25 May 2019

Ryman Healthcare posts $326m profit for year

10:55 pm on 25 May 2019

Ryman Healthcare says it has had a solid year, despite challenging market conditions and flat sales.

Elderly man. Walking frame. Retirement home.

Ryman Healthcare posted a full year net profit of $326m, down 16 percent on the year before. Photo: 123RF

The retirement village operator's full year net profit fell 16 percent to $326 million in the year to March, which included a valuation gain of $102.4m, versus $185.3m the year earlier.

Revenue rose nearly 12 percent to $382.3m, with strong development margins, particularly from Ryman's second village in Melbourne.

The underlying profit, which Ryman used as a measure of its performance rose 11.5 percent ot $227m, and matched an increase in the full year dividend to 22.7 cents a share.

The company said there was continued strong demand for villages with only 1 percent of resale stock unsold at year end and 97 percent occupancy at established care centres.

"We ended the year with our busiest March on record, and we are expecting that momentum to continue in the coming year,'' chief executive Gordon MacLeod said.

Ryman had secured a 10th development site in Victoria and was on target to open five villages there by the end of next year.

It invested $552m in new and existing villages during the year.

Its landbank rose by 18 percent over the year, with more than 7,000 beds and units at 20 villages under development or in the planning stage.

Net assets were $2.2 billion, up from $1.9b a year ago.

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