One only needs to look at the 8 year summary — the last page of this presentation
http://nzx-prod-s7fsd7f98s.s3-websit...947/295456.pdf
Main metric is what the value of the company is being ‘Total Equity’ - increasing at 23% pa
To really appreciate the impact of the booming property market over the last years do a little sum like Underlying Profit divided by Total Sales — profit per sale has gone from $35k in 2011 to $154k in 2018. This is from both resales and the increasing development margin. Price increases have been the main contributor to the staggering growth in profit.
Looking forward to seeing how much Summerset’s (and others) value grows isn’t so much about the level of sales but how much they make on each sale (new and resales) — ie the state of the property market (prices) will be a key determinate over the next five years or so. I doubt we will see the same booming property prices over the next five years.
Last quarter’s sales numbers not really a blip — long term trend is still up (at least the resales trends). Nothing to worry about — just think long term ......but watch overall property price trends.