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Ryman Delivers 16% Profit GrowthRyman Healthcare

Leading retirement village and resthome operator Ryman Healthcare today announced a realised profit of $61 million for the year, up 16% on last year and a new record for the company. Unrealised valuation gains lifted the reported profit to $78 million, up 19% on the previous year.

Ryman shareholders will receive a 16% increase in their annual dividend. The final dividend of 3.4 cents per share will be paid on June 25, and the record date for entitlements is June 11.

Operating cashflows were up 31% to $149 million for the year, which allowed the company to reinvest $120 million in new facilities without increasing debt.

“This is a great result. We are particularly pleased to have been able to achieve strong growth in earnings from our completed villages,” said chairman Dr David Kerr, “and to be able to continue to fund the building of our new villages out of operating cashflows.”

New villages were successfully opened in New Plymouth, Whangarei and Orewa during the year, and work has commenced on new villages in Dunedin and Gisborne.

Over the past four years the company has consistently built close to 450 new units/rooms per annum, and now has a portfolio of over 4200 units/rooms.

“We have delivered on our growth plans in the face of a weak economy, a weak property market and weak capital markets,” said Dr Kerr. “This is no mean feat. It shows that we are meeting a very real need in the community, and it highlights the company’s remarkable resilience to economic cycles.”

The company is currently building at seven villages, has increased its landbank to 1900 units/rooms, and is well placed to continue at its current build rate for the foreseeable future.

Statistics NZ estimates the number of New Zealanders aged 75 plus will more than double from 250,000 to 516,000 over the next twenty years. Ryman is well positioned to cater for the accommodation and care needs of this rapidly growing group.

“Our reputation is growing, and we know that if we remain focussed on delivering good service to our residents and their families then we will be rewarded,” said Dr Kerr. “We are seeking to grow at the rate of 450 units/rooms per annum, to meet the needs of an elderly population which is increasing at the rate of 12,000 people per annum for the next twenty years.”

Ryman currently owns 21 villages nationwide, and plans to open two new villages every year. The villages are all designed, built and operated by Ryman. Since listing in 1999 the company has increased profits and dividends ten-fold without seeking any fresh capital from shareholders. The company is a six times winner of Best Retirement Village in New Zealand, serves over 4500 elderly New Zealanders, and employs over 2000 staff.

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