News: SUM UPDATE 1-NZ's Summerset boosts profits as Auckland demand rises

(Re-casts lead, adds broker comment and market reaction)

New Zealand's Summerset Group Holdings (SUM) posted a jump in full-year profits on Wednesday as the retirement village operator ramped up development in the booming Auckland market.

The company reported a 56 percent jump in full-year profit after tax to NZ$84.2 million ($56.14 million) and said it was focused on building more villages to cater to the increasing New Zealand retiree and aged care market.

"While we are always looking for opportunities across New Zealand, Auckland is clearly constrained for living and care services for older people," Summerset Chief Executive Officer Julian Cook said in a statement on Wednesday.

The company had secured three new sites in 2015 and built 303 retirement units. Cook said Summerset was aiming to build 400 retirement units in 2016.

The company said its total sales were up 26 percent on the previous year to 578 retirement unit sales in 2015.

The results were broadly in line with expectations as investors keenly watched the demographic factors spurring demand.

"There's pure demand for their facilities. Obviously the population just keeps getting older and more and more of the elderly are looking at that kind of accommodation," said Grant Williamson, a broker at Christchurch firm Hamilton Hindin Greene.

Rising Auckland house prices pushed up by record immigration were also encouraging elderly Auckland residents to cash in on their family homes and move to retirement village units, Green said.

The company's shares rose 2.03 percent in the wake of the announcement.

Summerset announced a final 2015 dividend of 3.4 cents per share, which brought the total yearly dividend payment to 5.25 cents per share, up from 3.5 cents the previous year.

($1 = 1.4999 New Zealand dollars)