MEDIA RELEASE, 18 November, 2022
Ryman reports unaudited first half underlying profit of $138.8 million, up 44.8%; announces introduction of dividend reinvestment plan.
Ryman Group results for six months to 30 September 2022
- Unaudited underlying profit of $138.8 million, up 44.8% on the same period last year, driven by strong resale margins
- Unaudited reported (IFRS) profit decreased 31.1% to $194.0 million due to lower unrealised revaluation gains of investment property
- Interim dividend of 8.8 cents per share (unchanged from last year), representing 31.7% of underlying profit, and eligible for the dividend reinvestment plan
- Total assets of $12.03 billion, up 9.7% from $10.97 billion as at 31 March 2022
- Cash receipts from residents of $714.7 million, up 5.0% on the first half last year
- Booked sales of occupation rights up 9.8% driven by strong growth in Australia
- Resales stock remains low at 1.7% despite softening housing market conditions
- Resilient aged care occupancy of 94% for our mature villages, notwithstanding the re-emergence of COVID through the winter months
Ryman Healthcare has reported an unaudited first half underlying profit of $138.8 million, up 44.8% on the same period last year, driven by strong resales margins as well as continued strong growth in its Australian business.
Unaudited (IFRS) profit decreased 31.1% to $194.0 million, reflecting lower unrealised fair value gains on investment property.
Shareholders will receive an interim dividend of 8.8 cents per share, unchanged from last year, representing 31.7% of underlying profit. The record date for entitlements is December 9, and the dividend will be paid on December 16, 2022.
As part of today’s announcement, Group CEO Richard Umbers advised that the Board of Directors has approved the establishment of a dividend reinvestment plan, which will apply to the interim dividend.
“This reflects feedback from our shareholders and provides us with more flexibility to manage our balance sheet as part of our ongoing capital management,” said Mr Umbers.
“We are currently in a rapidly changing and uncertain macro-economic environment in both our markets, and the Board and management are mindful of the impact this is having on our business. We are therefore closely monitoring our cashflows and capital management.”
Participation in the dividend reinvestment plan is optional and investors can choose to reinvest their dividends into Ryman shares or continue receiving a cash dividend. An offer document and details on how to participate will be provided to shareholders in the coming days.
In reflecting on the result, Mr Umbers said that it demonstrated Ryman was now an established trans-Tasman business, with a compelling proposition in both New Zealand and Australia.
He highlighted the increase in booked sales of occupation rights, which were up 9.8% on the first half of last year.
Ryman’s development programme continues to progress, with work under way on 10 sites in New Zealand and another five in Australia.
First half development highlights included commencing construction in Cambridge, New Zealand, and in Australia receiving planning approval for the Mulgrave site and completing the Charles Brownlow and Raelene Boyle villages.
Mr Umbers reflected on the recent investor day and village tour, held in Auckland last month.
“At our recent investor day, I was pleased to present a number of initiatives already under way that are improving the performance of our business, and while this is a good result for the half, we want to do better. I am confident that we have the strategy, the team, and the ability to deliver and we look forward to expanding this programme of work.”
Chairman Greg Campbell commented, “in a year characterised by increasing uncertainty this is a pleasing result which gives us confidence as we face into some continuing and new market headwinds, including a cost inflationary environment, a challenging property market and an underfunded aged care sector.”
Mr Campbell also advised that after ten years on Ryman’s Board, George Savvides would be retiring at the next annual meeting of shareholders in July 2023.
“I want to take this opportunity to thank George for his contribution to Ryman since he joined the board in 2013. As our first Australian-based director his input has been invaluable in supporting our growth in the Australian market," he said.
15 villages currently in construction as at November 19, 2021:
Lynfield, Auckland (Murray Halberg)
Devonport, Auckland (William Sanders)
River Rd, Hamilton (Linda Jones)
Lincoln Rd, Auckland (Miriam Corban)
Havelock North, Hawkes Bay (James Wattie)
Hobsonville, Auckland (Keith Park)
Riccarton Park, Christchurch (Kevin Hickman)
Brandon Park, Melbourne (Nellie Melba)
Burwood East, Melbourne (John Flynn)
Highton, Geelong, Victoria (Charles Brownlow)
Ocean Grove, Victoria (Deborah Cheetham)
Highett, Melbourne (Bert Newton)
Ringwood East, Melbourne
Sites in the land bank:
Park Terrace, Christchurch
Mt Eliza, Victoria
Coburg North, Melbourne
About Ryman: Ryman Healthcare was founded in Christchurch in 1984 and owns and operates 45 retirement villages in New Zealand and Australia. Ryman villages are home to 13,900 residents, and the company employs 6,800 staff.
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