Ryman chalks up another record profit
Ryman Healthcare has posted a record annual profit, adding to its run of 15 years of earnings growth.
19 May 2017
Ryman Healthcare has posted a record annual profit, adding to its run of 15 years of earnings growth, as the hot property market underpinned gains from resales of its occupancy rights.
Underlying profit, which excludes fair value changes from its property portfolio, rose to $178.3 million in the 12 months ended March 31, from $157.7m a year earlier, the country's biggest listed retirement village operator said on Friday.
Operating revenue gained 11 per cent to $289m.
Ryman's sales of occupation right agreements rose 9.1 per cent to 1318, of which new sales jumped 16 per cent to 600 and resales of existing units increased 4.1 per cent to 718. The value of new units rose 16 per cent to $263.3m while resales rose 14 per cent to $311.3m.
"Strong gains from the resale of occupancy rights had driven the result and Ryman had invested a record $525m to meet the demands of a growing older population," chairman David Kerr said.
Ryman is adding to its 31 existing villages, with 13 at varying stages of development, including a foray across the Tasman. The Christchurch-based company wants to open five villages in Melbourne by 2020 and has four Australian sites currently in the design and consenting phase.
The value of that portfolio rose to $3.66 billion as at March 31 from $3b a year earlier, comprising 5958 retirement village units and 3281 residential care beds and with a land bank that can add 4025 units and 1529 care beds. The company's bank debt rose to $837.5m as at March 31 from $544.9m a year earlier.
The shares last traded at $8.63 and have gained 6.4 per cent so far this year.
© 2017 NZN, NZCity