Retirement village operator Ryman Healthcare's bottom line profit is up by a third with continued demand driving valuation gains.
The Anthony Wilding Retirement Village in Christchurch is part of the Ryman stable. Photo: Ryman Healthcare
Key numbers for six months ended September vs year ago
- Net profit $281.5m vs $212.4m
- Underlying profit $95.9m vs $88.4m
- Revenue $247.9m vs $222.1m
- Revaluation gains $178.7m vs $124.1m
- Total assets $9.85b vs $8.34b
- Dividends of 8.8 cents per share, unchanged
Group chief executive Richard Umbers said the Delta strain of Covid-19 had resulted in lengthy lockdowns in Melbourne and Auckland during the first half.
Sales rose 48 percent to $510 million during the first half.
"When you consider the extent of the lockdowns in Auckland and Melbourne, which are our biggest markets, sales have been remarkably resilient,'' Umbers said.
Only 1.2 percent of the retirement village portfolio was available for resale at 30 September.
Umber said construction had begun on three new sites over the period, bringing the total villages under construction to 15.
"We expect to see pent-up demand come through in the market as restrictions lift in the next few months and we are cautiously optimistic about the months ahead."
Chair David Kerr said the board had adjusted the dividend policy from 50 percent of underlying profit to a 30 percent to 50 percent range, in order to retain more cash in the business.
"We have strong long-term growth plans and this change will enhance our ability to continue to deliver the Ryman experience to more communities,'' Kerr said.