Summerset Provides Earnings Guidance for 1H18

NZX & ASX RELEASE 10 JULY 2018 SUMMERSET PROVIDES EARNINGS GUIDANCE FOR 1H18 Summerset Group advises that its underlying profit for the six months ended 30 June 2018 is forecast to be between NZ$43 million and NZ$45 million, reflecting growth of between 21% and 26% on the same period of 2017. Summerset CEO Julian Cook said that while new sales volumes are lower than the same period of 2017, the company has seen strong development margins on the homes that have settled over the first half of 2018. "We are also seeing good levels of sales contracts and presales on homes which will be completed and delivered over the remainder of the year. "Our resales volumes continue to track well, with the realised gains associated with these sales strong across all regions of the country for the first half of 2018," said Mr Cook. 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. Summerset's half year financial results will be released pre-market on Tuesday 14 August 2018. Underlying profit differs from NZ IFRS net profit after tax. The directors provide an underlying profit measure 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 use consistently from period to period. 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:00320621 For:SUM Type:MKTUPDTE Time:2018-07-10 08:31:00