Earnings up for Ryman as growth climbs

Ryman Healthcare, the country’s biggest retirement village operator and developer, lifted annual earnings 14 per cent, meeting guidance, and said it expects continued growth with 16 villages in the pipeline.

Underlying profit, which excludes valuation changes in its property portfolio, rose to $203.5 million in the 12 months ended March

31 from $178.3m a year earlier, in line with the company’s forecast for earnings between $195m to $210m.

Ryman and other New Zealand retirement village operators are acquiring land and developing eldercare properties to meet increased demand as people born in the country’s post-war era reach the target age for operators. Ryman ended the year with less than 1 per cent of its portfolio available for resale, and with the occupancy rate in its care centres at 97 per cent. It has 32 retirement villages across New Zealand and Australia with a further 16 villages in the pipeline which when completed will lift resident numbers by 65 per cent to 17,500 across 48 villages.

Ryman added 532 units and beds over the past year, a slower pace of growth than the

781 it added the previous year. That increased its total number of retirement village units and beds to 9781 from 9249. Its gross development margin slipped to 19.2 per cent from 23.9 per cent, while its resales margin increased to 25.9 per cent from 24.8 per cent.

Net profit rose to $388.2m, or 77.6 cents per share, from $356.7m, or 71.3 cents, the company said. Profit on that measure included a $185.3m gain on the value of its retirement village units, compared with a $184.7m gain a year earlier, it said.

Ryman will pay a final dividend of 10.9 cents a share on June 22, taking the total dividend for the year to 20.4 cents, up from 17.8 cents a year earlier. Its shares last traded at $11.56 and have gained 30 per cent the past year.