SUM - Summerset Group

[Lease]

Excellent result!!!

[King1212]

Great..209....I was a bit worried yesterday....all my eggs are with SUM....

[winner69]

Main thing the number was over 200

Total sales for year up 12 on last year .....that will add a couple million or so to earnings (v 2018) and add the huge revaluation increases from 16/17 to be realised this year the average earnings per sale will skyrocket

Up my earnings number for 2019 to $120m as a minimum

Might even get an earnings guidance later in the day

[Beagle]

The result I'm hoping/expecting today with sales, if they come out today, that tells everything is steaming along nicely are:
new sales 110-115 (Actual 116)
resales - 80-90 (Actual 93)

Better than you were hoping for Maverick. Well done with your estimates.

We should see the better momentum in the real estate market, (as demonstrated in these numbers in Q4), build and continue into the current year.

[LAC]

Main thing the number was over 200

Total sales for year up 12 on last year .....that will add a couple million or so to earnings (v 2018) and add the huge revaluation increases from 16/17 to be realised this year the average earnings per sale will skyrocket

Up my earnings number for 2019 to $120m as a minimum

Might even get an earnings guidance later in the day

I must agree, my est of sub $110m is looking slim now!

[Beagle]

You can see how the real estate market changed during 2019 with quite a bifurcation between the two halves.
First half SUM sold 278 units
Second half SUM sold 374 units.

Augers extremely well for second half profit and when we see that momentum carry over into 2020, prospects look good for the current year.

What shareholders might enjoy is a virtual tour around the various villages. Their website now details the facilities available at each village and the types of units available and in most cases has pricing. Heaps more information here https://www.summerset.co.nz/find-a-village/

Just click on the village headline and heaps more info comes up, e.g. https://www.summerset.co.nz/find-a-v...rset-at-aotea/

I really like the Clark Coastals at my closest village in Hobsonville, more here https://www.summerset.co.nz/find-a-v...monterey-park/

[trader_jackson]

Now to FY19: First half SUM sold 278 units, second half SUM sold 374 units - 652 units total (329 higher margin new sales)
Lets look at FY18: First half SUM sold 299 units, second half SUM sold 341 units - 640 units total (339 higher margin new sales)
Lets look at FY17: First half SUM sold 323 units, second half SUM sold 374 units - 682 units total (382 higher margin new sales)
Lets look at FY16: First half SUM sold 306 units, second half SUM sold 352 units - 658 units total (414 higher margin new sales)
Lets look at FY15: First half SUM sold 270 units, second half SUM sold 308 units - 578 units total (333 higher margin new sales)

There's a track record for you: 4 years of decreasing higher margin new sales
(and the lowest new sales in 5 years, and there is always a jump in the 2nd half, this year only happens to be a bit more than previous years and may be simply due to timing - not a big turn around in SUM's property prospects).

[King1212]

Summerset CEO Julian Cook said the results were pleasing with new sales for
the quarter being the strongest in three years and the second highest ever
for the Group.

[winner69]

Now to FY19: First half SUM sold 278 units, second half SUM sold 374 units - 652 units total (329 higher margin new sales)
Lets look at FY18: First half SUM sold 299 units, second half SUM sold 341 units - 640 units total (339 higher margin new sales)
Lets look at FY17: First half SUM sold 323 units, second half SUM sold 374 units - 682 units total (382 higher margin new sales)
Lets look at FY16: First half SUM sold 306 units, second half SUM sold 352 units - 658 units total (414 higher margin new sales)

There's a track record for you: 4 years of decreasing higher margin new sales
(and the 2nd weakest year overall in the past 4 years)

TJ me old mate - You should know by now that 3 or 5 year trends are meaningless ...usually a lot of crock.

All that matters is the last reporting period and how that impacts the next few periods

[Beagle]

374 units for the second half is still the equal highest for any second half and shows the momentum is strong.
T.j. keeps saying new units are "higher margin" but actually with strong valuation increases over the last 7 years (average cycle of resales), resales will have MUCH stronger margins than new sales.