SUM - Summerset Group

[Baa_Baa]

Over last 4 quarters SUM have sold 482 new units - heaps more than the 328 in pcp

They've indicated delivering about 550 new units this year (compared to 356 in 2020)

The way sales are going at the minute and the comments about the wait list it seems that they could sell all they do deliver

Massive turnaround from recently when they were struggling to get the sales. Terrific results and encouraging future results anticipated. So glad this is happening since Scott took over.

Hopefully for shareholders who hold covering the sector, that these results are indicative of sales at other companies.

[Greekwatchdog]

For Bars latest sector views.
Oceania Healthcare OCA 1.32 1.80 13.4 20.0 OUTPERFORM
Arvida ARV 1.70 2.15 13.9 21.4 OUTPERFORM
Ryman Healthcare RYM 15.00 14.10 24.6 44.7 NEUTRAL
Summerset SUM 12.05 13.25 18.5 35.2 NEUTRAL

[winner69]

Suppose SUM prices increasing at this rate

March REINZ report

Median price March up 5.9% from Feb and 24.3% over last 12 months

https://www.reinz.co.nz/Media/Defaul...rch%202021.pdf

[LaserEyeKiwi]

Suppose SUM prices increasing at this rate

March REINZ report

Median price March up 5.9% from Feb and 24.3% over last 12 months

https://www.reinz.co.nz/Media/Defaul...rch%202021.pdf

SUM CEO was on the live Sharesies "Lunch Money" webcast today, interesting that he acknowledged that long term that Australian market is a significantly bigger growth opportunity.

Also was very interesting to hear they have looked at developing build to rent housing developments (for all ages, not just retirees), but would need better developed pre-fabrication housing industry in New Zealand before they start doing that.

I'm not currently a holder, but am tempted to add as a long term holding.

[justakiwi]

I watched it too but not particularly impressed. He is not a very “inspirational” speaker/CEO. He also made a major faux pas in my opinion. He said something like “people are not just buying a house (in a Summerset village) they are buying the extras” - poor wording in my opinion. People need to understand they are not buying the house, merely the right to occupy. You can’t blame people for believing they should get a share of the capital gain, if the CEO uses the wrong terminology.

SUM CEO was on the live Sharesies "Lunch Money" webcast today, interesting that he acknowledged that long term that Australian market is a significantly bigger growth opportunity.

Also was very interesting to hear they have looked at developing build to rent housing developments (for all ages, not just retirees), but would need better developed pre-fabrication housing industry in New Zealand before they start doing that.

I'm not currently a holder, but am tempted to add as a long term holding.

[LaserEyeKiwi]

I thought it was amusing in a darkly comic sense about when they refer to residents "leaving" the complex....

[LaserEyeKiwi]

So what is the deal with SUM dividend? Why is it so low? why do they pay out such a low percentage of underlying profit (under a third)?

[winner69]

So what is the deal with SUM dividend? Why is it so low? why do they pay out such a low percentage of underlying profit (under a third)?

Only a notional divie because the market per se says they should pay a divie.

Best they retained all earnings and keep investing

And then the taxman gets his share of any dividends as ni imputation credits

Always seemed silly for this sector to pay divies in first place - my opinion anyway

[LaserEyeKiwi]

Only a notional divie because the market per se says they should pay a divie.

Best they retained all earnings and keep investing

And then the taxman gets his share of any dividends as ni imputation credits

Always seemed silly for this sector to pay divies in first place - my opinion anyway

So your saying they should only be considered a growth stock at the current time? I guess when using the "underlying profit" it has an earnings multiple of 28x which puts it in growth stock valuation territory (While its official P/E based on reported Net income is only 12x).

[winner69]

So your saying they should only be considered a growth stock at the current time? I guess when using the "underlying profit" it has an earnings multiple of 28x which puts it in growth stock valuation territory (While its official P/E based on reported Net income is only 12x).

Not saying whether it should be considered as - growth stock or whatever

Just saying it doesn’t make much sense when a company generally has negative cash flows (investing > operating) you pay dividends that are fully taxed in hands of shareholders ...and increase borrowings at the same time.

Same thoughts re all sector companies