See my comments in 2014 regarding this matter, sorry its probably best I don't repeat them in the circumstances.
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See my comments in 2014 regarding this matter, sorry its probably best I don't repeat them in the circumstances.
Cheers will do and understand.
I would assume (without doing any research into the matter) that this is largely due to the overall increase in house price Auckland has experienced between when summerset started developing the land and when they sold the occupation rights i.e. you will have a high 'development margin' when overall land values are increasing quickly. I would be surprised if this doesnt normalize. Don't really care though.. I am pretty lazy with analyzing SUM, would only look at it closely if prices dropped significantly enough to present a chance to further top up. It is def a 'bottom draw' investment for me.
The answer probably lies somewhere in the middle of these two factors IMO. No question the Auckland market has been on fire in the last 12 months so blind freddy could have got a premium price for a reasonable development in CY 2015, (since cooled a little in early 2016) and with the lag time from commencement to completion the booming Auckland market has played into SUM's hands.
That said credit where's its due and overall a good result and with build rate going up to 400 units this year the outlook is pretty good too. Based on underlying profit the stock is trading on a historic PE of 23 which for the first time in years seems pretty reasonable to me. I am pleased Mrs Barlow is stepping down. On my radar again but I don't feel a sense of compulsion or hurry.
Glad to see a positive result like this. I still believe that this company has certainly not reached the capacity it will, and the demand will be very steady in the next 10 years. There is a large number of people choosing NZ as a retirement destination, even if for only part of the year. Speaking with a lot of foreigners who have parents eyeing up New Zealand. Topped up, long term. Some good decisions and company movements. Happy holder.
I wonder how much the retirement property sector is at risk from government intervention or policy?
Does anyone know how retirement homes work, in terms of paying for the stay?