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Ryman Posts Record Six Month Profit

Leading aged care and retirement village operator Ryman Healthcare has posted a realised profit of $29 million for the first half, up 12% on last year and a new record for the company. Unrealised property valuation increases lifted the reported profit to $38.5 million, up 10% on the previous year.

An interim dividend of 2.7 cents per share has been declared, up 12% on last year. Operating cashflows were up 30% to $79 million for the half, as a result of the strong demand for the retirement village units.

"We are very pleased with the first half performance and we expect to match this result in the second half in terms of realised profits," said Ryman chairman Dr David Kerr. "Our occupancy across the board is at all time highs and the recurring earnings from our completed villages are just getting stronger."

The building of new villages continues unabated with significant investment during the half in the two new large scale villages in Whangarei and Orewa, which will both be operational in the second half.

"We are currently building across five sites and are on track to complete our stated target of 300 retirement village units and 150 aged care beds for the year" said Dr David Kerr. "And all of this development activity is being funded out of operating cashflows."

Resource consent has been granted for the new Dunedin village and building works will commence shortly. The company is actively considering a number of new site opportunities.

In May this year Ryman reported a 5% increase in annual profits and dividends, and NZX confirmed that Ryman was the top performing company on the exchange over the previous ten years. Since listing in 1999 the company has increased profits and dividends nine-fold without seeking any fresh capital from shareholders.

Ryman currently owns 21 villages nationwide and plans to open two new villages each year. The villages are all designed, built and operated by Ryman.

The company is a six times winner of Best Retirement Village in New Zealand, serves over 4,500 New Zealanders and employs over 2,000 staff.

Note: "Realised profit" excludes deferred tax charges and unrealised fair value movements in investment properties.