranbourne North village
APRIL
Summerset signed up to the Pride Pledge which means we
publicly commit to creating a workplace where LGBTTQIA+
people are safe, included, and visible
MAY
We celebrated our people with our annual Applause Awards
in Christchurch
Launched our new wellbeing platform and app provided by
our employee assistance partner, TELUS Health
MAR
MAY
Annual Report 2024
2 2
JUNE
Broke ground on our second Australian village, Chirnside Park
Summerset Boulcott’s (Lower Hutt) main building handed
over with indoor pool, café, bar and more
JULY
Launched our virtual RN team supporting our nurses on
the ground in six pilot sites
Named a Sustainability Leader by the Australian
Financial Review
AUGUST
Summerset on the Landing (Kenepuru) received a Certificate
of Merit at the Property Council New Zealand Property
Industry Awards
Announced the purchase of our new Mission Hills site in Napier
NOVEMBER
Winners of the Reader’s Digest 2025 Quality Service Award for the second year running
Sod turning event held at our Torquay village site in Australia
DECEMBER
Announced our acquisition of four pieces of land – two proposed villages at Belmont
and Otaihanga, and village extensions at Boulcott and Blenheim
Prime Minister Rt. Hon. Christopher Luxon officially opens St Johns village
SEPTEMBER
Launch of our retirement preparedness
planning programme Retire Ready
Launch of our Holiday Homes at six
villages allowing residents to stay at other
village locations on holiday, or to provide
accommodation for friends and family when
visiting at their own village
OCTOBER
Summerset St Johns opens and welcomes
its first residents
Robyn Gillespie joins Summerset in new
Chief Digital Officer role
JUN
★
★
★
2
0
2
5
•
V
o
t
e
d
b
y
N
e
w
Z
e
a
l
a
n
d
e
r
s
•
2
0
2
5
★
★
★
★
★
★
2
0
2
5
•
V
o
t
e
d
b
y
N
e
w
Z
e
a
l
a
n
d
e
r
s
•
2
0
2
5
★
★
★
R
e
t
i
r
e
m
e
n
t
V
i
l
l
a
g
e
s
R
e
t
i
r
e
m
e
n
t
V
i
l
l
a
g
e
s
DEC
AUG
OCT
H I G H L I G H T S
2 3
Annual Report 2024
Portfolio growth
27 years of consistent growth and delivery (total units
1
in por
tfolio)
7,9707,970
7,3717,371
6,6796,679
6,0286,028
5,3575,357
4,9444,944
4,5904,590
4,0844,084
3,5763,576
3,0353,035
2,6012,601
2,2972,297
1,9731,973
1,8011,801
1,6791,679
1,5991,599
1,3841,384
1,2581,258
1,1961,196
1,0221,022
959959
879879
755755
656656
593593
337337
247247
7,2417,241
6,6796,679
6,0286,028
5,3575,357
4,9444,944
4,5904,590
4,0844,084
3,5763,576
3,0353,035
2,6012,601
2,2972,297
1,9731,973
1,8131,813
1,6791,679
1,5991,599
1,3841,384
1,2581,258
1,1961,196
1,0221,022
959959
879879
755755
656656
593593
337337
247247
247247
729729
692692
651651
671671
413413
354354
506506
508508
541541
434434
304304
324324
160160
122122
8080
215215
126126
6262
174174
6363
8080
124124
9999
6363
256256
9090
New units deliveredExisting stock
'24
'23
'22
'21
'20
'19
'18
'17
'16
'15
'14
'13
'12
'11
'10
'09
'08
'07
'06
'05
'04
'03
'02
'01
'00
'99
'98
01,2002,4003,6004,8006,0007,2008,400
1 Units include all retirement units and care units (including care beds). NB. In 2024 existing stock levels decreased to reflect stock decomissioned during care centre upgrades at three villages (130 units)
2 4
P O R T F O L I O G R O W T H
27 years of consistent growth and delivery (total units
1
in por
tfolio)
7,9707,970
7,3717,371
6,6796,679
6,0286,028
5,3575,357
4,9444,944
4,5904,590
4,0844,084
3,5763,576
3,0353,035
2,6012,601
2,2972,297
1,9731,973
1,8011,801
1,6791,679
1,5991,599
1,3841,384
1,2581,258
1,1961,196
1,0221,022
959959
879879
755755
656656
593593
337337
247247
7,2417,241
6,6796,679
6,0286,028
5,3575,357
4,9444,944
4,5904,590
4,0844,084
3,5763,576
3,0353,035
2,6012,601
2,2972,297
1,9731,973
1,8131,813
1,6791,679
1,5991,599
1,3841,384
1,2581,258
1,1961,196
1,0221,022
959959
879879
755755
656656
593593
337337
247247
247247
729729
692692
651651
671671
413413
354354
506506
508508
541541
434434
304304
324324
160160
122122
8080
215215
126126
6262
174174
6363
8080
124124
9999
6363
256256
9090
New units deliveredExisting stock
'24
'23
'22
'21
'20
'19
'18
'17
'16
'15
'14
'13
'12
'11
'10
'09
'08
'07
'06
'05
'04
'03
'02
'01
'00
'99
'98
01,2002,4003,6004,8006,0007,2008,400
1 Units include all retirement units and care units (including care beds). NB. In 2024 existing stock levels decreased to reflect stock decomissioned during care centre upgrades at three villages (130 units)
2 5
Annual Report 2024
2 6
O U R P E O P L E A N D C O M M U N I T Y
Our people and
c
ommunity
We’re proud to be home to more than 8,700
r
etirement village residents throughout New
Zealand and in Victoria, Australia. Our vibrant
and diverse communities are built, run and
supported by more than 3,000 staff.
Bringing the best of life is
S
ummerset’s purpose, and we value
and recognise our people who
are at the heart of delivering this
to our residents. Our business
functions across Australasia are
multi-faceted, employing a diverse
range of roles to design beautiful
villages, construct high-quality
homes and buildings, give our
residents amazing experiences and
care, and bring new residents to live
in our villages every week.
Summerset is dedicated to
creating retirement villages that
go beyond providing homes and
evolve into thriving communities
underpinned by our strong
customer service philosophy.
An outstanding achievement for
us this year was again winning
the coveted Reader’s Digest 2025
Quality Service Award in the
Retirement Villages category. To find
those companies that provide the
highest level of customer service
and that truly understand and value
consumer needs, Reader’s Digest
approaches everyday consumers
to ask them to assess companies
across five pillars of customer
service. These prestigious awards
have been running for 11 years,
and taking top spot two years in
a row is a testament to our team's
commitment to continue bringing
the best of life.
We were also delighted
t
o again see a
number of our
villages recognised in
the Aged Advisor’s
"People's Choice
Awards" for 2024.
Summerset on Cavendish won
the Be
st Large Retirement/Lifestyle
Village in the South Island, with
Summerset in the River City
(Whanganui) being a North Island
finalist. Summerset Prebbleton
was a finalist in the Best
Small Retirement/Lifestyle Village
category, and Summerset Group
was a finalist in the Best Provider
Nationwide category.
This recognition is based purely on
ne
arly 4,000 independent reviews
and ratings of retirement villages and
aged care facilities from residents
and their families throughout New
Zealand and underscores the
genuine affection our residents have
for the lifestyle we offer.
Engaging residents
We pride ourselves on the
opportunities socially, physically
and mentally that we provide
our residents to enhance their
retirement experiences, and our
annual resident engagement scores
are an indicator of how well we’re
getting those experiences right.
This year, 97% of village residents
tell us that they are very
satisfied, satisfied or neutral with
their experience, which is an
improvement over 2023. Valuing
our safe and secure community
environment, friendly and caring
residents and staff, always having a
great range of activities and events
to take part in, and lovely grounds,
amenities and homes are what our
residents most liked about living
in a Summerset village. For our
2 7
Annual Report 2024
care residents, 97% are also very
satisfied, satisfied or neutr
al, with
many praising the professionalism
and care they receive from our staff.
Traditionally Summerset has used
the Retirement Villages Association
measure of customer satisfaction,
using ratings 3-5, to align with the
retirement and aged care sector.
In line with our 'striving to be the
best' Summerset value, internally
we assess how well we're doing
using only 4-5 ratings (satisfied or
very satisfied) which was 90% for
village resident respondents and
82% for care.
Additionally, we use a Net Promoter
Score (NPS), which is a measure
used to gauge customer loyalty,
satisfaction and enthusiasm with a
company, where an NPS over 20
is deemed favourable, and above
50, excellent. Our NPS for village
residents was 46, indicating most
residents are rating the question of
whether they would recommend us
to their friends and family (on a scale
of 0-10), with a 9 or 10. Similarly our
care NPS was high with a score of 38.
We also survey our residents
r
egularly throughout the year on
various aspects of village life to
understand what is and isn’t working
for them. This gives us insight
into what we're doing well across
the country and also allows our
village managers to understand and
change things at their village to
better reflect the needs and wants
of their residents.
Events and experiences
Our “Summerset Sessions” deliver
a varied programme of events and
entertainment that residents can
enjoy in person or online. This
much enjoyed programme includes
events, concerts, cooking lessons
(with former MasterChef winner
Brett McGregor) and interviews
with well-known Kiwis. Various
Summerset Sessions were held at
villages around the country and were
filmed at the same time so they could
be enjoyed on-demand.
We also held regional events,
bringing multiple villages' residents
together for a showcase event
such as the Summerset Sings
Christmas concert in Wellington with
Will Martin and the New Zealand
Symphony Orchestra.
To highlight the vibrancy and variety
of village life, and to introduce
the wonderful residents who call
it their home, we created our “A
Summerset World” video series,
which is available on our website.
Every episode profiles a different
village, giving a glimpse into what
makes each village fun, unique and
an interesting place to live, while
getting to meet some of the talented
and interesting residents living there.
This year we featured Summerset on
the Landing (Kenepuru), Summerset
at Pohutukawa Place (Bell Block),
and Summerset Mountain View
(New Plymouth).
Retire Ready is a free financial
wellbeing series designed for those
planning or already at retirement
age, which we launched in 2024.
Partnering with financial planning
expert Liz Koh, the series was
developed in response to research
and feedback from people aged 40
and over wanting to feel confident
and certain about their financial
position and needs as they age. The
programme has received excellent
Resident satisfaction - Village and Care
Percentage (%)
Summerset resident satisfaction
measure (Village)
RVA satisfaction measure (Village)
Summerset resident satisfaction
measure (Care)
RVA satisfaction measure (Care)
201920202021202220232024
50
60
70
80
90
100
2 8
O U R P E O P L E A N D C O M M U N I T Y
feedback on its usefulness from
r
esidents and staff.
Many of our residents continue
to be highly competitive, and our
Summerset Games, held in August,
provided an array of sports events
and activities that also saw some
villages holding inter-village events
to up the stakes. Villages held
Games opening ceremonies and
concluded with medal and closing
ceremonies. With fun, participation
and enjoyment at the heart of the
Games, there were still plenty of
serious competitors.
”Summerset’s Best Garden
Competition” provided an outlet
for our green-fingered residents.
The seasonally run competitions
showcase how talented our
residents are at tending to their
gardens, plants and veggies. Judged
by top New Zealand landscape
designer and well-known TV and
radio host, Tony Murrell, it continues
to be very successful. We're working
on further competitions for our
residents to display their skills, with
writing and craft options being
developed to explore with our
residents and to offer new and
fun experiences.
A home-away-from-home
experience designed to bring loved
ones closer together was behind
our “Holiday Homes” initiative.
This programme offers short-term
accommodation exclusively for
Summerset residents, and their
families and friends, in villages
around New Zealand. Following a
successful trial in 2023 at three
villages, a further three villages were
added in 2024.
Offering on-site convenience
and best value for money for
residents and their families in a
fully furnished, comfortable, self-
contained apartment it allows
residents to travel and stay in familiar
surroundings and the opportunity
to host their family in their village.
We now have holiday homes in
Hawke's Bay, Auckland, Wellington,
Christchurch and Tasman available
for our residents to book.
We continue to invest in technology
that enhances the lives and
experiences of our residents.
Lumin, our resident communication
and entertainment system is now
inst
alled at 17 villages. Lumin gives
residents the ability to message
and call each other, receive village
notices and newsletters and is a
booking platform for meals, events,
and other village services.
Enhancing our care services
Our care offering, and our
continuum of care model, is a
very important part of why our
residents choose us and we want
to continually evolve our offering
and introduce new initiatives that will
bring the best of life to our residents.
We focus on providing high-quality
aged care for our residents already
living in our care facilities and
offering an ongoing continuum of
care with priority placement for our
village residents. Our care business
saw occupancy rates this year at 94%
in our developed villages.
During 2024 we opened three
village centre buildings in our
Pāpāmoa, Boulcott and St Johns
villages, which, in addition to
a range of beautiful village
amenities, also contain our serviced
Summerset on Cavendish in Christchurch enthusiastically kicked off
their Summerset Games with an opening ceremony
and march past
2 9
Annual Report 2024
apartments and st
ate-of-the-art care
centres and memory care centres
specially designed for those living
with dementia.
Dementia is a growing concern
in New Zealand, and we know
that some residents living with
dementia can continue to live
independently with the right support
and community in place. In May
we held focus groups with some
of our independent residents and
also with some families of residents
living with dementia, to understand
their specific needs and explore
ongoing support including raising
community awareness, tackling
stigma, supporting inclusion and
providing education on resources
and care pathways.
As we evolve, we look at what
changes we may need to make
to ensure we continue to provide
the care our residents need and
expect. In addition to investing in
new care facilities in new villages,
we are committed to progressively
upgrading our older care centres.
The care centre refurbishment
programme at our Levin, Trentham
and Havelock North villages has
progressed well with planning
now underway for Trentham and
Havelock North to reopen with their
new centres in 2025.
We have invested in equipment
and technology to make our care
residents more comfortable and
to maximise the effectiveness of
their care.
Early in the year we commenced a
pilot with six villages where we have
created a remote nursing service
we’ve called the National Clinical
Support Service. This is a 24/7 team
of Summerset registered nurses who
support the pilot village teams online
or by phone.
Our safe staffing ratios in our care
centres (our registered nurses and
caregivers to resident ratios), remain
the same, meaning that our care
centre teams have an extra layer of
support when caring for residents,
and it allows us to share the expertise
of highly qualified registered nurses
among a number of villages. The
pilot progressed well throughout the
year and we added a further three
villages towards the end of 2024. We
will assess the pilot in 2025 to look
at whether it's something we want to
do across all our care centres.
We have continued with the roll
out of installing ceiling hoists at all
our care centres to aid residents
with mobility difficulties. We now
have ceiling hoists in 19 villages
with the remainder to be completed
in 2025. The ceiling hoists are far
more comfortable, and residents tell
us they feel safer than the manual
hoists. They’re also easier to operate
for our staff and reduce the risk
of strains when assisting a resident
to move.
Following a successful pilot we
have rolled out the app of our
resident and care management
software (VCare) in 2024. The app
allows staff to enter resident care
information at the time the care is
delivered, with the benefit of saving
staff valuable time to spend with
residents directly, and also ensuring
that the resident information is
shared efficiently and effectively
among care team members.
We believe in providing excellence
in our clinical care from skilled
staff. Summerset remains the
only aged care organisation
in New Zealand to employ a
Clinical Pharmacist, recognising
the importance of enhancing
medication management practice
and safety in our villages, including
the safe and appropriate use of high-
risk medications. This role works with
prescribers to ensure medications
are being used appropriately and
only when required, supporting our
continuous improvement work of
optimisation and appropriateness
of medications such as the use
of psychotropic medications for
residents living with dementia.
We’ve seen improvements across
our care centres through boosting
Vitamin D prescriptions, a required
medicine for many older people
living in aged care, and also
reducing the number of residents
prescribed a high number of
medicines. Sometimes people are
on medications that they no longer
need or are no longer the best option
for them.
Lifting our pr
ofile
In order to attract new residents, we
need to have a strong and distinctive
brand presence that positions who
Summerset is and the fresh and
vibrant life we enable.
New Zealand’s retirement village
sector is a highly competitive
environment for advertising. In 2024
we launched a new advertising
campaign “Dear Diary”, which aims
to differentiate Summerset in the
market and bring our stories to
life through the diary entries of a
charismatic resident. Independent
research shows the campaign is
resonating well with our target
audience. Across those in the sector,
our research shows, we have the
highest percentage that correctly
attribute the adverts to Summerset,
and messaging and out-takes are
being correctly received.
The series of advertisements put a
spotlight on features of Summerset
village living such as finding
community and companionship,
security and fun, the liberation and
freedom that comes from the village
environment, and above all else, the
choice for residents to live life on
their terms.
Our ability to reflect vitality and
freedom of ageing and retirement in
our communications, saw continued
high demand for our offering
with our cost-per-enquiry metric
decreasing showing improved
efficiencies in our lead generation.
3 0
O U R P E O P L E A N D C O M M U N I T Y
Our long-term success in building
and maint
aining our brand in a
highly competitive market was also
rewarded with Summerset being
announced as a finalist in the 2024
New Zealand Marketing Awards.
With our first village now open in
Australia, and two others underway
at Chirnside Park and Torquay, we
are also growing our brand profile
and presence in Victoria. Through
increased local and specialised
media placements, and community
engagement activity we are telling
our local target audience about who
we are, our depth of experience and
what we have to offer as we build our
name in the Australian market.
We have an ongoing desire
and commitment to support
sponsorships and partnerships that
that align with our brand and values.
We deliberately choose national
partnerships with organisations that
resonate with our residents and
their families, and we’re proud to
have continued to support the
following organisations in New
Zealand during 2024:
•Netball Ne
w Zealand
•Bowls New Zealand
•Dementia New Zealand
•Alzheimers New Zealand
•GT NZ Championship
•Hato Hone St Johns
•New Zealand
Symphony Orchestra.
We regularly review our partnership
portfolio and their arrangements
to ensure they align with our
business priorities.
In local communities where our
villages are across Australasia,
and will be in the future, we
have worked with approximately
218 local community clubs and
organisations, including bowls, golf,
bridge and croquet clubs, Age
Concern, Lions, Rotary, RSAs and
more. These partnerships help us to
invest in, and support, organisations
that are important to our current
and future residents in our wider
village communities.
We continue to look for other
opportunities to give back to the
community as they arise. In 2024 this
included donating materials from
our T
rentham care centre to the
local Scouts. The Scouts were given
their choice of items that were being
removed as part of the care centre's
upgrade. We also donated a fully
refurbished van from our Wigram
village to the Wellington City Mission
to help them in transporting their
clients to various programmes in
the city.
Engaging our people
Our people are exceptional and
valued - without them we couldn’t
deliver a quality retirement living
experience to the more than
8,700 residents who have made
Summerset their home.
We strive to ensure we create a
great place for them to work and
thrive, and we are committed to the
protection and promotion of their
health and wellbeing so they can
be at their best both at home and
at work.
Our wellbeing programme provides
an intranet hub with support
tools that sit alongside a calendar
of regular communications on
Summerset's new Dear Diary advertising campaign launched in 2024
3 1
Annual Report 2024
wellbeing initiatives, spanning
ph
ysical, mental and financial health.
We commenced a new partnership
with TELUS Health this year, offering
our people, and their families, access
to free and confidential counselling,
coaching and support for their
personal or work-related wellbeing.
Our construction business
continued their wellbeing focus
with MATES in construction too.
Construction is an industry where
we recognise that poor mental
health outcomes are unfortunately
quite common. MATES engage with
workers through onsite training and
provides those identified as at risk
with case management support
that connects them to suitable
professional support.
We also recognise that our people's
wellbeing is enhanced by ensuring
they have the training, resources and
support to do their roles effectively.
We're committed to providing what
our people need to be more efficient
and effective in their roles from
providing leadership and promotion
pathways to investing further in
technology, such as our health and
safety system Donesafe and the app
version of our resident management
software VCare.
Recognising and celebrating
the dedication, commitment
and successes of our people
demonstrates how we, and our
residents, value them.
We gifted every permanent
Summerset staff member an
additional day of paid leave at the
end of 2024 to thank them for
their hard work. We encouraged
our people to take a longer break
to rest and recharge after a
challenging year.
Earlier in the year we celebrated
Frontliner Day, a day dedicated
to thanking all our hardworking
frontline staff – nurses, therapists,
office staff, property and gardening
teams, food services teams,
kaitiaki, housekeepers, laundry staff,
Staff engagement
1
Percentage (%)
Peakon
53%53%67%67%69%69%67%67%7.77.77.87.87.77.77.87.88.18.18.18.1
Past survey provider
Peakon
2016
2017
2018
2019
2019
2020
2021
2022
2023
2024
0
15
30
45
60
75
90
105
0
2
4
6
8
10
1 Peakon was provided with the 2019 raw data to ensure year-on-year consistency, noting different scoring scales
(67% = 7.7)
Employee retention
Percentage (%)
74%74%
79%79%
82%82%
75%75%
73%73%
77%77%
81%81%
2018
2019
2020
2021
2022
2023
2024
020406080100
3 2
O U R P E O P L E A N D C O M M U N I T Y
caregivers, activities coordinators
and people le
aders working in
our villages.
Village staff received gifts and we
created "gratitude walls" displayed
in each village for frontliners'
colleagues, residents and residents'
families to express their appreciation
with handwritten notes. For those
unable to make it into a village, a
digital gratitude wall was created
with hundreds of messages from
around New Zealand and the world.
We publicly thanked our people too
with full page ads in a number of
newspapers and digital advertising.
We also had the opportunity to
celebrate our people at our annual
Applause Awards, Summerset’s staff
recognition event. We had a record
2,200 nominations across the 37
award categories, and finalists
were hosted at a gala event in
Christchurch that was also live-
streamed for staff, residents, friends,
families and colleagues to share in
the occasion.
To provide an opportunity for staff
to be recognised more regularly
we continued our Surprise and
Delight programme, a monthly staff
recognition initiative.
We were pleased to have seen
engagement of our people continue
to strengthen. This was reflected
in our latest employee survey
which returned an engagement
score of 8.1 out of 10, putting
us in the top quartile of New
Zealand healthcare providers using
the same engagement survey. This
is a testament to the environment
we foster at our offices, villages and
construction sites.
Attracting and retaining talent
Differentiating S
ummerset as an
employer of choice led to the
development this year of our
Employee Value Proposition (EVP).
Our EVP can be considered as a staff
‘promise’ – what they can expect to
get from their company and what
they give to each other to have a
gr
eat workplace and career.
We intend to use our EVP to
better advertise our difference in the
market and to ensure our ‘promise’
stays consistent across our many
workplaces. We will roll out the EVP
and what it means to our people
during FY25.
Employee benefits provide an
opportunity for us to differentiate
ourselves as an employer of choice
in a competitive environment. We
offer a wide range of benefits
while also continuing to enhance
our rewards offering, and look to
improve our engagement with our
people through benefits that matter
to them. For example, all permanent
Summerset staff are offered free
health insurance and can receive an
annual $1,000 in Summerset shares
– two benefits which our people
value highly.
Providing leadership and
development pathways is important
to us in both attracting and retaining
our people too.
Our Construction Management
Cadet programme offers a pathway
for motivated people to get hands-
on, practical experience across a
range of construction disciplines.
After a minimum two years of
work our successful management
cadets graduate to be fully trained
site supervisors or junior quantity
surveyors. This year we saw three
of our cohort successfully graduate
from the programme. These are
important roles for Summerset
to create a talent pathway and
to give talented and enthusiastic
construction workers opportunities
to progress their careers in a market-
leading organisation.
In our villages we work
with Careerforce to provide
learning modules that upskill our
frontline staff.
In our food services area, to enable
an excellent team culture, high-
performing kitchens and retain great
people, this year all our Chef
Managers undertook leadership
training and development. The
programme supports them with
understanding their communication
style, delegating, coaching their
teams, and how in-turn to support
their staff on their career pathways.
While we know there
is mor
e to do we
are pleased to see
our retention figures
increased 4% against
2023 to 81%, with
staff turnover reducing
significantly over the
past 12 months across
all roles.
Safe people, safe process,
safe places
Safeguarding the health, safety, and
wellbeing of everyone who works
with us, visits us, or lives with us
remains a top priority, and this
commitment is central to our three-
year Health and Safety Strategy.
Our 'Safe People, Safe Process,
Safe Places' strategy continues to
progress, underpinned by a strong
focus on managing critical risks. This
year, we conducted comprehensive
reviews of our top four critical
risks: Working at Height, Temporary
Works, Infectious Disease Control
and Fire and Natural Disasters. These
reviews provided valuable insights
into risk controls and ensured we
have the appropriate measures in
place to prevent significant injury,
harm or loss of life.
In alignment with the New Zealand
Business Leaders Health and Safety
Forum, we've shifted our focus
from lagging injury metrics, such
3 3
Annual Report 2024
as injury frequency rates, to leading
indicat
ors that drive proactive
safety management. Key metrics
now include:
•The number of events with
high potential for Serious Injury
or Fatality (SIF), which are
investigated as thoroughly as if
an injury had occurred
•Reporting timeframes for
incidents as percentage
reported within 48-hours
•Timeframes to complete
investigations and close out any
correct actions
•Audit outcomes and the timely
close-out of corrective actions
These measures enable us to
assess whether critical safety tasks
are being effectively completed.
Our highest critical risk exposure
is working at heights. We
are committed to continuous
improvement, and we established
a working group to review the
events that had been occurring and
developed interventions to reduce
the risk and future number of these
events occurring. This work will
continue into 2025.
With the completion of our first year
of reporting, we've established a
baseline against these metrics which
allows us to now report on the
number of pot
ential SIF events by
critical risk. The baseline provides a
foundation for future comparisons
and sustained improvement for
working at height and our overall
health and safety performance.
By building on these insights,
we remain focused on creating
safer environments and driving
continuous improvement in health,
safety and wellbeing across
our business.
Our commitment to diversity
and inclusion
At Summerset we are committed to
de
veloping an inclusive workplace
where all our people can feel a sense
of equity, inclusion and belonging.
We also believe that diversity across
our workforce makes us stronger
and better able to connect with,
and bring the best of life to,
our residents on a day-to-day
basis. With a variety of thinking
styles, backgrounds, experiences,
perspectives and abilities we are
more able to understand our
residents’ needs and to respond
effectively to them.
Throughout the year our employee
representative groups have had
some significant achievements. Our
Summerset Pride Network is a
gr
oup of allies and LGBTTQIA+
community members who are
committed to bringing the best of
life by supporting, educating, and
empowering staff and residents,
making Summerset inclusive for all.
In March, led by our Pride Network,
we became a member of Pride
Pledge, committing to create
a workplace where LGBTTQIA+
people are safe, included, and
visible, and using our voice to
actively support and celebrate
rainbow communities. The Pride
Pledge resources, including rainbow
awareness online training tools, will
help us on our journey.
Summerset’s Women in
Construction Forum co-chair,
Amanda Robinson, achieved
recognition at the National
Association of Women in
Construction (NAWIC) Awards,
as ‘Highly Commended’ for the
Outstanding Leader of the Year – Site
Based award. The award celebrates
women who have made a significant
leadership contribution, and who
use their influence and position
to inspire, motivate, and make a
positive difference to their peers.
Cards of grattitude for Summerset Richmond Ranges village st
aff displayed to celebrate Frontliners Day
3 4
S T R O N G W A V E O F G R O W T H
Strong wave
of gr
owth
The New Zealand and Victorian populations aged 75 and over are forecast to grow considerably in the next 40–
50 years.
New Zealand population 75+
Percentage (%)
New Zealand population 75+
(left axis)
% population 75+
(right axis)
2002
2007
2012
2016
2022
2024
2028
2033
2038
2043
2048
2053
2058
2063
2068
2073
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
0
3
6
9
12
15
18
Source: Statistics New Zealand – National Population Projections
Victorian (Australia) population 75+
Percentage (%)
Victorian population 75+
(right axis)
% population 75+
(left axis)
2002
2007
2012
2016
2022
2024
2028
2033
2038
2043
2048
2053
2058
2062
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
0
2
4
6
8
10
12
Source: Australian Bureau of Statistics
3 5
Annual Report 2024
3 6
O U R V I L L A G E S
Our villages
Despite a challenging year with a slow
pr
operty market, inflationary pressures and
weak consumer confidence, we continue to
have strong sales and demand for our desirable
retirement living offering.
In 2024 our build programme has
continued t
o perform, and we’ve
delivered new homes across 13
villages throughout New Zealand
and added more Australian homes
at our first village there. Even in a very
challenging economic environment
we saw continued demand and
interest, because our residents are
motivated by many factors when
deciding to live in a retirement village
– a desire for more community,
security, health changes, lifestyle
and much more.
Record levels of interest
We experienced strong levels
of demand in our villages with
record sales settlements and
good numbers of presales in
our developing villages. Our
development pipeline remains
strong to meet the growth of
demand for our retirement living
offering around the country.
It was a very busy year for our
sales teams with four new villages
welcoming their first residents in
2024 – Milldale (Auckland) and
Blenheim in January, St Johns
(Auckland) in October, and in
Australia our Cranbourne North
village had their first residents move
in March.
With the completion of village
centre buildings at our Pāpāmoa,
Boulcott and St Johns villages, we
were also able to meet strong
interest and welcome residents
into serviced apartments, care
centres and memory care centres
in those villages.
Since introducing care suites sold
under ORA, an alternative to
charging a daily premium rate, the
greater financial certainty of an ORA
which allows residents to use the
equity they have already rather than
having to pay daily charges has been
well received by residents, with sales
exceeding our forecasts.
Demand across both
our ne
w and resale
villages continues to
be strong and we've
seen robust waitlists
across New Zealand
and Australia.
While demand has been high
and sale
s strong, in a highly
competitive market with tough
market conditions, the slowdown
in the residential property market
has delayed settlement times and
move-in dates for some prospective
r
esidents. In response, we were
able to activate tactical sales levers,
where needed, to help our residents
to make a move to a Summerset
village. Our use of sales incentives
has not dramatically increased,
staying in line with previous years.
Our popular moving service
continues to grow and we are proud
to be the only retirement village
provider offering dedicated in-house
moving services to incoming
residents at selected villages in
Auckland, Waikato, Bay of Plenty,
Wellington and the South Island.
This service allows residents to draw
on the expertise of an experienced
Moving Specialist, who provides
support and assistance throughout
the moving journey process. The
service receives overwhelmingly
positive feedback from residents.
To support prospective residents
to prepare for their next step
towards retirement village living,
and care, we have delivered
highly successful seminars in local
communities including downsizing
and decluttering, real estate
seminars in which we partner with
local agencies to provide their
expertise and insights. We also
ran three ‘Living with Dementia’
events with local Alzheimer’s New
3 7
Annual Report 2024
Zealand branches in Pāpāmoa, Bell
Block (Ne
w Plymouth), and Te Awa
(Napier). These events have been
very well attended and highly valued.
Flexibility in our
building pr
ogramme
We have prudently managed our
build r
ates to align with market
demand and economic conditions.
We have invested approximately
$600 million into our build
programme this year, and we remain
the largest constructor in the New
Zealand retirement village sector.
During the year we delivered
676 new homes under ORA
in New Zealand, and have
made significant progress with
construction underway at a
total of 18 villages across ten
regions, including three care centre
refurbishments (Havelock North,
Levin and Trentham), and three
villages in their pre-construction civil
works phase.
Our ability to deliver year-on-year
ensures we are well positioned to
meet continued increases in sector
demand and we expect to deliver
600–650 home
s in New Zealand
in FY25.
Construction commenced at our
Rangiora site, and work is
progressing well on our two
lightweight (timber) regional village
centre buildings at our Cambridge
and Whangārei villages.
In Wellington, our Waikanae village
construction team handed over the
‘Rimu Range’ of townhouses, the
second iteration of our very popular
three-bedroom townhouse design.
The townhouses, now built with a
lightweight construction method,
support our commitment to
building with more environmentally
sustainable materials. At Boulcott, in
Lower Hutt, we delivered the village
centre’s administration, recreational
and dining spaces along with the
memory care centre and serviced
apartments at the end of May. These
facilities are further enhanced by the
stunning outlook they have over the
neighbouring golf course towards
the Hutt River.
In Auckland, our Half Moon Bay
village is tracking well against its
build programme with foundation
w
ork starting. Our St Johns village
welcomed its first resident in
October, and was officially opened
by the Prime Minister of New
Zealand, the Rt. Hon. Christopher
Luxon in December.
We have now fully completed
our Summerset on Cavendish
village at Casebrook in Christchurch
and opened the village centre
at Summerset by the Dunes
in Pāpāmoa. The new village
centre, which in addition to
providing our superb range of
recreational amenities for the
village’s residents to enjoy, includes
serviced apartments, care and
memory care centres.
We were pleased that our
work to deliver Summerset on
the Landing in Kenepuru was
this year awarded Gold at
the Master Builders Commercial
Project Awards. This prestigious
awards programme celebrates
collaboration and innovation across
the building industry, and what sets
them apart is that they focus on
recognising the contribution of the
Boulcott's first floor lounge and bar area with views across the golf course to the Western Hutt hills
3 8
O U R V I L L A G E S
whole project team, the people who
br
ought the project to life, rather
than just the building itself.
All our villages under construction
met their year-end delivery targets.
There are a number of reasons
for this achievement, including
excellent project management
teams, robust procurement,
planning and consenting processes,
and designing most of the villages in-
house. We also have long-standing
and reliable supply agreements that
have enabled us to secure materials
well in advance.
We have a very mature procurement
programme and function with
good tender processes returning
better feasibility on build costs
and seeing us through difficult and
uncertain times. We were proud
to celebrate the achievements of
our Procurement team who won
the New Zealand Procurement
Excellence Forum's prestigious
Transformation of the Year Award
in 2024.
Summerset works hard to build
and maintain strong relationships
with our building partners. Our
trusted contractors and potential
new partners were invited to attend
our construction Partner Events,
a strategic initiative to strengthen
these relationships and also position
Summerset as the premier client ‘to
work with and for’. This year we
held events in Auckland, Wellington
and Christchurch with over 250
partner attendees.
Vibrancy and inno
vation by design
Bringing the best of life to our
residents requires us to build vibrant
villages with superior amenities that
meet the expectations of our current
residents and consider the future
needs of our prospective residents.
It also allows us to differentiate
ourselves from competitors.
Each of our villages contains
landscaped gardens, carefully
planned and designed with a
respectful consideration of its
unique surr
oundings. They also
contain a range of indoor and
outdoor spaces for our residents,
their families and friends to enjoy.
We're looking at how we can
incorporate additional amenities of
interest to our residents such as
pickleball and croquet courts and
outdoor barbecue areas, and this
year we have installed our first indoor
golf simulator at our Summerset
Down the Lane village in Hamilton.
Some of our building designs have
also had a refresh. Our villa portfolio
is being given a more contemporary
update which we will look to
incorporate in future village plans,
starting with our proposed villages at
Rolleston and Mosgiel.
Our village centre buildings, which
contain resident amenities, care
and administration, have received
both new and refreshed design
allowing us the option to right-size
amenities that are suitable to the
local environment and the needs of
residents in that area.
One of the new design formats will
begin construction next year at our
Blenheim village. This single-storey
building will be in keeping with the
local area but continue to have the
high specifications and amenities
our residents expect. Being single
storey means it is faster to build but
also allows us to create a space that
is very light and airy with exposed
wood and enhanced features.
We’ve also gone further with the
refreshed design of our current
format of three-storey village centre
buildings with a two-storey design.
Sector leading land bank
While it has been a challenging
mark
et there have been some
opportunities for us to find quality
sites with competitive pricing which
will enable us to grow our business
and introduce more New Zealanders
to our retirement village lifestyle.
In New Zealand we
w
ere pleased to have
announced five site
acquisitions this year
in locations of high
demand and forecast
population growth for
those aged 75 years
and older.
Mission Hills in Napier was the first
new village site to be announced.
Complementing our two existing
Napier villages it will be our
fifth village in the Hawke’s Bay
region. Located within the high-
quality master-planned Mission Hills
subdivision, the elevated site offers
expansive views of the coast and
surrounding rural landscape.
In December we announced a
further two new sites: Belmont,
on Auckland’s North Shore, and
Otaihanga on the Kāpiti Coast north
of Wellington. The 5.7ha Belmont site
will be highly attractive to future
residents being just minutes from
the vibrant areas of Takapuna and
Devonport with diverse shopping
and dining options and an extensive
choice of recreational facilities. The
proposed coastal village will be
generally north-facing and have
some stunning views of the city.
The land was purchased from
Ngāti Whātua Ōrākei and the
agreement includes education and
employment opportunities for hapū,
facilitating the start of a long-
term partnership.
The Otaihanga site of 12.6 hectares
will be our third village in the area,
with an existing Paraparaumu village
and our newer developing village
in Waikanae which are both in high
demand. The site is handily located
between Paraparaumu Beach and
the Coastlands Mall with a wide
3 9
Annual Report 2024
variety of shops and amenities
including major r
etailers, cafés,
restaurants and boutique shops.
Purchasing land adjacent to our
existing villages is a continued
focus of our development. These
opportunities allow us to meet
demand, and increase the cost-
effectiveness of our villages, as
we add high-margin independent
units to a village that already has
supporting infrastructure.
This year we purchased a 1.23ha
site for an extension to our
Boulcott (Lower Hutt) village, and
a 4ha site to extend our Blenheim
village. The Boulcott extension is
on the eastern edge of Boulcott's
Farm Heritage Golf Club. We plan
to provide additional independent
living villas and townhouses units as
well as additional village amenities
such as pickleball and another
resident clubhouse.
The Blenheim extension will allow
us to offer up to 100 additional
homes to Marlborough retirees, and
add extra amenities such as croquet
and an outdoor barbecue area to
ensure there is an even wider range
of activitie
s for residents to enjoy.
These major
acquisitions have
added more than 1,100
units to our land bank.
Our pipeline was additionally
bolst
ered with resource consents
received for Kelvin Grove
(Palmerston North) and Cashmere
Oaks (Masterton) villages, and we
expect to receive fast track approval
for our Rotorua village in Q1 2025.
Our Mosgiel village has also been
included on the Fast-Track Approvals
Act (Schedule 2) as we continue to
have the largest, most diverse and
consented (shovel ready) land bank
in the sector.
Australia progress
We are carefully building
momentum with our A
ustralian
portfolio, and 2024 saw us achieve
some important milestones in
Victoria. These included further
progress at our fir
st village in
Cranbourne North, construction
civils commencing at our second
village of Chirnside Park, holding
a sod turning event before
commencing enabling works at
Torquay, and securing approval for
plans at our Oakleigh South village.
Construction at our Cranbourne
North village is progressing well,
having completed the second stage
of homes with the delivery of 12 villas
in December. We also commenced
the third stage of new homes, and
construction on the village centre
building. When complete this will be
our first village to offer aged care
in Australia, another major milestone
we look forward to achieving in our
growth across the ditch.
In October, we held the opening
of the Cranbourne North Hilltop
Reserve extension - a new park
for the local community that
was designed and constructed by
Summerset as part of our village
development. We are committed
to supporting the growth and
wellbeing of the local communities
in which we develop our retirement
Artist impression of the new village centre building design to be unveilled at our Blenheim village
4 0
O U R V I L L A G E S
villages, and through local amenity
impr
ovement projects like the
handover of the Hilltop Reserve
extension, we can invest in the social
fabric of the neighbourhoods we
operate in.
We commenced construction civils
at our second village site, Chirnside
Park, in Melbourne’s northeast. First
villa builds are underway with
delivery at the end of 2025 and first
residents are expected to move in Q1
2026. The village is located within
the Chirnside Park town centre
precinct with panoramic views to the
Yarra Valley.
Having gained approval of the
development plan for our coastal
Torquay village early in 2024,
we have now received Council
approval of a planning permit
for up to 290 independent and
assisted retirement units and 80
residential aged care beds. A
smoking ceremony and sod turning
event was held in November
and enabling works commenced
in January 2025. Our Torquay
development will also see the
creation of a large new public park
as well as providing long awaited
upgrades to surrounding streets.
Earlier in 2024 we received
unanimous approval from City of
Monash Council for our plans for
a new village at Oakleigh South
in Melbourne’s inner east. The
village location is surrounded by
two outstanding recreation facilities,
the Metropolitan and Huntingdale
Golf Clubs.
We are building our Australian
capability and resourcing for
operational readiness in a timely
way, including looking forward to
welcoming our first aged care
residents in 2026.
Australia still offer
s
growth opportunities
for us and we’re
pleased with the
progress we have
made there.
We are focused on finding the right
oppor
tunities to add to our land bank
in Australia. However, we naturally
need t
o be prudent and disciplined
around what we buy and ensure that
it meets our strict financial and non-
financial investment hurdles.
We haven’t found the right land
for us in Victoria or Queensland in
2024 but we are confident there
are many great opportunities for
us in the coming years and we
have an existing pipeline of projects
in progress.
We expect to deliver between 50-80
homes to be sold under ORA in
Australia during FY25, including the
village centre at our Cranbourne
North village (which will be delivered
late in FY25 and open to residents
in FY26).
The sod turning event at our Torquay land in November marked a major milestone for us in Australia
4 1
11
Our
villages
Completed villages
In development
Proposed villages
Auckland Region
5
3 1
1
Northland
Waikato
31
11
Taranaki
Hawke’s Bay
31 1
Manawatū – Whanganui
Wellington Region
42
1
Marlborough
Canterbury
1
Otago
3
1
Bay of Plenty
111
11
Nelson – Tasman
2
1
1
32
Annual Report 2024
4 2
Bay of Plenty
PORT
PHILLIP
BASS STRAIT
Victoria
4
3
Greater
Geelong
Western
Melbourne
North Eastern
Melbourne
Eastern
Melbourne
Southern Melbourne
Frankston-Mornington
Bayside
Chirnside Park
Craigieburn
Cranbourne North
Oakleigh South
Mernda
MELBOURNE
Torquay
Drysdale
WESTERN
AUSTRALIA
O U R V I L L A G E S
4 3
NEW ZEALAND LAND BANKDESIGNCONSENTINGCONSTRUCTIONVILLAGE OPENFINAL STAGES
Bell Block, New Plymouth
Pāpāmoa Beach, Tauranga
Richmond, Tasman
Te Awa, Napier
Blenheim, Marlborough
Cambridge, Waikato
Lower Hutt, Wellington
Milldale, Auckland
Prebbleton, Canterbury
St Johns, Auckland
Waikanae, Kāpiti
Whangārei, Northland
Half Moon Bay, Auckland
Kelvin Grove, Palmerston North
Rangiora, Canterbury
Fairy Springs, Rotorua
Lansdowne, Masterton
Mosgiel, Dunedin
Rolleston, Canterbury
Belmont, Auckland*
Mission Hills, Napier*
Otaihanga, Kāpiti*
* New sites purchased
Annual Report 2024
Our pipeline
4 4
Progress continues at Summerset Cranbourne North village
AUSTRALIAN LAND BANK DESIGN CONSENTINGCONSTRUCTIONVILLAGE OPENFINAL STAGES
Cranbourne North, Melbourne
Chirnside Park, Melbourne
Torquay, Victoria
Craigieburn, Melbourne
Oakleigh South, Melbourne
Mernda, Melbourne
Drysdale, Victoria
O U R V I L L A G E S
4 5
Annual Report 2024
4 6
O U R C O M M I T M E N T T O S U S T A I N A B I L I T Y
Our commitment
to sus
tainability
We are committed to making sustainability a
part of all of our work across our villages,
construction sites and offices in New Zealand
and Australia.
Sustainability is built into
S
ummerset’s ten-year strategy, and
during FY24 we continued to reduce
our emissions and implement
good environmental, social and
governance (ESG) initiatives.
In February we delivered our second
Sustainability Review which, for
the first time, included our climate-
related disclosures, a requirement
for us under New Zealand law now.
Summerset is a climate reporting
entity under the Financial Markets
Conduct Act 2013. Our latest
Sustainability Review and Climate-
related Disclosures FY24 report is
now available on the Summerset
website at www.summerset.co.nz/
investor-centre/esg-reporting.
This report details the work
we’ve undertaken across our ESG
initiatives during 2024 as well as the
risks and opportunities that climate
change poses for us as a company.
Below is a high-level update on some
key sustainability activities during
2024. Please see our Sustainability
Review for more information.
During 2024 our sustainability work
was recognised by the Retirement
Villages Association (RVA) with
our construction w
aste avoidance
initiative and our Richmond Ranges
village solar panels installation both
being named finalists for the RVA
Sustainability Awards. We were
named a Sustainability Leader in the
Property & Construction category by
the Australian Financial Review and
we were one of three New Zealand
companies to be awarded an Ethical
and Sustainable Business Award by
Money Matters and Catalyst.
Our emissions profile
Summerset’s total emissions in 2024
were 72,925 tCO
2
e, an increase
of 64,118 tCO
2
e compared to
our 2022 base year. This rise is
primarily driven by the reporting
requirements of Scope 3 value chain
emissions, which now form the
largest part of our carbon footprint.
Key contributors within Scope 3
are category 1 capital goods and
2 purchased goods and services,
together accounting for over three-
quarters of our total emissions,
largely due to our expanding
construction activities.
Electricity and gas are the main
sources of Summerset's Scope 1 and
2 emissions, essential for delivering
high-quality care through heating,
cooking, and laundry services. While
overall emissions in these categories
are expected to rise as we grow and
welcome more residents, emissions
per square metre of developed land
have steadily decreased since 2017.
This progress reflects improvements
in construction, design, operational
efficiencies, and the adoption
of decarbonisation initiatives,
including sourcing renewable
energy certificates.
With most of our greenhouse gas
emissions now in our value chain,
we started work on establishing
our procurement sustainability
programme to work with our
suppliers to drive down our Scope
3 emissions and innovate lower
carbon products and services.
We have commenced our supplier
engagement programme through
national and regional supplier
forums focused on both material
and product suppliers as well as
service providers. We work hard to
build strong relationships with our
suppliers and through this approach
we will successfully encourage
4 7
Annual Report 2024
our supply chain to continually
impr
ove in line with Summerset’s
sustainability strategy ambitions.
Our new science-based target
Climate science is rapidly
developing and maturing and we
have worked hard to stay current.
We have continually challenged
ourselves to be better and to
find the best ways to hold
ourselves accountable internally
and externally.
Since we began measuring and
reporting emissions in 2018, the
landscape has evolved significantly.
In 2018 we initially set an emissions
reduction target to reduce emissions
intensity per $ million revenue by
5% in five years. We significantly
exceeded that target, achieving a
16% reduction.
In 2022, Summerset committed to a
near-term, five-year science-aligned
target to reduce our emissions
intensity by 34% by 2027 for Scopes 1
and 2 and we have been tracking well
against this.
This year, following best practice,
we underwent the rigorous process
of having this target upgraded
and validated by the Science
Based Targets Initiative (SBTi). This
validation ensures our emissions
reduction targets are grounded in
the latest climate science, utilising
standardised methodologies and
independent verification.
Establishing a science-based target
allows us to clearly understand
how much, and how quickly, we
need to reduce our greenhouse
gas emissions to mitigate the worst
effects of climate change.
Our new target is to reduce Scope
1 and 2 GHG emissions by 49%
per square metre by 2028 from
our 2022 base year. We’ve also
committed to engaging our supply
chain in emissions reduction. By
2028, our aim is for more than 70%
of our suppliers, covering purchased
goods, capital goods, fuel, energy,
travel and other key activities, to set
science-based targets.
We are proud to have the latest
science and information driving
us and holding us accountable.
We are confident Summerset
can meet these targets and
continue to improve our emissions
reduction efforts.
Measurement and cer
tification
In addition to our science-based
target we take a number of
other steps to hold ourselves
externally accountable.
Measurement
Our Greenhouse gas emissions
(GHG) have been calculated in
accordance with the Greenhouse
Gas Protocol standards. Further
information on how we measure our
GHG emissions is available in the
Metrics and targets section of our
Climate-related Disclosures.
Certification
Along with our science-based target
we are proud to be a Toitū net
carbonzero certified organisation
in line with ISO 14064-1. This
means we’ve measured and offset
emissions from our operations,
including emissions from business
travel, electricity, vehicles and
offices. Further information on our
Toitū net carbonzero certification is
available on the Toitū website.
We recognise that we can’t
reach our sustainability goals
alone. Collaboration is key,
so we work alongside several
organisations that are helping
advance sustainable practice in
New Zealand and worldwide,
including Waste Management, the
Climate Leaders Coalition, Lifemark
and others.
Solar power and electric vehicles
Throughout 2024, we advanced
our commitment to renewable
energy production by completing
the installation of solar panels
on the main buildings of our
Richmond, Rototuna, Pāpāmoa and
Boulcot
t villages.
This initiative involved installing
1,000+ solar panels across these
sites, generating over 300 MWh
of power.
Our solar transition
not only enhance
s
our resilience and
reduces our reliance
on grid electricity
but also significantly
contributes to the
electricity needs of
the common areas in
our main buildings,
which house our
care facilities.
Additionally, in 2024 we introduced
solar-powered streetlights at our
Havelock North, Paraparaumu, and
Palmerston North villages.
We have made significant
strides in promoting sustainable
transportation options for our
residents through the rollout of
electric vehicle (EV) charging
stations and our village EV car
sharing initiative. Over the past year,
we have increased the percentage of
EVs in our own fleet to 12%, up from
5% in 2023.
To support our electric fleet and
enhance the national charging
network, we have been retrofitting
EV charging stations at our
villages and we're ensuring that
all new developments include
charging infrastructure. Residents
are excited about the opportunity
to book village EV cars when
they need them, allowing them
to enjoy the convenience of
electric transportation.
4 8
O U R C O M M I T M E N T T O S U S T A I N A B I L I T Y
Purchased goods and services 16%
Resident electricity 2%
Employee commuting 4%
Capital goods 69%
Fertiliser 0.003%
Paper 0.05%
Travel 1%
Fuel & energy related activities
not in scope 1 or 2 1%
Waste 1%
Common electricity 3%
Gas 3%
Emissions by source
Full value chain emissions by source
Scope 1, 2 and selected
operational emissions
Construction waste diversion progress
0%
25%
50%
75%
100%
Percentage of waste
52%55%31%
48%
45%
69%
Diverted
202120222023
24%
76%
2024
4 9
Annual Report 2024
Embodied carbon
As one of Ne
w Zealand’s largest
residential builders, and with a
growing Australian land bank,
understanding and reducing our
embodied carbon emissions has
been a focus for us in the last
two years.
Understanding and minimising
embodied carbon is crucial
in our efforts to combat
climate change and build more
sustainable communities.
To date we have successfully
calculated the upfront embodied
carbon for two of our standard
build typologies, our three-bedroom
townhouse and our standard two-
bedroom villa. With this information
we’re able to identify opportunities
to reduce embodied carbon
and work towards providing low-
carbon homes.
Since we took this baseline measure,
we have built our second generation
of the three-bedroom townhouses
and seen significant reductions in
embodied carbon. Between design
iterations we have reduced our
upfront carbon emissions by 24%.
This is a great first result and
equally we’re pleased that while
we’ve created far more sustainable
homes, we have been able to do
so without compromising the quality
of construction.
Waste reduction
At Summerset, we are committed
t
o waste minimisation as a crucial
component of advancing our
circular economy work.
During 2024, we were building on 18
sites in New Zealand (including three
villages undergoing care centre
upgrades), and two in Australia, and
reducing our construction waste is
an ongoing focus for the business.
Our hard work resulted in 76% of our
construction waste being diverted
from landfill.
Working with our partners we
are a construction industry leader
Scope 1 & 2 emissions pr
ofile
tCO
2
e
kCO
2
e/m
2
Scopes 1 & 2Emissions intensity trend (right axis)
20172018201920202021202220232024
0
750
1,500
2,250
3,000
3,750
4,500
0
2.5
5
7.5
10
12.5
15
Short-term science-aligned target trajectory
kCO
2
e/m
2
6.946.94
6.466.46
5.755.75
5.165.16
4.564.56
3.973.97
3.383.38
kCO
2
e per m
2
Target
2022202320242025202620272028
0
2.5
5
7.5
Note: Market-based reporting of Scope 2 emissions from FY23 onwards
applies to intensity targets
5 0
O U R C O M M I T M E N T T O S U S T A I N A B I L I T Y
in waste reduction. Our waste
minimisation pr
ogramme operates
at various levels of the waste
hierarchy, emphasising recycling,
reuse, and diversion, alongside safe
landfill disposal.
Additionally, we ensure the
responsible handling and disposal
of any hazardous materials in
strict compliance with national
and local regulations, as outlined
in our individual site waste
management plans.
Our focus in 2024 has been to
strategically choose sustainable (or
the most sustainable) materials and
optimising their use, collaborating
closely with our suppliers to
reduce waste, increase recycling,
improve efficiency, and invest
in low-carbon technologies while
accessing emissions data.
In our villages, we continually
monitor the effectiveness of our
waste minimisation plans and seek
new opportunities for improvement.
This year, our focus has expanded
to include food waste, identifying
waste or opportunities to improve
waste minimisation during our food
service process.
Two of our villages are participating
in The Food Waste Reduction
Project in Aged Care, conducted
by Otago University, and funded by
the Ministry for the Environment,
which will give us more information
and the tools to help us reduce our
food waste.
During the year we've investigated
the opportunity to further direct
plastic, electronic and hygiene
product waste, and have continued
collaborating with our suppliers on
alternative solutions for hazardous
items, such as batteries.
We’re very pleased with the work
we’ve done to date, and we remain
committed to leading positive
change within our industry.
Sustainability-linked lending
W
e got our first sustainability-linked
loan in 2021, and since then all
our lending has been sustainability
linked. Having these conditions is
a great way to hold ourselves
accountable while at the same time
incentivising and providing tangible
benefits for the work we’re doing.
When we achieve the sustainability
performance targets we agreed
with our lenders we access more
favourable lending conditions.
During 2024, we
achie
ved all of our
sustainability-linked
lending performance
targets, resulting in
significant savings on
interest costs.
These targets include emissions
int
ensity reductions, reducing
construction waste, and
enhancing wellbeing.
More information
As a business we’ll continue our
regular reporting and improving the
activities and initiatives we’re already
undertaking. We are dedicated
to the ongoing investigation and
experimentation with new methods
and technologies that will help us
in achieving our sustainability goals
and ensure we continue to advance
our corporate citizenship in both
New Zealand and Australia.
For further information on
all our ESG activities please
see our Sustainability Review
and Climate-related Disclosures
FY24 report on the Summerset
website at www.summerset.co.nz/
investorcentre/esg-reporting/.
5 1
Our
performance
Artist impression of Summerset Cranbourne North
Annual Report 2024
5 2
O U R P E R F O R M A N C E
Summerset has delivered another
y
ear of strong underlying profit
performance and maintained
balance sheet resilience despite a
challenging operating environment.
Financial performance overview
Underlying profit for the year
ended 31 December 2024 increased
by 8% on the prior year to
$206.4 million (2023: $190.3 million),
driven primarily by record new
sales and resales in the year
and the continual growth in our
portfolio which has increased our
DMFs. New sales increased by
28 units on the prior year (+5%)
while resales increased by 107
(+20%), with five villages having 30+
resales for the year. We saw resales
across 31 different villages and
maintained a strong geographical
spread across the country with
only 47% of resales coming from
the Auckland, Wellington and
Christchurch regions.
We increased our delivery of units
compared to 2023 with total
deliveries for the group of 708,
an increase of 10% (643 in 2023)
with 32 Australian units and 676 NZ
units delivered in 2024. Revenue for
the year grew 18% to $319.9 million
(2023: $272.2 million), reflecting
village revenue growth from
deliveries within our developing
villages and continued high rates of
care occupancy in existing villages.
Profits from operations have held
relatively stable, a strong result given
we opened two new care centres
which incur large, fixed start-up
costs while occupancy builds up.
We continue to see wages and
costs increasing at a rate higher
than the increases to public funding,
in particular nurses' wages, council
rates, insurance and power.
Long-term growth
A key component of underlying
pr
ofit is the realised development
margin on new sales, which
was $118.4 million in 2024 (2023:
$121.2 million). Although w
e settled
more new sale units in 2024 (+28
units), our overall development
margin was 28.9%, slightly down on
prior year (31.6%) due to a shift in
mix in new sale settlements where
we saw more needs-based products
settled as well as higher average
costs to build in 2024. We expect
that development margins will be
maintained within the 20–25% range
over the medium term.
Good margins reflect the
advantage of having strong
in-house capabilities for each
stage of village development
including land acquisition, planning,
consenting, design, procurement
and construction management.
We continue to work to manage
cost inflation across our build
pipeline through leveraging from
scale, standardisation and mature
procurement planning.
Summary of sales
and de
velopments
Summerset had another record
sale
s year, with 1,238 unit sales
of occupation rights (2023: 1,103),
588 of them new unit sales
(10 in Australia) and 650 sales
of existing units. Average gross
proceeds per new sale settlement
of $696,000 was slightly up
from $686,000 in 2023 due to
higher sales prices across all
product types. Realised resale gain
increased by 9% to $95.9 million in
2024. Average gross proceeds per
resale settlement were $581,000,
similar to 2023 of $587,000. Key
development milestones included
the first deliveries of units at St Johns
(Auckland) which also included the
main building. We also delivered
the main building at Pāpāmoa
(Tauranga) and our memory care
centre at Boulcott (Lower Hutt). In
Australia, we delivered a further 32
units at Cranbourne North and saw
our first residents move in.
Net pr
ofit after tax
Summerset recorded a net profit
after tax of $339.8 million for
the year ended 31 December
2024, down from $425.3 million in
2023. This year-on-year change
is largely reflective of the fair
value movement of investment
properties recognised in 2024,
relative to 2023. The fair value
movement in 2024 of $372.6 million
included $111.8 million from new
units delivered and $131.7 million
from uplifts to retirement unit pricing
across the year. Early signs of
optimism in the wider property
market gave us confidence to
modestly increase portfolio pricing
as the year progressed and this was
also seen by our external valuers
who lifted unit pricing growth rates
to match expectations of improving
house prices as we move into 2025
and beyond.
Business growth and expenses
Summerset derives its revenue
fr
om selling units (DMFs) and
providing village and care services.
Summerset’s revenue increased as a
result of higher volumes, reflective
of the continuing growth and
scale of our operations. DMFs on
Summerset’s units sold under ORA
were $121.4 million in 2024 (2023:
$104.6 million). The gains reflect the
increase in the number, occupancy
and value of Summerset’s portfolio
of units. Underlying profit is a
non-GAAP measure. A detailed
explanation is included in Note 2 to
the Financial Statements (see page
68). In general terms, underlying
profit removes the fair value
movement of investment property
and reinstates the realised gains
associated with our resales and
the development margin associated
with our new sales.
Summerset’s total unit portfolio
reached 7,970 (2023: 7,371), and
at year end there were 547 new
units and 208 resale units available
for sale which represents 9.5% of
5 3
Annual Report 2024
our total portfolio (2023: 7.7%), the
incr
ease largely due to the high
number of deliveries in Q4 2024.
Occupancy in our mature care
centres was 94% (2023: 93%), which
is above the industry average of 90%.
Total operating expenses were
managed well, increasing by 15% to
$284.1 million in 2024 (2023:
$248.0 million). This increase was
mainly due to the startup costs and
growth in headcount of developing
villages (including opening two main
buildings and one memory care
centre) of approximately $28 million.
Inflationary cost pressures were also
a key driver of the overall increase,
accounting for over $8 million of the
increase, due to higher wage costs
(including increased care wage
costs at a rate above the level of
public funding increases), general
cost growth across head office
functions and higher rates, utilities
and insurance across our properties.
Net cash from operating activities
Summerset’s net cash from
operating activities was
$443.2 million for the year, up 11%
from 2023 (2023: $398.2 million).
This was principally driven by
increased receipts from residents
but reduced by increased costs of
providing care and village operations
as our resident numbers grow.
Summerset is a growth company
and reinvests operating cash flows
back into the business to finance
future growth. In 2024 Summerset
invested $683.1 million, primarily
in relation to new and existing
retirement villages and care centres
(2023: $668.5 million).
Assets rose to $8.1 billion
Total assets rose 16% to $8.1 billion
at 31 December 2024 (2023:
$6.9 billion), mainly due to growth
in the size and value of Summerset’s
investment property, which reached
$7.3 billion (2023: $6.4 billion). At
balance date, Summerset also had
property, plant and equipment
Underlying pr
ofit
$ million
56.656.6
81.781.7
98.698.6
106.2106.2
98.398.3
141.1141.1
171.4171.4
190.3190.3
206.4206.4
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
050100150200250
Land bank over time (units)
2,9752,975
3,2373,237
4,4504,450
6,2066,206
6,1716,171
6,6146,614
7,3647,364
6,9096,909
7,5437,543
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
03,0006,0009,000
5 4
O U R P E R F O R M A N C E
valued at $602.8 million (
2023:
$416.3 million
), most of this
being car
e centres (these are
operated to provide services and
are therefore not included as
investment property). An increased
embedded value of $1.7 billion (2023:
$1.6 billion) demonstrates future
cash that can be generated when
units are resold. Interest-bearing
debt of $1,714.3 million was 21%
of total assets at year end (2023:
$1,393.5 million). The year-end debt
at face value is made up of
$1,134.0 million of bank borrowings
and $575.0 million of retail bonds.
Summerset also has residents' loans
of $2.9 billion (2023: $2.5 billion).
This is in the form of licences paid
by residents under ORAs. These are
repayable when residents vacate
units and the associated occupation
rights are resold.
2024 dividends
Summerset will pay a final dividend
of 13.2 cents per share (cps)
on 27 March 2025, making a
full payout for the 2024 year
of 24.5 cps (2023: 24.5 cps).
Board policy for shareholder
distributions continues to maintain
a payout range of 20–50% of
each year’s underlying profit. The
2024 distribution of $58.3 million
represents 28.2% of underlying
profit ($206.4 million). Summerset
continues to offer shareholders
a dividend reinvestment option,
including a 2% discount to market
share price.
Expense breakdown
Employee expenses
Employee
expenses 60%
Property-related
expenses 10%
Depreciation
amortisation
and impairments 7%
Repairs and
maintenance
expenses 4%
Other operating
expenses 19%
Revenue breakdown
Revenue breakdown
Care fees and
village services 61%
Deferred
management
fees 38%
Other 1%
Dividends (cents per share)
2.62.6
3.93.9
66
6.46.4
66
9.99.9
10.710.7
11.311.3
11.311.3
5.15.1
7.17.1
7.27.2
7.77.7
77
8.68.6
11.611.6
13.213.2
13.213.2
Final
Interim
FY16
FY17
FY18
FY19
FY20
FY21
FY22
FY23
FY24
051015202530
5 5
Annual Report 2024
Five-year
summar
y
Key operational and financial st
atistics for
the five-year period up to and including
FY24 are shown below.
Results highlights – operational
UnitFY24FY23FY22FY21FY20
FY23 to
FY2
4 %
Change
New sales of Occupation RightsNo.5885605375404045%
Resales of Occupation RightsNo.65054347043838120%
Total sales of Occupation RightsNo.1,2381,1031,00797878512%
Development margin%28.9%31.6%29.7%23.1%19.6%-9%
New Occupation Right
units deliv
ered
No.70864362561935610%
Retirement units in portfolioNo.6,6716,0875,5184,9304,38510%
Care units in portfolioNo.1,2991,2841,1611,0989721%
Results highlights – financial
UnitFY24FY23FY22FY21FY20
FY23 to
FY24 %
Change
Restated
Net operating cash flo
w
$m
443.2398.2369.2383.4266.811%
Total assets
$m
8,066.06,941.75,840.34,923.73,893.216%
Net assets
$m
2,969.52,602.32,193.01,924.51,354.814%
Underlying pr
ofit
$m
206.4190.3171.4141.198.38%
Profit bef
ore income tax (IFRS)
$m
355.8411.5265.1543.6221.7-14%
Profit f
or the period (IFRS)
$m
339.8425.3269.1543.7230.8-20%
Dividend per share
cents
24.524.522.318.513.00%
Basic earnings per share
cents
144.6182.7116.7238.2102.3-21%
5 6
Financial
statements
5 7
Annual Report 2024
Income Statement
For the year ended 31 December 2024
20242023
Restated
1
NOTE$000$000
Care fees and village services4197,165165,945
Deferred management fees4121,446104,557
Other income41,2921,701
Total revenue319,903272,203
Fair value movement of investment property11372,572430,561
Total income692,475702,764
Operating expenses5(284,149)(247,983)
Depreciation and amortisation9, 10(19,099)(15,797)
Impairment loss9, 11(7,112)-
Total expenses
(310,360)
(263,780)
Operating profit before financing costs382,115438,984
Finance costs6(26,353)(27,496)
Profit bef
ore income tax
355,762411,488
Income tax (expense)/credit7(15,924)13,839
Profit f
or the period
339,838425,327
Basic earnings per share (cents)20144.65182.71
Diluted earnings per share (cents)20144.21182.38
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
The accompanying notes form part of these financial statements.
5 8
Statement of Comprehensive Income
For the year ended 31 December 2024
20242023
Restated
1
NOTE$000$000
Profit f
or the period
339,838425,327
Fair value loss on interest rate swaps14(12,916)
(24,627)
Tax on items of other comprehensive income73,689
7,082
Loss on translation of foreign currency operations(2,103)(200)
Other comprehensive income that will be r
eclassified subsequently to
profit or loss for the period net of tax
(11,330)(17,745)
Net revaluation of property, plant and equipment994,37244,785
Tax on items of other comprehensive income
7(26,424)
(12,540)
Other comprehensive income which will not be r
eclassified
subsequently to profit or loss for the period net of tax
67,94832,245
Total comprehensive income for the period
396,456439,827
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
The accompanying notes form part of these financial st
atements.
5 9
Annual Report 2024
Statement of Changes in Equity
For the year ended 31 December 2024
SHARE
C
APITAL
$000
HEDGING
RESER
VE
$000
REVALUATION
RESER
VE
$000
FOREIGN
CURRENC
Y
TRANSLATION
RESERVE
$000
RETAINED
EARNING
S
$000
TOTAL
E
QUITY
$000
As at 1 January 2023344,21218,84963,560(66)1,766,4682,193,023
Profit f
or the
period (restated)
1
----425,327425,327
Other comprehensive
income f
or the
period (restated)
1
-(17,545)32,245(200)-14,500
Total comprehensive
income for the
period (restated)
1
-(17,545)32,245(200)425,327439,827
Dividends paid----(53,260)(53,260)
Shares issued19,501----19,501
Employee share plan
option cost
3,199----3,199
As at 31 December
2
023 (restated)
1
366,9121,30495,805(266)2,138,5352,602,290
As at 1 January
2
024 (restated)
1
366,9121,30495,805(266)2,138,5352,602,290
Profit f
or the period
----339,838339,838
Other comprehensive
income f
or the period
-(9,227)67,948(2,103)-56,618
Total comprehensive
income for the period
-(9,227)67,948(2,103)339,838396,456
Dividends paid----(57,556)(57,556)
Shares issued24,822----24,822
Employee share plan
option cost
3,455----3,455
As at 31 December 2024395,189(7,923)163,753(2,369)2,420,8172,969,467
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
The accompanying notes form part of these financial st
atements.
6 0
Statement of Financial Position
As at 31 December 2024
20242023
Restated
1
NOTE$000$000
Assets
Cash and cash equivalents11,70512,648
Trade and other receivables858,60044,330
Interest rate swaps1420,84919,308
Other assets31,00045,000
Property, plant and equipment9602,813416,281
Intangible assets108,4768,421
Investment property117,328,7446,394,117
Investments3,8191,576
Total assets8,066,0066,941,681
Liabilities
Trade and other payables12166,983172,670
Employee benefits1333,87630,753
Revenue received in advance4212,356185,514
Interest rate swaps1418,60316,628
Residents’ loans152,881,1032,507,112
Interest-bearing loans and borrowings171,714,3401,393,523
Lease liability1611,87814,130
Deferred tax liability757,40019,061
Total liabilities5,096,5394,339,391
Net assets2,969,4672,602,290
Equity
Share capital19395,189366,912
Reserves19153,46196,843
Retained earnings2,420,8172,138,535
Total equity attributable to shareholders2,969,4672,602,290
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
The accompanying notes form part of these financial statements.
Authorised for issue on 27 February 2025 on behalf of the Board
Mark Verbiest
Dir
ector and Chair of the Board
Fiona Oliver
Director and Chair of the Audit and Risk Committee
6 1
Annual Report 2024
Statement of Cash Flows
For the year ended 31 December 2024
20242023
$000$000
Cash flo
ws from operating activities
Receipts from residents:
- care fees and village services194,724165,341
- residents' loans - new occupation right agreements388,013362,713
- residents' loans - resales of occupation right agreements (net)138,167104,576
Interest received1,1221,701
Payments to suppliers and employees(278,854)(236,156)
Net cash flo
w from operating activities
443,172398,175
Cash flo
ws to investing activities
Sale of investment property1,178-
Payments for investment property:
- land(20,920)(56,489)
- construction of retirement units and village facilities(482,312)(477,768)
- refurbishment of retirement units and village facilities(24,841)(19,391)
Payments for property, plant and equipment:
- construction of care centres
1
(68,852)(47,271)
- refurbishment of care centres(400)(128)
- other(14,063)(10,760)
Payments for intangible assets(1,520)(2,281)
Capitalised interest paid(69,225)(52,794)
Acquisition of long-term investments(2,159)(1,587)
Net cash flow to investing activities(683,114)(668,469)
Cash flo
ws from financing activities
Net proceeds from bank borrowings174,870247,928
Proceeds from issue of retail bonds125,000175,000
Repayment of retail bonds-(100,000)
Interest paid on borrowings(26,093)(28,374)
Payments in relation to lease liabilities(3,021)(2,614)
Dividends paid(33,542)(34,288)
Net cash flo
w from financing activities
237,214257,652
1 Included in the construction of care centres is $18.4 million relating to care centre upgrades (2023: $1.7 million).
The accompanying notes form part of these financial statements.
6 2
Statement of Cash Flows (continued)
For the year ended 31 December 2024
20242023
$000$000
Net decrease in cash and cash equivalents(2,728)(12,642)
Cash and cash equivalents at beginning of period12,64825,347
Foreign currency translation adjustment1,785(57)
Cash and cash equivalents at end of period11,70512,648
Reconciliation of Operating Results and Operating Cash Flows
For the year ended 31 December 2024
20242023
Restated
1
$000$000
Profit f
or the period
339,838425,327
Adjustments for:
Depreciation and amortisation19,09915,797
Impairment loss7,112-
Fair value movement of investment property(372,572)(430,561)
Finance costs paid26,35327,496
Income tax expense/(credit)15,924(13,839)
Deferred management fees amortisation(121,446)(104,557)
Employee share plan option cost3,9443,764
Other non-cash items2,39526
(419,191)(501,874)
Movements in working capital
Increase in trade and other receivables(7,510)(7,596)
Increase in employee benefits3,5413,614
Increase in trade and other payables2,9587,369
Increase in residents’ loans net of non-cash amortisation523,536471,335
522,525474,722
Net cash flo
w from operating activities
443,172398,175
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
The accompanying notes form part of these financial statements.
6 3
Annual Report 2024
Notes to the
financial
s
tatements
For the year ended 31 December 2024
1. General information
Reporting entity
The consolidated financial
statements presented for the year ended 31 December 2024 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 a 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.
Basis of preparation
These consolidated 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.
They comply with New Zealand equivalents to International Financial Reporting Standards (NZ IFRS) as appropriate for profit-oriented
entities. These financial statements also comply with International Financial Reporting Standards and the requirements of the
Financial Markets Conduct Act 2013.
These financial statements are expressed in New Zealand dollars, which is the Company’s and 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.
All amounts are shown exclusive of goods and services tax (GST), except for trade receivables and trade payables, and except where
the amount of GST incurred is not recoverable. When this occurs, GST is recognised as part of the cost of the asset or as an expense
as applicable.
The measurement basis adopted in the preparation of these financial statements is historical cost, with the exception of the items
noted below.
•Buildings – Note 9
•Investment property – Note 11
•Investments
•Interest rate swaps – Note 14
•Retail bonds – Note 17
Basis of consolidation
Subsidiaries are fully consolidated at the date on which the Group obtains control, and continue to be consolidated until the date
when such contr
ol ceases. The financial statements are prepared for the same reporting period as the Company, using consistent
accounting policies. All intra-group transactions and balances arising within the Group are eliminated in full.
All subsidiary companies are 100% owned and incorporated in New Zealand or Australia with a balance date of 31 December.
6 4
The New Zealand subsidiaries are:
Summer Land Developments Limited
S
ummerset Care Limited
Summerset Holdings Limited
Summerset LTI Trustee Limited
Summerset Management Group Limited
Summerset Properties Limited
Summerset Retention Trustee Limited
Summerset Villages (Aotea) Limited
Summerset Villages (Avonhead) Limited
Summerset Villages (Bell Block) Limited
Summerset Villages (Blenheim) Limited
Summerset Villages (Cambridge) Limited
Summerset Villages (Casebrook) Limited
Summerset Villages (Cashmere Oaks) Limited
Summerset Villages (Dunedin) Limited
Summerset Villages (Ellerslie) Limited
Summerset Villages (Half Moon Bay) Limited
Summerset Villages (Hamilton) Limited
Summerset Villages (Hastings) Limited
Summerset Villages (Havelock North) Limited
Summerset Villages (Hobsonville) Limited
Summerset Villages (Karaka) Limited
Summerset Villages (Katikati) Limited
Summerset Villages (Kelvin Grove) Limited
Summerset Villages (Kenepuru) Limited
Summerset Villages (Levin) Limited
Summerset Villages (Lower Hutt) Limited
Summerset Villages (Manukau) Limited
Summerset Villages (Milldale) Limited
Summerset Villages (Mosgiel) Limited
Summerset Villages (Napier) Limited
Summerset Villages (Nelson) Limited
S
ummerset Villages (New Plymouth) Limited
Summerset Villages (Number 42) Limited
Summerset Villages (Number 47) Limited
Summerset Villages (Number 48) Limited
Summerset Villages (Number 49) Limited
Summerset Villages (Number 50) Limited
Summerset Villages (Number 51) Limited
Summerset Villages (Number 52) Limited
Summerset Villages (Number 53) Limited
Summerset Villages (Number 54) Limited
Summerset Villages (Number 55) Limited
Summerset Villages (Palmerston North) Limited
Summerset Villages (Papamoa) Limited
Summerset Villages (Paraparaumu) Limited
Summerset Villages (Parnell) Limited
Summerset Villages (Prebbleton) Limited
Summerset Villages (Rangiora) Limited
Summerset Villages (Richmond) Limited
Summerset Villages (Rotorua) Limited
Summerset Villages (Rototuna) Limited
Summerset Villages (St Johns) Limited
Summerset Villages (Taupo) Limited
Summerset Villages (Te Awa) Limited
Summerset Villages (Trentham) Limited
Summerset Villages (Waikanae) Limited
Summerset Villages (Wanganui) Limited
Summerset Villages (Warkworth) Limited
Summerset Villages (Whangarei) Limited
Summerset Villages (Wigram) Limited
Welhom Developments Limited
The Australian subsidiaries are:
Summerset Care (Australia) Pty Limited
S
ummerset Holdings (Australia) Pty Limited
Summerset Management Group (Australia) Pty Limited
Summerset Villages (Chirnside Park) Pty Limited
Summerset Villages (Craigieburn) Pty Limited
Summerset Villages (Cranbourne North) Pty Limited
Summerset Villages (Drysdale) Pty Limited
Summerset Villages (Mernda) Pty Limited
Summerset Villages (Number 4) Pty Limited
Summerset Villages (Number 8) Pty Limited
Summerset Villages (Number 9) Pty Limited
Summerset Villages (Number 10) Pty Limited
Summerset Villages (Number 11) Pty Limited
Summerset Villages (Number 12) Pty Limited
Summerset Villages (Number 13) Pty Limited
Summerset Villages (Number 14) Pty Limited
Summerset Villages (Number 15) Pty Limited
Summerset Villages (Number 16) Pty Limited
Summerset Villages (Number 17) Pty Limited
Summerset Villages (Number 18) Pty Limited
Summerset Villages (Number 19) Pty Limited
Summerset Villages (Number 20) Pty Limited
Summerset Villages (Number 21) Pty Limited
Summerset Villages (Oakleigh South) Pty Limited
Summerset Villages (Torquay) Pty Limited
6 5
Annual Report 2024
Notes to the financial st
atements (continued)
Accounting policies
A
ccounting policies that summarise the measurement basis used and that are relevant to the understanding of the financial
statements are provided throughout the accompanying notes.
The accounting policies adopted have been applied consistently throughout the periods presented in these financial statements.
The Group adopted all mandatory new and amended NZ IFRS Standards and Interpretations and there has been no material impact
on the Group's financial statements.
In April 2024, the International Accounting Standards Board issued IFRS 18
Presentation and Disclosure in Financial Statements that
is effective for the accounting period that begins on or after 1 January 2027. This standard has not been early adopted in preparing
these financial statements.
There are no other new standards, amendments or interpretations that have been issued and are not yet effective, that are expected
to have a significant impact on the Group.
During the period, the Group reviewed its cash flows from operating activities disclosure. The Statement of Cash Flows presentation
has been amended to remove the separate disclosure of cash receipts from residents relating to expected deferred management
fees. These are now included in the receipts from residents’ loans categories.
Critical accounting estimates and judgements
In preparing the financial
statements, management has made estimates and assumptions about the future that affect the reported
amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during
the period. Actual results may differ from those estimates.
Estimates and assumptions are regularly evaluated and are based on historical experience and other factors, including expectations
of future events that are believed to be reasonable under the circumstances. The principal areas of judgement in preparing these
financial statements are described in the following notes:
•Deferred management fees – Note 4
•Deferred taxation – Note 7
•Interest rate swaps – Note 14
•Leases – Note 16
•Revenue in advance – Note 4
•Valuation of investment property – Note 11
•Valuation of buildings – Note 9
•Valuation of retail bonds – Note 17
Comparative information
a)The St
atement of Cash Flows presentation has been amended to remove the separate disclosure of cash receipts from
residents relating to deferred management fees. This amendment has been applied retrospectively and the impact on the
comparative periods is shown below:
20232023
ReportedReclassReclassified
$000$000$000
Statement of Cash Flows
Receipts from residents:
- residents' loans - new occupation right agreements266,70396,010362,713
- residents' loans - resales of occupation right agreements (net)44,78459,792104,576
- deferred management fees155,802(155,802)-
b)The Gr
oup has updated comparative information to reflect the restatement of fair value movements related to care centre
development, previously included in investment property. As a result, the comparative financial information has been restated
to correct the classification of these assets and reallocate fair value movements from the Income Statement to Statement of
Comprehensive Income. This restatement had no impact on Underlying Profit.
6 6
20232023
ReportedAmendmentRestated
$000$000$000
Income Statement
Fair value movement of investment property441,553(10,992)430,561
Profit f
or the period
436,319(10,992)425,327
Statement of Comprehensive Income
Net revaluation of property, plant and equipment33,79310,99244,785
Tax on items of other comprehensive income(9,462)(3,078)(12,540)
Other comprehensive income24,3317,91432,245
Net transfer to shareholders equity442,905(3,078)439,827
Statement of Financial Position
Property, plant and equipment403,24810,992414,240
Investment property6,407,150(10,992)6,396,158
Net change to total assets6,941,681-6,941,681
Deferred tax liability15,9833,07819,061
Net change to total liabilties4,336,3133,0784,339,391
Revaluation reserve87,8917,91495,805
Retained earnings2,149,527(10,992)2,138,535
Net change to total equity attributable to shareholders2,605,368(3,078)2,602,290
Basic earnings per share (cents)
187.43
(4.72)182.71
Diluted earnings per share (cents)
187.09
(4.71)182.38
c)Compar
ative information has also been updated to reflect the reclassification of work in progress for care centres under
development from investment property to property, plant and equipment.
20232023
Reported
(including
amendment)
ReclassReclassified
$000$000$000
Statement of Financial Position
Property, plant and equipment414,2402,041416,281
Investment property6,396,158(2,041)6,394,117
Statement of Cash Flows
Payments for investment property:
- construction of retirement units and village facilities(479,809)2,041(477,768)
Payments for property, plant and equipment:
- construction of care centres(45,230)(2,041)(47,271)
6 7
Annual Report 2024
Notes to the financial st
atements (continued)
2. Non-GAAP underlying pr
ofit
20242023
Restated
1
Ref$000$000
Profit f
or the period
339,838425,327
Less fair value movement of investment propertya)(372,572)(430,561)
Add impairment of assets and other non-cash itemsb)8,832-
Add realised gain on resalesc)95,88088,131
Add realised development margind)118,448121,231
Add/(less) deferred tax expense/(credit)e)15,924(13,839)
Underlying pr
ofit
206,350190,289
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
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 pr
ofit
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)Add impairment of assets and other non-cash items: remove the impact of non-operating one-off items and 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. 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
6 8
All costs above include non-recoverable GST.
De
velopment 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
the new sale but for all subsequent resales. It also excludes the costs of developing care centres.
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. Segment reporting
The Group operates in one industry, being the provision of integrated retirement villages. The services provided across all of the
Gr
oup’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, 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 seven sites purchased to date. These sites are currently being,
or will be, developed into retirement villages.
Health New Zealand - Te Whatu Ora 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 Health New Zealand - Te Whatu Ora for the year ended 31 December
2024 amounted to $53.0 million (2023: $44.3 million). No other customers individually contribute a significant proportion of the
Group revenue.
4. Revenue
Care f
ees and village services income are charged to residents on a monthly basis, as agreed, and are recognised over time. A portion
of village services is considered lease income based on the nature of the services provided.
Deferred management fees, which entitle residents to accommodation and the use of the community facilities within the village, are
recognised over the period of service, being the greater of the expected period of tenure or the contractual right to revenue. The
expected periods of tenure, being based on historical Group averages, are estimated to be seven to eight years for villas, five years for
apartments, three years for serviced apartments and memory care apartments, and two years for care suites. The estimated expected
periods of tenure are unchanged from prior year. Where the deferred management fees over the contractual period exceed the
amortisation of the deferred management fee based on estimated tenure, the amount is recorded as a liability (revenue in advance).
At balance date, the majority of the revenue in advance balance is non-current. Deferred management fees are recognised on a gross
basis in the receipts from residents’ loans section of the statement of cash flows.
Other income comprises:
20242023
$000$000
Interest received1,2921,701
Total other income1,2921,701
Interest income is recognised in the income statement as it accrues, using the effective interest method. Other income is recognised
in the income statement in the period in which the performance obligations have been satisfied.
6 9
Annual Report 2024
Notes to the financial st
atements (continued)
5. Operating expenses
20242023
$000$000
Employee expenses182,915153,478
Property-related expenses30,60226,643
Repairs and maintenance expenses11,38310,041
Other operating expenses59,24957,821
Total operating expenses284,149247,983
Employee expenses include post-employment benefits (KiwiSa
ver/Superannuation) of $5.8 million (2023: $5.3 million).
Other operating expenses include donations of $13,092 (2023: $8,823) and fees paid to the audit firm as follows:
20242023
$000$000
Audit and review of financial st
atements
486330
Total486330
Audit or review related services
Reporting to Statutory Supervisor5
5
Reporting to Bond Supervisor
5
5
Total1010
Other assurance services and other agreed-upon procedures engagements
Sustainability linked lending assurance (assurance engagement)3252
Greenhouse gas inventory assurance (assurance engagement)48
-
LTI vesting targets assurance (assurance engagement)5
5
Total8557
Other services
Remuneration advisory services
66
Training-
5
Total611
Total fees incurred for services provided by the audit firm587408
7 0
6. Finance costs
20242023
$000$000
Interest on bank loans, retail bonds and related fees102,12581,145
Interest on interest rate swaps(4,238)(3,584)
Interest on lease liability517520
Capitalised finance costs(72,440)(50,974)
Fair value movement of interest rate swaps through profit or loss(12,452)(10,394)
Fair value movement of retail bonds designated in a fair value
hedge r
elationship
12,45210,394
Other389389
Finance costs26,35327,496
Interest expense comprises interest payable on borrowings and is calculated using the effectiv
e interest rate method.
Borrowing costs are capitalised for property, plant and equipment (Note 9), and investment property (Note 11), if they are directly
attributable to the construction or production of a qualifying asset. Capitalisation of borrowing costs commences when the activities
to prepare the asset commence and expenditure and borrowing costs are incurred. Capitalisation of borrowing costs continues until
the assets are substantially ready for their intended use.
Borrowing costs of $72.4 million (2023: $51.0 million) have been capitalised during the period of construction in the current year. The
weighted average capitalisation rate on funds borrowed representing the borrowing costs of the loans used to finance projects is
5.37% per annum (2023: 5.09% per annum).
Three of the Group's retail bonds are designated in a fair value hedging relationship. Details of fair value hedging are included in
Note 14.
7. Income tax
Tax e
xpense 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
20242023
$000$000
Tax expense comprises:
Deferred tax relating to the origination and reversal of temporary differ
ences
15,924(13,839)
Total tax expense/(credit) reported in income statement15,924(13,839)
7 1
Annual Report 2024
Notes to the financial st
atements (continued)
The prima facie income tax expense on pre-tax accounting pr
ofit from operations reconciles to the income tax expense in the
financial statements as follows:
20242023
Restated
1
$000%$000%
Profit bef
ore income tax
355,762411,488
Income tax using the corporate tax rate99,61328.0%115,21628.0%
Capitalised interest(20,331)(5.7%)(14,267)(3.4%)
Other non-deductible expenses9,0962.6%6860.2%
Non-assessable investment property revaluations(108,730)(30.6%)(123,461)(30.0%)
Removal of tax depreciation on non-residential buildings28,8948.1%-0.0%
Other7,8512.2%6,8811.6%
Prior period adjustments(469)(0.1%)1,1060.3%
Total income tax expense/(credit)15,9244.5%(13,839)(3.4%)
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
The Group tax losses are as follows:
20242023
$000$000
Tax losses available
757,405601,269
Tax effected
212,891169,017
Unrecognised tax losses
11,7347,918
(b) Amounts charged or credited to other comprehensive income
20242023
Restated
1
$000$000
Tax expense comprises:
Net gain on revaluation of property, plant and equipment26,42412,540
Fair value movement of interest rate swaps(3,689)(7,082)
Total tax expense reported in statement of comprehensive income22,7355,458
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
(c) Amounts charged or credited directly to equity
20242023
$000$000
Tax expense comprises:
Deferred tax relating to employee share option plans(320)(52)
Total tax credit reported directly in equity(320)(52)
7 2
(d) Imputation credit account
Ther
e were no imputation credits received or paid during the year and the balance at 31 December 2024 is nil (2023: nil).
(e) Deferred tax
Movement in the deferred tax balance comprises:
BALANCE
1 J
AN 2024
RESTATED
$000
RECOGNISED
IN INCOME
$000
RECOGNISED
DIRE
CTLY IN
EQUITY
$000
RECOGNISED
IN OCI*
$000
BALANCE
3
1 DEC 2024
$000
Property, plant and equipment40,83530,466-26,42497,725
Investment property58,5956,556--65,151
Revenue in advance84,59719,413--104,010
Interest rate swaps635--(3,689)(3,054)
Income tax losses not yet utilised(161,099)(40,058)--(201,157)
Right of use asset3,989(783)--3,206
Lease liability(4,525)767--(3,758)
Other items(3,966)(437)(320)-(4,723)
Net deferred tax liability19,06115,924(320)22,73557,400
BALANCE
1 J
AN 2023
RECOGNISED
IN INCOME
RECOGNISED
DIRECTLY IN
EQUITY
RECOGNISED
IN OCI*
BALANCE
3
1 DEC 2023
RESTATED
1
RESTATED
1
$000$000$000$000$000
Property, plant and equipment30,321(2,026)-12,54040,835
Investment property54,4354,160--58,595
Revenue in advance66,15918,438--84,597
Interest rate swaps7,717--(7,082)635
Income tax losses not yet utilised(126,662)(34,437)--(161,099)
Right of use asset4,699(710)--3,989
Lease liability(5,271)746--(4,525)
Other items(3,904)(10)(52)-(3,966)
Net deferred tax liability27,494(13,839)(52)5,45819,061
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
* Other comprehensive income
(f) Income tax legislation amendments during the period
During the period, the Taxation (Annual Rates for 2023-24, Multinational Tax and Remedial Matters) Act received royal assent on
28 March 2024, with effect from 1 January 2024. This Act removed the ability to claim tax depreciation on non-residential buildings,
resulting in the removal of the tax base on certain buildings for deferred tax. The removal of the tax base has resulted in a $28.9 million
increase to income tax expense and a corresponding increase to the deferred tax liability in respect of property, plant and equipment.
8. Trade and other receivables
Trade and other r
eceivables are stated at amortised cost less impairment losses. Trade receivables are not significant on an individual
basis and are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate, less an
allowance for doubtful debts.
7 3
Annual Report 2024
Notes to the financial st
atements (continued)
The allowance for doubtful debts is made up of expected credit losses based on assessment of trade receivables debt at the
individual le
vel for impairment, plus an additional allowance on the remaining balance for potential credit losses not yet identified.
The expected credit losses allowance requirement on the remaining balance has been set at 2%.
20242023
$000$000
Trade receivables
7,6245,392
Allowance for doubtful debts
(320)(246)
Net trade receivables
7,3045,146
Prepayments
24,96818,528
Accrued income
1,5182,643
Sundry debtors
24,81018,013
Total trade and other receivables58,60044,330
9. Property, plant and equipment
Property, plant and equipment includes care centres (including memory care apartments and care suites), both complete and under
development, and corporate assets held.
All property, plant and equipment is initially recorded at cost. Cost includes expenditure that is directly attributable to the acquisition
of the asset. The cost of self-constructed care centres includes directly attributable construction costs and other costs necessary to
bring the care centres to working condition for their intended use. These other costs include professional fees and consents, interest
during the build period and head office costs directly related to the construction of the care centres. Where costs are apportioned
across more than one asset, the apportionment methodology is determined by considering the nature of the cost.
Subsequent to initial recognition, care centres, including those under development, are carried at fair value. Fair value measurement
on care centres under construction is only applied if the fair value is reliably measurable. Where the fair value of care centres under
construction cannot be reliably determined the fair value is the cost of work undertaken.
Fair value measurement on completed care centres is carried at a revalued amount, which is the fair value at the date of the revaluation
less any subsequent accumulated depreciation and accumulated impairment losses, if any, since the assets were last revalued. Other
corporate assets are subsequently measured at cost less accumulated depreciation and impairment losses, if any. Where an item of
plant and equipment is disposed of, the gain or loss recognised in the income statement is calculated as the difference between the
net sales price and the carrying amount of the asset.
Fair value is determined by reference to market-based evidence, which is the amount for which the assets could be exchanged
between a knowledgeable willing buyer and a knowledgeable willing seller in an arm’s length transaction as at the valuation date.
Any revaluation surplus is recognised in other comprehensive income unless it reverses a revaluation decrease of the same asset
previously recognised in the income statement. Any revaluation deficit is recognised in the income statement unless it directly offsets
a previous surplus in the same asset in other comprehensive income. Any accumulated depreciation at revaluation date is eliminated
against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset. Upon disposal,
any revaluation reserve relating to the particular asset being sold is transferred to retained earnings. Independent valuations are
performed with sufficient regularity to ensure that the carrying amount does not differ materially from the asset’s fair value at the
balance sheet date.
Note 6 provides details on capitalised borrowing costs.
Depreciation is charged to the income statement on a straight-line (SL) basis over the estimated useful life of each item of property,
plant and equipment, with the exception of land, which is not depreciated. Depreciation methods, useful lives and residual values are
reassessed at each reporting date.
Major depreciation rates are as follows:
•Buildings (
2% to 14% SL)•Furniture and fittings (7% to 20% SL)
•Motor v
ehicles (8% to 10% SL)•Plant and equipment (7% to 50% SL)
Also included in the buildings category is building fit
-out.
Right of use assets are depreciated on an SL basis over the term of their lease. Refer to Note 16.
7 4
BUILDINGS
$000
MOTOR
VEHICLES
$000
PLANT AND
E
QUIPMENT
$000
FURNITURE
AND
FIT
TINGS
$000
RIGHT OF USE
A
SSETS
$000
TOTAL
$000
Cost
Balance at 1 January 2023287,6355,16032,79210,66718,103354,357
Additions (restated)48,2341,7259,26373693060,888
Disposals-(28)(7)--(35)
Remeasurements----(691)(691)
Net revaluations through
other compr
ehensive
income (restated)
36,408----36,408
Balance at 31 December
2
023 (restated)
1
372,2776,85742,04811,40318,342450,927
Additions80,1433,9247,9991,810-93,876
Disposals(2,176)(264)(1,320)(1,078)-(4,838)
Transfer from
investment property
20,399----20,399
Remeasurements----243243
Impairment through pr
ofit
or loss
(1,875)----(1,875)
Net revaluations through
other compr
ehensive income
84,326----84,326
Balance at
3
1 December 2024
553,09410,51748,72712,13518,585643,058
Accumulated depreciation
Balance at 1 January 2023-1,60814,9097,1444,64628,307
Depreciation charge for
the y
ear
8,3773753,2248051,96814,749
Disposals-(28)(5)--(33)
Net revaluations through
other compr
ehensive income
(8,377)----(8,377)
Balance at
3
1 December 2023
-1,95518,1287,9496,61434,646
Depreciation charge for
the y
ear
10,0966243,9201,0052,29417,939
Disposals(50)(110)(1,158)(976)-(2,294)
Net revaluations through
other compr
ehensive income
(10,046)----(10,046)
Balance at
3
1 December 2024
-2,46920,8907,9788,90840,245
Carrying amounts
As at 31 December
2
023 (restated)
1
372,2774,90223,9203,45411,728416,281
As at 31 December 2024553,0948,04827,8374,1579,677602,813
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
7 5
Annual Report 2024
Notes to the financial st
atements (continued)
Buildings include $78.9 million of care centres under development carried at fair value, which r
eflects cost due to the proximity of
completion to 31 December 2024 (2023: $38.2 million).
Right of use assets relate to the Group's leased office premises, car park spaces and plant and equipment; refer to Note 16 for
further information.
Classification between investment property and property, plant and equipment
On initial recognition, the Group performs an assessment to determine whether a unit type should be classified as investment
property or property, plant and equipment. The assessment is based on the significance of ancillary services provided to residents
who occupy accommodation under an occupation right agreement. For the purposes of this assessment, the Group considers
that portion of weekly fees that gives rise to a separate performance obligation for the Group, as ancillary services. 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. Subsequent reclassification of unit
types between investment property or property, plant and equipment, occur only when there has been a change in use.
Revaluations
An independent valuation to determine the fair value of all building assets related to care centres was carried out as at 31 December
2024 by CBRE Limited ("CBRE NZ"), an independent registered valuer. Valuations are carried out annually.
The Group is unable to reliably determine the fair value of care centres under development at 31 December 2024 and therefore these
are carried at cost.
At 31 December 2023, the Group was able to reliably measure St Johns due to its advanced stage of construction. CBRE valued this
one site using the residual approach where one block was valued as work in progress together with residual land. The value of the
work in progress was calculated as the market value of completed stock less selling expenses, and an allowance for profit and risk,
holding costs, and costs to complete including a contingent sum. This equated to a fair value of $25.9 million at 31 December 2023.
CBRE NZ determines the fair value of care centres (excluding units under occupation right agreement) using an earnings-based
multiple approach and the amount apportioned to goodwill is not recognised. Significant assumptions used in the most recent
valuation are included in the table below:
20242023
Market value per care bed
$64,000 - $194,000$69,000 - $222,000
Individual unit earning capitalisation rate
11.0% - 15.8%12.5% - 15.8%
Revaluation of units under occupation right agreement held as property, plant and equipment
To assess the market value of the Group's interest in the units under occupation right agreement held as property, plant and
equipment, CBRE NZ under
took a discounted cash flow analysis to derive a present value. Significant assumptions used by CBRE NZ
are included in the table below:
20242023
Discount rate
14.5% - 15.5%14.5% - 15.5%
Growth rate
0.5% - 3.0%0.5% - 3.0%
Average entry age of residents
79 years - 90 years80 years - 89 years
Stabilised departing occupancy periods of units
2.9 years - 3.1 years3.0 years - 3.1 years
20242023
$000$000
Manager's net interest242,93991,612
Plus: revenue received in advance relating to property, plant and equipment4,1972,821
Plus: liability for residents' loans relating to property, plant and equipment61,85739,861
Total property, plant and equipment - units under occupation
right agr
eement
308,993134,294
7 6
Sensitivity analysis to significant change
s in unobservable inputs within Level 3 of the hierarchy
As the fair value of buildings is determined using inputs that are unobservable, the Group has categorised property, plant and
equipment as Level 3 under the fair value hierarchy in accordance with NZ IFRS 13 – Fair Value Measurement.
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of
the entity’s portfolio of care centres (excluding units under occupation right agreement) are the capitalisation rates applied to
individual unit earnings and the market value per care bed. A significant decrease (increase) in the capitalisation rate would result in
a significantly higher (lower) fair value measurement, and a significant increase (decrease) in the market value per care bed would
result in a significantly higher (lower) fair value measurement.
The significant unobservable inputs used in the fair value measurement categorised within Level 3 of the fair value hierarchy of the
entity’s portfolio of units under occupation right agreement, held as property, plant and equipment, are the discount rates and growth
rates. A significant decrease (increase) in the discount rate would result in a significantly higher (lower) fair value measurement,
and a significant increase (decrease) in the growth would result in a significantly higher (lower) fair value measurement. Other key
components in determining the fair value of units under occupation right held as property, plant and equipment 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.
Cost model
If buildings were measured using the cost model, the carrying amounts would be as follows:
20242023
RESTATED
1
BUILDINGS
$000
BUILDINGS
$000
Cost373,959275,593
Accumulated depreciation and impairment losses(50,045)(39,999)
Net carrying amount323,914235,594
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
Security
At 31 December 2024, all care centres held by retirement villages registered under the Retirement Villages Act 2003 are subject to
a registered first mortgage in favour of the Statutory Supervisor.
7 7
Annual Report 2024
Notes to the financial st
atements (continued)
10. Intangible assets
Int
angible assets acquired by the Group are measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised in the income statement on an SL basis over the estimated useful lives of intangible assets from the date
that they are available for use. The intangible assets are software and the amortisation rates at 31 December 2024 are between 10%
and 20% SL basis.
20242023
$000$000
Cost
Opening balance16,032
13,814
Additions1,215
2,218
Closing balance17,24716,032
Accumulated amortisation
Opening balance7,611
6,563
Amortisation1,160
1,048
Closing balance8,7717,611
Carrying amount8,4768,421
11. Investment property
Investment property is held to earn current and future rental income and capital appreciation. It comprises land and buildings,
and associat
ed equipment and furnishings, relating to retirement units and common facilities in the retirement village. Investment
property includes buildings under development, excluding care centres under development which are included in property, plant
and equipment. Initial recognition of investment property is at cost and it is subsequently measured at fair value, with any change in
fair value recognised in the income statement.
The cost of retirement units includes directly attributable construction costs and other costs necessary to bring the retirement units
to working condition for their intended use. These other costs include professional fees and consents, interest during the build period
and head office costs directly related to the construction of the retirement units. Where costs are apportioned across more than one
asset, the apportionment methodology is determined by considering the nature of the cost.
Land acquired with the intention of constructing investment property on it is classified as investment property from the date
of acquisition.
Depreciation is not charged on investment property.
Note 6 provides details on capitalised borrowing costs.
7 8
20242023
Restated
1
$000$000
Balance at beginning of period6,394,1175,417,719
Additions579,633588,766
Transfer to other assets-(45,000)
Transfer to property, plant and equipment(20,399)-
Disposals(1,385)-
Fair value movement388,066430,561
Impairment through pr
ofit or loss
(5,237)-
Foreign exchange movement(6,050)2,071
Total investment property7,328,7446,394,117
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
20242023
Restated
1
$000$000
Development land measured at fair value
2
538,172578,266
Retirement villages measured at fair value
3
6,221,3255,291,578
Retirement villages under development measured at cost569,247524,273
Total investment property7,328,7446,394,117
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
2 Included in development land are pieces of land that were acquired close to balance date. These pieces of land have been accounted for at fair value, which has been
determined to be cost due to the proximity of the transaction to balance date. At 31 December 2024 the land at cost was nil (2023: $35.7 million).
3 Included in retirement villages measured at fair value is nil related to completed retirement units at cost, which reflects fair value due to the proximity of completion to
balance date (2023: $5.4 million). Included in retirement villages measured at fair value is $190.1 million relating to a village under development measured at fair value (2023:
$190.4 million).
20242023
Restated
1
$000$000
Manager's net interest4,301,3393,744,174
Plus: revenue received in advance relating to investment property208,159182,693
Plus: liability for residents' loans relating to investment property2,819,2462,467,250
Total investment property7,328,7446,394,117
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
The Group is unable to reliably determine the fair value of the non-land portion of retirement villages under development at
31 December 2024 and therefore these are carried at cost, with the exception of one site due to its advanced stage of construction.
This equates to $569.2 million of investment property (2023: $524.3 million).
The fair value of investment property, including land, as at 31 December 2024 was determined by independent registered valuers
CBRE NZ, Jones Lang LaSalle Limited (“JLL NZ”), CBRE Valuations Pty Limited ("CBRE AU") and Jones Lang LaSalle Australia Pty
Limited ("JLL AU"). 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.
7 9
Annual Report 2024
Notes to the financial st
atements (continued)
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 and Australia villages, CBRE NZ, JLL NZ and JLL AU have
undertaken a discounted cash flow analysis to derive a present value. The Group's development land has been valued by CBRE NZ,
JLL NZ, CBRE AU and JLL AU using the direct comparison approach.
Near completed stages of St Johns have been valued using the residual approach where a number of blocks were valued as work in
progress together with residual land. The value of the work in progress was calculated as the market value of completed stock less
selling expenses, and an allowance for profit and risk, holding costs, and costs to complete including a contingent sum.
The valuers' view is that central banks around the world have reduced interest rates, after holding rates at elevated levels to combat
inflation. The main concerns now are slowing economic conditions in both China and the US as well as geopolitical instability in
certain regions, particularly the prospect of a wider conflict in the Middle East and the ongoing war in Ukraine. With these factors in
mind, the valuers reiterate that their conclusions are based on data and market sentiment as at the date of the valuation and that a
degree of caution should be exercised when relying upon the valuation.
Significant assumptions used by the valuers in relation to the New Zealand and Australian investment property are included in the
table below:
20242023
Discount rate
13.5% - 16.5%13.5% - 16.5%
Growth rate
0.5% - 3.5%0.5% - 3.5%
Average entry age of residents
73 years - 91 years73 years - 91 years
Stabilised departing occupancy periods of units
3.9 years - 9.0 years3.8 years - 8.7 years
As the f
air 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.
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, JLL NZ and JLL AU have undertaken a discounted
cash flow analysis to derive a present value.
The sensitivities of the significant assumptions are shown in the table below:
Adopted
v
alue
1
Discount rate
+5
0 bp
Discount rate
-5
0 bp
Growth rates
+5
0bp
Growth rates
-5
0bp
31 December 2024
Valuation ($000)2,336,484
Difference ($000)(88,466)95,396149,462(136,527)
Difference (%)
(3.8%)4.1%6.4%(5.8%)
31 December 2023
Valuation ($000)2,017,910
Difference ($000)(74,725)80,050126,025(115,665)
Difference (%)
(3.7%)4.0%6.2%(5.7%)
1 Adopted value differs to figures in other notes. It is the value of completed units, net of related resident liability. The amount does not include unsold stock, work in progress
or development land.
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.
Operating expenses
Direct operating expenses arising from investment property during the period amounted to $78.6 million (2023: $66.5 million).
8 0
Security
A
t 31 December 2024, 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.
12. Trade and other payables
Trade and other payables are carried at amortised cost. Due to their short-term nature they are not discounted.
20242023
$000$000
Trade payables4,6466,923
Accruals - development of retirement units and care centres110,107125,937
Accruals - other26,96123,985
Sundry payables25,26915,825
Total trade and other payables166,983172,670
13. Employee benefits
A provision is made for benefits accruing t
o employees in respect of wages, salaries, annual leave and short-term incentives when
it is probable that settlement will be required and the amount can be estimated reliably.
20242023
$000$000
Leave liabilities16,39414,195
Other employee benefits17,48216,558
Total employee benefit
s
33,87630,753
14. Interest rate swaps
The Group uses interest rate swaps to manage its risk associated with interest rate fluctuations. Int
erest rate swaps are initially
recognised at fair value on the date a contract is entered into and are subsequently measured at fair value on each reporting date. The
fair values of the interest rate swaps are determined based on cash flows discounted to present value using current market interest
rates. The non-current portion of interest rate swaps comprised of $20.5 million in assets (2023: $18.0 million) and $17.2 million in
liabilities (2023: $16.6 million). 51% (2023: 59%) of the Group's interest-bearing loans and borrowings are covered by fixed interest rate
swap agreements.
Cash flo
w hedges
The Group has entered into interest rate swaps to manage its interest rate risk in relation to its floating r
ate debt. These interest
rate swaps qualify for cash flow hedge accounting. When interest rate swaps meet the criteria for cash flow hedge accounting, the
effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income, while the ineffective
portion is recognised in the income statement. Amounts taken to reserves are transferred out of reserves and included in the
measurement of the hedged transaction when the forecast transaction occurs. When interest rate swaps do not meet the criteria for
cash flow hedge accounting, all movements in fair value of the hedging instrument are recognised in the income statement.
Under the interest rate swap agreements that qualify for cash flow hedge accounting, the Group has a right to receive interest at
variable rates and to pay interest at fixed rates (“payer interest rate swap agreements”). These agreements effectively change the
Group’s interest exposure on the principal covered by the interest rate swaps from a floating rate to fixed rates, which range between
0.56% and 4.93% (2023: 0.56% and 4.93%).
At 31 December 2024, the Group had payer interest rate swap agreements in place with a total notional principal amount of
approximately $1,094.1 million, made up of $642.0 million denominated in NZD and $410.0 million in AUD (2023: $874.2 million, made
up of $497.0 million denominated in NZD and $350.0 million in AUD). Of the swaps in place, at 31 December 2024, $715.2 million were
active (2023: $673.4 million).
8 1
Annual Report 2024
Notes to the financial st
atements (continued)
The fair value of these agreements at 31 December 2024 is a $11.0 million liability, comprised of $17.5 million of swap liabilities and
$
6.5 million of swap assets (2023: asset of $1.9 million, comprised of $11.9 million of swap liabilities and $13.8 million of swap assets).
The agreements cover notional amounts for terms of up to six years.
The notional principal amounts and the period of expiry of the cash flow hedge interest rate swap contracts are as follows:
20242023
$000$000
Less than 1 year77,56560,000
Between 1 and 2 years85,07876,944
Between 2 and 3 years232,31284,333
Between 3 and 4 years212,695179,331
Between 4 and 5 years253,721190,832
Between 5 and 6 years232,695128,888
Between 6 and 7 years-153,888
Total1,094,066874,216
Active715,215673,384
Forward starting378,851200,832
Total1,094,066874,216
Fair value hedges
The Group has entered into interest rate swaps to manage its interest rate risk in relation to its fix
ed rate debt arising from the retail
bonds. The hedge is for the future fair value movements in the retail bonds as a result of market interest rate movements. The Group
has designated $425.0 million of its retail bonds in fair value hedge relationships.
Both the hedging instrument (interest rate swap) and the hedged risk are recognised at fair value. The change in the fair value of both
items offset in the statement of comprehensive income to the extent the hedging relationship is effective. The increase in fair value
of the interest rate swaps of $12.5 million (2023: increase of $10.4 million) has been recognised in finance costs and has been offset
with a similar fair value gain on the retail bonds to leave an ineffective amount in finance costs of nil (2023: nil).
Under the interest rate swap agreements that qualify for fair value hedge accounting, the Group has a right to receive interest at fixed
rates and to pay interest at floating rates (“receiver interest rate swap agreements”). At 31 December 2024, the Group had receiver
interest rate swap agreements in place with a total notional principal amount of $425.0 million (2023: $300.0 million). The receiver
interest rate swap agreements in place at 31 December 2024 are being used to manage the fixed interest rate risk on the SUM020,
SUM040 and SUM050 retail bonds.
8 2
The notional principal amounts and the period of expiry of the fair value hedge interest rate swap contracts are as follows:
20242023
$000$000
Less than 1 year125,000-
Between 1 and 2 years-125,000
Between 4 and 5 years175,000-
Between 5 and 6 years125,000175,000
Total425,000300,000
Active425,000300,000
Total425,000300,000
15. Residents’ loans
Residents’ loans are amounts payable under occupation right agreements. An occupation right agreement confers a right of
occupanc
y to a villa, apartment, serviced apartment, memory care apartment or care suite. The consideration received on the grant
of an occupation right agreement is allocated to the resident's loan in full. These loans are non-interest bearing and are payable when
both an occupation right agreement is terminated and there has been settlement of a new occupation right agreement for the same
unit and the proceeds from the new settlement have been received by the Group. Residents’ loans are initially recognised at fair value
and subsequently measured at amortised cost.
The Group holds a contractual right to set-off the deferred management fee receivable on termination of an agreement against the
resident's loan to be repaid. Residents’ loans are therefore recognised net of the deferred management fee receivable on the balance
sheet. Deferred management fees are payable by residents in consideration for the supply of accommodation and the right to share
in the use of community facilities. Deferred management fees are paid in arrears, with the amount payable calculated as a percentage
of the resident's loan amount as per the resident's occupation right agreement. Deferred management fee receivable is calculated
and recorded based on the current tenure of the resident and the contractual right to deferred management fee earned at balance
date. Refer to Note 4 for further detail on recognition of deferred management fee revenue.
20242023
$000$000
Balance at beginning of period3,121,4002,681,837
Net receipts for residents' loans - resales of occupation right agreements88,05155,521
Receipts for residents' loans - new occupation right agreements409,353384,042
Total gross residents’ loans3,618,8043,121,400
Deferred management fees and other receivables(737,701)(614,288)
Total residents’ loans2,881,1032,507,112
8 3
Annual Report 2024
Notes to the financial st
atements (continued)
16. Leases
The le
ases to which NZ IFRS 16 applies are the leases of plant and equipment and office premises and car parks occupied by the Group
in New Zealand and Australia. In respect of these leases, a right of use asset is disclosed along with a corresponding lease liability.
The right of use assets are depreciated on an SL basis, while the lease liability is measured at the present value of the lease payments
that are not yet paid, discounted using the Group's incremental borrowing rate.
The Group has elected not to recognise right of use assets and lease liabilities for short-term leases that have a lease term of 12 months
or less and certain leases of low-value assets. The Group recognises the lease payments associated with these leases as incurred as
a rental expense over the lease term.
Right of use assets primarily relate to the Group's leased office premises and are classified as property, plant and equipment, and lease
liabilities are disclosed as such in the Group's statement of financial position.
When the Group has the option to extend a lease, management uses its judgement to determine whether or not an option would be
reasonably certain to be exercised. Management considers all facts and circumstances, including their past practice and any cost
that will be incurred to change the asset if an option to extend is not taken, to help determine the lease term. Other assumptions and
judgements used by management include calculating the appropriate discount rate.
As a lessee
Right of use assets disclosed:
20242023
$000$000
Balance at beginning of period11,72813,457
Additions-930
Remeasurements243(691)
Depreciation charge for the year(2,294)(1,968)
Balance at end of period9,67711,728
Lease liabilities disclosed:
20242023
$000$000
Less than 1 year2,3772,475
Between 1 and 5 years6,9517,786
More than 5 years2,5503,869
Total lease liabilities at end of period11,87814,130
Amounts recognised in the profit and loss:
20242023
$000$000
Interest on lease liabilities517587
Expenses relating to short-term and low-value asset leases544491
Depreciation on right of use assets2,2941,968
Total amounts recognised in pr
ofit or loss
3,3553,046
8 4
Amounts recognised in statement of cash flows:
20242023
$000$000
Total cash out
flows for leases
3,8813,313
As a lessor
The Group acts as a lessor under occupation right agreements with village residents, along with a small number of residential rental
pr
operties. The assets leased by the group as a lessor are disclosed as investment property and lease income on occupation right
agreements is generated in the form of deferred management fees and a portion of care fees and village services. The lease term
is determined to be the greater of the expected period of tenure or the contractual right to revenue. The Group allocates individual
leases of units to village residents to different portfolios depending on the type of unit. The Group does not have any subleases.
17. Interest-bearing loans and borrowings
Interest-bearing loans and borrowings include secured bank loans and unsubordinated fix
ed-rate retail bonds.
Interest-bearing loans and borrowings are recognised initially at fair value net of directly attributable transaction costs. Subsequent
to initial recognition, the borrowings are measured at amortised cost, with any difference between the initial recognised amount and
the redemption value being recognised in profit or loss over the period of the borrowing using the effective interest rate. Three of the
four retail bonds, SUM020, SUM040 and SUM050, 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. SUM030 is not hedged. Transaction costs incurred
in arranging financing are capitalised and amortised over the term of the relevant debt instrument.
20242023
Coupon$000$000
Repayable within 12 months
Retail bond - SUM0204.20%125,000-
Repayable after 12 months
Secured bank loansFloating1,133,920948,957
Retail bond - SUM0204.20%-125,000
Retail bond - SUM0302.30%150,000150,000
Retail bond - SUM0406.59%175,000175,000
Retail bond - SUM0506.43%125,000-
Total loans and borrowings at face value1,708,9201,398,957
Transaction costs for loans and borrowings capitalised:
Opening balance(6,182)(4,260)
Capitalised during the period(3,644)(3,678)
Amortised during the period2,0461,756
Closing balance(7,780)(6,182)
Total loans and borrowings at amortised cost1,701,1401,392,775
Fair value adjustment on hedged borrowings13,200748
Carrying value of interest-bearing loans and borrowings1,714,3401,393,523
The non-cash mo
vements included in the table above are the transaction costs for loans and borrowings amortised during the period
and the fair value adjustment on hedged borrowings. The closing balance of transaction costs for loans and borrowings capitalised
includes a non-current portion of $7.6 million (2023: $6.2 million).
8 5
Annual Report 2024
Notes to the financial st
atements (continued)
A summary of the changes in the Group's borrowings is provided below:
20242023
$000$000
Borrowings at the start of the year1,393,5231,060,494
Net cash borrowed309,963324,557
Cash change in deferred financing costs(3,644)(3,678)
Non-cash change in deferred financing costs2,0461,756
Non-cash change in fair value adjustment12,45210,394
Borrowings at the end of the year1,714,3401,393,523
The weighted average interest rate for the year to 31 December 2024 was 5.37% (2023: 5.09%). This includes the impact of interest
r
ate swaps (see Note 14).
Effective 31 October 2024, the Group refinanced and extended maturity dates for certain NZD and AUD tranches of the syndicated
facility and obtained additional new NZD and AUD tranches. The secured bank loan facility at 31 December 2024 has a limit of
approximately $1,918.9 million (2023: $1,513.3 million). This includes lending of the following:
CurrencyLending limitExpiration
AUD$163 millionSeptember 2027
NZD$450 millionNovember 2027
AUD$42 millionNovember 2027
NZD$100 millionSeptember 2028
AUD$100 millionSeptember 2028
NZD$300 millionNovember 2028
AUD$315 millionNovember 2028
NZD$275 millionNovember 2029
AUD$100 millionNovember 2029
The Group has four retail bonds listed on the NZDX:
IDAmountMaturity
SUM020$125 million24 September 2025
SUM030$150 million21 September 2027
SUM040$175 million9 March 2029
SUM050$125 million8 March 2030
Security
The bank loans and retail bonds rank equally with the Group’s other unsubordinated obligations and are secured by the following
securitie
s 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;
8 6
•a G
eneral 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.
Covenants
The financial co
venants in the Group’s debt facilities, with which the Group must comply include:
a)Interest Cover Ratio – the ratio of Adjusted EBITDA to Interest Expense of not less than 1.75x calculated on a 12-month rolling
basis. Adjusted EBITDA is EBITDA less fair value movement of investment property and deferred management fee income (as
calculated under NZ GAAP) plus net cash from resales and development margin, less/plus other one-off adjustments. Interest
Expense is the total interest and line fee costs (prior to capitalisation) excluding any interest and line fees incurred in relation
to development tranches of bank debt facilities.
b)Loan to Value Ratio – the ratio of total loans and borrowings shall not exceed 50% of the total property value, where total loans
and borrowings is gross borrowings at face value and total property value is the valuation amount of all properties that have
been externally valued net of resident’s loans plus the cost of all properties not externally valued plus 50% of the costs incurred
to date on developments not complete.
The covenants are tested quarterly at 31 March, 30 June, 30 September and 31 December and the Group has complied with all
covenants during the period.
18. Financial instruments
Exposure to credit, market and liquidity risk arises in the normal course of the Group’s business. The Board adopts policies for
managing e
ach of these risks as summarised below.
Categories of financial instruments
Financial assets
All financial assets of the Group are classified at amortised cost except for interest rate swaps and investments, which are classified
as fair value through profit and loss, and those assets that are designated in a hedge relationship.
Financial liabilities
All financial liabilities except interest rate swaps and retail bonds are classified as liabilities at amortised cost. Refer to Note 17 for detail
on the retail bonds.
Credit risk
Credit risk is the risk of financial loss to the Group if a resident or counterparty to a financial instrument fails to meet their contractual
obligations. The Group’s exposure to credit risk relates to receivables from residents and bank balances. The Group manages
its exposure to credit risk. The Group’s cash is held with its principal banker, with the level of exposure to credit risk considered
minimal, with low levels of cash generally held. Receivables balances are monitored on an ongoing basis and funds are placed
with high-credit-quality financial institutions. The level of risk associated with sundry debtors is considered minimal due to the
recoverability of this balance being assessed as high. The Group does not require collateral from its debtors and the Directors
consider the Group’s exposure to any concentration of credit risk to be minimal.
The carrying amount of financial assets represents the Group’s maximum credit exposure. The status of trade receivables is as follows:
20242023
GROSS
RE
CEIVABLE
$000
IMPAIRMENT
$000
GROSS
RE
CEIVABLE
$000
IMPAIRMENT
$000
Not past due6,615(76)4,631(61)
Past due 31 to 60 days376(26)344(24)
Past due 61 to 90 days206(36)174(19)
Past due more than 90 days427(182)243(142)
Total7,624(320)5,392(246)
8 7
Annual Report 2024
Notes to the financial st
atements (continued)
In summary, trade receivables are determined to be impaired as follows:
20242023
$000$000
Gross trade receivables7,6245,392
Impairment(320)(246)
Net trade receivables7,3045,146
Market risk
Market risk is the risk that changes in market prices such as interest rates will affect
the Group’s income. The objective of market risk
management is to manage and control market risk exposures within acceptable parameters, while optimising the return on risk.
Interest rate risk
The Group’s exposure to interest rate risk is managed by seeking to obtain the most competitive rate of interest at all times. The Group
has entered into interest rate swap agreements in order to provide an effective cash flow hedge against the variability in floating
interest rates. The Group has also entered into other interest swap agreements to reduce interest rate repricing risk in relation to retail
bonds. See Note 14 for details of interest rate swap agreements.
To comply with the Group’s risk management policy, the hedge ratio is based on the interest rate swap notional amount to hedge
the same notional amount of bank loans or retail bonds. This results in a hedge ratio of 1:1. This is the same as used for actual risk
management purposes, and such a ratio is appropriate for the purposes of hedge accounting as it does not result in an imbalance
that would create hedge ineffectiveness.
In these hedge relationships the main sources of ineffectiveness are:
•a significant change in the credit risk of either party to the hedging relationship;
•where the hedge instrument has been transacted on a date different to the rate set date of the bank loan or retail bonds, interest
rates could differ; and
•differences in repricing dates between the swaps and the borrowings.
Other than these sources, due to the alignment of the hedged risk in the hedged item and hedged instrument, hedge ineffectiveness
is not expected to arise.
At 31 December 2024 it is estimated that a general increase of one percentage point in interest rates would decrease the Group’s
profit by approximately $11.2 million (2023: decrease by $9.4 million) and increase total comprehensive income by approximately
$19.2 million (2023: increase by $16.7 million).
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial
obligations as they fall due. The Group manages liquidity
by maintaining adequate reserves and undrawn banking facilities, by continuously monitoring forecast and actual cash flows, and
matching the maturity profiles of financial assets and liabilities. The Group manages liquidity risk on residents’ loans and related
sundry debtors through the contractual requirements of occupation right agreements, whereby a resident’s loan is repaid only on
receipt of the loan monies from the incoming resident.
8 8
The following table sets out the contractual cash flo
ws for all financial liabilities for the Group (including contractual interest
obligations on bank loans and retail bonds):
20242023
LESS THAN
1 YEAR
$000
GREATER
THAN
1 YEAR
$000
LESS THAN
1 YEAR
$000
GREATER
THAN
1 YEAR
$000
Financial liabilities
Trade and other payables166,983-172,670-
Residents’ loans2,881,103-2,507,112-
Interest-bearing loans and borrowings215,5941,830,50978,1161,598,523
Interest rate swaps(1,019)3,065(6,455)(14,149)
Lease liability2,79210,6052,47511,655
Total3,265,4531,844,1792,753,9181,596,029
Residents’ loans are non-interest bearing and are not required to be repaid following termination of an occupation right agreement
until r
eceipt of cash for the new resident loan from the incoming resident. Residents' loans are classified as being repayable on
demand, and therefore fully repayable within 12 months, because the Group does not have a right to defer repayment of residents'
loans for at least 12 months after balance date. Based on historical information including estimated periods of tenure as disclosed in
Note 4, it is estimated that $251.7 million (2023: $191.2 million) is expected to become payable in the 12 months following balance date.
To date, cash for new residents’ loans received has exceeded cash to repay residents’ loans, net of deferred management fees.
Foreign currency risk
Foreign currency risk is the risk that the value of the Group's assets, liabilities and financial performance will fluctuate due to changes
in foreign currency rates.
The Group is primarily exposed to currency risk through its subsidiaries in Australia.
The risk to the Group is that the value of the overseas subsidiaries' financial position and financial performance will fluctuate in
economic terms and as recorded in the Group financial statements due to changes in foreign exchange rates. Due to limited activity
in the Australian subsidiaries in 2024, the Group did not have a material exposure to foreign exchange risk.
Fair values
The carrying amounts shown in the balance sheet approximate the fair value of the financial instruments, with the exception of retail
bonds, shown below:
20242023
CARRYING
AMOUNT
$000
FAIR VALUE
$000
CARRYING
AMOUNT
$000
FAIR VALUE
$000
Retail bonds(584,330)(583,124)(447,407)(431,414)
Total(584,330)(583,124)(447,407)(431,414)
The fair value of retail bonds is based on the price traded at on the NZX market as at 31 December 2024. The fair value of the retail
bonds is categorised as Level 1 under the fair value hierarchy in accordance with NZ IFRS 13 – Fair Value Measurement.
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.
The fair value of investments is categorised as Level 3 under the fair value hierarchy in accordance with NZ IFRS 13 –
Fair Value
Measurement and its fair value is measured using valuation techniques based on discounted future cash flow forecasts and various
unobservable inputs.
8 9
Annual Report 2024
Notes to the financial st
atements (continued)
Capital management
The Gr
oup’s capital includes share capital, reserves and retained earnings. The objective of the Group’s capital management is
to ensure a strong credit position to support business growth and maximise shareholder value. The Group is subject to capital
requirements imposed by the bank lenders (through covenants in the Syndicated Facility Agreement) and bondholders (through
covenants in the Master Trust Deed). The Group has met all of these externally imposed capital requirements for the year ended
31 December 2024 (2023: all requirements met). The Group capital structure is managed, and adjustments are made, with Board
approval. There were no material changes to objectives, policies or processes during the year ended 31 December 2024 (2023: none).
19. Share capital and reserves
At 31 December 2
024, there were 236,825,424 ordinary shares on issue (2023: 234,281,382). All ordinary shares are fully paid and have
no par value. All shares carry one vote per share and carry the right to dividends.
20242023
$000$000
Share capital
On issue at beginning of year366,912344,212
Shares issued under the dividend reinvestment plan24,01418,968
Shares paid under employee share plans808527
Other-6
Employee share plan option cost3,4553,199
On issue at end of year395,189366,912
20242023
Share capital (in thousands of shares)
On issue at beginning of year233,872231,560
Shares issued under the dividend reinvestment plan2,1742,093
Shares issued under employee share plans253219
On issue at end of year236,299233,872
The total shares on issue at 31 December 2024 of 236,825,424 for the Company differ
s from the share capital for the Group due
to shares held in 100% owned subsidiary, Summerset LTI Trustee Limited. As at 31 December 2024, 526,729 shares are held by
Summerset LTI Trustee Limited for employee share plans, which are eliminated on consolidation. Refer to Note 21 for further details
on employee share plans.
Revaluation reserve
The revaluation reserve is used to record the revaluation of care centre buildings.
Hedging reserve
The hedging reserve is used to record gains or losses on instruments used as cash flow hedges.
Foreign currency translation reserve
The foreign currency translation reserve is used to record the gain on translation of foreign currency subsidiaries to the Group's
reporting currency.
Dividends
On 22 Mar
ch 2024 a dividend of 13.2 cents per ordinary share was paid to shareholders and on 20 September 2024 a dividend of 11.3
cents per ordinary share was paid to shareholders (2023: on 23 March 2023 a dividend of 11.6 cents per ordinary share was paid to
shareholders and on 19 September 2023 a dividend of 11.3 cents per ordinary share was paid to shareholders).
A dividend reinvestment plan applied to the dividends paid. 1,258,320 ordinary shares were issued in relation to the plan for the
March 2024 dividend and 915,372 ordinary shares were issued in relation to the plan for the September 2024 dividend (2023: 1,077,198
ordinary shares were issued in March 2023 and 1,016,720 ordinary shares were issued in September 2023).
9 0
20. Earnings per share and net tangible assets
Basic earnings per share
20242023
Restated
1
Earnings ($000)339,838425,327
Weighted average number of ordinary shares for the
purpose of basic e
arnings per share (in thousands)
234,938232,786
Basic earnings per share (cents per share)144.65182.71
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
Diluted earnings per share
20242023
Restated
1
Earnings ($000)339,838425,327
Weighted average number of ordinary shares for the
purpose of diluted e
arnings per share (in thousands)
235,660233,211
Diluted earnings per share (cents per share)144.21182.38
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
Number of shares (in thousands)
20242023
Weighted average number of ordinary shares for the
purpose of basic e
arnings per share
234,938232,786
Weighted a
verage number of ordinary shares issued under
employee share plans
722425
Weighted average number of ordinary shares for the
purpo
se of diluted earnings per share
235,660233,211
At 31 December 2024, there were a total of 526,729 shares issued under employee share plans held by Summerset LTI Trustee Limited
(2023: 409,248 shares).
Net tangible assets per share
20242023
Restated
1
Net tangible assets ($000)2,960,9912,593,869
Shares on issue at end of period (basic and in thousands)236,299233,872
Net tangible assets per share (cents per share)1,253.071,109.10
1 The fair values of investment property and property, plant and equipment have been restated as detailed in Note 1 comparative information.
Net tangible assets are calculated as the total assets of the Group less intangible assets and less total liabilities. This non-GAAP
measure is provided as it is commonly used for comparison between entities.
9 1
Annual Report 2024
Notes to the financial st
atements (continued)
21. Employee share plans
Senior employee share plan - share option scheme
The number of options gr
anted to each participant equals the incentive remuneration value divided by the volume weighted average
price on the NZX during the 10 trading day period. Where applicable, the exercise price of the granted share options is determined
from the volume weighted average price on the NZX during the 10 trading day period determined by the Board prior to the grant.
Effective from the 2021 annual option grant, the option exercise price is set at nil and therefore no option valuation is required.
20242023
NUMBER OF
OPTIONS
000'
s
WEIGHTED
A
VERAGE
EXERCISE
PRICE
NUMBER OF
OPTIONS
000'
s
WEIGHTED
A
VERAGE
EXERCISE
PRICE
Balance at beginning of period1,457
$6.57
1,627
$6.57
Granted during the year475-380-
Exercised during the year(605)
$8.22
(475)
$6.82
Forfeited during the year(139)
$1.41
(75)
$8.08
Balance at end of period1,188
$1.43
1,457
$6.57
Exercisable at end of period312
$5.44
756
$8.31
Options outstanding as at 31 December 2024 have a weighted average remaining life of 2.74 years (2023: 2.46 years).
F
or the 2024 annual option grant, the following performance hurdles apply to all participants:
•75% of each Tranche will vest based on absolute total shareholder return performance
•25% of each Tranche will vest based on relative total shareholder return performance
For annual option grants made between 2018 and 2020, while there is a requirement to remain employed by Summerset up to vesting
date, there are no performance hurdles for vesting of share options to senior management team members, other than the members
of the Executive Leadership Team.
For certain one-off option grants outside of the annual option grant process, performance hurdles are set relating to specific
performance milestones for the relevant Participant.
The maximum terms for options granted range between three and six years.
The share option scheme is an equity-settled scheme and measured at fair value at the date of the grant. The fair value determined at
the grant date of the equity-settled share-based payments is expensed over the vesting period, based on the Group’s estimate that
the share options will vest. Where applicable, these options were valued using the Black-Scholes valuation model, and the option cost
for the year ending 31 December 2024 of $2,978,009 has been recognised in the income statement of the Company and the Group
for that period (2023: $2,782,606). The Group has no legal or constructive obligation to repurchase or settle the share options in cash.
All-staff emplo
yee share plan
The Group operates an all-staff employee share plan. A total of 2,060 employees participated in the share issue under the plan for the
year ended 31 December 2024 (2023: 1,944 employees). In 2024, the Group contributed $1,000 per participating employee (being
the total value of the shares issued). A total of 179,220 Company shares were issued under the scheme at $11.44 per share (2023:
188,568 shares at $10.27 per share). The shares are held by Summerset LTI Trustee Limited and vest to participating employees after
a three-year period.
The cost for the year ending 31 December 2024 of $966,000 has been recognised in the income statement of the Company and the
Group for that period (2023: $891,000).
22. Related party transactions
Refer to Note 21 for employee share plan details.
Transactions with companies associated with Directors
The Gr
oup also enters into transactions with other entities that some of the Directors may sit on the board of. These transactions are
entered into in the normal course of business. For a full list of all material director interests, please refer to the Disclosures section on
page 124 of this report.
9 2
23. Key management personnel compensation
The compensation of the k
ey management personnel of the Group is set out below:
20242023
$000$000
Directors’ fees963895
Short-term employee benefits5,8605,238
Share-based payments1,1021,374
Termination payments-311
Total7,9257,818
Refer to Note 21 for employee share plan details for key management personnel.
24. Commitments and contingencies
Guarantees
As at 31 December 2024, the Group had the following guarantees in place:
•NZX Limit
ed holds a guarantee in respect of the Group, as required by the NZX Listing Rules, for $75,000 (2023: $75,000).
•Summerset Retention Trustee Limited holds guarantees in relation to retentions on construction contracts on behalf of the Group.
As at 31 December 2024, $21.0 million was held for the benefit of the retentions beneficiaries (2023: $23.0 million).
•Auckland Transport holds a performance guarantee for $65,000 (2023: $65,000).
•Quattro RE Limited holds a demand guarantee in relation to the lease of the office premises for $120,819 (2023: $120,819).
•Beca Projects Limited holds a demand guarantee as independent certifier for retentions for $20,000 (2023: nil).
•Department of Transport (Melbourne) holds guarantees for $74,425 (2023: $72,749).
•South East Water holds guarantees for $14,003 (2023: $13,688).
•Casey City Council holds guarantees for $292,762 (2023: $229,162).
•Yarra Ranges Shire Council holds guarantees for $404,405 (2023: nil).
Capital commitments
At 31 December 2
024, the Group had $81.2 million of capital commitments in relation to construction contracts (2023: $70.8 million).
Contingent liabilities
There were no known material contingent liabilities at 31 December 2024 (2023: nil).
25. Subsequent events
On 27 February 2025, the Directors approved a final dividend of $31
.6 million, being 13.2 cents per share. The dividend record date
is 14 March 2025 with a payment date of 27 March 2025.
There have been no other events subsequent to 31 December 2024 that materially impact on the results reported.
9 3
Annual Report 2024
Independent Auditor’s Report to the Shareholders of Summerset Group
Holdings Limit
ed
Report on the audit of the financial st
atements
Opinion
We ha
ve audited the financial statements of Summerset Group Holdings Limited (“the Company”) and its subsidiaries (together “the
Group”) on pages 58 to 93 which comprise the statement of financial position of the Group as at 31 December 2024, and the income
statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the year then ended
of the Group, and the notes to the consolidated financial statements including material accounting policy information.
In our opinion, the consolidated financial statements on pages 58 to 93 present fairly, in all material respects, the consolidated
financial position of the Group as at 31 December 2024 and its consolidated financial performance and cash flows for the year
then ended in accordance with New Zealand equivalents to International Financial Reporting Standards and International Financial
Reporting Standards.
This report is made solely to the Company's shareholders, as a body. Our audit has been undertaken so that we might state to the
Company's shareholders those matters we are required to state to them in an auditor's 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 audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our responsibilities under those
st
andards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance
Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance
Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Ernst & Young provides other assurance and 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.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidat
ed
financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the
Auditor’s responsibilities for the audit of the financial statements section of
the audit report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying
consolidated financial statements.
9 4
Valuation and classification of in
vestment property and freehold land and buildings
Why significantHow our audit addressed the key audit matter
As disclosed in notes 9 and 11 of the consolidated
financial st
atements:
•the Group’s investment property portfolio was valued
at $7,329 million at 31 December 2024 and included
completed investment property and investment
property under development.
•the Group’s care centre buildings were valued at
$553 million at 31 December 2024. This included
completed care centre buildings operated by the
Group for the provision of care services and care
centres under development.
Independent valuations of all investment property and
completed care centre buildings were carried out
by third party valuers (the Valuers). The valuation
of investment property and care centre buildings is
inherently subjective given that there are alternative
assumptions and valuation methods that may result in
a range of values.
Properties which are externally valued are recorded in
the consolidated financial statements based on the value
determined by the Valuers.
Investment property and care centre buildings under
development that are not, in the Group’s view, sufficiently
progressed to enable fair value to be reliably determined
are carried at cost less any impairment.
Summerset derives revenue from properties it holds in the
form of both deferred management fees and the provision
of services to residents. NZ IAS 40 requires properties to
be classified as an investment property where the revenue
from the supply of ancillary services is insignificant to
the arrangement as a whole. Judgement is required to
assess the significance of ancillary services in this context
and so whether each property is recorded as investment
properties or property, plant and equipment.
To address the key audit matter, we:
E
xternal valuations
•read the valuation reports and discussed them with
the Valuers. We assessed the valuation approach and
confirmed that this was in accordance with the relevant
accounting standards;
•tested, on a sample basis, whether property specific
information supplied to the Valuers by the Group
reflected the underlying property records of the
Group; and
•assessed the competence, capabilities and objectivity of
the valuers.
Assumptions and estimates
•held discussions with the Valuers to gain an
understanding of the assumptions and estimates used
and the valuation methodology applied. We also sought
to understand and consider whether any restrictions had
been imposed on the valuation process;
•considered whether the valuation incorporated
appropriate assumptions for a sample of individual
properties to reflect their characteristics, overall quality,
geographic location and desirability as a whole; and
•engaged our in-house Real estate valuation experts to
challenge the work performed by the Valuers and assess
the reasonableness of the assumptions used based
on their knowledge gained from reviewing valuations
of similar properties, known transactions and available
market data.
Our work over the assumptions focused on the largest
properties within the portfolio and those properties where the
assumptions used and/or year-on-year fair value movement
suggested a possible outlier compared to the rest of the
portfolio and the market data for the sector.
Estimated valuation range
As a result of the judgement involved in determining
valuations for individual properties and the existence of
alternative assumptions and valuation methods, there is a
range of values which can be considered reasonable when
evaluating the independent property valuations used by the
Group. If we identified an error in a property valuation or
determined that the valuation was outside of a reasonable
range, we evaluated the error or difference to determine
if there was a material misstatement in the consolidated
financial statements.
Classification and measurement
We considered management’s assessment of the
classification of each type of property as either investment
property or care centre buildings. This included assessment
against the requirements of the accounting standards,
and where relevant considering the significance of
ancillary services.
We also considered management’s assessment of whether
the fair value of investment property under development
could not be reliably determined.
9 5
Annual Report 2024
Why significantHow our audit addressed the key audit matter
Disclosures
W
e considered the adequacy of the disclosures in notes
9 and 11 to the financial statements. These notes explain
the key judgements made in relation to the classification
and valuation of investment property and freehold land
and buildings and the estimation uncertainty involved in
this process.
Information other than the financial st
atements and auditor’s report
The Directors of the Company are responsible for the Annual Report, which includes information other than the consolidated financial
statements and auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge
obtained during the audit, or otherwise appears to be materially misstated.
If, based upon the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Directors’ responsibilities for the financial st
atements
The Dir
ectors are responsible, on behalf of the entity, for the preparation and fair presentation of the consolidated financial statements
in accordance with New Zealand equivalents to International Financial Reporting Standards and International Financial Reporting
Standards, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing on behalf of the entity the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis
of accounting unless the Directors either intend to liquidate the Group or cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing
(New Zealand) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements.
A further description of the auditor’s responsibilities for the audit of the financial statements is located at the External
Reporting Board’s website: https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1/.
This description forms part of our auditor’s report.
The engagement partner on the audit resulting in this independent auditor’s report is Sam Nicolle.
Chartered Accountants
W
ellington
27 February 2025
9 6
Governance
S
ummerset has adopted the principles below as an appropriate way to demonstrate its commitment to best practice
governance and to provide transparency in the Company’s approach to corporate governance for the benefit of
its shareholders and other stakeholders. These principles are from the NZX Corporate Governance Code issued in
January 2025. Each principle of the NZX Code is set out below with an explanation on how Summerset meets it.
As at 31 December 2024, Summerset considers that it was in full compliance with NZX Listing Rules and the NZX Code.
The Code of Ethics Policy, Diversity and Inclusion Policy, Securities Trading Policy and Guidelines, Whistle Blowing
Policy, Supplier Code of Conduct, Modern Slavery Policy and Anti-Bribery and Corruption Policy can be found on the
Company’s website and internal intranet alongside other governance documents.
Principle 1: Ethical standards
'Directors should set high standards of ethical behaviour, model this behaviour and hold management
account
able for these standards being followed throughout the organisation.'
Ethical standards
The Board maintains high standards of ethical conduct and expects the Company’s employees to act legally and
with int
egrity in a manner consistent with the policies, guiding principles and values that are in place. These include
the following:
•
Code of Ethics – This sets out the basic principles of legal and ethical conduct expected of all employees and
Directors. The Company encourages open and honest communication by staff about any current or potential
problem, complaint, suggestion, concern or question.
•
Diversity and Inclusion Policy – This policy outlines the Company’s guiding principles for diversity and inclusion.
Refer to Principle 2 for further details.
•
Securities Trading Policy – In accordance with the Company’s Securities Trading Policy, the NZX Listing Rules and
the Financial Markets Conduct Act 2013, Directors and employees of the Company are subject to limitations on
their ability to buy or sell Company shares.
•
Whistle Blowing Policy –This policy encourages employees to come forward if they have concerns regarding
serious wrongdoing, and ensures that employees have access to a confidential process in which they can report
any issues in relation to serious wrongdoing without fear of reprisal or victimisation.
•
Supplier Code of Conduct and Modern Slavery Policy – These documents set out the minimum standards
expected of Summerset’s suppliers and support Summerset’s commitment to sustainable, ethical and
inclusive procurement.
•
Anti-Bribery and Corruption Policy – This policy sets out Summerset’s zero-tolerance approach to bribery and
corruption. It also makes clear that donations to political parties are not permitted.
•
Code of Conduct – This policy sets out the expected behaviours while in employment with the Company.
Company employees are expected to act honestly, conscientiously, reasonably and in good faith, while at all times
having regard to their responsibilities, the interests of Summerset, and the welfare of our residents and staff.
•
Gift Policy – This policy governs the acceptance and reporting of benefits given to staff by third parties.
•
Conflicts of Interest – Summerset's Code of Ethics outlines the standards of integrity, professionalism and
confidentiality to which all employees and Directors of the Company must adhere with respect to their work and
behaviour. To maintain integrity in decision-making, each Director must advise the Board of any potential conflict
of interest if such arises. If a conflict of interest exists, the Director concerned will have no involvement in the
decision-making process relating to the matter.
•
Interests Register – In accordance with the Companies Act 1993 and the Financial Markets Conduct Act 2013,
the Company maintains an Interests Register in which all relevant transactions and matters involving the Directors
are recorded.
9 7
Annual Report 2024
Principle 2: Board composition and performance
'To ensure an effectiv
e board, there should be a balance of independence, skills, knowledge, experience
and perspectives.'
Role of the Board of Directors
The Board of Directors is elected by shareholders and has responsibility for taking appropriate steps to protect and
enhance the v
alue of the assets of the Company in the best interests of its shareholders. The Board has adopted
a formal Board Charter detailing its authority, responsibilities, membership and operation. The key responsibilities
of the Board include setting the overall direction and strategy of the Company, establishing appropriate policies
and monitoring performance of management. The Board appoints the CEO and delegates the day-to-day operating
of the business to them. The CEO implements policies and strategies set by the Board and is accountable to it.
The Board also has responsibility for ensuring the Company’s financial position is sound, and financial statements
comply with generally accepted accounting practice, and that the Company adheres to high standards of ethical and
corporate behaviour.
A summary of the Board protocols is as follows:
•A majority of the Board should be Independent Directors as defined in the NZX Listing Rules
•The Chair of the Board should be independent
•The Chair and the CEO should be different people
•Directors should possess a broad range of skills, qualifications and experience, and remain current on how best to
perform their duties as Directors
•Information of sufficient content, quality and timeliness, as the Board considers necessary, will be provided by
management to allow the Board to discharge its duties effectively, and
•The effectiveness and performance of the Board and its individual members should be re-evaluated on an
annual basis.
Directors receive an induction upon appointment to the Board to ensure their full knowledge of the Company and the
industry in which it operates. The Directors are expected to keep abreast of changes and trends in the business and
to keep up to date to ensure they best perform their duties as Directors of the Company.
All Directors have been issued letters setting out the terms and conditions of their appointment.
Delegation of authority
The Boar
d delegates to the CEO responsibility for implementing the Board’s strategy and for managing the Company’s
operations. The CEO and management have Board-approved levels of authority and, in turn, sub-delegate authority
in some cases to direct reports. This is documented in the Delegated Authority Policy.
Retirement and re-election
In accordance with the Company’s Constitution and the NZX Listing Rules, Directors are required to retire three years
after their appointment or at the third Annual Shareholder Meeting following their appointment (whichever is later).
Directors who have been appointed by the Board must also retire at the next Annual Shareholder Meeting following
their appointment.
The Board Charter states that it is not generally expected that a non-executive Director would hold office for more than
ten years or be nominated for more than three consecutive terms. The Board Charter also provides that Directors may
accept other board appointments only where that does not detrimentally affect their performance as a Director of
Summerset. In making this assessment, the number and nature of a Director’s other governance roles may be relevant.
Directors may offer themselves for re-election by shareholders each year at the Annual Shareholder Meeting.
Procedures for the appointment and removal of Directors are also governed by the Constitution.
The People and Culture Committee identifies and nominates candidates to fill Director vacancies for Board approval.
Information about candidates for election or re-election is included in the Notice of Meeting to assist shareholders in
deciding whether or not to elect or re-elect the candidate.
9 8
Board composition
The Compan
y’s Constitution prescribes that the Board must comprise a minimum of three Directors, with at least
two Directors ordinarily resident in New Zealand. As at 31 December 2024, the Board comprised seven non-executive
Independent Directors. In determining whether a Director is Independent, the Board has regard to the NZX Listing
Rules and factors described in the NZX Code.
The Company’s Directors derive a portion of their annual revenue from the Company, including via director fees
and distributions. Having regard to the professional nature of their role, the likely opportunity to seek replacement
roles, and the financial position of the Directors, the Board on balance does not consider that the receipt of director
fees and distributions is sufficiently material to outweigh collectively the other factors relevant to the assessment of
independence under the NZX Code.
The Board considers all current Directors to be Independent in that they are not executives of the Company and do
not have a direct or indirect interest or relationship that could reasonably influence (or be perceived to influence), in
a material way, their decisions in relation to the Company.
As at 31 December 2024, the non-executive Independent Directors were Mark Verbiest (Chair), Dr Andrew Wong,
Gráinne Troute, Fiona Oliver, Dr Marie Bismark, Stephen Bull and Venasio-Lorenzo Crawley.
Andrea Scown is a Future Director under the Institute of Directors’ Future Directors programme, which aims to develop
New Zealand’s next generation of directors and provide experience in large companies around the country. Andrea
joined the Board as a Future Director in November 2022. Future Directors fully participate in all Board matters but do
not have voting or decision rights.
The Board comprises Directors who have a mix of skills, knowledge, experience and diversity to adequately meet and
discharge its responsibilities and to add value to the Company through efficient and effective governance leadership.
The current Directors have a varied and balanced mix of skills relevant to the Group’s operations. A summary of the key
skills and experience held across the Board as at 31 December 2024, is set out in the table on the following pages.
More information on the Directors, including their interests, qualifications and security holdings, is provided on our
website and in the Disclosures sections of this report. As a term of their appointment, Directors are required to acquire
and hold shares in the Company to the value of one year’s worth of Director fees, though the Board has the ability to
waive this requirement and would do so in the appropriate circumstances. They have two years in which to acquire the
shares. Once this requirement has been achieved, it is deemed satisfied and is not affected by future fluctuations in
share price. This shareholding requirement may be satisfied by a Director holding shares through an associated person
or entity.
The Board holds regular scheduled meetings. The Directors generally receive material for Board meetings five working
days in advance, except in the case of special meetings, for which the time period may be shorter owing to the urgency
of the matter to be considered.
The Company Secretary attends all Board meetings, and in this capacity is accountable directly to the Board, through
the Chair, on all matters to do with the proper functioning of the Board.
All Directors have access to the Executive Leadership Team to discuss issues or obtain information on specific areas
in relation to items to be considered at Board meetings or other areas as considered appropriate. Key executives and
managers are invited to attend and participate in appropriate sessions at Board meetings. Directors have unrestricted
access to Company records and information.
Directors are entitled to obtain independent professional advice relating to the affairs of the Company or other
responsibilities. Prior approval of the Chair is required before seeking such advice and Directors are expected to ensure
that the cost of such advice is reasonable.
9 9
KEY Highly competent Competent Aware
Mark
Verbiest
Dr
Andrew
Wong
Fiona
Oliver
Gráinne
Troute
Dr Marie
Bismark
Stephen
Bull
Venasio-
Lorenzo
Crawley
Governance
Experience in and commitment to
the highest standards of corporate
governance, including as a non-executive
director of a listed company or other
large or complex organisation
Leadership
Experience in senior leadership or
executive positions in an organisation
of significant size or complexity
Financial acumen
Proficiency and understanding of
financial statements and reporting, key
financial and performance drivers and
internal controls
Capital funding and investment
Experience and understanding of
capital structuring, capital markets
and investment (including investment
into assets, M&A, joint ventures and
strategic partnerships)
Customer and operations
Deep understanding of business
operations and sales, marketing and
brand strategies
Health and clinical
Experience and understanding of the
health or aged care sectors (in New
Zealand and/or Australia) with a
particular emphasis on delivery of safe,
inclusive and quality care and services
Property and construction
Property, construction and development
experience
Health and safety
Experience and understanding of health
and safety and wellbeing requirements
People and culture
Experience in overseeing workplace
culture, people management,
development, and succession planning,
setting remuneration frameworks and
promoting diversity and inclusion
Directors Skills Matrix
Annual Report 2024
1 0 0
KEY Highly competent Competent Aware
Mark
Verbiest
Dr
Andrew
Wong
Fiona
Oliver
Gráinne
Troute
Dr Marie
Bismark
Stephen
Bull
Venasio-
Lorenzo
Crawley
Digital and technology
Experience in technology, use of data
and analytics, digital transformation
and innovation and their impacts on
business operations and customers
including cybersecurity
Strategy
Experience in the development and
execution of growth strategies, and the
ability to assess strategic options and
business plans
Australian experience
Australian property and business
experience
Risk management
Experience in identifying, assessing,
monitoring, and managing systemic,
existing, and emerging material financial
and non-financial risks
Environmental and social
Understanding and experience in
sustainable practices to manage
the impact of Summerset on the
environment and community as well
as the impact of climate change on
business operations
Government and regulatory
Understanding of the legal, policy
and regulatory environment
relevant to Summerset and an
ability to engage and collaborate
with Government and regulatory
stakeholders regarding key issues
Highly competent = Extensive experience, including serving as a key resource and advising others
Competent = Complete understanding and experience in practical application
Aware = Fundamental understanding and knowledge
Skills ratings are based on each director’s self-assessment of their skills as peer reviewed by the Board
1 0 1
Annual Report 2024
Diversity and inclusion
The Compan
y and its Board are committed to a workplace culture that promotes and values diversity and
inclusiveness. This is outlined in the Company’s Diversity and Inclusion Policy, which is available on the
Company’s website.
Diversity is defined as the characteristics that make one individual different from another. Diversity encompasses
gender, race, ethnicity, disability, age, sexual orientation, physical capability, family responsibilities, education, cultural
background and more.
Inclusion is defined as a sense of belonging, respecting and valuing all individuals, providing fair access to opportunity,
and removing discrimination and other barriers to involvement. The Board recognises that inclusion leads to a better
experience of work for Summerset’s employees, makes teams stronger, leads to greater creativity and performance,
contributes to a more meaningful relationship with residents, their families and stakeholders, and ultimately increases
value to shareholders.
The Board believes that diversity across the workforce makes Summerset stronger and better able to connect with,
and bring the best of life to, residents on a day-to-day basis. When there is a variety of thinking styles, backgrounds,
experiences, perspectives and abilities, employees are more able to understand residents’ needs and to respond
effectively to them.
The Diversity and Inclusion Policy states that its is to: leverage diversity as a competitive advantage, develop
inclusiveness as a core capability for our leaders and people and continually recognise the individual and team
contribution made towards creating a diverse and inclusive work environment.
To help Summerset's leaders lead their increasingly diverse and multi-cultural teams and support diversity and
inclusion the Company offers a Creating an Inclusive Workplace training programme for all managers. The programme
helps leaders to deepen their understanding of others and create an inclusive team environment where all team
members feel valued, appreciated, and can contribute to bringing the best of life for residents.
Summerset also supported the establishment of employee representative groups including the Summerset Pride
Network, and continued work of the Women in Construction Forum. Both groups aim to seek equity and inclusion
through building awareness of the challenges, celebrating the successes, and supporting the ideas of these groups.
Each year the Board reviews and assesses performance against the financial year objectives. The Board considers that
for the year ended 31 December 2024, the objectives for achieving diversity have been met.
As at 31 December 2024 (and 31 December 2023 for the prior comparative period), the mix of gender of those
employed by the Company is set out in the table below. The Executive Leadership Team comprises the CEO, the
CFO and all other Executives who report to the CEO. These figures include permanent full-time, permanent part-time,
fixed-term and casual employees, but not independent contractors.
GENDER20242023
DirectorsMale44
Female33
Total77
Executive Leadership TeamMale45
Female64
Total
10
9
All st
aff
Male765715
Female2,2642,075
Gender diverse
1
1
86
Prefer not to say83
Not provided11-
Total st
aff
3,066
2,799
1Self-identified
1 0 2
Board performance
The Boar
d is committed to evaluating its performance on a regular basis, generally with a formal, external review
biennally and an internal self-review each intervening year. The process, including evaluation criteria, is considered by
the People and Culture Committee and approved by the Board.
Executive Leadership Team performance
The Board evaluates the performance of the CEO annually. The CEO reviews the performance of direct reports, and
r
eports to the Board on those reviews. The evaluation is based on criteria that include the performance of the business
and the accomplishment of longer-term strategic objectives. It may include quantitative and qualitative measures.
During FY24 performance evaluations were conducted in accordance with this process.
Principle 3: Board committees
'The Board should use committees where this will enhance its effectiv
eness in key areas, while still retaining
Board responsibility.'
Board committees
The Board has four standing committees: Audit and Risk Committee, People and Culture Committee, Clinical
Governance Committee, and Development and Construction Committee. Each committee operates under a charter
approved by the Board, and any recommendations they make are to the Board. The charter for each committee is
reviewed annually. All Directors are entitled to attend committee meetings.
Audit and Risk Committee
While the ultimate responsibility for ensuring the integrity of the Company’s financial r
eporting rests with the Board,
the Company has in place processes to ensure the accurate presentation of its financial position. These include:
•An appropriately resourced Audit and Risk Committee operating under a written charter, with specific
responsibilities for financial reporting and risk management;
•Review and consideration by the Audit and Risk Committee of the financial information and preliminary releases
of results to the market, before making recommendations to the Board;
•A process to ensure the independence and competence of the Company’s external auditors and a process to
ensure their compliance with the Company’s External Audit Independence Policy (available on the
Company’s website);
•Responsibility for appointment of the external auditors residing with the Audit and Risk Committee;
•Monitoring by the Audit and Risk Committee of the strength of the internal control environment by considering
the effectiveness and adequacy of Summerset’s internal controls, reviewing the findings of the external auditor's
review of internal control over financial reporting, and being involved in setting the scope for the internal
audit programme;
•Ensuring that management has established a risk management framework and monitoring the Company’s risk
profile and reporting of risk, including new and emerging sources of risk (including climate risk).
One of the main purposes of the Audit and Risk Committee is to ensure the quality and independence of the external
audit process. The Committee makes enquiries of management and the external auditors so that it is satisfied as to the
validity and accuracy of all aspects of the Company’s financial reporting. All aspects of the external audit are reported
back to the Audit and Risk Committee and the external auditors are given the opportunity at Committee meetings to
meet with Directors.
The Audit and Risk Committee must comprise a minimum of three Directors, the majority of whom must be
Independent. The Committee is chaired by an Independent Director who is not the Chair of the Board. The Committee
currently comprises Fiona Oliver (Chair), Mark Verbiest, Gráinne Troute, Stephen Bull and Venasio-Lorenzo Crawley.
The Audit and Risk Committee generally invites the CEO, CFO, GM Finance, internal auditors and external auditors
to attend meetings. The Committee also meets and receives regular reports from the external auditors without
management present, concerning any matters that arise in connection with the performance of their role.
1 0 3
Annual Report 2024
People and Culture Committee
The r
ole of the People and Culture Committee is to assist the Board in establishing and reviewing remuneration
policies and practices, culture, leadership and capability, succession, employee development, inclusion, diversity and
engagement for the Company and in reviewing Board composition. Specific objectives include:
•Supporting the Board in ensuring the Company's vision and commitment to its people strategy aligns with, and
enables, the Company's business strategy;
•Assisting the Board in planning the Board’s composition;
•Evaluating the competencies required of prospective Directors (both non-executive and executive);
•Identifying those prospective Directors and establishing their degree of independence;
•Developing the succession plans for the Board, and making recommendations to the Board accordingly;
•Overseeing the process of the Board’s annual performance self-assessment and the performance of the Directors;
•Assisting the Board in establishing remuneration policies and practices, and setting and reviewing the
remuneration of the Company’s CEO, Executive Leadership Team and Directors; and
•Monitoring remuneration policy and practice and making recommendations to the Board in relation to any
substantive changes.
The People and Culture Committee must comprise a minimum of three Directors, the majority of whom must
be Independent. The Committee currently comprises Gráinne Troute (Chair), Mark Verbiest, Dr Marie Bismark and
Venasio-Lorenzo Crawley. The Board’s policy is that the Board needs to have an appropriate mix of skills, experience
and diversity to ensure that it is well equipped. The Board reviews and evaluates on a regular basis the skill mix required,
and identifies any existing gaps.
Clinical Governance Committee
The r
ole of the Clinical Governance Committee is to assist the Board in ensuring a systematic approach to maintaining
and improving the quality of care provided by the Company. Specific objectives include:
•Providing oversight that appropriate clinical governance mechanisms are in place and are effective throughout
the organisation;
•Supporting the leadership role of the Chief Executive Officer in relation to issues of quality, safety and clinical risk;
•Working with management to identify priorities for improvement;
•Ensuring that the principles and standards of clinical governance are applied to the health improvement and health
protection activities of the Board;
•Ensuring that appropriate mechanisms are in place for the effective engagement of representatives of residents
and clinical staff.
The Clinical Governance Committee must comprise a minimum of three Directors. The Committee currently
comprises Dr Marie Bismark (Chair), Gráinne Troute, Venasio-Lorenzo Crawley and Dr Andrew Wong.
Development and Construction Committee
The role of the Development and Construction Committee is to assist the Board in:
•S
upporting management to establish and achieve development and construction objectives within the
Company’s long-term plan;
•Supporting management to develop and implement strategies to achieve the Company’s development and
construction objectives in line with best practice;
•Helping the Company maintain appropriate risk management strategies to identify, mitigate and manage
development and construction risks;
•Maintaining a good understanding of, and confidence in, the Company’s frameworks, systems, processes and
personnel required to manage the Company’s development and construction activities effectively, including the
assessment and realisation of opportunities and the application of appropriate risk management;
•Working with management to identify areas for improvement and innovation in construction and
development practices.
The Development and Construction Committee must comprise a minimum of three Directors. The Committee
currently comprises Stephen Bull (Chair), Mark Verbiest, Fiona Oliver, Venasio-Lorenzo Crawley and Dr Andrew Wong.
1 0 4
Attendance at Board and committee meetings
A t
otal of seven Board meetings, seven Audit and Risk Committee meetings, five People and Culture Committee
meetings, three Clinical Governance Committee meetings and three Development and Construction Committee
meetings were held in 2024. Director attendance at Board meetings and committee member attendance at
committee meetings is shown in the following table.
BoardAudit and Risk
Committee
People and
Cultur
e
Committee
Clinical
Go
vernance
Committee
Development
and Construction
Committee
Total number of meetings held
77533
Mark Verbiest7752
1
3
Fiona Oliver775
1
1
1
2
Dr Andrew Wong76
1
4
1
33
Gráinne Troute77522
1
Dr Marie Bismark77
1
533
1
Stephen Bull774
1
2
1
3
Venasio-Lorenzo Crawley77533
1 Not a member of this committee
Principle 4: Reporting and disclosure
'The Board should demand integrity in financial and non-financial reporting, and in the timeliness and balance
of corporate disclosures.'
Making timely and balanced disclosures
The Company is committed to promoting shareholder confidence through open, timely and accurate market
communication. The Company has in place procedures designed to ensure compliance with its disclosure obligations
under the NZX and ASX Listing Rules. The Company’s Market Disclosure and Communications Policy sets out the
responsibilities of the Board and management in disclosure and communication, and procedures for managing
this obligation.
Copies of key governance documents, including the Code of Ethics, Securities Trading Policy and
Guidelines, Board and Committee Charters, Diversity and Inclusion Policy, Board and Executive Remuneration
Policy, and Market Disclosure and Communications Policy are all available on the Company’s website
at www.summerset.co.nz/investor-centre/governance-documents.
Non-financial disclosures, such as the Company’s approach to health and safety, our people, the community and the
environment are included within this Annual Report and in our separate Sustainability Review and Climate-Related
Disclosures FY24 document available at www.summerset.co.nz/investor-centre/esg-reporting/.
Principle 5: Remuneration
'The remuneration of Directors and executives should be transparent, fair and reasonable.'
Remuneration of Directors and the Executive Leadership Team is reviewed by the Board’s People and Culture
Commit
tee. Its membership and role are set out under Principle 3. The Committee makes recommendations to the
Board on remuneration packages, keeping in mind the requirements of the Board and Executive Remuneration Policy.
The level of remuneration paid to the Directors and the Executive Leadership Team will be determined by the Board.
However, Directors’ fees must be within the limits approved by the shareholders of the Company.
Further details on remuneration are provided in the Remuneration section of this Annual Report (page 114).
1 0 5
Annual Report 2024
Principle 6: Risk management
'Directors should ha
ve a sound understanding of the material risks faced by the issuer and how to manage them.
The Board should regularly verify that the issuer has appropriate processes that identify and manage potential
and material risks.'
HIGHLY
LIKELY
EXTREMELY
UNLIKELY
LOWCRITICAL
Summerset’s current key strategic residual risks
LIKELIHOOD
CONSEQUENCES
Resident care
and customer
experience
Executing
Australian growth
Regulatory
environment
People capability
Health and safety
Cyber security
Clinical care
Capital
management
The Board is responsible for overseeing the management of risks across Summerset’s business. Summerset
has r
obust risk management and reporting frameworks in place, whereby material business risks are regularly
identified, monitored and managed. The Audit and Risk Committee is responsible for overseeing the Company’s
risk management framework and compliance with that framework. Key risks are regularly reported to the Board,
together with Summerset’s approach to risk management. Summerset's Risk Management Policy and Enterprise Risk
Framework are consistent with best practice principles set out in ISO 31000:2018 Risk Management Standard.
The members of Summerset’s Executive Leadership Team are required to regularly identify the major risks affecting
the business, record them in the Risk Register (which identifies the likelihood and consequence of each risk to
Summerset’s business), and develop structures, practices and processes to manage and monitor these risks.
Summerset has a co-sourced model for internal audit and an in-house Risk and External Reporting Manager. As part
of the co-sourced model, Summerset has engaged KPMG as its partner to assist with carrying out internal audit
work on various parts of the Group’s operations, and all major risk and internal control issues are reported on at each
Board meeting.
Health and safety (including in relation to risks, performance and management) is discussed regularly at Board
meetings, and specific reviews are sought as required. Monthly reporting is prepared and used to assist in risk
management, covering areas such as health and safety incidents, injury and near-miss frequency rates, and actions
undertaken. Further information is covered in the health and safety section of this Annual Report on page 33
.
S
ummerset has a Tax Governance Policy in place, which sets out its tax risk management objectives, tax reporting
requirements to the Audit and Risk Committee, and policies and processes to manage tax risk. This Tax Governance
Policy is reviewed by the Board every two years. The Board is satisfied that Summerset has effective policies and
1 0 6
processes in place t
o ensure the Company is meeting its obligations. Summerset adopts a risk-averse stance in relation
to tax issues and, where possible, seeks certainty on tax positions through proactive engagement with tax authorities.
Summerset's key strategic risks reported to the board are captured below:
•
Cybersecurity – A cyber-attack may lead to data privacy breaches, loss of integrity/availability of information
or of a control system and business disruption potentially resulting in financial loss or reputational damage
or regulatory action. Summerset actively monitors and manages these risks through its risk management and
reporting frameworks.
•
Clinical care – This is a high-risk area for Summerset, which requires constant monitoring, management and policy
review. Good training and professional development, retention of staff, and investment in health and safety all help
mitigate risk in this area. The increasing level of investment required in this area is likely to affect care profitability.
•
Health and safety – The health, safety and wellbeing of its people and residents remain a top priority of
the Company and require systematic approach and strategic focus to ensure continued compliance with
relevant legislation.
•
Capital management – Summerset must manage capital adequately considering local and global
macroeconomic drivers (such as housing market delivery, equity markets, inflation and supply chain) to minimise
any potential negative impact to Summerset or our capacity to operate and provide appropriate returns
for shareholders.
•
Resident care and customer experience – Providing top-level resident and customer experience at all times is a
challenge due to the nature of the organisation. Summerset has various methods in which it manages and monitors
these issues closely, including move-in surveys, ongoing resident feedback surveys, close one-on-one feedback
sessions, and close contact with residents, families, next of kin and prospective residents.
•
Executing Australian growth – Scaling and managing the ongoing growth of the Australian business and
associated business risks. Summerset is mitigating risks through having established a local team, entering a
well-researched market, and developing product and service offerings, procedures and processes tailored for the
new market. Progress in Australia is under close management oversight and has tracked well to date.
•
Regulatory environment – Summerset operates within multiple regulatory environments and additionally as a
listed company has additional societal and investor expectations in relation to corporate governance and ESG
impact of the organisation. Both regulatory change and failure to comply can potentially have negative impact on
Summerset (including financial, reputationally, and operationally). Summerset proactively engages in regulatory
change processes and takes steps to ensure compliance with existing legislation and future amendments
once confirmed.
•
People capability – For Summerset to successfully deliver on our strategy and continue bringing the best of life
to our residents, Summerset must ensure that our people capability continues to meet the required needs of the
organisation but is also able to change and adapt in the future as required. Key areas monitored include nursing
teams and construction.
Other key areas of risk include but are not limited to:
•
Diversity and inclusion – While the Diversity and Inclusion Strategy and annual plans fulfil all of Summerset's
obligations in this area and the Company continues to improve its culture, there is always some level of risk,
particularly in a tight labour market. This will continue to be monitored regularly through staff surveys and
employees being actively engaged in this area. Page 102 provides more information on the Company's Diversity
and Inclusion Strategy.
•
Climate change – Summerset expects to operate in a climate that will progressively experience more acute
challenges and risks arising from increasing climate variability. This is likely to have various impacts on the longer-
term plans and operation of the Group – specifically in relation to the design, build and construction of villages, as
well as in the provision of care services to frail residents and the overall lifestyle satisfaction enjoyed in Summerset’s
villages. For more information on how Summerset is managing climate change risks and opportunities please
review our Sustainability Review and Climate-related Disclosures FY24 found at www.summerset.co.nz/investor-
centre/esg-reporting/
•
Strategy and innovation – There is a moderate risk with regard to Summerset’s strategic direction and ability
to continue to innovate. Summerset’s intention is to stay at the forefront in all areas of its business, including
technology, design, development and care. Summerset fosters a culture of continuous improvement and invests
in innovation through a programme that enables the Company to anticipate and respond to changes.
1 0 7
Annual Report 2024
•
Construction and de
velopment – Summerset faces construction and property development risks when
developing new villages. These risks include project delays, default risk, governance and design risk, and potential
labour and materials shortages.
•
Reputation – Summerset operates in a sensitive market involving care of vulnerable members of society.
Summerset’s performance and reputation could be adversely impacted if it suffers adverse publicity, particularly
in respect of care or health and safety issues.
Principle 7: Auditors
'The Board should ensure the quality and independence of the external audit process.'
The Board’s relationship with its auditors, both external and internal, is governed by the Audit and Risk Committee
Char
ter, External Audit Independence Policy and the Internal Audit Charter. These charters and policies set out the
types of engagements that can be performed by the external and internal auditors. The Audit and Risk Committee
actively monitors the amount of any non-audit work completed by the external auditor to ensure that independence
is maintained.
The external auditor attends the Company’s Annual Shareholder Meeting and is available to answer questions from
shareholders in relation to the external audit.
Ernst & Young was first appointed as external auditor of Summerset in 2004 and is Summerset’s external auditor for
FY24. In 2017, a full tender for the external audit services was completed and Ernst & Young was reappointed through
this process. The lead audit partner changed in 2023, with the appointment of Sam Nicolle. Due to the length of Ernst
& Young’s tenure, Summerset conducted a tender process for its external audit services over the course of 2024. As
a result of this process, PwC has been appointed as external auditor for financial years from 2025 onwards.
KPMG was appointed in the role of internal auditor of the Company in December 2016. With the establishment of a
co-source model approach to internal audit in 2020, it currently remains the Company's co-source partner. The internal
audit role is governed by the Internal Audit Charter, which states the objectives and scope of internal audit activities.
The primary objective of internal audit is to increase the strength of the Company’s control environment. This is guided
by a philosophy of adding value to improve the operations of the Company. The internal audit assists the Company
in accomplishing its objectives by bringing a systematic and disciplined approach to evaluating and improving the
effectiveness of its governance, risk management and internal controls. The Internal Audit Programme is set annually
by the Audit and Risk Committee.
The Internal Audit Charter sets out the scope of internal audit activities and this encompasses, but is not limited
to, objective examinations of evidence to provide independent assessments on the adequacy and effectiveness of
operations, governance, risk management and control processes for Summerset. This includes evaluating whether:
•The actions of Summerset’s officers, directors, staff, and contractors comply with Summerset’s policies,
procedures and applicable laws, regulations and governance standards;
•The results of operations or programmes are consistent with established goals and objectives;
•Operations or programmes are being carried out effectively and efficiently, with adequate internal controls;
•Established processes and systems enable compliance with the policies, procedures, laws and regulations that
could significantly impact Summerset;
•Information and the means used to identify, measure, analyse, classify and report such information arereliable and
have integrity; and
•Resources and assets are acquired economically, used efficiently and protected adequately.
Principle 8: Shareholder rights and relations
'The Board should respect the rights of shareholders and foster constructive relationships with shareholders
that encour
age them to engage with the issuer.'
Respecting the rights of Shareholders
The Company seeks to ensure that its shareholders understand its activities by communicating effectiv
ely with them
and giving them ready access to clear and balanced information about the Company.
1 0 8
To assist with this, the Company’s website is maintained with relevant information, including copies of presentations
and r
eports. The Company’s key corporate governance policies are also included on the website.
The Company’s major communications with shareholders during the financial year include its Annual and Half Year
Reports and the Annual Shareholder Meeting. The reports are available in electronic and hardcopy format.
Communicating with Shareholders
The Company welcomes communication and feedback from shareholders. The Company’s investor centre (on its
w
ebsite) provides a Company phone number and email address for communications from shareholders and investor
relations enquiries. All shareholder communications are responded to within a reasonable timeframe.
The Company provides options for shareholders to receive and send communications electronically, to and from both
the Company and its share and bond registrar. The Company’s investor centre includes contact details for MUFG
Pension & Market Services, through which all Company shares and bonds are managed.
Shareholder voting rights
Shareholders have the right to vote on major decisions as required by the NZX Listing Rules. Further information on
shareholder voting rights is set out in the Company’s Constitution.
Notice of Annual and Special Shareholder Meetings
Notice of Annual and Special Shar
eholder Meetings are sent to shareholders and published on the Company’s website
at least 20 working days before the relevant meeting.
1 0 9
MARK VERBIEST
Chair, Independent
Board of Directors
VENASIO-LORENZO CRAWLEY
Independent
GRÁINNE TROUTE
Independent
ANDREA SCOWN
Future Director
VIEW DIRECTOR BIOGRAPHIES AT:
www.summerset.co.nz/investor-centre/board-of-directors/
Annual Report 2024
1 1 0
MARK VERBIEST
Chair, Independent
STEPHEN BULL
Independent
FIONA OLIVER
Independent
DR MARIE BISMARK
Independent
DR ANDREW WONG
Independent
1 1 1
VIEW EXECUTIVE LEADERSHIP BIOGRAPHIES AT:
www.summerset.co.nz/investor-centre/our-leadership-team/
SCOTT SCOULLAR
Chief Executive
Officer
ROB GILLESPIE
Chief Digital Officer
DEAN TALLENTIRE
Chief Construction
Officer
New Zealand
Executive Leadership Team
STEWART SCOTT
Chief Operating
Officer
Australia
ELEANOR YOUNG
Chief Operating
Officer
New Zealand
Annual Report 2024
1 1 2
FAY FRENCH
Chief Sales Officer
SARAH THEODORE
Acting Chief
Financial Officer*
K AY B RO D I E
Chief Marketing Officer
AARON SMAIL
Chief Development
Officer
New Zealand
CHRIS LOKUM
Chief People Officer
* From 1 October 2024, preceded by Will Wright.
Margaret Warrington to commence as CFO 24 February 2025.
1 1 3
Annual Report 2024
Remuneration
Remuneration overview
Report from the Chair
Dear shareholders
As Chair of the Boar
d's People and Culture Committee I am pleased to present Summerset's 2024
Remuneration report.
Remuneration objectives
Summerset’s purpose is to "Bring the Best of Life" to our residents, and the Board is aware that in order to achieve
this we need motivated employees performing at a consistently high level. Our objective is that reward outcomes
for executive and senior leaders are aligned with outcomes experienced by shareholders, and a competitive and
affordable remuneration structure that is equitable and attractive is an important contributory factor for maintaining
this high level of employee engagement. Shareholders will note that these remuneration objectives are consistent with
those detailed in last year’s report.
We recognise that how we manage and reward our employees is a reflection of our broader goals for creating an
inclusive workplace and diverse workforce. In light of this, we have commenced reporting our gender pay gap (GPG)
this year and the Board is committed to better understanding the drivers of this pay gap and closing it for both gender
and ethnic pay over time.
Summerset's executive remuneration is set in accordance with the principles laid out in the People and Culture
Committee Charter (available at: https://www.summerset.co.nz/investor-centre/governance-documents/). We
continue to independently benchmark fixed annual remuneration for the Executive Leadership Team (ELT) to a
peer group of companies of similar size, scale and complexity, while also being cognisant of factors such as incumbent
experience, capability and performance. Our aim is to create a balance between competitiveness (which supports our
ability to attract and retain talent) and affordability for the business.
CEO remuneration
Although not evident in this FY24 report, we advise that the Board has made a further adjustment to Scott Scoullar’s
remuneration to take effect 1 January 2025.
Summerset’s consolidated position within the NZX20, market capitalisation, maturity as a business and growth in
Australia (alongside Scott’s tenure and performance) resulted in the need to align our CEO pay more closely with that
of New Zealand’s top 20 listed companies.
The Board also referenced comprehensive executive remuneration survey data provided by independent external
consultants, benchmarking Summerset's remuneration against New Zealand private sector companies, including
those in the NZX20, as well as relevant companies within the aged care, property management, development, and
construction sectors.
Incentive schemes
Over the course of 2021–2023, Summerset made a number of changes to both our STI and LTI programmes to better
align our Executive and senior leaders to shareholder interests.
Through 2024, we continued to make minor refinements to our incentive plans to better align the STIs for employees
below Executive level to company performance. We have also reviewed the eligibility of our schemes to deliver market
alignment and improve equitable outcomes for our employees in line with our diversity, equity and inclusion goals.
The design of these schemes remains market-aligned, and the focus for 2025 will be to further embed employee
understanding of these schemes to ensure their priorities and performance align to those of the Company.
In addition, for 2025 we will align the Chief Executive’s STI to be solely based on the performance scorecard for
the Company, removing individual performance from any STI earned on the basis that CEO performance outputs
intrinsically align with and drive Summerset's performance outcomes.
1 1 4
Consistent with market practice, we have also aligned our vesting cycle for LTIs for all employees to a one-time
thr
ee-year vest. Previously, each LTI plan vested at 50% after three and four years.
In parallel with this change, we plan to encourage a minimum shareholding requirement for our Executive team during
the course of 2025. Our Chief Executive already has a minimum shareholding requirement in place and given his
tenure, has exceeded this requirement.
Executive KPIs
The 2024 shared key performance indicators (KPIs) took a balanced scorecard approach with financial, customer and
staff related KPIs. The performance outcomes have been strong with our financial performance exceeding target.
These KPIs were all stretch targets, and it’s a testament to the strength of the Executive Leadership Team, and their
people, that they have continued to achieve so highly in a challenging macroeconomic environment. The Executives'
achievements against their individual, role-specific KPIs were also very strong.
Board fees
Following external benchmarking data, obtained by PwC and following Shareholder approval at the April 2024 Annual
Meeting (Resolution 3), we also increased the total Directors fee pool to $1,010,000 and made adjustments to the
standard fees as set out in that resolution. No futher changes will be made to the fee pool for 2025.
Gráinne Troute
Chair P
eople and Culture Committee
Remuneration governance
The Board is assisted in delivering its responsibilities and objectives for Executive remuneration by the People and
Cultur
e Committee. The role and membership of this committee is set out in the Governance section of this report.
The People and Culture Committee reviews the annual performance and remuneration outcomes for all Executive
Leadership Team members, including the CEO. The review takes into account external benchmarking to ensure
competitiveness with comparable market peers, along with consideration of each individual’s performance, skills,
expertise and experience.
The Committee operates under a written Charter, which outlines its responsibilities and processes as outlined in
the charter.
The charters and guidelines can be found in the Governance documents section of the Summerset website at
https://www.summerset.co.nz/investor-centre/governance-documents/
•People and Culture Committee Charter
The Remuneration Policy is the internal governance policy that provides context for the Executive members’
remuneration outcomes
•Board and Executive Remuneration Policy
The Board approves the Executive Team annual performance objectives, company financial performance targets
and outcomes on an annual basis.
•Securities Trading Policy and Guidelines
Summerset’s Securities Trading Policy ensures that Summerset and its subsidiaries’ Directors, senior managers,
employees, contractors and secondees comply with the law prohibiting insider trading and that all dealings in
Summerset securities and other financial products are beyond reproach.
1 1 5
Annual Report 2024
Executive Remuneration Policy
The r
emuneration of members of the ELT (CEO and direct reports) is designed to promote a high-performance culture
and to align executive reward to the development and achievement of strategies and business objectives that create
sustainable value for shareholders. Total remuneration is made up of three components: fixed remuneration, STI
and LTI.
The People and Culture Committee considers external and independent remuneration market information provided
by expert consultants, such as EY and PwC, in order to gauge actual and forecast movements within the market, and
to assess the levels of fixed and target total remuneration to pay its Chief Executive and Executive Team to support
talent attraction and retention.
Fixed remuneration
Fixed r
emuneration consists of a base salary and benefits including a company contribution of 3% for Kiwisaver. Other
benefits are elective and the value of each is deducted from fixed annual remuneration.
Short-term incentives
STIs are at-risk payments designed to motivate and reward performance, typically in that financial y
ear. The Chief
Executive, Executive Team, and certain other senior members of staff may participate in the STI scheme. The STI
opportunity within total remuneration reflects the complexity and level of the roles. In FY24 the Chief Executive had
a target STI opportunity of 45% of fixed annual remuneration, and the other Executives had a target STI opportunity
of 30%.
A proportion of the STI (80% for CEO and 70% for the other Executive Leadership Team members) was related to
achievement of annual business performance metrics, which aim to align executives to a shared set of KPIs based on
business priorities for the annual performance period. Target areas for the shared KPIs for 2024 are outlined below:
FY24 KPIWeightingHurdle
Minimum
per
formance
threshold
Payment at
minimum
performance
On-target
performance
1
Maximum
performance
Payment at
maximum
performance
Underlying
EBITD
A
55%90% of
EBITD
A
90%75%100% of budget125% of
budget
200%
Development
number
s
15%
80% of
EBITD
A
90%90%100% of budget100% of
budget
100%
Customer
satisf
action
15%Target scores
achie
ved
100%Target
scor
es achieved
Target scores
achie
ved
100%
Staff – HR15%Target scores
achie
ved
100%Target
scor
es achieved
Target scores
achie
ved
100%
Total payout range84.75%100%155%
1 On-target performance results in a payment of 100% of the target bonus opportunity for this performance hurdle.
The Board can reduce or cancel STI payments if there are concerns around health and safety or clinical performance.
There are three performance levels within each target area along with a performance hurdle or gate opener which
needs to be met before any payment under the STI scheme can be made – minimum performance threshold, on-target
and maximum performance. 100% of the amount allocated to that target area is payable when the on-target level
is achieved. Performance against both financial and non-financial measures is assessed and approved by the Board
each year.
If the hurdle or gate opener for underlying EBITDA performance against budget is not achieved, no STI payment will
be made. The gate opener for the financial KPI is based on achieving 90% of underlying EBITDA performance target
and for the three remaining KPIs (each of which is only payable if the target score is also achieved) the gate opener is
80% of EBITDA.
Provided the gate opener is met for each KPI, minimum performance achievement across all KPIs would return an STI
payment of 84.75% of the available target opportunity.
1 1 6
A 100% pay-out is based on achieving 100% of the financial
targets and meeting all the other KPI target criteria. The
maximum performance levels allow employees to be rewarded for performance that exceed on-target levels, up to a
specified maximum.
The maximum amount of payment for an Executive Leadership Team member under the company component of the
STI scheme is 155% of the on-target amount and is based on significant overachievement being 125% or more of the
financial targets and meeting all the other KPI target criteria.
The balance of the STI for the Executive team not weighted to business performance is related to the achievement
of individual performance measures, which is also assessed by the Board. For the CEO in FY24, the weighting of
individual achievement was 20% of the available STI opportunity and for the remaining Executive team members this
weighting was 30%. The maximum payable under the individual portion of the STI scheme was 100% for stretch
individual performance.
Long-term incentives
The Chief Executive, Executive Team and a small number of senior leaders have the opportunity to participate in an
LTI plan, which is typically offered annually at the discretion of the Board. The purpose of this plan is to align senior
management with shareholders’ interests and optimise long-term shareholder returns.
For the FY25 LTI plan, the opportunity is 50% of fixed annual remuneration for the Chief Executive, 20-40% of fixed
annual remuneration for the Executive Team and 15–25% of salary for eligible senior leaders. Vesting of the LTI plan is
contingent on meeting absolute and relative total shareholder return (TSR) performance hurdles at the conclusion of
a three-year period. In addition, the participant needs to be employed by Summerset during the vesting period.
Under the plan, participants are granted zero-priced share options. Each zero-priced option entitles the holder to one
ordinary share in the company on vesting.
LTI performance plans
As at 31 December 2024, there are three LTI plans that are yet to vest. These plans have performance periods which
end as follows:
Name of LTI planVesting date – Tranche 1Vesting date – Tranche 2
FY22 LTI plan31 December 202431 December 2025
FY23 LTI plan31 December 202531 December 2026
FY24 LTI plan31 December 202631 December 2027
These plans have slightly differ
ent performance hurdles and comparator groups, as Summerset has taken a number
of steps over several years to modify the plans to more closely align with market practice.
FY21 transitional grant
In FY21 a transitional LTI grant was awarded to participants. This was a time-based grant, with no performance hurdles
attached and was awarded to offset the change in LTI vesting cycles that occurred in 2021 (from two and three years,
to three and four years).
FY22 LTI plan performance hurdles
The FY22 plan that vested in December 2024 has 50% of the zero-priced options not subject to performance
conditions, with the remaining 50% being subject to performance conditions. Of the options subject to performance
conditions, 70% are based on financial performance (absolute earnings and relative earnings) and the remaining 30%
are based on conditions relating to clinical, staff and customer satisfaction.
50%Absolute earnings (cumulative actual underlying net pr
ofit after tax for the Group against budget)
20%Relative earnings (earnings per share growth of the Group compared to a defined peer gr
oup)
10%Clinical strategy delivery
10%People (5% st
aff engagement, 5% staff turnover)
10%Customer satisfaction (5% village residents, 5% care centre residents)
1 1 7
Annual Report 2024
When all performance hurdles for a tranche meet minimum performance requirements, and including that tranche's
t
enure-based options, a total of 55.6% of that tranche's options vest.
On-target performance of all performance hurdles for a tranche, including that tranche's tenure-based portion, results
in a total of 74.1% of that tranche's options vesting. 100% of the options for each tranche vest when the absolute and
relative earnings (financial performance) hurdles achieve or exceed 125% of the on-target performance requirement,
and all other performance hurdles meet their on-target performance criteria. This includes the tranche's tenure-
based options.
FY23 and FY24 LTI plan performance hurdles
The FY23 and FY24 LTI plans were further adjusted to remove non-financial performance hurdles. The FY23 and FY24
LTI plans have the same performance hurdles however, the peer group against which relative TSR performance was
measured for the FY24 plan was broadened to ensure continued appropriateness and reduce potential volatility:
•Absolute Shareholder Return (aTSR) – 75%
•Relative Shareholder Return (rTSR) – 25%
The number of aTSR share options that vest is determined by the TSR generated against Summerset’s cost of equity
(plus a margin). The maximum that can be earned under this component is 100% of the target option grant.
The number of rTSR share options that vest is determined by the company’s TSR over the performance period relative
to the peer group which includes the NZX 50, excluding banking institutions. If Summerset’s TSR performance is below
100% of the weighted average for the peer group, then no share options will vest. If Summerset’s TSR performance
is above 125% of the weighted average for the peer group then 100% of the share options will vest. Payouts are a
straight-line interpolation between 0 and 100% for both aTSR and rTSR.
Share options will lapse if the vesting conditions are not satisfied. Share options also lapse if the holder
ceases to be employed by Summerset during the vesting period, unless otherwise determined by the Board for
exceptional circumstances.
Key performance summary
STI Company performance 2024
FY 2024 KPIWeightingFY2024 KPI performance hurdleAssessment% STI payable
Underlying EBITDA55%100% of budgetOn-target
per
formance exceeded
155%
Development numbers15%100% of budgetOn-target
per
formance exceeded
100%
Customer satisfaction15%>80% Customer satisfactionOn-target
per
formance exceeded
100%
People and culture15%Improvement in employee
engagement scor
e
On-target performance
par
tially met
75%
Total payable100%126.7%
The Board chose to apply discretion relating to the people and culture performance assessment as the employee
engagement scor
e remained flat year-on-year but our net promoter score was in the top 5% of our benchmark group,
which is a notable achievement in a year of change for our company.
LTI performance for vested options 31 December 2024
FY22 – tranche 1 vesting assessment summary
December 2020 – tranche 2 vesting
asse
ssment summary
WeightingMaximumAssessmentTotal
Time-based only50%50%N/A50%
Absolute earnings25%50%On-target performance exceeded44.9%
1 1 8
December 2020 – tranche 2 vesting
asse
ssment summary
WeightingMaximumAssessmentTotal
Relative earnings10%20%On-target performance exceeded20%
Customer satisfaction – village residents2.5%2.5%On-target performance met2.5%
Customer satisfaction – care residents2.5%2.5%On-target performance met2.5%
Employee engagement2.5%2.5%On-target performance met2.5%
Staff turno
ver
2.5%2.5%On-target performance met2.5%
Clinical strategy delivery5%5%On-target performance met5%
Total score100%135%129.9%
The LTI performance assessment is a direct result of performance against plan for each of the performance
hur
dles. There was no Board discretion applied.
LTI transitional grant 2021 - Tranche 2
In addition to the above, there was also a special transition grant which was a time-based grant of zero-priced
options. Thus, there were no performance hurdles associated with this specific grant.
Chief Executive Officer remuneration arrangements and outcomes
The f
ollowing table details the nature and amount of remuneration paid to Scott Scoullar for his time as CEO over the
past four years.
Fixed remunerationPay for performance remuneration
Financial
y
ear
Salary paid $Benefits
1
$Subtotal $Cash STI $Equity LTI $Subtotal $Total
r
emuneration $
2
FY24$819,534$30,466$850,000$448,902
3
$226,050
4
$674,952$1,524,952
FY23$683,612$26,388$710,000$321,346$80,739$402,085$1,112,085
FY22$649,631$25,365$674,996$211,432$51,000$262,432$937,428
FY21$607,155$24,095$631,250$206,071$750,547$956,6181,587,868
1Benefits include 3% Kiwisaver contribution and a car park. For FY24, the company’s Kiwsaver contribution for Scott Scoullar was $27,879.05 including ESCT.
2 Total remuneration paid includes salary, benefits, cash STI, and value of LTI equity (paid in shares).
3 Cash STI for FY24 is 82% of maximum potential, paid in FY25 (February 2025). The payment is based on achievement of shared KPI targets as per table above (80%) and
individual targets (20%).
4 Equity LTI is based on value of 2021 LTI plan awards that vested on 31 December 2024 as described in the LTI plan vesting assessment summary above.
The following table summarises the performance assessment as a percentage of plan over the past four years for both
STIs and LTIs.
Financial
y
ear
Total
r
emuneration paid
Percentage cash
S
TI awarded
against target
Percentage cash
S
TI awarded
against maximum
Percentage
v
ested equity LTI
against maximum
Span of equity LTI
per
formance period
FY24$1,524,952117%82%96%2022-2024
100%2022-2024
FY23$1,112,085113%79%100%2022–2023
95%2021–2023
FY22$937,428104%70%95%2021–2022
90%2020–2022
FY21$1,587,868109%97%95%2020–2021
1 1 9
Annual Report 2024
Financial
y
ear
Total
r
emuneration paid
Percentage cash
S
TI awarded
against target
Percentage cash
S
TI awarded
against maximum
Percentage
v
ested equity LTI
against maximum
Span of equity LTI
per
formance period
95%2019–2021
Note: The current CEO assumed his position in 2021
Scenario chart
The scenario chart below demonstrates the elements of CEO Scott Scoullar’s remuneration structure for FY24.
Components of CEO FY24 annualised remuneration
FixedShort-term incentivesLong-term incentives
Fixed remunerationOn-planMaximum
0
500,000
1,000,000
1,500,000
2,000,000
The CEO’s fix
ed remuneration comprising annual salary and taxable benefits was $850,000 per annum, with effect
from 26 February 2024. The STI and LTI (based on the value granted in the FY24), is 45% and 50% respectively of fixed
remuneration. STI had maximum available payment of 155% of the on-target as noted above. The LTI grant for 2024 will
vest based on performance to 31 December 2027 (tranche 1) and 31 December 2028 (tranche 2), subject to retention
and performance criteria being met. Further details are included in the LTI Plan entitlements section.
ESG disclosures
CEO/worker ratio
The pay gap represents the number of times greater the CEO remuneration is to the remuneration of an employee
paid
at the median of all Summerset employees. For the purposes of determining the median paid to all Summerset
employees, all permanent full-time, permanent part-time and fixed-term employees are included, with part-time
employees, remuneration adjusted to a full-time equivalent amount.
At 31 December 2024, the CEO’s salary of $819,534 was 13.2 times (2023: 10.97 times) that of the median employee
salary at $62,296 per annum. The CEO's total remuneration, including STIs and LTIs, of $1,524,952, was 23.0 times
(2023: 20.24 times) the total remuneration of the median employee at $66,282 per annum.
Gender pay gap
Summerset is committed to cultivating a workplace that embraces diversity and inclusivity and acknowledges the
significance of addr
essing gender pay equity within the unique context of New Zealand and Australia. We continue to
examine the factors contributing to our gender pay gap, which is 17% as at 31 December 2024. The gender pay gap is
11.8% for our senior leadership cohort
1
which is split 55% male and 45% female. The gender pay gap is largely driven by
a wider gap in our Development & Construction business areas (23.7%) due to a relative lack of female representation
within these areas. Our gender pay gap for staff who work in our village and care centre operations is 4.4%.
1W
e have defined our senior leadership as those employees placed within the top three pay bands in our organisation
1 2 0
We have planned a number of actions to address our overall gender pay gap that span three key areas: 1) creating
inclusiv
e environments, 2) increasing diversity in our hiring pipelines without compromising talent quality, and 3)
reducing potential for bias in our pay decisions.
We aim to foster an environment that values all employees, and we recognise the importance of fair compensation
and equal opportunities for everyone on our team. Summerset affirms its commitment to advancing discussions and
initiatives that contribute to a workplace where every individual is accorded respect and opportunities.
Remuneration bands
The number of employees or former employees (including employees holding office as Dir
ectors of subsidiaries),
who received remuneration and other benefits valued at or exceeding $100,000 during the financial year
ended 31 December 2024 is specified in the following table.
The remuneration figures shown in the Remuneration column include all monetary payments actually paid
during FY24. The table also includes the value of options granted to individual employees under Summerset’s
LTI plan during the same period. The table does not include amounts paid after 31 December 2024 that relate to the
year ended 31 December 2024. The method of calculating remuneration is consistent with the method applied for the
previous year.
RemunerationNumber of employeesRemunerationNumber of employees
$100,000 to $109,999101$340,000 to $349,9992
$110,000 to $119,999119$350,000 to $359,9992
$120,000 to $129,99990$360,000 to $369,9991
$130,000 to $139,99973$380,000 to $389,9993
$140,000 to $149,99962$390,000 to $399,9994
$150,000 to $159,99943$400,000 to $409,9991
$160,000 to $169,99935$430,000 to $439,9991
$170,000 to $179,99918$440,000 to $449,9991
$180,000 to $189,99915$460,000 to $469,9991
$190,000 to $199,99917$480,000 to $489,9991
$200,000 to $209,99916$500,000 to $509,9991
$210,000 to $219,9999$510,000 to $519,9991
$220,000 to $229,9996$530,000 to $539,9991
$230,000 to $239,9999$540,000 to $549,9991
$240,000 to $249,9998$570,000 to $579,9991
$250,000 to $259,9995$660,000 to $669,9991
$260,000 to $269,9996$750,000 to $759,9991
$270,000 to $279,9994$760,000 to $769,9991
$280,000 to $289,9991$820,000 to $829,9991
$290,000 to $299,9993$840,000 to $849,9991
$300,000 to $309,9994$930,000 to $939,0001
$310,000 to $319,9992$1,460,000 to $1,469,9991
$330,000 to $339,9991
Director remuneration
The Board of Directors fees were increased by shareholder resolution with effect from 1 May 2024. The resolution
increased the pool of funds approved by shareholders for payment of Directors' fees.
1 2 1
Annual Report 2024
As at 31 December 2024, the maximum aggregate amount of remuneration payable by Summerset to Directors (in
their capacity as Dir
ectors) was $1,010,000 per annum for the non-executive Directors (prior to 1 May 2024: $904,450)
and annualised standard Directors’ fees were $960,000, inclusive of additional remuneration for committee Chairs
and comittee members (prior to 1 May 2024: $845,000 noting this figure does not include any Committeee member
fee, new from 1 May 2024)). In respect of Australian based Directors, the Board has decided to pay those Directors in
Australian Dollars at the same face value the New Zealand Directors are paid. This results in those Directors receiving
slightly higher fees (as recorded in the table below). As at 31 December 2024, the only Director who received payment
in Australian dollars was Stephen Bull.
As at 31 December 2024, the standard Director fees per annum are as follows:
Fee schedule
Governance bodyPositionFees for reporting period
Board of Directors
Chair$220,000
Director$100,000
Audit and Risk CommitteeChair$20,000
Clinical Governance CommitteeChair$20,000
People and Culture CommitteeChair$20,000
Development and Construction CommitteeChair$20,000
Committee memberMember$10,000
The Commit
tee member fee is payable to Directors (other than the Chair) who are a member of a standing Committee.
The fee is payable once per Director (i.e. if a Director is a member of two Committees, they will receive a single fee
of $10,000).
In addition to standard Directors’ fees, in 2024 $10,000 was also paid for additional responsibilities above and beyond
the normal duties of the Board or any standard Committee. These fees related to due diligence work for the issue of
retail bonds in March 2024.
Directors’ fees exclude GST, where appropriate. Directors are entitled to be reimbursed for costs directly
associated with carrying out their duties, including travel costs.
Directors and Officers also have the benefit of Directors’ and Officers’ liability insurance. Cover is for damages,
judgements, fines, penalties, legal costs awarded and defence costs arising from wrongful acts committed
while acting for Summerset. There are some exclusions within the policy. The insurance cover is supplemented
by the provision of Director and Officer indemnities from the Company, but this does not extend to criminal acts.
The Company distinguishes the structure of non-executive Directors’ remuneration from that of executive Directors.
The total amount of remuneration and other benefits received by each Director during the year ended 31 December
2024 is provided below. These amounts reflect actual payments to directors during the year, and consequently,
depending on each Director's quarterly billing cycle, payroll periods and the actual payment date, the amounts
stated may vary between directors and may not be representative of the directors' fees earned for the year ended
31 December 2024.
1 2 2
Actual fees paid in FY24
Director
Board
f
ees
Audit and
Risk
Committee
People and
Cultur
e
Committee
Clinical
Go
vernance
Committee
Development and
Construction
Committee
Other Board
Committee
s
1
Total
Mark
V
erbiest
$266,667
2
$266,667
Dr Andrew
W
ong
$105,192$105,192
Gráinne
T
route
$104,792
$17,917
2
$122,709
Fiona Oliver$105,833
$20,000
2
$5,000$130,833
Dr Marie
Bismark
$105,192
$18,077
2
$123,269
Stephen
Bull
$114,918$19,925
2
$5,323$140,166
Venasio-
L
orenzo
Crawley
$105,192$105,192
Total
$907,786$20,000
$17,917
$18,077$19,925
$10,323
$994,028
1 A Due Diligence Committee was established in FY24 to oversee Summerset's 2024 bond issue
2 Chair
Note: All Director fees reported above are in $NZ
1 2 3
Annual Report 2024
Disclosures
Director changes during the year ended 31 December 2024
There have been no changes.
Directors’ interests
The following is an excerpt from the Company's Interests Register, showing the material interests of Directors as at
31 December 2
024, together with any entries in the Interests Register made during the year for the purposes of section
211(1)(e) of the Companies Act 1993. Interests no longer held as at 31 December 2024 are disclosed in italics.
DirectorEntityPosition
Mark
V
erbiest
Meridian Energy Limited
W
illis Bond
Fonterra Independent Assessment Panel (appointed June 2024)
Chapter Zero (appointed August 2024)
WorkSafe (retired August 2024)
Chair
Consult
ant
Member
Steering Committee Member
Crown Monitor
Dr Marie
Bismark
GMHBA Health Insurance
R
oyal Australian and New Zealand College of Psychiatrists
Veteran's Health Advisory Panel
Specialist in Public Health Medicine and Psychiatry registered with New Zealand
Medical Council
Royal Women's Hospital, Melbourne
University of Melbourne
Victorian Department of Health's Voluntary Assisted Dying 5 Year Review
Governance Committee
Australian Institute of Company Directors (Victoria)
New Zealand Medical Council (appointed July 2024)
Corporate Governance & Risk Committee of the Royal Australian & NZ College of
Psychiatry (appointed June 2024)
Locum Psychiatrist and Doctor at various organisations throughout Australia &
NZ (disclosed June 2024)
Te Whatu Ora - Capital & Coast (retired June 2024)
Director
F
ellow
Member
N/A
Director
Professor
Member
Council Member
Council Member
Member
N/A
Consultant Psychiatrist
Gráinne
T
route
Tourism Holdings Limited
In
vestore Property Limited
Duncan Cotterill
NZX Corporate Governance Institute (appointed February 2024)
Montana Group Limited (retired September 2024)
Director
Dir
ector
Board Member
Member
Chair
Dr
Andr
ew
Wong
HealthCare Holdings Limited
QCS (Quipt Clinical S
upplies) Limited
Health Tick Limited
The Drug Detection Agency Group Limited
Kakariki Hospital Limited
Ascot Hospitals and Clinics Limited
New Zealand Radiology Group Limited
MercyAscot Properties Limited
Endoscopy Auckland Limited
Auckland Radiation Oncology Limited
Kensington Hospital Limited
MercyAscot Orthopaedics Limited
Auckland University of Technology
Forte Health Limited
Careway Ltd
Mountain Road Properties Ltd
Managing Director
Dir
ector
Director
Director
Director
Managing Director
Director
Director
Chair
Chair
Director
Chair
Adjunct Professor
Director
Chair
Director
1 2 4
DirectorEntityPosition
My Accelerated Care Limited (appointed January 2024)
Endo
scopy Governance Group New Zealand (retired November 2024)
Chair
Member
Venasio-
L
orenzo
Crawley
AUT Business School
A
dded Value Limited
IOD Pacific Governance Advisory Board
Orian Group Limited (appointed February 2024)
Variety Children’s Charity (appointed April 2024)
Te Whatu Ora - People, Culture, Development and Change Committee (retired
August 2024)
Chair
Dir
ector and Shareholder
Member
Director
Director
Independent Board Member
Stephen
Bull
Bridge Housing Limited
A
CT Government City Renewal Authority (appointed July 2024)
MaxCap Group Equity Investment Committee (appointed November 2024)
Capital Prudential Diversified Development Fund (CPDDF) Pty Ltd ATF CPDDF
(appointed November 2024)
MaxCap Industrial Opportunites Fund Investment Committee (ceased
December 2024)
NSW Government Transport Asset Holding Entity Investment Committee (ceased
December 2024)
Chair
Boar
d Member
Independent Member
Chair
Independent Member
Independent Member
Fiona
Oliv
er
Freightways Limited
Gentr
ack Group Limited
Clarus Group (previously called First Gas Group) comprising First Gas Limited,
First Gas Services Limited and First Sunrise Limited and subsidiaries
Kingfish Limited
Barramundi Limited
Marlin Global Limited
New Zealand Waterpolo
Grasmere Family Trust
Bella Vista Trust
Wilson Partners (Oliver) Trustees Limited
Wynyard Group Limited (in liquidation)
Guardians of the New Zealand Superannuation Fund
Director
Dir
ector
Director
Director
Director
Director
Director
Trustee
Trustee
Director
Director
Board Member
Information used by Directors
There were no notices from Directors of the Company requesting to disclose or use Company information received
in their capacity as Dir
ectors that would not otherwise have been available to them.
Directors’ security holdings
Securities in the Company in which each Director has a relevant interest as at 31 December 2024 are specified
in the
table below:
DirectorOrdinary shares
SUM020
r
etail bonds
SUM030
r
etail bonds
SUM040
r
etail bonds
SUM050
r
etail bonds
Mark Verbiest11,500*––––
Dr Marie Bismark25,439––––
Gráinne Troute26,228––––
Dr Andrew Wong10,500––––
Venasio-Lorenzo Crawley4,382––––
Stephen Bull6,700––––
Fiona Oliver10,890––––
Total95,6390000
*Mr Verbiest's wife has a legal and beneficial interest in 11,500 SUM ordinary shares.
1 2 5
Annual Report 2024
Securities dealings of Directors
During the y
ear, Directors disclosed the following transactions in respect of Section 148(2) of the Companies Act 1993.
These transactions took place in accordance with the Company’s Securities Trading Policy.
Director
Nature of
r
elevant interest
Date of transaction
Number of
securitie
s
acquired/
(disposed)
Consideration
Venasio-
L
orenzo Crawley
Legal and
beneficial inter
est
22 March 202436
Issue of shares under
dividend r
einvestment plan
at $10.7298 per share
Legal and
beneficial inter
est
20 September 202428
Issue of shares under
dividend r
einvestment plan
at $11.4848 per share
Dr Marie Bismark
Legal and
beneficial inter
est
22 March 2024261
Issue of shares under
dividend r
einvestment plan
at $10.7298 per share
Legal and
beneficial interest
20 September 2024211
Issue of shares under
dividend r
einvestment plan
at $11.4848 per share
Gráinne
T
route
Legal and
beneficial inter
est
22 March 2024213
Issue of shares under
dividend r
einvestment plan
at $10.7298 per share
Legal and
beneficial inter
est
20 September 2024172
Issue of shares under
dividend r
einvestment plan
at $11.4848 per share
Fiona
Oliv
er
Beneficial inter
est in
and/or the power to
acquire or dispose of,
or to control the
acquisition or disposal of,
ordinary shares
20 September 202471
Issue of shares under
dividend r
einvestment plan
at $11.4848 per share
Director appointment dates
The date of each Director’s fir
st appointment to the position of Director is provided below. Since the date of
appointment, Directors have been reappointed at Annual Meetings when retiring by rotation as required.
DirectorAppointment date
Mark Verbiest1 July 2021
Dr Marie Bismark1 September 2013
Gráinne Troute1 September 2016
Dr Andrew Wong1 March 2017
Venasio-Lorenzo Crawley1 February 2020
Stephen Bull1 March 2022
Fiona Oliver1 March 2023
Indemnity and insurance
In accordance with Section 162 of the Companies Act 1993 and the constitution of the Company, the Company
has arr
anged insurance for, and indemnities to, Directors and Officers of the Company, including Directors of
1 2 6
subsidiary companies, for losses from actions undertaken in the course of their legitimate duties or costs incurred in
an
y proceeding.
Directors of subsidiary companies
The r
emuneration of employees acting as Directors of subsidiaries is disclosed in the relevant banding of remuneration
set out under the heading Employee remuneration in the Remuneration section of this Annual Report. Employees did
not receive additional remuneration or benefits for acting as Directors during the year.
Scott Scoullar, Aaron Smail, Dean Tallentire, Sarah Theodore and Robyn Heyman were Directors of all the Company’s
New Zealand incorporated subsidiaries as at 31 December 2024, with the exception of Summerset LTI Trustee Limited
(the Directors of which are Mark Verbiest and Dr Marie Bismark). Scott Scoullar, Stewart Scott, Sarah Theodore and
Robyn Heyman were Directors of all the Company’s Australian incorporated subsidiaries as at 31 December 2024, with
the exception of Summerset Care (Australia) Pty Limited (the Directors of which are Scott Scoullar, Stewart Scott and
Robyn Heyman). No extra remuneration is payable to any Director of the Company for any Directorship of a subsidiary.
Top 20 shareholders as at 31 December 2024
RankRegistered shareholderNumber of shares% of shares
1Custodial Services Limited24,675,02010.42%
2HSBC Nominees (New Zealand) Limited*20,707,6968.74%
3Tea Custodians Limited*20,292,9168.57%
4BNP Paribas Nominees NZ Limited (BPSS40)*19,699,0868.32%
5Citibank Nominees (NZ) Ltd*17,755,0377.50%
6New Zealand Superannuation Fund Nominees Limited*12,476,3285.27%
7JPMORGAN Chase Bank*9,154,8223.87%
8Forsyth Barr Custodians Limited7,827,4013.31%
9FNZ Custodians Limited7,100,3533.00%
10Accident Compensation Corporation*7,023,2052.97%
11New Zealand Depository Nominee4,749,4482.01%
12JBWERE (NZ) Nominees Limited4,591,6851.94%
13New Zealand Permanent Trustees Limited*4,293,8821.81%
14HSBC Nominees (New Zealand) Limited*3,654,6111.54%
15Premier Nominees Limited*3,495,0271.48%
16Public Trust*2,495,8541.05%
17Pt Booster Investments Nominees Limited2,440,0471.03%
18BNP Paribas Nominees (NZ) Limited*2,393,1301.01%
19JP Morgan Nominees Australia Pty Limited1,937,6310.82%
20NZ Permanent Trustees Ltd – Grp Invstmnt Fund No 20*1,776,2260.75%
Total178,539,405
75.41%
* Shares held through the New Zealand Central Securities Depository Limited
1 2 7
Annual Report 2024
Spread of shareholders as at 31 December 2024
Size of shareholding
Shareholders
number
Shareholders
%
Shares
number
Shares
%
1 to 1,0003,88041.84%1,571,5870.66%
1,001 to 5,0003,68239.71%9,055,8613.82%
5,001 to 10,00096810.44%6,989,5392.95%
10,001 to 50,0006476.98%12,188,3275.15%
50,001 to 100,000450.49%3,052,7311.29%
100,001 and over500.54%203,967,37986.13%
Total9,272
100.00%236,825,424100.00%
Substantial product holder notices received as at 31 December 2024
According to the records kept by the Company and notices given under the Financial Market Conducts Act 2013, the
f
ollowing were substantial holders in the Company as at 31 December 2024. The total number of voting products on
issue at 31 December 2024 was 236,825,424 ordinary shares.
ShareholderRelevant interest
% held at date
of notice
Date of notice
FirstCape Group Limited
1
22,798,5899.68%1 May 2024
Harbour Asset Management Limited15,353,1176.516%7 June 2024
1 Jarden Partners Limited (Jarden) and National Australia Bank Limited (NAB), and their respective related companies, agreed to combine their New Zealand wealth advisory and
asset management businesses into a newly formed entity, with related companies of NAB and Jarden, respectively, and funds managed or advised by Pacific Equity Partners
(PEP) as the shareholders of that new entity (the Transaction). FirstCape Group Limited was established in connection with the Transaction. At completion on 30 April 2024,
FirstCape Group Limited acquired, directly or indirectly, all of the shares in certain companies including: Jarden Wealth Limited, Harbour Asset Management Limited, BNZ
Investment Services Limited and JBWere (NZ) Pty Limited. As a result, it acquired a relevant interest in shares that those entities had a relevant interest in.
Top 20 bondholders as at 31 December 2024
SUM020
RankRegistered bondholderNumber of bonds% of bonds
1Forsyth Barr Custodians Limited28,767,00023.01%
2Custodial Services Limited28,347,00022.68%
3FNZ Custodians Limited19,888,00015.91%
4PT (Booster Investments) Nominees Limited – Retail*4,724,0003.78%
5ANZ National Bank Limited*3,308,0002.65%
6Westpac Banking Corporation*2,820,0002.26%
7Tea Custodians Limited*2,069,0001.66%
8Forsyth Barr Custodians Limited2,053,0001.64%
9FNZ Custodians Limited1,660,0001.33%
10Forsyth Barr Custodians Limited1,559,0001.25%
11Citibank Nominees (NZ) Ltd*1,506,0001.20%
12Best Farm Limited1,500,0001.20%
1 2 8
RankRegistered bondholderNumber of bonds% of bonds
13Bank of New Zealand – Wellington Treasury Operations*1,314,0001.05%
14FNZ Custodians Limited1,223,0000.98%
15Investment Custodial Services Limited1,112,0000.89%
16Private Nominees Limited*815,0000.65%
17NZ Permanent Trustees Ltd – Grp Investment Fund No 20*791,0000.63%
18JBWERE (NZ) Nominees Limited752,0000.60%
19Custodial Services Limited611,0000.49%
20Forsyth Barr Custodians Limited539,0000.43%
Total
105,358,000
84.29%
* Bonds held through the New Zealand Central Securities Depository Limited
SUM030
RankRegistered bondholderNumber of bonds% of bonds
1Custodial Services Limited44,142,00029.43%
2Tea Custodians Limited*28,557,00019.04%
3Forsyth Barr Custodians Limited20,097,00013.40%
4FNZ Custodians Limited14,759,0009.84%
5PT (Booster Investments) Nominees Limited – Retail*7,892,0005.26%
6Forsyth Barr Custodians Limited2,401,0001.60%
7JBWERE (NZ) Nominees Limited1,630,0001.09%
8FNZ Custodians Limited1,360,0000.91%
9Investment Custodial Services Limited1,286,0000.86%
10Private Nominees Limited*1,215,0000.81%
11Forsyth Barr Custodians Limited1,200,0000.80%
12NZX WT Nominees Limited946,0000.63%
13FNZ Custodians Limited766,0000.51%
14Leveraged Equities Finance Limited760,0000.51%
15JML Capital Limited700,0000.47%
16Forsyth Barr Custodians Limited643,0000.43%
17NZ Permanent Trustees Ltd – Grp Invstment Fund No 20*590,0000.39%
18Custodial Services Limited530,0000.35%
19=David James Foster & Linda Joyce Foster300,0000.20%
19=Hugh McCracken Ensor300,0000.20%
19=JBWERE (NZ) Nominees Limited300,0000.20%
20=Dunedin Diocesan Trust Board250,0000.17%
20=Julia Margaret O'Connor250,0000.17%
20=JBWERE (NZ) Nominees Limited250,0000.17%
Total
131,124,00087.44%
* Bonds held through the New Zealand Central Securities Depository Limited
1 2 9
Annual Report 2024
SUM040
RankRegistered bondholderNumber of bonds% of bonds
1Custodial Services Limited52,683,00030.10%
2Forsyth Barr Custodians Limited30,982,00017.70%
3FNZ Custodians Limited9,787,0005.59%
4JBWERE (NZ) Nominees Limited8,809,0005.03%
5HSBC Nominees (New Zealand) Limited*7,000,0004.00%
6Tea Custodians Limited*5,690,0003.25%
7Forsyth Barr Custodians Limited4,344,0002.48%
8New Zealand Permanent Trustees Limited*3,255,0001.86%
9Investment Custodial Services Limited2,908,0001.66%
10Private Nominees Limited*1,685,0000.96%
11Pt (Booster Investments) Nominees Limited*1,280,0000.73%
12JBWERE (NZ) Nominees Limited1,000,0000.57%
13NZX WT Nominees Limited971,0000.55%
14Phazma Holdings Limited935,0000.53%
15Yingxian Shi900,0000.51%
16Forsyth Barr Custodians Limited896,0000.51%
17Custodial Services Limited782,0000.45%
18JBWERE (NZ) Nominees Limited750,0000.43%
19David James Foster & Linda Joyce Foster600,0000.34%
20Wellspring Television Limited509,0000.29%
Total135,766,00077.54%
* Bonds held through the New Zealand Central Securities Depository Limited
SUM050
RankRegistered BondholderNumber of bonds% of bonds
1Custodial Services Limited38,575,00030.86%
2Tea Custodians Limited*33,500,00026.80%
3New Zealand Permanent Trustees Limited*7,464,0005.97%
4JBWERE (NZ) Nominees Limited6,161,0004.93%
5HSBC Nominees (New Zealand) Limited*6,100,0004.88%
6Citibank Nominees (NZ) Ltd*6,000,0004.80%
7Forsyth Barr Custodians Limited2,920,0002.34%
8FNZ Custodians Limited2,139,0001.71%
9CML Shares Limited1,595,0001.28%
10NZ Permanent Trustees Ltd - Grp Investment Fund No 20*932,0000.75%
11Renzhong Gong605,0000.48%
12Custodial Services Limited578,0000.46%
13Private Nominees Limited*560,0000.45%
1 3 0
RankRegistered BondholderNumber of bonds% of bonds
14Forsyth Barr Custodians Limited497,0000.40%
15Zhiling Wang430,0000.34%
16Forsyth Barr Custodians Limited375,0000.30%
17Sirius Capital Limited276,0000.22%
18Public Trust RIF Nominees Limited*250,0000.20%
19James Stuart Gordon & Sandra Louise Gordon231,0000.18%
20Forsyth Barr Custodians Limited221,0000.18%
Total109,409,00087.53%
* Bonds held through the New Zealand Central Securities Depository Limited
Spread of bondholders as at 31 December 2024
SUM020
Size of bondholding
Bondholders
number
Bondholders
%
Bonds
number
Bonds
%
1 to 1,000----
1,001 to 5,000406.56%200,0000.16%
5,001 to 10,00012520.49%1,199,0000.96%
10,001 to 50,00038162.46%10,117,0008.09%
50,001 to 100,000315.08%2,788,0002.23%
100,001 and over335.41%110,696,00088.56%
Total610
100.00%125,000,000100.00%
SUM030
Size of bondholding
Bondholders
number
Bondholders
%
Bonds
number
Bonds
%
1 to 1,000----
1,001 to 5,000446.62%220,0000.15%
5,001 to 10,00014822.25%1,431,0000.95%
10,001 to 50,00039158.80%10,560,0007.04%
50,001 to 100,000436.47%3,517,0002.35%
100,001 and over395.86%134,272,00089.51%
Total665
100.00%150,000,000100.00%
1 3 1
Annual Report 2024
SUM040
Size of bondholding
Bondholders
number
Bondholders
%
Bonds
number
Bonds
%
1 to 1,000----
1,001 to 5,000686.69%339,0000.19%
5,001 to 10,00017517.21%1,669,0000.96%
10,001 to 50,00059758.70%16,663,0009.52%
50,001 to 100,00010310.13%8,298,0004.74%
100,001 and over747.27%148,031,00084.59%
Total1,017100.00%175,000,000100.00%
SUM050
Size of bondholding
Bondholders
number
Bondholders
%
Bonds
number
Bonds
%
1 to 1,000----
1,001 to 5,000397.66%195,0000.16%
5,001 to 10,00012123.78%1,157,0000.93%
10,001 to 50,00027153.24%7,605,0006.08%
50,001 to 100,000479.23%3,653,0002.92%
100,001 and over316.09%112,390,00089.91%
Total509100.00%125,000,000100.00%
Waivers from the NZX Listing Rules
No waivers from the application of NZX Listing Rules have been utilised by the Company during the year ended
31 December 2
024.
Credit rating
The Company has no credit rating.
Auditor fees
Ernst & Young Wellington has continued to act as auditors of the Company. The amount payable by Summerset
and its subsidiarie
s to Ernst & Young Wellington in respect of FY24 audit fees was $501,000 (noting that this fee
includes assurance services in relation to Summerset's long-term incentive plan). In addition, Ernst & Young Wellington
undertook assurance services in relation to Summerset's sustainability linked lending arrangements and greenhouse
gas inventory during the year; the fees for this engagement was $80,000. Ernst & Young also performed non-audit
work in relation to remuneration advisory services, the fees for this engagement was $6,000.
Donations
In accor
dance with section 211(1)(h) of the Companies Act 1993, Summerset records that it donated $13,092 during the
year ended 31 December 2024.
1 3 2
Dividend reinvestment plan
The last dat
e of receipt for a participation election from a shareholder who wishes to participate in the dividend
reinvestment plan is 17 March 2024.
This Annual Report is authorised for and on behalf of the Board by:
Mark Verbiest
Dir
ector and
Chair of the Board
Fiona Oliver
Director and
Chair of the Audit and
Risk Committee
27 February 2025
1 3 3
Annual Report 2024
1 3 4
Directory
New Zealand
Northland
Summerset Mount Denby
7 Par Lane, Tikipunga,
Whangār
ei 0112
Phone (09) 470 0280
Auckland
Summerset Falls
31 Mansel Drive,
Warkworth 0910
Phone (09) 425 1200
Summerset Milldale
Argent Lane, Milldale,
Wainui 0992
Phone (09) 304 1630
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 Half Moon Bay
1
25 Thurston Place,
Half Moon B
ay,
Auckland 2012
Phone (09) 306 1420
Summerset St Johns
1
88 St Johns Road, St Johns,
Auckland 1072
Phone (09) 950 7980
Summerset Belmont
1
65 Hillary Crescent, Belmont,
A
uckland 0622
Phone (09) 486 9140
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 7820
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 9480
Bay of Plenty
Summerset by the Sea
181 Park Road,
Katikati 3129
Phone (07) 985 6890
Summerset by the Dunes
35 Manawa Road,
P
āpāmoa Beach, Tauranga 3118
Phone (07) 542 9080
Summerset Rotorua
1
1
71–193 Fairy Springs Road,
Rotorua 3010
Phone (07) 343 5130
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 5850
Summerset in the Vines
249 Te Mata Road,
Havelock North 4130
Phone (06) 877 1185
Summerset Mission Hills
1
Puketitiri Road,
Napier 4182
Phone (06) 835 2580
Taranaki
Summerset Mountain View
35 Fernbrook Drive, Vogeltown,
New Plymouth 4310
Phone (06) 824 8900
Summerset at Pohutukawa Place
70 Pohutukawa Place, Bell Block,
Ne
w Plymouth 4312
Phone (06) 824 8530
1Pr
oposed villages
1 3 5
Annual Report 2024
Manawatū
– Whanganui
Summerset in the River City
40 Burton Avenue, Whanganui East,
Whanganui 45
00
Phone (06) 343 3133
Summerset on Summerhill
180 Ruapehu Drive, Fitzherbert,
P
almerston North 4410
Phone (06) 354 4964
Summerset Kelvin Grove
Stony Creek, Kelvin Grove,
P
almerston North 4470
Phone (06) 825 6530
Summerset by the Ranges
104 Liverpool Street,
Levin 5510
Phone (06) 367 0337
Wellington
Summerset Waikanae
28 Park Avenue,
Waikanae 5036
Phone (04) 293 0000
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 6720
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 1440
Summerset Cashmere Oaks
1
L
ansdowne,
Masterton 5871
Phone (06) 370 1790
Summerset Otaihanga
1
73 Ratanui Road,
P
araparaumu 5032
Phone (04) 296 4300
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,
T
asman 7020
Phone (03) 744 3430
Marlborough
Summerset Blenheim
183 Old Renwick Road, Springlands,
Blenheim 7272
Phone (03) 520 6040
Canterbury
Summerset Rangiora
141 South Belt, Waimakariri,
Rangiora 7400
Phone (03) 353 6310
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 3200
Summerset on Cavendish
147 Cavendish Road, Casebrook,
Christchurch 8051
Phone (03) 741 2330
Summerset Prebbleton
5
78 Springs Road,
Prebbleton 7604
Phone (03) 353 6310
Summerset Rolleston
1
153 Lincoln Rolleston Road
R
olleston 7678
Phone (03) 353 6980
Otago
Summerset at Bishopscourt
36 Shetland Street, Wakari,
Dunedin 90
10
Phone (03) 950 3100
Summerset Mosgiel
1
51 Wingatui Road,
Mosgiel 061
6
Phone (03) 474 3930
1Pr
oposed villages
1 3 6
Australia
Victoria
Summerset Cranbourne North
98 Mannavue Boulevard,
Cr
anbourne North VIC 3977
Phone (1800) 321 700
Summerset Chirnside Park
266-268 Mar
oondah Hwy,
Chirnside Park VIC 3116
Phone (1800) 321 700
Summerset Torquay
1
Grossmans Road and Briody Drive,
T
orquay VIC 3228
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
Summerset Mernda
1
305 Bridge Inn Road,
Mernda VIC 3116
Phone (1800) 321 700
Summerset Drysdale
1
145 Central Road,
Drysdale VIC 3167
Phone (1800) 321 700
1Pr
oposed villages
1 3 7
Annual Report 2024
Company
information
Registered office
s
New Zealand
Level 27, Majestic Centre,
100 W
illis Street
Wellington 6011
PO Box 5187,
Wellington 6140
Phone: +64 4 894 7320
Email: reception@summerset.co.nz
www.summerset.co.nz
Australia
Deutsche Bank Place,
L
evel 4, 126 Phillip Street,
Sydney, NSW 2000
Auditor
Ernst & Young
Solicitor
Russell McVeagh
Bankers
ANZ Bank New Zealand Limited
Australia and New Zealand Banking Group Limited
Bank of China (New Zealand) Limited
Bank of New Zealand
China Construction Bank (New Zealand) Limited
Commonwealth Bank of Australia
Industrial and Commercial Bank of China Limited
Metrics Credit Partners Diversified Australian Senior
Loan Fund
National Australia Bank Limited
Westpac Banking Corporation
Westpac New Zealand Limited
Statutory Supervisor
Public T
rust
Bond Supervisor
The New Zealand Guardian Trust
Compan
y Limited
Share Registrar
MUFG Pension & Market Services,
PO Bo
x 91976, Auckland 1142,
New Zealand
Phone: +64 9 375 5998
Email: enquiries.nz@cm.mpms.mufg.com
Directors
Mark Verbiest
Dr Marie Bismark
Stephen Bull
Venasio-Lorenzo Crawley
Fiona Oliver
Gráinne Troute
Dr Andrew Wong
Company Secretary
Robyn Heyman
1 3 8
1 3 9
Summerset at Cavendish, Casebrook, Christchurch
The text of this document is printed on 120gsm Lenza Green 100% recycled
paper sourced from recovered fibre certified FSC ® Recycled, cover is 350gsm
Satin FSC ® Mix board from responsible sources printed using vegetable oil inks and
manufactured under a strict ISO14001 Environmental Management System.
summerset.co.nz
summerset.com.au
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.