Summerset Revises Earnings Guidance Upwards for 2017

NZX & ASX RELEASE 19 DECEMBER 2017 SUMMERSET REVISES EARNINGS GUIDANCE UPWARDS FOR 2017 Summerset Group has revised its earnings guidance, with underlying profit for the year ended 31 December 2017 now forecast to be in the range of NZ$77 million to NZ$79 million. This is an increase on the previous guidance given of NZ$72 million to NZ$75 million and represents an increase on the previous year's underlying profit of between 36% and 40%. The group has delivered average annual underlying profit growth of approximately 46% since listing on the NZX in 2011. Summerset CEO Julian Cook said, "we have seen ongoing strength in resales volumes and margins as well as good margins on new occupation right sales. Sales interest and time from contract to settlement remains very good and we expect this to continue into the new year." No forecast has been provided for NZ IFRS net profit after tax due to the inherent uncertainty in fair value movement of investment property, a key component of this profit measure. Underlying profit differs from NZ IFRS net profit after tax. This profit measure is provided to assist investors in determining the realised and non-realised components of fair value movement of investment property and tax expense in the Group's income statement. Underlying profit is an industry-wide measure which the Group uses consistently across reporting periods. Both underlying profit and NZ IFRS net profit after tax are audited. ENDS For investor relations enquiries: Scott Scoullar Chief Financial Officer scott.scoullar@summerset.co.nz 04 894 7320 or 029 894 7317 For media enquiries: Michelle Brooker Senior Communications Advisor michelle.brooker@summerset.co.nz 04 830 1106 or 021 225 9624 End CA:00312164 For:SUM Type:MKTUPDTE Time:2017-12-19 12:37:34