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Ryman reports unaudited first half underlying profit of $103 million

Written by Ryman Healthcare
on November 21, 2019



  • Unaudited underlying profit $103 million, up 6.2%, driven by resales
  • Reported (IFRS) profit increased 11.1% to $188.3 million
  • Interim dividend lifted to 11.5 cents per share, in line with underlying profit growth
  • Full year underlying profit expected to be between $250 million and $265 million (between +10% and +17%)
  • Operating cashflows up 17.6% to $256.1 million
  • Total assets $7.26 billion, up 17.4% on September last year
  • New sites in Highett in Victoria and Northwood in Christchurch
  • Record activity in Victoria, target remains to have 5 villages open by the end of 2020
  • Increased investment in resident experience, team development and safety
  • Continued strong demand with 97% occupancy at established care centres
  • Only 1.6% of resale stock unsold at the end of SeptemberRyman Healthcare’s unaudited first half underlying profit rose 6.2% to $103 million, driven by record resales volumes. As previously signalled, the second half is expected to be stronger as the build programme lifts, and full year underlying profits are expected to range from $250 million to $265 million.

Reported (IFRS) profit, which includes unrealised fair value gains on investment property, increased 11.1% to $188.3 million.

Shareholders will receive an increased interim dividend of 11.5 cents per share in line with the increase in underlying profit. The record date for entitlements is December 6, and the dividend will be paid on December 13.

Cash generation was strong in the half, with operating cashflows up 17.6% to $256.1 million. Total assets were $7.26 billion, up 17.4% on last year, reflecting the value created by ongoing development and strong demand.

Full year profits are expected to lift in line with growth in the build programme, and construction is targeted to be under way at 12 sites by March 2020, up from eight a year ago.

Chief Executive Gordon MacLeod said: “We have significantly lifted our land bank over the past three years to match our growth aspirations in New Zealand and Victoria.

“We are now moving into our biggest ever build programme on stunning sites, which is exciting for the team and our next generation of residents.’’

Chairman Dr David Kerr said Ryman’s unique integrated villages and high-quality care continued to be in strong demand, with care occupancy in established villages running at 97%. Only 1.6% of the retirement village portfolio was available for resale at September 30.

Ryman’s New Zealand resales volumes grew 11.3%, while volumes in the wider real estate market declined 15%, which demonstrated the continued appeal of Ryman villages.

“The first half result has been achieved against a background of tough market conditions in Melbourne and Auckland, so we are satisfied with what has been achieved,’’ Dr Kerr said.

Mr MacLeod said the focus continued to be on delivering new villages, innovating to improve the experience of living and working in a Ryman community, and making sure everyone got home safe each day.

Ryman acquired two new sites – Highett in Victoria and Northwood in Christchurch – during the first half taking the land bank to 7,074 units and beds.

“The 22 sites in our land bank, 10 of which already have development under way, represent the equivalent of 66% of our existing portfolio. On development of the existing land bank over the coming years Ryman expects to be providing homes and care for more than 20,000 people.’’

Ryman is targeting a build rate of 900 units and beds this year, up from 757 in the 2019 financial year. The build rate is lifting to meet Ryman’s financial aspirations of doubling underlying profit every five years and to create a tail of growing earnings.

A highlight of the half was the progress in Victoria, Mr MacLeod said.

“The team exchanged a record 260 new sales, resales and care contracts in the first half in Victoria. We are interacting with more people than ever and there is no doubt our brand awareness is growing.’’

We have recently submitted our tenth development application in Victoria. Five development approvals have been granted already, and Ryman continues to target having five villages open by the end of 2020 calendar year.

“As well as a record amount of construction activity, we have a whole lot of innovations feeding through that will make life in a Ryman village better than ever for our residents,’’ Mr MacLeod said.

“We have had great feedback from our residents and their families in our recent surveys, and we continue to strive to get even better.’’

The Ryman operations team would continue to rollout a revamp of dementia care called myRyman Life, and the trial of its new Ryman Delight entertainment and wellbeing programme for residents continued.

Dr Kerr announced the board had been further strengthened with the appointment of Melbourne-based director Paula Jeffs. Paula is a human resources executive with experience across healthcare, finance and government sectors.

“We’re a high growth business and we know that finding and developing the right sort of people is critical to our success,’’ Dr Kerr said.

“Paula brings great insight into people and talent, and I am sure she will be a great contributor. We have got a wealth of talent and an excellent mix of skills and diverse views on the board which will see us into the future.’’

Dr Kerr said Ryman had now invested $4 billion in building communities and returned $860 million in dividends since listing in 1999.

“We are moving into a record expansion phase in the next 18 months, but it is not growth for growth’s sake. Our growth reflects the fact that we want to build as many communities as we can so that more people can benefit from the Ryman experience.’’

Ten new villages currently under way:

New Zealand


  • Lynfield, Auckland (Murray Halberg)
  • Brandon Park, Melbourne (Nellie Melba)
  • Devonport, Auckland (William Sanders)
  • Burwood East, Melbourne
  • River Road, Hamilton (Linda Jones)
  • Highton, Geelong
  • Lincoln Road, Auckland
  • Aberfeldie, Melbourne
  • Havelock North, Hawkes Bay
  • Hobsonville, Auckland

New villages in planning and design phase:

New Zealand


  • Riccarton Park, Christchurch
  • Ocean Grove, Victoria
  • Kohimarama, Auckland
  • Highett, Melbourne
  • Bishopspark/Park Terrace, Christchurch
  • Ringwood East, Melbourne
  • Newtown, Wellington
  • Mt Eliza, Victoria
  • Northwood, Christchurch
  • Mt Martha, Victoria
  • Karori, Wellington
  • Coburg, Melbourne

About Ryman:

Ryman Healthcare was founded in Christchurch in 1984 and owns and operates 48 retirement villages in New Zealand and Australia. Ryman villages are home to 14,200 residents, and the company employs 7,600 staff. 

For investor relations information and enquiries:

Contact Hayden Strickett, Head of Investor Relations - email: 

Share registrar:

Our share register is managed by Link Market Services. Please send a change of personal details or any questions about dividends to or phone +64 9 375 5998.

For media information or images:

Contact Silke Marsh, Corporate Affairs Manager, on 027 294 3609 (+64 27 294 3609) or email

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