Ryman, which operates the Frances Hodgkins Retirement Village and the Glamis Private Hospital, in Dunedin, reported a profit before tax of $40.6 million, up 11% on the $36.5 million reported in the previous corresponding period.
Total income was up 12% at $85.1 million and profit after tax was up 10% at $38.4 million.
Earnings per share were up 10% at 7.7c and the interim dividend was 2.7c, up 12%.
The official Ryman release to the NZX reported that Ryman posted a "realised profit" of $29 million for the six months.
Forsyth Barr broker Tony Conroy said the realised profit was a normalised reported profit that excluded deferred tax charges and adjusted for unrealised fair value changes - similar to what Forsyth Barr did for listed property vehicles.
Ryman had confirmed it was on target to record 12%-plus growth for the second half of the year.
"We also expect our valuation to increase on the back of a stronger outlook for the existing portfolio.
"However, our buy recommendation is under review given its recent share price strength," he said.
Ryman chairman David Kerr said the company was "very pleased" with the first-half performance.
"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 villages continued unabated and Ryman was on track to complete the stated target of 300 retirement village units and 150 aged-care beds for the year.
All of that development was being funded out of operating cash flows, Dr Kerr said.
Resource consent had been granted for the new Dunedin village and building work would start soon.
The company was considering several other new sites.
Ryman owned 21 villages nationwide and planned to open two villages each year, he said.
Mr Conroy said Ryman had a sound balance sheet and could internally fund its development programme, while at the same time continuing to generate strong cash flows.
The operating cash flow was up 30% at $79.2 million.
"Its business was not adversely impacted by the recession in New Zealand, with consistently strong demand for its product through this period," he said.
