Ryman's profit boosted by property valuations

By ALAN WOOD The Press | Monday, 23 Nov 2009

Ryman Healthcare has posted a record interim profit, helped by unrealised property valuation increases.

The listed retirement village business reported a net profit of $38.45 million up from the $35.11 million reported for the prior corresponding September 30 half-year.

The interim dividend has been raised from 2.4 cents a share to 2.7c a share. It will be paid on December 11.

Operating cashflows were up 30 percent to $79 million for the six months to September 30, as a result of the strong demand for the retirement village units, the company said.

"We are very pleased with the first half performance and we expect to match this result in the second half in terms of realised profits," Ryman chairman David Kerr said.

"Our occupancy across the board is at all time highs and the recurring earnings from our completed villages are just getting stronger."

The building of new villages continued with significant investment during the half in the two new large scale villages in Whangarei and Orewa, both of which would be operational in the second half, he said.

"We are currently building across five sites and are on track to complete our stated target of 300 retirement village units and 150 aged care beds for the year," he said.

The development activity was being funded out of operating cashflows.

Resource consent has been granted for the new Dunedin village and building works would commence shortly. The company was actively considering a number of new site opportunities.

Ryman currently owns 21 villages nationwide and plans to open two new villages each year. The villages are all designed, built and operated by Ryman.