Ryman continues run of record aftertax profits
❛ Our balance sheet is stronger than ever with total assets of $5.8 billion and with 16 villages in the pipeline we have a great development runway stretching out ahead in New Zealand and Victoria
Ryman chairman Dr David Kerr
RYMAN Healthcare’s rapid expansion is edging towards $6 billion in total assets, and for its latest financial year it has delivered a 16th consecutive record aftertax profit, up 8.8% to $388.2 million.
Total income for its year to March rose 13% to $694 million, profit before tax was up 7.1% to $388.8 million while reported profit rose 8.8% to $388.2 million.
The 34yearold Ryman, which listed in 1999, now operates 32 retirement villages across New Zealand and Victoria, Australia, with more than 10,600 residents and more than 4700 staff.
Ryman, the country’s largest retirement village developer and operator, has 16 new villages in the pipeline, which would boost resident numbers to 17,500 in 48 villages, including eight in Victoria.
A dividend of 10.9c takes the fullyear dividend to 20.4c.
Ryman shares, already up 30% on a year ago, rose 0.5% to $11.30, following yesterday’s announcement.
Forsyth Barr broker Lyn Howe said the result was ‘‘close to expectations’’ with strong resales gains offsetting weaker volumes of new sales.
‘‘Full year 2019 continues to shape up as a very strong year,’’
Mrs Howe said.
The resales volumes were strong at 825 units, against 718 last year, and were a key driver of the result, along with strong resales margins of 26%.
However, she said new sales volumes were lighter than expected, at 458 units against 600 last year, and less stock was delivered than expected.
Craigs Investment partners broker Peter McIntyre said it was a ‘‘strong’’ result and typical of Ryman, in that profits were up again for shareholders, as was the dividend; plus there were more villages in the pipeline.
Ryman has delivered $690 million in dividends since its float, and had never gone back to shareholders for more cash.
While net debt rose from $838 million a year ago to $1.06 billion, Mr McIntyre said the 1% rise in net debt to equity to 35% was ‘‘within reasonable levels’’, given the asset base values were rising.
Tax paid was almost 90% down on a year ago, from $6.29 million last year to $640,000, probably based on depreciation and the timing of transtasman accounting methods, he said.
Ryman chairman Dr David Kerr said increased earnings from existing villages had driven the overall result, with strong demand for its units and care facilities.
Care fees for the year rose 19% to $270.4 million and management fees were up 14.9% to $70 million. Property fair values were up 8.2% to $351.5 million.
Dr Kerr said Ryman ended its year with less than 1% of its portfolio available for resale. Its resale margins rose from 24.8% to 25.9% and occupancy in its care centres stood at 97%.