Retirement Villages Residents Association of NZ national president Brian Peat.<\/p>\n
His organisation opposes such fee rises and Peat said he was disappointed by the Summerset move.<\/p>\n
But a Summerset spokeswoman said the cost of developing, operating and maintaining modern retirement villages had increased significantly.<\/p>\n
She said the change would only affect new residents.<\/p>\n
\u201cExisting residents are unaffected and will continue under the terms of the contract they entered into when they moved into a Summerset village,\u201d she said.<\/p>\n
The company had the lowest fee in the sector at 25% but increased it on August 17. <\/p>\n
That now aligned with the rest of the sector, she said.<\/p>\n
The change reflected how the retirement village sector had evolved.<\/p>\n
\u201cThe cost of developing, operating and maintaining modern retirement villages has increased significantly, while residents increasingly expect larger homes, more amenities, enhanced care options and a wider range of services and activities,\u201d the spokeswoman said.<\/p>\n
The Pinnacle penthouse at Summerset St Johns retirement village in Auckland. Photo \/ Summerset Group<\/p>\n
Summerset announced the deferred management fee change as part of its half-year results announcement on the NZX this morning.<\/p>\n
\u201cWe have taken steps to strengthen future cash generation, including increasing our DMF [deferred management fee] in New Zealand to 30%. This is expected to generate approximately $35m of additional cash flow over the next five years,\u201d the company\u2019s statement said.<\/p>\n
It\u2019s not the only retirement village operator to increase its deferred management fees in recent times.<\/p>\n
Two years ago Ryman Healthcare<\/a> increased its fee as well. They were the lowest in the sector at 20% but two years ago, it announced it was increasing the fees to 25% to 30%.<\/p>\n Half-year financials<\/p>\n Summerset said today it had assets of $9.8b, up 14% on the first half-year of 2025, driven by portfolio growth and the underlying value of existing assets.<\/p>\n Net debt is $2b, giving a 37% gearing ratio.<\/p>\n Profit rose from $89.4m in the half-year to June 30, 2025 to $171.4m in the half-year to June 30, 2026. <\/p>\n But devaluations also rose from -$85m to -$191m, pushing down underlying profit from $106m to $103m.<\/p>\n Summerset chief executive Scott Scoullar said in his half-year summary that it had reached several important village centre milestones.<\/p>\n Four new village centre buildings opened during the period. <\/p>\n Early occupancy and under-contract levels were encouraging: 45% of available serviced apartment, care and memory care stock at Cambridge, 43% at Whang\u0101rei, 30% at Waikanae, and 21% of village centre assisted living apartments at Cranbourne North, Melbourne. <\/p>\n Summerset is marketing<\/a> New Zealand\u2019s most expensive retirement property for $11,995,000: a 208sq m apartment on level five of a new block at Summerset St Johns, Auckland.<\/p>\n That has three bedrooms, a study, four balconies, European oak timber flooring and Gaggenau cooking appliances.<\/p>\nScott Scoullar, chief executive\u00a0officer\u00a0of Summerset. Photo \/ Jason Dorday<\/p>\n
Summerset St Johns retirement village in Auckland. Photo \/ Jason Dorday<\/p>\n
Summerset St Johns retirement village in Auckland. Photo \/ Jason Dorday<\/p>\n