Ryman adds another Melbourne site amid record first quarter sales

Ryman Healthcare chief executive Gordon MacLeod. Photo / NZME

Ryman Healthcare said it has had a record start to the year with cash receipts of $403 million in the first quarter, up 82 per cent on the Covid-impacted first quarter of last year.

The retirement village operator provided the update at its annual shareholders' meeting where it also announced the purchase of a large new retirement village site in Melbourne.

"It's the best first quarter we've ever had," chief executive Gordon MacLeod said.

"We transacted the highest sales value and volume of occupation right agreements we've seen in a first quarter, and occupancy at our established care centres was running at 97 per cent.

"When you consider we had a record final quarter of sales in the 2021 financial year, it adds up to a great six months for Ryman, the strongest I've seen in my 15 years at the company.''

Ryman revealed it has bought a new site at Mulgrave in southeast Melbourne, which will be developed into the company's 12th village in Victoria.

The 4.6ha site will include villas, apartments and an integrated aged-care centre and has an existing approval for a retirement village development for more than 350 residents.

Ryman opened its first village in Melbourne in 2014 and now has five in Victoria with1021 residents and 659 staff.

Work is continuing on new villages at Aberfeldie and Highett, and another five villages are in the pipeline in Victoria.

MacLeod told shareholders that 97 per cent of Ryman's build programme for the next two years had resource consent or development approval, giving it a strong runway for growth.

Ryman's landbank includes 4007 units and beds in New Zealand and 2399 in Victoria.

Chairman David Kerr said Ryman had delivered more than 24,000 Covid-19 vaccines to its residents and team members, and Ryman's vaccination teams were being used by other retirement village providers to vaccinate residents.

MacLeod said Ryman's momentum was gathering, and it would soon have 14 villages on the go – seven on each side of the Tasman.

"If you take into account our entire landbank, we have 26 villages on the go or in pipeline, which we are anticipating will generate $5.5 billion of cash proceeds and recurring income of $420 million.''