Summerset Group Holdings Limited · NZX:SUM
Summerset — FY2024 Earnings Presentation
76 slides from Summerset's earnings presentation, Feb 28, 2025
Slide 1: Results presentation
Summerset at Pōhutukawa Place (Bell Block, New Zealand) Results presentation For the year ended 31 December 2024 Summerset Group Holdings Ltd
Slide 2: Agenda
Full Year Report 2024 Trading update Agenda 01 About Summerset 02 Trading update 03 Our highlights 04 Our environment 2 05 New Zealand development 06 Australia development 07 Financial performance 08 Business performance 09 Questions 10 Appendix
Slide 3: Trading update
Full Year Report 2024 Trading update Trading update Market conditions are stable with some early signs of improvement. We are seeing steady settlements to start FY25 with contract levels lifting • Summerset achieved a 12% increase in settlement volumes year on year despite a challenging operating en
Slide 4: About Summerset
Summerset St Johns (Auckland, New Zealand) 4 01 About Summerset Full Year Report 2024
Slide 5: Who we are
Full Year Report 2024 About Summerset Who we are About Summerset Summerset builds, owns and operates integrated retirement villages, creating vibrant, happy communities for residents and our people What we do ▪ Summerset is the second largest and fastest growing retirement village operator in New Ze
Slide 6: Who we are
Full Year Report 2024 About Summerset Who we are About Summerset Summerset builds, owns and operates integrated retirement villages, creating vibrant, happy communities for residents and our people What makes us different ▪ We have a diversified land bank – this means we are less exposed to changes
Slide 7: Portfolio composition
Full Year Report 2024 About Summerset Portfolio composition Diversified portfolio throughout New Zealand and Australia Summerset builds, owns and operates integrated retirement villages, creating vibrant, happy communities for residents and our people Proposed villages Portfolio composition In devel
Slide 8: Our highlights
Summerset St Johns (Auckland, New Zealand) 8 02 Our highlights Full Year Report 2024
Slide 9: Our highlights
Full Year Report 2024 Our highlights Our highlights Record underlying profit of $206.4m, up 8% on FY23 with record total settlements of 1,238, up 12% on FY23 $206.4m Underlying profit $339.8m Net profit after tax $443.2m Operating cash flows FY23 $190.3m FY23 $425.3m FY23 $398.2m 9 28.9% Development
Slide 10: FY24 year in review
Full Year Report 2024 Our highlights FY24 year in review Record total settlements of 1,238, up 12% on FY23, supported by strong cost and balance sheet management Balance sheet and Sales results and Financial performance cost control St Johns update 10 Record underlying profit Robust balance sheet ma
Slide 11: FY24 year in review
Full Year Report 2024 Our highlights FY24 year in review Excellent resident satisfaction of 97% with high occupancy achieved across both village and care Development and Bringing the best of life Australia update land bank 11 Continue to prioritise resident experience Sector leading development Firs
Slide 12: Acquisitions – three new sites and two extensions announced
Full Year Report 2024 Our highlights Acquisitions – three new sites and two extensions announced Over 1,150 total units added to the land bank in 2024, across four separate regions in New Zealand 12 Belmont, Auckland Mission Hills, Hawkes Bay Otaihanga, Kāpiti Coast Approximately 330 Rest home and 3
Slide 13: Progress against our strategy
Full Year Report 2024 About Summerset Progress against our strategy Summerset builds, owns and operates integrated retirement villages, creating vibrant, happy communities for residents and our people that delivers on our purpose – bringing the best of life Our strategic goals are underpinned by our
Slide 14: Progress against our strategy
Full Year Report 2024 About Summerset Progress against our strategy Summerset builds, owns and operates integrated retirement villages, creating vibrant, happy communities for residents and our people that delivers on our purpose – bringing the best of life Our strategic goals are underpinned by our
Slide 15: Our environment
15 03 Our environment Full Year Report 2024
Slide 16: Sustainability snapshot
Full Year Report 2024 Our environment Sustainability snapshot Further details available in our 2024 Sustainability Review report (www.summerset.co.nz/investor-centre) 72,925 tCO2e 100% 30% reduction total greenhouse gas emissions from 1 January Achieved all three of our sustainability linked Transit
Slide 17: Environmental performance and sustainability
Full Year Report 2024 Our environment Key metrics Environmental performance and sustainability ▪ Summerset strives to develop, build and operate more tCO 2e emissions reduction sustainable retirement villages in New Zealand and 60 60 0.018 0.018 Australia 0.016 0.016 ▪ We have been successfully meas
Slide 18: Our sustainability framework and targets
Full Year Report 2024 Our environment Our sustainability framework and targets Our vision is to develop villages responsibly, creating a sustainable future for all STRATEGIC Contribute to the economic GOALS Reduce our impact on the planet Create caring communities for our prosperity of New Zealand a
Slide 19: Our climate action plan
Full Year Report 2024 Our environment Our climate action plan Our climate action plan summarises how we are tackling the challenge of decarbonisation and transition OUR DESIGN & DECARBONIS ATION OF MANAGING OPERATIONAL PRIORITIES CONSTRUCTION VILLAGES EFFICIENCIES 19 OUR Design and Construction Gas
Slide 20: New Zealand development
Summerset at Pōhutukawa Place (Bell Block, New Zealand) 20 04 New Zealand development Full Year Report 2024
Slide 21: Development activity
Full Year Report 2024 New Zealand development Development activity New Zealand summary ▪ Delivered 676 units to be sold under Occupation Right and 21 care beds across 13 sites ▪ Strong cost management in place - Procurement team named as winners of the Transformation of the Year award at the NZ Proc
Slide 22: Summerset village development photos
Full Year Report 2024 New Zealand development 22 Summerset Mt Denby (Whangārei) Summerset Milldale (Auckland) Summerset at Pōhutukawa Place (New Plymouth) Summerset by the Dunes (Pāpāmoa Beach, Tauranga)
Slide 23: Summerset Cambridge (Waipā District)
Full Year Report 2024 New Zealand development Summerset Cambridge (Waipā District) 23 Main building with the village recreation amenity, 60 serviced apartments, Site progress – December 2024 80 independent villas delivered 20 memory care apartments and 36 care units on track to be delivered in 2H25
Slide 24: Summerset Waikanae (Kāpiti Coast)
Full Year Report 2024 New Zealand development 24 Summerset Palms (Te Awa, Napier) Summerset Kelvin Grove (Palmerston North) Summerset Waikanae (Kāpiti Coast) Summerset Boulcott (Lower Hutt)
Slide 25: Summerset on Cavendish (Casebrook, Christchurch)
Full Year Report 2024 New Zealand development Summerset on Cavendish (Casebrook, Christchurch) 25 270 independent villas Main building with 56 serviced apartments, 20 memory care Project cash profit of $34.7m and cash margin Village completed in 2024 delivered apartments and 43 care beds delivered o
Slide 26: Summerset Richmond Ranges and Blenheim
Full Year Report 2024 New Zealand development 26 Summerset Richmond Ranges (Tasman District) Summerset Blenheim (Marlborough District) Summerset Rangiora (Waimakariri District) Summerset Prebbleton (Selwyn District)
Slide 27: New Zealand development pipeline
Full Year Report 2024 New Zealand development New Zealand development pipeline Diversified development pipeline of 22 sites* 27 * Excludes care centre upgrades at three sites (Havelock North, Levin and Trentham) ** New site purchased
Slide 28: Project cash profits
Full Year Report 2024 New Zealand development Project cash profits $280m+ 14.6% ▪ Summerset developments produce positive net cash Projected net cash Cash margin on recently flows (net cash position) upon completion, this position completed villages means they carry no debt after first sell down For
Slide 29: Australia development
Summerset Cranbourne North (Melbourne, Victoria) 29 05 Australia development Full Year Report 2024
Slide 30: Development Australia
Full Year Report 2024 Australia development Development Australia Australia summary $3.0m+ Three Projected net cash Villages under ▪ Summerset continues to make good progress at our position construction first Australian village, Cranbourne North, in 2024 Forecast capital Forecast net cash Developme
Slide 31: Summerset Cranbourne North, Melbourne
Full Year Report 2024 Australia development Summerset Cranbourne North, Melbourne 31 Civils and earthworks near completion, first Acquisition – September 2019 6.8 hectare site announced to market Site progress – December 2022 villa foundations underway 42 independent villas delivered, main building
Slide 32: Summerset Chirnside Park, Melbourne
Full Year Report 2024 Australia development Summerset Chirnside Park, Melbourne 32 Civil construction underway, Village will have 185 villas, 28 assisted living apartments Rest home and hospital level care Site progress – December 2024 villa construction to start in 1H25 and a 72 bed care centre on
Slide 33: Australia development pipeline
Full Year Report 2024 Australia development Australia development pipeline Seven villages in planning and development across Victoria 33
Slide 34: Financial performance
34 06 Financial performance Full Year Report 2024
Slide 35: Reported profit (IFRS)
Full Year Report 2024 Financial performance Reported profit (IFRS) $319.9m $339.8m ▪ Net profit after tax of $339.8m with total revenue of Total revenue 18% Net profit after tax 20% $319.9m (up 18% on FY23) reflecting strong occupancy in both village and care NZ$m FY24 FY23* Variance FY22 ▪ Fair val
Slide 36: Underlying profit
Full Year Report 2024 Financial performance Underlying profit $206.4m $133.4m • Record underlying profit of $206.4m, up 8% on Underlying profit 8% Annuity EBITDA 19% FY23 with improved performance in both care and village operations NZ$m FY24 FY23 Variance FY22 • Care EBITDA of $2.7m, with more unit
Slide 37: Segment earnings
Full Year Report 2024 Financial performance Segment earnings $130.2m $76.2m • Two core segments of earnings - being retirement Retirement village 16% Construction activity 2% village operations and construction activity operations • For FY24 retirement village operations contributed NZ$m Retirement
Slide 38: Operating expenses
Full Year Report 2024 Financial performance Operating expenses NZ$m FY24 FY23 Variance FY22 Employee expenses 222.6 188.3 18% 158.4 • Gross operating expenses grew 12% to $342.8m, Building and grounds 43.0 37.4 15% 31.4 lower than total revenue growth of 18% Sales and marketing 25.1 27.0 (7%) 21.6 S
Slide 39: Cash flows
Full Year Report 2024 Financial performance Cash flows • Record operating cash flows of $443.2m, up 11% on $443.2m $138.2m Operating cash flows 11% Net resales receipts 32% FY23 • Operating cash flow growth driven by increases NZ$m FY24 FY23 Variance FY22 from ongoing operations, being care and vill
Slide 40: Balance sheet
Full Year Report 2024 Financial performance Balance sheet $8.1b $2.4b ▪ Management continues to emphasise a prudent Total assets 16% Retained earnings 13% approach to balance sheet management ▪ With economic conditions remaining restrictive, we NZ$m FY24 FY23* Variance FY22 will continue to manage s
Slide 41: Capital management framework
Full Year Report 2024 Financial performance Capital management framework Guiding principles to sustainably grow the business over the short to medium term Guiding principles FY24 in review • Grow the business by delivering sustainable expansion opportunities in New Zealand and Australia, that produc
Slide 42: Funding
Full Year Report 2024 Financial performance Funding $784.9m Undrawn capacity 36.4% ▪ Total debt facilities of $2.5b, including $0.6b of retail Gearing ratio bonds on issue ▪ Total facility (incl. bonds) has an average tenor Funding maturity profile of 3.6 years $1,000m ▪ Bank facility has undrawn ca
Slide 43: Covenants
Full Year Report 2024 Financial performance Covenants 38.0% 3.98x ▪ Strong financial discipline has ensured Summerset Bank & bond LvR Interest coverage ratio is compliant with all lending covenants and obligations Covenants FY24 FY23 Variance ▪ Loan to value ratio of 38.0%, relative to a 50% limit G
Slide 44: Development assets
Full Year Report 2024 Financial performance Development assets $2.0b Underlying development $317.8m ▪ Summerset has no core debt – this means that the Excess assets value of our land bank, development WIP and units assets that have been delivered but not settled significantly exceeds the debt we hav
Slide 45: Final dividend
Full Year Report 2024 Financial performance Final dividend Declared FY24 final dividend of 13.2 cents Gross dividend payout per year per share $70m ▪ The Board has declared an unimputed final dividend $60m of 13.2 cents per share $50m ▪ This represents a payout for FY24 of approximately $31.6m $mill
Slide 46: Business performance
46 07 Business performance Full Year Report 2024
Slide 47: Retirement unit delivery
Full Year Report 2024 Business performance Retirement unit delivery FY24 unit delivery Villas Retirement units Apartments Serviced Memory care Care units Care suites Care beds Total units apartments apartments FY24 deliveries managed to market Bell Block 43 - - - - - 43 conditions Blenheim 48 - - -
Slide 48: Development margin
Full Year Report 2024 Business performance Development margin Development margin reflective of changes in 28.9% $118.4m Development margin Realised margin 2% sales mix ▪ Realised development margin of $118.4m, down 2% Realised development margin from a record of $121.2m in FY23 $140m 100% ▪ Developm
Slide 49: New sales
Full Year Report 2024 Business performance New sales Growth in gross proceeds of 7% with 588 588 $696k New sales of Occupation Average gross 2% new sales achieved in FY24 Rights proceeds ▪ A record 588 new sales of Occupation Rights, up 5% on the 560 settled in FY23 New sales FY24 FY23 Variance FY22
Slide 50: New sales stock
Full Year Report 2024 Business performance New sales stock Increase in stock driven by St Johns with 196 155 196 Delivered units Units delivered at units delivered in Q4 under contract St Johns ▪ Good progress made on selling down new sale stock across 2H24 New Zealand new sales stock FY24 FY23 Cont
Slide 51: Resales
Full Year Report 2024 Business performance Resales Record gross proceeds of $377.7m achieved 650 Resales of Occupation $95.9m Realised resale 9% in FY24 Rights gains ▪ Record 650 resales settled in FY24, up 20% from 543 in FY23 Resales FY24 FY23 Variance FY22 Gross proceeds ($m) 377.7 318.6 19% 263.
Slide 52: Resales cash margin
Full Year Report 2024 Business performance Resales cash margin Cash margin on resales of 35% with $128.9m $128.9m $201k Realised resale cash Cash margin on realised in FY24 margin per unit resales ▪ Resales cash margin of 35% per unit with an average margin of $201k, down from $214k per unit, Resale
Slide 53: Embedded value
Full Year Report 2024 Business performance Embedded value Embedded value now $1.7b, up 7% on FY23 $1.7b Embedded value 7% $650.4m Embedded DMF ▪ Total embedded value now $1.7b, up 7% from $1.6b Embedded value at FY23 $1,800m ▪ Embedded value comprised of: $1,600m ▪ $1.09b resale gains $650m ▪ $0.65b
Slide 54: Resale stock
Full Year Report 2024 Business performance Resale stock Record number of resale units under 164 3.0% Contracted Percentage of contract at FY24 resale stock uncontracted stock ▪ Total resale stock of 372 units, up from 292 units Resales stock FY24 FY23 ▪ Increase was driven by a record 720 units vaca
Slide 55: Questions
Summerset St Johns (Auckland, New Zealand) 55 08 Questions Full Year Report 2024
Slide 56: Disclaimer
Full Year Report 2024 Disclaimer Disclaimer ▪ This presentation may contain projections or forward looking statements regarding a variety of items. Such forward looking statements are based upon current expectations and involve risks and uncertainties ▪ Actual results may differ materially from thos
Slide 57: Appendix
Summerset Cranbourne North (Melbourne, Victoria) 57 09 Appendix Full Year Report 2024
Slide 58: Appendix contents
Full Year Report 2024 Appendix Appendix contents 01 Key terms 02 Portfolio and land bank 03 Underlying profit reconciliation 04 FY23 Comparative information 58 05 Historical trends 06 Investment property valuations 07 Care centre valuations 08 Sales price relativity 09 Summerset growth and demograph
Slide 59: Key terms
Full Year Report 2024 Appendix Key terms Summerset key terms Non-GAAP financial measure used by Summerset to monitor financial performance and determine dividend distributions. Calculated by Underlying profit making the following adjustments to IFRS net profit after tax: remove fair value movement o
Slide 60: Key terms
Full Year Report 2024 Appendix Key terms Summerset key terms Care fees from providing care (e.g. rest home and hospital care), deferred management fees from care units and realised resale gain from Care EBITDA care units less costs of operating the care centres. This excludes any allocation of head
Slide 61: Key terms
Full Year Report 2024 Appendix Key terms Summerset key terms Face value of bank loans Face value of bank debt and retail bonds excludes capitalised and amortised transaction costs for loans and borrowing, and fair value and retail bonds movement on hedged borrowings Gearing ratio Gearing ratio is ca
Slide 62: Portfolio as at 31 December 2024
Full Year Report 2024 Appendix Portfolio as at 31 December 2024 7,970 total units including 6,671 retirement units and 1,299 care units Existing portfolio - as at 31 December 2024 Retirement units Care units Total Serviced Memory care Care Care Village Villas Apartments units apartments apartments s
Slide 63: Portfolio as at 31 December 2024
Full Year Report 2024 Appendix Portfolio as at 31 December 2024 7,970 total units including 6,671 retirement units and 1,299 care units Existing portfolio - as at 31 December 2024 Retirement units Care units Total Serviced Memory care Care Care Village Villas Apartments units apartments apartments s
Slide 64: Future development
Full Year Report 2024 Appendix Future development Largest New Zealand land bank for a retirement village operator of 5,377 units Land bank – as at 31 December 2024 Retirement units Care units Total Serviced Memory care Care Care Village Villas Apartments units apartments apartments suites beds hang
Slide 65: Future development
Full Year Report 2024 Appendix Future development Largest New Zealand land bank for a retirement village operator of 5,377 units Land bank – as at 31 December 2024 Retirement units Care units Total Serviced Memory care Care Care Village Villas Apartments units apartments apartments suites beds Blenh
Slide 66: FY24 underlying profit reconciliation
Full Year Report 2024 Appendix FY24 underlying profit reconciliation Reconciliation of underlying profit to reported net profit after tax NZ$m FY24 FY23 Variance FY22 Net profit after tax (IFRS)* 339.8 425.3 (20%) 269.1 Less fair value movement of investment property* (372.6) (430.6) (13%) (268.8) A
Slide 67: FY23 Restated comparative information
Full Year Report 2024 Appendix FY23 Restated comparative information Reclassification of fair value movements in investment property and property, plant and equipment FY23 FY23 ▪ Summerset has restated its financial information for NZ$m reported Amendment restated FY23 to reflect a reclassification
Slide 68: Historical trends
Full Year Report 2024 Appendix Historical trends Historical trends across operational and financial metrics Full year results FY24 FY23 FY22 FY21 FY20 FY19 FY18 New sales of Occupation Rights 588 560 537 540 404 329 339 Operational Resales of Occupation Rights 650 543 470 438 381 323 301 Total sales
Slide 69: Investment property valuations
Full Year Report 2024 Appendix Investment property valuations Investment property valuations – key assumptions Fair value movement of investment property Valuation Gain/(loss) Key valuation assumptions Growth rate Growth rate Growth rate Growth rate Growth rate Village Location NZ$m NZ$m Discount ra
Slide 70: Investment property valuations
Full Year Report 2024 Appendix Investment property valuations Investment property valuations – key assumptions Fair value movement of investment property Valuation Gain/(loss) Key valuation assumptions Growth rate Growth rate Growth rate Growth rate Growth rate Village Location NZ$m NZ$m Discount ra
Slide 71: Care centre valuations
Full Year Report 2024 Appendix Care centre valuations Care centre valuations – key assumptions Value of care facilities Total care Valuation* Gain/(loss) Non-ORA Key ORA valuation assumptions Village Location units NZ$m NZ$m Capitalisation Discount Growth rate Growth rate Growth rate Growth rate Gro
Slide 72: Care centre valuations
Full Year Report 2024 Appendix Care centre valuations Care centre valuations – key assumptions Value of care facilities Total care Valuation* Gain/(loss) Non-ORA Key ORA valuation assumptions Village Location units NZ$m NZ$m Capitalisation Discount Growth rate Growth rate Growth rate Growth rate Gro
Slide 73: Sales price relativity
Full Year Report 2024 Appendix Sales price relativity Continue to watch the residential market closely, remain comfortable with where pricing sits Long term sales price relativity Sales price relativity vs median house price $1.6m $1.6m $1.4m $1.4m $1.2m $1.2m 73 $1.0m $1.0m $0.8m $0.8m $0.6m $0.6m
Slide 74: Summerset growth and key demographics
Full Year Report 2024 Appendix Summerset growth and key demographics 26 years of consistent delivery and growth Summerset build rate New Zealand population growth 75 years and over 9,000 1,200,000 16% 1,000,000 14% 7,970 12% 8,000 800,000 10% 600,000 8% 7,000 400,000 6% 4% 200,000 2% 6,000 - - 74 20
Slide 75: Customer profile & occupancy
Full Year Report 2024 Appendix Customer profile & occupancy Occupancy, tenure and resident demographic statistics Occupancy – retirement villages Occupancy – established care centres 100% 100% 80% 80% 60% 60% 96% 96% 95% 95% 94% 96% 97% 93% 93% 94% 40% 40% 20% 20% 75 - - FY20 FY21 FY22 FY23 FY24 FY2
Slide 76: Ngā mihi
Ngā mihi 76 For more information: Sarah Theodore Chief Financial Officer (Acting) sarah.theodore@summerset.co.nz 021 128 4206 Stephen Richards GM Strategy stephen.richards@summerset.co.nz 021 023 96585
Summerset Group Holdings — FY2024 Earnings Presentation on 6ix