Originally Posted by
Maverick
I'm VERY happy with this result. Contrary to bulls option , I see margins not under pressure at all. Margins rising from 28%to 33% says the oposite.
The 100 unsold units Is the obvious red flag but as I've said before ,IMO now the impulsive rushing to sign up has left the property market , it's now back to normality where housing stock ready to sell is required.
Plus I prefer SUM style of not dropping margins for the sake of filling units up as fast as they can to look good to us shareholders.
The healthy occupancy rates suggest plenty of demand.
With the price is on a stunning Pe of 15 considering it's proven growth path this company is great value long term.
I can't see this or any retirement village share price rising for a long time as it's become clear that people's mindset link this industry solely to property prices, and is unwavering.
However , these businesses are proving solid growth DESPITE flagging property values. Eventually years from now, buyers will return . I'm into SUM and of course donkey deep in OCA because of the underlying profit and dividend growth that will keep coming.
I see this as a great, solid and predictable result from SUM.