Ryman misses target but says result ‘solid’

Ryman Healthcare missed its pre-Covid profit target but still reported a 6.6 per cent rise in underlying annual profit.

The bottom line was down 19 per cent to $265 million for the year ended March, due to independent valuer CBRE chopping $70.9m off the value of the company’s retirement villages. The previous year, the portfolio was revalued upwards by $102.4m.

The underlying $242m result compares with the forecast $250m-$265m which the company withdrew in March when it had to shut down all construction activities as the nation went into lockdown.

Ryman had no cases of Covid-19 infection at any of its 36 retirement villages in New Zealand or three in Melbourne.

Chair David Kerr described the result as “solid”, given the pandemic disruption.

During the year just gone, total sales of occupancy rights to units and beds rose 16 per cent to 1436.

Because of the lockdown, Ryman developed 841 new units and care beds, below the targeted 900 but up from 757 in the previous year, and has lowered this year’s target from 1000 to 900 while maintaining its longerterm target of 1600 a year.

Chief executive Gordon MacLeod told analysts Ryman is building at 12 sites and doesn’t plan on adding to that this year.

MacLeod rejected a suggestion that Ryman will discount units in response to the expected fall in house prices, saying the company already offers market-leading terms and conditions..

Ryman also announced the purchase of a site next to Killarney Park in Takapuna, on which it plans to build a $120m village.