Summerset Group Holdings Limited · NZX:SUM
Summerset — H1 2025 Earnings Presentation
74 slides from Summerset's earnings presentation, Jun 30, 2025
Slide 1: Results presentation
Results presentation For the six months to 30 June 2025 Summerset Group Holdings Ltd
Slide 2: Agenda
Half Year Report 2025 Half year results presentation Agenda 01 FY25 outlook 02 Our highlights 03 Our community 04 New Zealand development 2 05 Australia development 06 Financial performance 07 Business performance 08 Questions 09 Appendix
Slide 3: Who we are
Half Year Report 2025 Who we are Who we are About Summerset Summerset builds, owns and operates integrated retirement villages We create vibrant, happy communities for residents and our people that delivers on our purpose – bringing the best of life to our 9,100+ residents We are the fastest growing
Slide 4: FY25 Outlook
Independent villa, Summerset Rangiora (Canterbury, New Zealand) 4 01 FY25 Outlook Half Year Report 2025
Slide 5: FY25 outlook
Half Year Report 2025 FY25 outlook FY25 outlook Summerset has delivered a strong 1H25, outlook for full year improving as positive sales momentum continues Financial • Strong 1H25 financial performance, despite headwinds. Gearing expected to reduce from 1H25* in line with sales progress, and capital
Slide 6: Why we are confident in delivering for shareholders
Half Year Report 2025 FY25 outlook Why we are confident in delivering for shareholders Consistent sales backed by strong market demographics and a successful track record of long term delivery Settlements continue to lift Committed sales pipeline sets strong platform for 2H25 settlements 652 274 690
Slide 7: Why we are confident in delivering for shareholders
Half Year Report 2025 FY25 outlook Why we are confident in delivering for shareholders Estimated NTA uplift of approximately $12.30 per share once all villages under construction are complete Sustainable portfolio growth set to continue Competition from other operators expected to decrease 9,000 331
Slide 8: Our highlights
8 02 Our highlights Half Year Report 2025
Slide 9: Our highlights
Half Year Report 2025 Our highlights Our highlights Record total settlements of 692, up 18% on 1H24, supported by strong balance sheet management Balance sheet and Sales results and Financial performance cost control St Johns update 9 Record underlying profit Robust balance sheet management Strong s
Slide 10: Our highlights
Half Year Report 2025 Our highlights Our highlights Excellent resident satisfaction of 97% with high occupancy achieved across both village and care New Zealand development Bringing the best of life Australia update and land bank 10 Continue to prioritise resident experience Sector leading developme
Slide 11: Our community
11 03 Our community Half Year Report 2025
Slide 12: Our residents
Half Year Report 2025 Our community Our residents Construction cadetshipVirtual programme Nursing Support Service Bringing the best of life to residents every day ▪ Awarded the Highly Commended prize in the Reader’s Digest Trusted Brands Awards for the seventh consecutive year ▪ Launched ‘Imagine’ c
Slide 13: Our people
Half Year Report 2025 Our community Our people Our people are key to our success ▪ Staff engagement of 8.2 out of 10, putting Summerset in the top 25% of New Zealand healthcare providers using the same engagement survey ▪ Half Moon Bay awarded MATES in Construction NZ accreditation, recognition of a
Slide 14: Our environment
Half Year Report 2025 Our community Our environment Environmental performance and sustainability ▪ Summerset continues to be a market leader in developing, building and managing sustainable retirement villages in New Zealand and Australia ▪ Solar panel roll out continues on main buildings, the busin
Slide 15: Community engagement
Half Year Report 2025 Our community Community engagement Promoting and supporting our communities ▪ Summerset actively supports over 230 community groups that align with our brand and values ▪ Launched the ANZ Premiership’s Summerset Supershot, in conjunction with Netball New Zealand ▪ As part of th
Slide 16: New Zealand development
Summerset Blenheim (Marlborough, New Zealand) 16 04 New Zealand development Half Year Report 2025
Slide 17: New Zealand development
Half Year Report 2025 New Zealand development New Zealand development New Zealand summary ▪ A total of 321 units to be sold under Occupation Right delivered across 14 sites ▪ At June, 15 villages are under construction across ten regions in New Zealand, along with the care centre upgrade in Levin ▪
Slide 18: Summerset Milldale, Auckland
Half Year Report 2025 New Zealand development Summerset Milldale, Auckland 18 69 villas delivered, main building Village will have 169 independent units, 80 serviced and memory Rest home and hospital level Site progress – June 2025 construction well advanced care apartments and a 36 bed care centre
Slide 19: Development progress
Half Year Report 2025 New Zealand development Development progress 19 Summerset Mt Denby (Whangārei) Summerset Cambridge (Waikato) Summerset by the Dunes (Pāpāmoa Beach, Tauranga) Summerset at Pōhutukawa Place (New Plymouth)
Slide 20: Development progress
Half Year Report 2025 New Zealand development Development progress 20 Summerset Palms (Te Awa, Napier) Summerset Kelvin Grove (Palmerston North) Summerset Waikanae (Kāpiti Coast) Summerset Boulcott (Lower Hutt)
Slide 21: Development progress
Half Year Report 2025 New Zealand development Development progress 21 Summerset Richmond Ranges (Tasman District) Summerset Blenheim (Marlborough District) Summerset Rangiora (Waimakariri District) Summerset Prebbleton (Selwyn District)
Slide 22: New Zealand development pipeline
Half Year Report 2025 New Zealand development New Zealand development pipeline Diversified development pipeline of 22 sites* 22 * Excludes care centre upgrade at Levin
Slide 23: Project cash profits $295m+
Half Year Report 2025 New Zealand development Project cash profits New Zealand summary $295m+ 14.6% Projected net cash Cash margin on recently ▪ Summerset developments produce positive net cash position completed villages flows (net cash position) upon completion at a Forecast capital Forecast net F
Slide 24: Australia development
Summerset Cranbourne North (Melbourne, Victoria) 24 05 Australia development Half Year Report 2025
Slide 25: Australia development
Half Year Report 2025 Australia development Australia development Australia summary $2.0m+ Three Projected net cash Villages under ▪ Summerset continues to make good progress position construction across multiple villages in Australia Forecast capital Forecast net Forecast NTA Village % Complete ▪ O
Slide 26: Summerset Cranbourne North, Melbourne
Half Year Report 2025 Australia development Summerset Cranbourne North, Melbourne 26 55 villas delivered, main building due Village will have 161 villas, 34 assisted living apartments Rest home and hospital level care Site progress – June 2025 for completion in 2H25 and a 72 bed care centre on compl
Slide 27: Summerset Chirnside Park, Melbourne
Half Year Report 2025 Australia development Summerset Chirnside Park, Melbourne 27 Village will have 185 villas, 28 assisted living apartments Rest home and hospital level care Site progress – June 2025 Villa construction underway and a 72 bed care centre on completion will be available
Slide 28: Australia development pipeline
Half Year Report 2025 Australia development Australia development pipeline Seven villages in planning and development across Victoria 28
Slide 29: Financial performance
Independent villa, Summerset by the Dunes (Pāpāmoa Beach, New Zealand) 29 06 Financial performance Half Year Report 2025
Slide 30: Reported profit (IFRS)
Half Year Report 2025 Financial performance Reported profit (IFRS) $173.0m $127.2m ▪ Net profit after tax of $127.2m with total revenue of Total revenue 14% Net profit after tax 26% $173.0m, up 14% on 1H24 ▪ Fair value movement of investment property and NZ$m 1H25 1H24* Variance FY24 other assets of
Slide 31: Underlying profit
Half Year Report 2025 Financial performance Underlying profit $106.6m $63.0m ▪ Care EBITDA of $5.3m, the uplift coming from our Underlying profit 19% Annuity EBITDA 5% transition to care beds sold under Occupation Right Agreement, with deferred management fees up NZ$m 1H25 1H24 Variance FY24 $4.3m o
Slide 32: Segment earnings
Half Year Report 2025 Financial performance Segment earnings $58.6m $48.0m ▪ Two core segments of earnings - being retirement Retirement village 2% Construction activity 62% village operations and construction activity operations ▪ For 1H25 retirement village operations contributed Ongoing Construct
Slide 33: Operating expenses
Half Year Report 2025 Financial performance Operating expenses NZ$m 1H25 1H24 Variance FY24 Employee expenses 119.1 109.3 9% 222.6 ▪ Gross operating expenses up 10% to $184.5m, Building and grounds 22.9 19.9 15% 43.0 compared to total revenue growth of 14% Sales and marketing 12.4 14.0 (12%) 25.1 So
Slide 34: Cash flows
Half Year Report 2025 Financial performance Cash flows $228.7m $208.2m ▪ Receipts from care fees and village services, up Operating cash flows 19% New sales receipts 23% 18%, slightly ahead of payments to suppliers and employees, up 16% NZ$m 1H25 1H24 Variance FY24 ▪ Receipts for residents' loans -
Slide 35: Free cash flows
Half Year Report 2025 Financial performance Free cash flows Mature villages yield analysis ($m) FY24 FY20-FY23 (average) Combined village free cash flow 33.9 19.5 Net assets (operators interest) 340.2 302.8 ▪ Summerset’s free cash flows are influenced by the Return on net assets 10.0% 6.4% growing n
Slide 36: Resale cash reconciliation
Half Year Report 2025 Financial performance Resale cash reconciliation $49.1m Realised resale gains $27.3m ▪ Receipts for residents' loans – resales of $63.6m 8% DMF realisation 12% compared to $65.7m in 1H24 ▪ Realised resale gain of $49.1m, up 8% and DMF Resale cash reconciliation ($m) 1H25 1H24 V
Slide 37: Balance sheet
Half Year Report 2025 Financial performance Balance sheet $8.7b $2.5b ▪ Total assets now $8.7b, up 18% on 1H24, driven by Total assets 18% Retained earnings 14% portfolio growth and the underlying value in our existing villages NZ$m 1H25 1H24* Variance FY24 ▪ Retained earnings are now $2.5b, up 14%
Slide 38: Capital management framework
Half Year Report 2025 Financial performance Capital management framework Guiding principles to sustainably grow the business over the short to medium term Guiding principles 1H25 in review • Grow the business by delivering sustainable expansion opportunities in New Zealand and Australia, that produc
Slide 39: Funding
Half Year Report 2025 Financial performance Funding $765.0m Undrawn capacity 36.7% ▪ Total debt facilities of $2.6b, including $0.7b of retail Gearing ratio bonds on issue ▪ Total facility (incl. bonds) has an average tenor Funding maturity profile of 3.3 years $1,000m ▪ Bank facility has undrawn ca
Slide 40: Covenants
Half Year Report 2025 Financial performance Covenants 38.3% 5.06x ▪ Strong financial discipline has ensured Summerset Bank & bond LvR Interest cover ratio is compliant with all lending covenants and obligations Covenants 1H25 1H24 Variance ▪ Loan to value ratio of 38.3%, relative to a 50% limit Gros
Slide 41: Development assets
Half Year Report 2025 Financial performance Development assets $2.2b $319.6m ▪ Summerset has no core debt and our development Underlying development Excess assets assets – being the value of our land bank, assets development WIP and units that have been delivered but not settled significantly exceed
Slide 42: Interim dividend
Half Year Report 2025 Financial performance Interim dividend Declared FY25 interim dividend of 11.3 cents Dividend payout per year per share $70m $70m $58.3m ▪ The Board has declared an unimputed interim $60m $60m $57.2m $51.6m dividend of 11.3 cents per share $50m $50m $42.5m $42.5m ▪ This represen
Slide 43: Business performance
Care apartment, Summerset St Johns (Auckland, New Zealand) 43 07 Business performance Half Year Report 2025
Slide 44: Retirement unit delivery
Half Year Report 2025 Business performance Retirement unit delivery 1H25 unit delivery Retirement units (ORA) Care units (ORA) Serviced Memory care Care Care Care beds Total units Villas Apartments apartments apartments suites beds (non-ORA) 334 total units delivered with 321 in New Bell Block 15 -
Slide 45: Development margin
Half Year Report 2025 Business performance Development margin Development margin of 29%, ahead of long 29.4% $72.9m Development margin Realised margin 41% term guidance of 20% to 25% ▪ Realised development margin of $72.9m, up 41% Realised development margin from $51.7m in 1H24 $80m 100% ▪ Developme
Slide 46: New sales
Half Year Report 2025 Business performance New sales Gross proceeds up 36%, with 354 new sales 354 $699k New sales of Occupation Average gross 11% achieved in 1H25 Rights proceeds ▪ A record 354 new sales of Occupation Rights, up New sales 1H25 1H24 Variance FY24 22% on the 290 settled in 1H24 Gross
Slide 47: Care bed conversions
Half Year Report 2025 Business performance Care bed conversions Occupation Rights on care beds adopted to 39 $10.4m New sale settlements Gross proceeds improve care economics ▪ In 1H25, Summerset made the decision to move Care suites Care bed care beds, previously sold under a premium Conversion new
Slide 48: Sales price relativity
Half Year Report 2025 Business performance Sales price relativity Continue to actively track the residential market, remain comfortable with pricing relativity Auckland sales price relativity Sales price relativity vs median house price $1.7m $1.6m $1.5m $1.3m $1.4m $1.1m $0.9m $1.2m $0.7m 48 $1.0m
Slide 49: New sales stock
Half Year Report 2025 Business performance New sales stock Record 244 delivered new sale units under 244 57% Delivered units Increase in total contract under contract contracted stock ▪ Strong progress contracting new sale stock New Zealand new sales stock 1H25 FY24 ▪ Contracted new sale stock of 24
Slide 50: Resales
Half Year Report 2025 Business performance Resales Gross proceeds of $198.1m achieved in 1H25 338 Resales of Occupation $49.1m Realised resale 8% Rights gains ▪ 338 resales of Occupation Rights in 1H25, up 13% Resales 1H25 1H24 Variance FY24 from 298 in 1H24 Gross proceeds ($m) 198.1 177.5 12% 377.7
Slide 51: Resales cash margin
Half Year Report 2025 Business performance Resales cash margin Cash margin on resales of 32% with $63.6m $63.6m $189k Realised resale cash Cash margin on realised in 1H25 margin per unit resales ▪ Resales cash margin of 32%, with an average margin of $189k per unit, down from $209k in 1H24 Resales c
Slide 52: Embedded value
Half Year Report 2025 Business performance Embedded value Embedded value now $1.8b, up 11% on 1H24 $1.8b Embedded value 11% $701.2m Embedded DMF ▪ Total embedded value now $1.8b, up 11% from Embedded value $1.6b at 1H24 $2,000m ▪ Embedded value comprised of: $1,800m ▪ $1.12b resale gains $1,600m ▪ $
Slide 53: Resale stock
Half Year Report 2025 Business performance Resale stock Record 174 resale units under contract 174 2.8% Contracted Percentage of resale stock uncontracted stock ▪ Total resale stock of 383 units, broadly in line with the 372 units reported at FY24 Resales stock 1H25 FY24 Contracted 174 164 ▪ Increas
Slide 54: Questions
Summerset Boulcott (Lower Hutt, New Zealand) 54 08 Questions Half Year Report 2025
Slide 55: Disclaimer
Half Year Report 2025 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 56: Appendix
Summerset St Johns (Auckland, New Zealand) 56 09 Appendix Half Year Report 2025
Slide 57: Appendix contents
Half Year Report 2025 Appendix Appendix contents 01 Portfolio composition 02 Portfolio and land bank 03 Historical trends 04 1H25 underlying profit reconciliation 57 05 1H24 comparative information 06 Investment property valuations 07 Care centre valuations 08 Customer profile and occupancy 09 Key t
Slide 58: Portfolio composition
Half Year Report 2025 Appendix 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 development
Slide 59: Portfolio as at 30 June 2025
Half Year Report 2025 Appendix Portfolio as at 30 June 2025 8,304 total units including 6,913 retirement units and 1,391 care units Existing portfolio – as at 30 June 2025 Retirement units (ORA) Care units (ORA) Total units Serviced Memory care Care Care Care beds Village Villas Apartments and beds
Slide 60: Portfolio as at 30 June 2025
Half Year Report 2025 Appendix Portfolio as at 30 June 2025 8,304 total units including 6,913 retirement units and 1,391 care units Existing portfolio – as at 30 June 2025 Retirement units (ORA) Care units (ORA) Total units Serviced Memory care Care Care Care beds Village Villas Apartments and beds
Slide 61: Future development
Half Year Report 2025 Appendix Future development Largest New Zealand land bank for a retirement village operator of 4,961 units Land bank – as at 30 June 2025 Retirement units (ORA) Care units (ORA) Total units Serviced Memory care Care Care Care beds Village Villas Apartments and beds apartments a
Slide 62: Future development
Half Year Report 2025 Appendix Future development Largest New Zealand land bank for a retirement village operator of 4,961 units Land bank – as at 30 June 2025 Retirement units (ORA) Care units (ORA) Total units Serviced Memory care Care Care Care beds Village Villas Apartments and beds apartments a
Slide 63: Historical trends
Half Year Report 2025 Appendix Historical trends Historical trends across operational and financial metrics Half year results 1H25 2H24 1H24 2H23 1H23 2H22 1H22 2H21 1H21 2H20 1H20 2H19 1H19 New sales of Occupation Rights 354 298 290 319 241 248 289 238 302 276 128 193 136 Operational Resales of Occ
Slide 64: 1H25 underlying profit reconciliation
Half Year Report 2025 Appendix 1H25 underlying profit reconciliation Reconciliation of underlying profit to reported net profit after tax NZ$m 1H25 1H24* Variance FY24 Net profit after tax (IFRS) 127.2 100.6 26% 339.8 Less fair value movement of investment property and other assets (123.3) (126.8) (
Slide 65: 1H24 restated comparative information
Half Year Report 2025 Appendix 1H24 restated comparative information Reclassification of fair value movements in investment property and other assets and property, plant and equipment Opening balance • At FY24, Summerset restated its financial information NZ$m 1H24 amendment/ 1H24 1H24 reported amen
Slide 66: Investment property valuations
Half Year Report 2025 Appendix Investment property valuations Investment property and other asset valuations – key assumptions Fair value movement of investment property and other assets Valuation Gain/(loss) Key valuation assumptions Growth rate Growth rate Growth rate Growth rate Growth rate Villa
Slide 67: Investment property valuations
Half Year Report 2025 Appendix Investment property valuations Investment property and other asset valuations – key assumptions Fair value movement of investment property and other assets Valuation Gain/(loss) Key valuation assumptions Growth rate Growth rate Growth rate Growth rate Growth rate Villa
Slide 68: Care centre valuations
Half Year Report 2025 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 Grow
Slide 69: Care centre valuations
Half Year Report 2025 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 Grow
Slide 70: Customer profile and occupancy
Half Year Report 2025 Appendix Customer profile and occupancy Occupancy, tenure and resident demographic statistics Occupancy – retirement villages Occupancy – established care centres 100% 100% 80% 80% 60% 60% 94% 95% 95% 94% 94% 93% 93% 93% 95% 95% 40% 40% 20% 20% 70 - - 1H23 2H23 1H24 2H24 1H25 1
Slide 71: Key terms
Half Year Report 2025 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 72: Key terms
Half Year Report 2025 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 73: Key terms
Half Year Report 2025 Appendix Key terms Summerset key terms Defined as the sale of beds under Occupation Right at a village with a care centre where beds were previously occupied under a premium Care bed conversion accommodation charge. Used for stock, settlement, portfolio and land bank informatio
Slide 74: Ngā mihi
Ngā mihi 74 For more information: Margaret Warrington Chief Financial Officer margaret.warrington@summerset.co.nz 021 558 262 Stephen Richards GM Strategy stephen.richards@summerset.co.nz 021 023 96585
Summerset Group Holdings — H1 2025 Earnings Presentation on 6ix