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:
Growing elderly population – there is a rapidly growing elderly demographic. There are currently 250,000 people aged 75+ years, who are the primary market for our villages, and this number has been growing at the rate of 5,000 per annum for the past 15 years. According to Statistics New Zealand projections over the next 5 years (2011-2016) this population is expected to grow at the rate of 8,000 per annum, and in the following 5 years (2016-2021) the rate is 10,500 per annum, before peaking at over 16,000 per annum in the period 2021-2026. By 2031 the population 75+ will have more than doubled to over 516,000.
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.