Retirement village operator Ryman Healthcare has booked a record full-year $72.6 million after-tax profit - up 22% on last year's result - with its assets around the country topping $1 billion for the first time.
Ryman operates 18 villages around the country, made up of 1986 retirement units and 1394 care beds, with a further four villages at present under design or construction, including a proposal for a Dunedin facility.
Ryman, which listed nine years ago, announced a 25% dividend increase to shareholders yesterday, with the final dividend payout of 2.8c per share.
ABN Amro Craigs broker Peter McIntyre said the result reflected a strong business model for Ryman operations and, despite a general economic and housing downturn, looked positive for the future, with strong demand from the demographic Ryman catered to.
"They are a unique niche with [retirees] making more of a lifestyle choice.
"So long as the upper end wealth holds up, we don't see any signifi-cant problems ahead," Mr McIntyre said yesterday.
Ryman chairman Dr David Kerr said in a statement yesterday the company had "again delivered on our build programme in what has been a very challenging environment".
Despite the slowdown in the residential property market during the past year, Ryman remained committed to its long-term growth targets.
"We have already adapted and we are well-positioned for further growth.
"Our land bank is in great shape, we have a unique village model and there is a burgeoning need for our services," Dr Kerr said.
He cited Statistics New Zealand data, saying the number of New Zealanders aged over 85 was set to balloon.
During the next five years, that age group was projected to increase 26% and, by 2031, their numbers would have increased almost threefold.
