Ryman lifts first-half profit 36pc

Simon Challies, general manager Ryman Healthcare. Photo / supplied

Retirement village builder and operator Ryman Healthcare's first-half net profit jumped 36 per cent $52.3 million, although $16.1 million of that was unrealised gains from revaluing its properties.

Profit before one-time gains was up 25 per cent to a record. Chairman David Kerr attributed the jump to the company completing several new apartment blocks, "which have all proved very popular."

Ryman completed 190 units and 117 resthome bed in five villages during the first half as well as starting work on new villages in Dunedin and Gisborne. It also acquired a site for a new village in Tauranga.

"We are fortunate to be in such a strong financial position as it allows us to continue to invest in new aged care facilities in New Zealand and, at the same time, embark on development of our first village in Australia," Kerr says.

In July, Ryman told its annual shareholders' meeting it was actively seeking a site for a village in Australia and said it had been studying the Australian market for several years.

The company's shareholders' equity rose 7 per cent to $490.5 million in the six months and it had total assets of $1.45 billion at Sept. 30.

The value of Ryman's properties rose by 29 per cent, or $42 million, to $1.13 million of which $25.7 million was realised through sales.

Kerr says Ryman is trading well and is on track to lift full-year realised net profit by 15 per cent from the $61 million it posted for the year ended March 31.

With Statistics New Zealand estimating those over 75 will more than double to 516,000 over the next 20 years, Ryman's plans its growth will cater for 12,000 or more new residents each year.

It currently owns 22 villages with four more planned and has a landbank allowing development of just under 2,000 units and beds.

Ryman's shares closed yesterday at $2.16 and have traded between $1.95 and $2.20 during the past 12 months.