RYMAN HEALTHCARE LIMITED MEDIA RELEASE November 18, 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.
Fifteen new villages currently under construction
New Zealand (10) | Australia (5) | |
Lynfield, Auckland (Murray Halberg) | Brandon Park, Melbourne (Nellie Melba) | |
Devonport, Auckland (William Sanders) | Burwood East, Melbourne (John Flynn) | |
River Rd, Hamilton (Linda Jones) | Ocean Grove, Victoria (Deborah Cheetham) | |
Lincoln Rd, Auckland (Miriam Corban) | Highett, Melbourne (Bert Newton) | |
Havelock North, Hawkes Bay (James Wattie) | Ringwood East, Melbourne | |
Hobsonville, Auckland (Keith Park) | ||
Riccarton Park, Christchurch (Kevin Hickman) | ||
Northwood, Christchurch | ||
Takapuna, Auckland | ||
Cambridge, Waikato | ||
Twelve sites in the land bank | ||
New Zealand (7) | Australia (5) | |
Kohimarama, Auckland | Mt Eliza, Victoria | |
Park Terrace, Christchurch | Essendon, Melbourne | |
Karori, Wellington | Coburg North, Melbourne | |
Newtown, Wellington | Kealba, Melbourne | |
Karaka, Auckland | Mulgrave, Melbourne | |
Rolleston, Canterbury | ||
Taupō, Waikato | ||
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.
Contacts:
For investor relations information contact Hayden Strickett, Head of Investor Relations, on 027 303 1132 (+64 27 303 1132) or email hayden.strickett@rymanhealthcare.com
For media information or images contact John Redwood (GRC Partners), on 021 2509 657 (+64 21 2509 657) or email mediacontact@rymanhealthcare.com
RYMAN HEALTHCARE LIMITED
KEY STATISTICS
Underlying profit (non-GAAP)1 | $m |
Unrealised fair-value movement on | |
retirement-village units | $m |
Deferred tax movement | $m |
Impairment loss | $m |
Reported net profit after tax | $m |
Net operating cash flows | $m |
Earnings per share - basic and diluted | cents |
Dividend per share | cents |
Net tangible assets - basic and diluted | cents |
Sales of Occupation Right Agreements | |
New sales of occupation rights | no. |
Resales of occupation rights | no. |
Total sales of occupation rights | no. |
New sales of occupation rights | $m |
Resales of occupation rights | $m |
Total sales of occupation rights | $m |
Portfolio: | |
Aged-care beds | no. |
Retirement-village units | no. |
Total units and beds | no. |
Land bank (to be developed) 2 | |
Aged-care beds | no. |
Retirement-village units | no. |
Total units and beds | no. |
Sept 22 | Sept 21 | Mar 22 |
Half Year | Half Year | Full Year |
Unaudited | Unaudited | Audited |
138.8 | 95.9 | 255.0 |
89.3 | 178.7 | 467.1 |
(23.3) | 6.9 | (29.2) |
(10.8) | - | - |
194.0 | 281.5 | 692.9 |
243.7 | 301.1 | 586.0 |
38.8 | 56.3 | 138.6 |
8.8 | 8.8 | 22.4 |
713.5 | 596.0 | 676.6 |
216 | 189 | 560 |
556 | 514 | 983 |
772 | 703 | 1,543 |
188.0 | 137.7 | 455.9 |
394.7 | 311.1 | 623.9 |
582.6 | 448.8 | 1,079.8 |
4,299 | 4,165 | 4,239 |
8,667 | 8,195 | 8,538 |
12,966 | 12,360 | 12,777 |
1,623 | 1,575 | 1,635 |
5,087 | 4,555 | 4,671 |
6,710 | 6,130 | 6,306 |
_________________________________
1. Underlying profit is a non-GAAP* measure and differs from NZ IFRS profit for the period. Underlying profit does not have a standardised meaning prescribed by GAAP and so may not be comparable to similar financial information presented by other entities.
The Group uses underlying profit, with other measures, to measure performance. Underlying profit is a measure that the Group uses consistently across reporting periods.
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Ryman Healthcare Ltd. published this content on 17 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2022 22:38:03 UTC.
