Ryman shares surge after record $84m profit

Retirement village operator Ryman Healthcare said its net profit hit a record this year. File photo

Shares in Christchurch-based retirement village operator Ryman Healthcare jumped in value by 5.2 per cent after the company reported a record net profit for the year to March 31.

Ryman, New Zealand's biggest retirement village company, said its net profit before revaluations hit a record $84 million in the year to March 31, up 16.5 per cent on the previous year's, and marking the 10th year in a row of annual profit increases.

Unrealised valuation gains lifted the reported profit after tax to $121m, up 20.6 per cent on the previous year's.

In response, Ryman's shares shot to $3.42 by late morning, up 17c or 5.2 per cent, to their highest point for the last 12 months, and about $1 higher than last September's 12-month low of $2.43.

The company announced 4.5c per share dividend, taking the total dividend for the year to 8.4c, up 17 per cent on the previous year's dividend.

The final dividend does not carry imputation tax credits.

Chairman David Kerr said the company faced some major challenges in earthquake-struck Christchurch over the past 18 months.

Ryman built 710 retirement units and aged care beds during the year, up 24 per cent on the previous year, and well ahead of its target build rate of 550 units and beds a year.

"The lift in build rate reflected the significant investment we made in hospital and dementia facilities this year, and our decision to fast-track new Christchurch facilities post-earthquake," he said in a statement.

New villages were opened in Gisborne and Tauranga during the year.

Kerr said the company was experiencing strong demand.

Operating cashflows were up 27 per cent to $169m for the year, allowing the company to self-fund the bulk of its building activity, he said.

Shane Solly, portfolio manager at Mint Asset Manager, said the acceleration of new unit developments was a positive step for the company.

"The business looks well-positioned to leverage longer term growth in retirement living,' he said.

Ryman, which was established in 1984, owns 24 villages nationwide.