Underlying Growth Drivers
We are confident that Ryman will continue to deliver long term growth for shareholders. This is because of a number of unique factors:
Peparing the company for something bigger -
The size of the market opportunity ahead of us in NZ and Victoria means that we have been working hard to prepare the company for something even bigger.
This means we have been growing the depth of the management team, along with building the financial strength of the company. We also have plans to lift the New Zealand landbank to four years’ stock. One of the ways we keep on building our financial strength is through our growing tail of earnings at completed villages.
Our business has a very long time horizon and it can take up to 10 years before you see normal levels of activity from when a new village first opens. This means that our tail of earnings from completed villages will continue to grow in the future, as a direct result of what we have already built over the last 10 years.
This model of sustainable profitable growth starts from having a very effi cient and cost effective in-house design and construction team. As a result we achieve a healthy development margin when we build new villages – this in turn funds the construction of large scale aged care and community facilities at our villages. Villages are self funding.
Long term care demand growing – people are living longer, albeit frailer. The afflictions of old age (including dementia, diabetes and arthritis) mean that the need for long term residential aged care will increase.
Developing unique new villages – our villages are custom designed and built to meet the needs of the elderly, based on 25 years of in house experience.
Growing acceptance of retirement villages – there is a growing acceptance of retirement villages amongst the elderly to provide the peace of mind and care solutions associated with aging.
Strength of Ryman brand – we have a very strong reputation in the retirement village and aged care sector, having been a leading provider for 25 years. Residents and their families are rightly very careful about whom they choose to care for them in their later years; reputation is critical to their decision making.