SUM - Summerset Group

[Beagle]

And beagle was looking forward to fly Jetstar

Will be voting against that Ogden guy being re-elected. Been there long enough and hasn’t been the ‘luckiest ‘ of Directors of late and wouldn’t want him to curse Sum

Nice for a change. Will have to have an Auckland get together instead. Come on folks....just a cheap return flight on AIR and you've got that wonderful Antarctica safety video to enjoy twice in one day.

Behind the paywall article on NBR today suggesting huge demand for retirement village living for the next 25 years and insufficient supply !
25 year tailwinds in this sector and a company with an average growth rate of 45% and a current year PE of less than 16...making long term capital gains doesn't get an easier than this !

[dabsman]

They better increase land bank in the Florida of NZ then - BOP very under represented

[iceman]

They better increase land bank in the Florida of NZ then - BOP very under represented

And lets hope the proposed foreign buyers ban, if it gets through Parliament, will not tie things up for the retirement village operators. The report referred to in the NBR article expects increase in the over 75 population to be 164% nationwide and 205% in Auckland from now until 2043, requiring 1654 new units every single year. Since 2012 the growth rate in villages being built has been 12%.
The future demand is incredible.

[Bjauck]

They better increase land bank in the Florida of NZ then - BOP very under represented

With Roto-vegas and Tau--lando, the BoP village guards should be packing heat.

[minimoke]

And lets hope the proposed foreign buyers ban, if it gets through Parliament, will not tie things up for the retirement village operators. The report referred to in the NBR article expects increase in the over 75 population to increase 164% nationwide and 205% in Auckland from now until 2043, requiring 1654 new units every single year. Since 2012 the growth rate in villages being built has been 12%.
The future demand is incredible.

Which is why I am a happy holder of RYM and SUM.

Personally I think this and prior governments have got it wrong. National focused on a non-existent housing problem and Labour are focussing on Affordable Housing.

The solution in my mind is to focus solely on the retirement accommodation sector, incentivising "older" people into these housing opportunities and thus freeing up existing properties. I am very comfortable in the view no government will currently do this so your basic demand / supply economics remain in play - making RYM and SUM dead certs (or as close to a dead cert as you are likely to find)

[MauroNZ]

Nice for a change. Will have to have an Auckland get together instead. Come on folks....just a cheap return flight on AIR and you've got that wonderful Antarctica safety video to enjoy twice in one day.

Behind the paywall article on NBR today suggesting huge demand for retirement village living for the next 25 years and insufficient supply !
25 year tailwinds in this sector and a company with an average growth rate of 45% and a current year PE of less than 16...making long term capital gains doesn't get an easier than this !

I was hoping to happen in WLG, will have to arrange flights now, hopefully there is any good price there.

[James108]

And lets hope the proposed foreign buyers ban, if it gets through Parliament, will not tie things up for the retirement village operators. The report referred to in the NBR article expects increase in the over 75 population to be 164% nationwide and 205% in Auckland from now until 2043, requiring 1654 new units every single year. Since 2012 the growth rate in villages being built has been 12%.
The future demand is incredible.

Based on those growth rates the 2040 demand will be exceeded by supply around 2020? Time to sell?!

Disc: sum is my largest holding and has been for a few years.

[hardt]

Based on those growth rates the 2040 demand will be exceeded by supply around 2020? Time to sell?!

Disc: sum is my largest holding and has been for a few years.

Surely not everyone moving into retirement living is over 75... also, life expectancy is expected to rise steadily meaning they will be there for longer.

I only saw Auckland in that tidbit.

[Beagle]

The future demand is incredible.

That's the key...the tailwinds in this sector are very strong and very durable.

Which is why I am a happy holder of RYM and SUM.

RYM and SUM dead certs (or as close to a dead cert as you are likely to find)

As certain as you will EVER find in my opinion.

Disc: sum is my largest holding and has been for a few years.

Congrats, my second biggest holding second only to ATM.

[minimoke]

Congrats, my second biggest holding second only to ATM.

ATM put me in a position where I had to double down. SML I had to Double Double down. SUM didnt, so its in third spot in holdings ranks behind those other two.