SUM - Summerset Group

[BlackPeter]

2.30% less tax, (assumed at 33% for serious investors on here) = 1.54% net. If the Reserve bank achieves its mandated mid point of the inflation target of 2% on average, investors in real terms will get a negative return of 0.46% per annum for the next 7 years. Great deal for SUM and the Govt but investors...oh dear...

Just wait until they ask the investors to pay interest instead of receiving interest payments. Quite normal situation for a number of AAA rated state bonds these days ...

[peat]

Just wait until they ask the investors to pay interest instead of receiving interest payments. Quite normal situation for a number of AAA rated state bonds these days ...

but it will be ok because they will pay us simply to exist and oil will be negative so they will pay us to fill our tanks and give us money to make aluminium from their electricity. /s /sorry /offtopic

[Mr Slothbear]

Bond issue is a very smart move IMO. The judgement and decision making of the people buying the bonds is extremely questionable however.

[Beagle]

Just wait until they ask the investors to pay interest instead of receiving interest payments. Quite normal situation for a number of AAA rated state bonds these days ...

People will then start looking at alternatives like precious metal or art or better still metal that's been formed into art on wheels that you can enjoy. I think collectable high performance cars will really take off in more ways than one I am fortunate to have a decent sum on term deposit with the BNZ until February 21 at 2.9%, reinvestment terms by then are lucky to be 0.9%

[winner69]

Got a few hundred more shares courtesy of the DRP

One thing the tax man is happy taking his share out

Players in this sector should not be paying dividends full stop ....totally inefficient and a waste of time and effort.

[Mr Slothbear]

Got a few hundred more shares courtesy of the DRP

One thing the tax man is happy taking his share out

Players in this sector should not be paying dividends full stop ....totally inefficient and a waste of time and effort.

agree with you winner. I think a couple, SUM and RYM might be paying token dividends to keep any accusations of low tax bills at bay. Gives them something to point to when tax free ORAs bought up

even though its inefficient in the long run it might be ‘more efficient’ if you know what I mean

[winner69]

agree with you winner. I think a couple, SUM and RYM might be paying token dividends to keep any accusations of low tax bills at bay. Gives them something to point to when tax free ORAs bought up

even though its inefficient in the long run it might be ‘more efficient’ if you know what I mean

Spose government don’t mind sharehokders giving them nearly $4m

[winner69]

Well that was easy peasy way to get $150m in cash

Probably could have got $200m if they wanted

Well done the sum team.

[Beagle]

Well that was easy peasy way to get $150m in cash

Probably could have got $200m if they wanted

Good they raised the full amount so they can afford to pay that dividend. Borrowing so shareholders can pay tax to the IRD is a good thing isn't it

Actually got thinking about what our mate Bindi said yesterday...with real estate absolutely booming both in price and numbers sold SUM might finally break their multi year pattern of not being able to sell what they build and might even make a small inroad into the hundreds of units they haven't been able to sell for years ?

If they only build 300 new units that might give them an even better chance. (128 new sales in the first half despite "delivering" 139 new units and having hundreds on brand new empty ones at the start of the year so stock level's keep climbing). I concede at least this time they had a plausible excuse (unlike previous reporting periods going back years) Covid.

Still its a good thing that real estate keep rocketing up...makes their units which are staying the same price more attractive on a relative basis. 2 Brm unit in Ellerslie starting from $650K June Dobson keeps telling me about over and over again on the radio not starting to look too bad value...unless its a middle unit in a block that gets light from only one direction (south) and gets no sun... Gotta watch that term "from"...always the very worst unit nobody wants and the real price for a north facing one with a bit of a view of the pond is priced something completely different.

Pretty cunning marketing though eh. Call a bunch of apartments the "Lakeview apartments", market them as being from $650,000 but don't tell people you really don't get a lake view for $650K. Some apartments have to be south facing and not have a view of the pond. https://www.summerset.co.nz/find-a-v...heritage-park/

[Zaphod]

Sounds like standard real-estate marketing techniques to me. My spouse worked for a real-estate agent, who kept asking her to photoshop out powerlines and other detritus from the photos to make them more visually pleasing.