Ryman Healthcare cuts net profit in half, 12.1% of its retirement village units empty

It’s not the only such company facing a high number of vacancies. Oceania Healthcare revealed last Friday that 69 per cent of its $150 million investment in Helier Village, east of Auckland, was vacant.

Ryman’s total revenue increased 10% from $333.6 million to $366.3 million in the last six months.

Dean Hamilton, Executive Chairman of Ryman Healthcare. Photo / Michael Craig

The company blamed the halving of profit on its lower operating profit.

Ryman’s new CEO is Naomi James, who runs the company with 49 villages, including nine new ones under construction.

Ryman has 9,575 retirement village units which house 15,085 residents: 12,921 in this country and 2,164 in Australia.

The company employs 7,727 people and has been in business for 40 years.

The debt-to-equity ratio stands at 37% and Ryman said it has met all loan covenants and obligations. Its total debt is $3 billion.

He owns land earmarked for development valued at $466.4 million.

The company said the 10% increase in revenue was due to increased care costs and village fees following the opening of a new village and the expansion of others.

Occupancy rights sales increased 5% to 827 in 1H25.

Ryman said this was the strongest six-month period in the last three financial years, “demonstrating that demand for Ryman products remains strong. Although we maintained our prices in a difficult market, this resulted in compressed resale margins per unit.”

The company sold 827 occupancy rights contracts in 1H25, generating $651.4 million, up 5% from 1H24.

But it’s not primarily new properties being sold that are driving this growth.

“This was mainly driven by a robust resale period, up 9% thanks to strong move-ins for serviced apartments, and a stable period for independent units,” he said.

Precinct Properties Managing Director Scott Pritchard joined the Ryman Board of Directors on November 1.

Several development milestones were achieved during 1H25, Ryman said, including:

Three main buildings were completed and the first residents cared for were welcomed at Miriam Corban in Henderson, Keith Park in Hobsonville and James Wattie Villages in Havelock North;
Ryman opened the new Hubert Opperman Village in Mulgrave, Melbourne, in August;

Shares were as high as $6.99 last July, but were trading at $5.02 yesterday, down 4% year over year. The company has a market capitalization of $3.4 billion.

Anne Gibson was the HeraldA real estate editor for 24 years, he wrote books and covered real estate extensively here and abroad.