Summerset Group Holdings Limited (ASX: SNZ) has a vision of creating a retirement community with an ideal homely environment for the aged people and a place that will put the respect for its residents at the core of all its activities. It was primarily the vision of the company founder, John O’Sullivan when he started the business and it continues to be a prime motto of the company in recent times as well. The company has 23 retirement villages across the country, and it offers fully independent living and a variety of care options to its residents.
The company has recently released a report on the fourth quarter metrics for sale of occupation rights for the company. It has achieved 193 sales for the quarter ended 31 December 2018, which includes 112 new sales and 81 resales. The Chief Executive Officer of the company Julian Cook said that he was pleased with the performance of the company reflected by the achievement of sales numbers across the country. The company achieved the highest new sales in the fourth quarter of 2018, in the last two years, and additionally, this is the second highest quarter ever for the group. The company has also seen the highest levels of resales in the fourth quarter of 2018, and the resales stock maintained consistent levels in line with the previous years.
The company has achieved its unit build target of 450 new homes in the year 2018, with already 454 units being delivered. Among the delivered units 133 of these homes were delivered in December 2018 and are expected to be sold in 2019.
The company has provided a comparison of the new sales and resales for the occupation rights for the quarters of 2018 as compared to the performance in FY17. The company has achieved a total of 640 sales in FY18 as compared to 682 sales in FY17. As per the quarterly comparison, the company has achieved a total sale of 143 and 156 in the first and second quarter of 2018 respectively, and an improved resale of 66 in the third quarter of 2018 as compared to 58 units in the previous year corresponding period.
The company in one of its latest announcements dated December 14, 2018, has mentioned, to have amended the master trust deed dated May 30, 2017. Under this deed, the company may issue debt securities from time to time. It has however two series of fixed-rate bonds issued under the master trust deed which is quoted in the NZX debt market.
Stock performance: The stock last traded at $5.820 with a market capitalization of 1.31 billion ( as at 3:04 PM, 10 January 2019). It is trading at an earnings multiple of 6.630 with an EPS of 0.878 AUD. The company posted a negative return of 16.38%, 14.66% and 2.35% over the last six months, three months and one month respectively. It has a 52-week high price of $7.310 and a 52-week low of $4.90, with an average volume of 6,470. Summerset has an annual dividend yield of 1.77%.
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