SUM - Summerset Group

[couta1]

Or better still, I'll just come down this summer and get on the piss with you and have a drive of that classic Jag of yours, (actually we'd better do those two things in the opposite order LOL).

Sounds like a good plan, we can always pick winner up and take him for a spin at the same time PS- I lose the last of my demerit points in a month after 2 years so back to zero and all good.

[Harvey Specter]

Oh NG - what an insult suggesting you compare your work with some of the research from investment banks that cover SUM

I'm sure they have provided more detail to those investment banks, not just referred them to the prospectus.

[forest]

Just fired this off. Will let you know if I hear anything.

Hi Leanne

Thanks for your email, which I do not feel adequately addresses my genuine concerns. Below is a chart showing actual resales from 2010 to 2014 (with the fourth quarter of this year assumed equal to the stock available at the start of that period - 27). As you can see, this really defies any logic, and I would sincerely appreciate a more adequate response.

Regards
xxxxxx


Attachment 6310

Good on you NewGuy for pursuing you line of questions on the number of resales, this can only help with your understanding of SUMs business model.

[nextbigthing]

Retirement village newbie question, why don't these places focus on making some money on the day to day operations rather than just unit sales?

[skid]

and that is the 6 million dollar question.....Mind you it is not an easy task ----good management doesnt grow on trees

[Harvey Specter]

Retirement village newbie question, why don't these places focus on making some money on the day to day operations rather than just unit sales?

Probably a customer perception thing. Most would run for the hills at being charged $500+ a day to stay in a village but they have no problem 'buying' a unit for $500k+.

Have you noticed how the kids always complain when the find out that $500k unit is being bought of them for only $350k, despite the fact their parents got extremely cheap care over the past 8 years.

[Zaphod]

Retirement village newbie question, why don't these places focus on making some money on the day to day operations rather than just unit sales?

Perhaps SUM believe that focusing on the development side of the business will yield higher returns in a much shorter timeframe with less effort. IMO however, village operations need to start turning at least a small profit and quickly, given their re-sales are not performing comparative to competitors and that capital gain on the units is not assured in a real-estate market whose CG is beginning to flatten.

[skid]

Yes ,logically one would assume that a unit with good care would lead to better resale value (and vice versa)

[stoploss]

Retirement village newbie question, why don't these places focus on making some money on the day to day operations rather than just unit sales?

I've been in Rita Angus (RYM village in Wgtn ) when the booze order has turned up . I thought in the very nice atrium area etc someone must have been having a massive wedding ..... I enquired
and was told no that was "just the weekly order " so pretty sure they would be turning a profit on that bar for sure . Nice to see the residents can enjoy a quiet tipple amongst friends .

[Snow Leopard]

Sort of, but not really until the units are sold and hence the capital gains realised. The point is that it doesn't make sense to add up the valuation gains now, and then count them again later on resale. That is direct double counting.

Not sure if you are taking the piss, or whether you don't realise that unrealised gains are pretty meaningless and effectively lead to double counting. Those very same "unrealised gains" will one day be realised and comprise the underlying earnnigs of the year in which realisation occurs. Counting them ahead of them is pointless. Also, the valuation methods used by CBRE etc leave a lot to be desired. Almost complete rubbish to be perfectly frank.

You keep saying this. There is no double counting.

There is "fair value movement of investment property",
there is "realised gain on resale" + "realised development margin",
and there is the difference between the two:"Unrealised gains".

Best Wishes
Paper Tiger