Ryman Healthcare's recently opened Yvette Williams rest home in Roslyn, Dunedin. Photo by Craig Baxter.
Ryman Healthcare's vacancy rate of just 1% of its existing
3482 available units reflected its ability to post record
half-year profits of $48 million and record more than $100
Ryman has been a stellar performer for the stock exchange and
investors during the past year, with its share price gaining
more than 50% to beyond $4, while having delivered 10
consecutive record annual profits.
Forsyth Barr broker Peter Young said Ryman's vacancies
remained under 1%, or 33 units out of 3482, which was "a
major key performance and highlights they are doing a good
job delivering a product its residents want".
He highlighted Ryman had confirmed it was on track for
earlier full-year financial guidance of increasing its
underlying profit growth by 15%.
Craigs Investment partners broker, Peter McIntyre, said the
half-year provided a "strong result" and other positive news
was that the unrealised resale land bank has increased from
$170 million in March to $200 million at September,
reflecting strength in the property market.
"Ryman continued to invest heavily in aged care, with 226
care beds completed in the half being about 90% of its target
run rate, of 250 beds, for the full year," he said.
For the half-year to September, Ryman posted a 16% increase
in underlying profit of $48 million, with unrealised fair
value movements of $27.3 million pushing reported after-tax
profit up 15% to $68.8 million.
Total income from ordinary activities rose 17% to $147
million while operating cashflows rose from $91.6 million to
a record $109.4 million for the half.
Ryman, which increased its dividend 18% to 4.6c, saw its
shares go up 7c to $4.15 following the announcement
Mr McIntyre said the heavy investment in care facilities
during 2012 would "dampen" operating earnings in the second
half of 2013, because new care facilities lost money
initially, but should aid with margin expansion during
full-year 2014 as the rate of care bed development eased back
towards target levels of 250 annually.
Mr Young said the result was close to expectations with all
areas up strongly, including care revenues and management
fees up 17% and the fair value portfolio, up 15%.
"Ryman's development margins are a strong 24% and the resales
margins a solid 17%," he said.
Total sales of occupation rights were 447 units, of 235
resold and 212 new, against Forsyth Barr's forecast of 418
units, of 214 resold/204 new, but averaging pricing "looks to
be slightly below our forecasts".
• More than 6500 residents in 25 villages nationwide.
• Existing facilities: 3482 village units and 2400 care beds;
• To be developed: 1802 village units and 493 care beds;
• Targeted build rate: 700 units/care beds a year.
• Villages planned: Waikanae, Howick, Melbourne (Aust) and