Retirement village company Ryman Healthcare has been a financial disaster. Now its board is taking drastic action.
Video / Carson Bluck
Ryman Healthcare halved its net profit after tax and is suffering rising vacancies in its properties, now running at 12.1% empty.
The company made $94.4 million net after-tax profit in the half-year to September 30, down from $187.1m in the previous corresponding period.
Yet chairman Dean Hamilton expressed satisfaction with today’s result which noted dividends remain suspended.
Today’s investor presentation cited rising unoccupied retirement village stock, saying vacancies were now running at 12.1% of all its villas, apartments and care beds.
Unoccupied retirement unit stock was up 182 units from 974 in March to 1156 in September.
Ryman’s total revenue rose 10% from $333.6m to $366.3m in the latest half-year.
Ryman Healthcare executive chairman Dean Hamilton. Photo / Michael Craig
The company blamed the profit halving on its lower operating result.
Ryman’s new CEO is Naomi James, heading the business with 49 villages including nine new ones under construction.
Ryman has 9575 retirement village units which are home to 15,085 residents: 12,921 in this country and 2164 in Australia.
The company employs 7727 staff and has been running for 40 years.
Gearing stands at 37% and Ryman said it had complied with all lending covenants and obligations. It has total debt facilities of $3 billion, of which it has drawn down $2.5b.
It has land held for development valued at $466.4m.
The company said its 10% revenue rise was driven by increases in care and village fees following the opening of a new village and expansion at others.
Sales of occupation rights rose 5% to 827 in 1H25.
Ryman said that was the strongest six-month period in the last three financial years, “demonstrating that demand for Ryman’s product remains strong. Whilst we maintained pricing in a challenging market, this has translated to a compression in resale margins per unit”.
The 827 occupation rights agreements sold in 1H25, generated $651.4m, up 5% on 1H24.
But it’s not new properties mainly being sold to drive that growth.
“This was driven primarily by a robust period of resales, up 9% on the back of strong move-ins for serviced apartments, and a steady period for independent units,” it said.
Precinct Properties’ chief executive Scott Pritchard joined Ryman’s board on November 1.
Several development milestones were achieved during 1H25, Ryman said, including:
Three main buildings were completed and the first care residents were welcomed at Henderson’s Miriam Corban, at Hobsonville’s Keith Park and Havelock North’s James Wattie villages;
Ryman opened the new Hubert Opperman village in Melbourne’s Mulgrave in August;
Shares were as high as $6.99 last July but were trading at $5.02 yesterday, down 4% annually. The company has a market cap of $3.4b.
Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.
