Ryman posts record half-year result

Ryman Healthcare chief executive Simon Challies says planned villages will free up 2500 Auckland homes. Photo / Natalie Slade

New Zealand's biggest listed retirement business, Ryman Healthcare, has just declared a record result, pushing up after-tax profit from $78.4 million to $107.9 million.

The business reported underlying profit of $66.3 million for the September 2014 half-year, up from $58.5 million in the September 2013 half-year.

Ryman sold 545 occupation right agreements for $220.6 million in the half-year, up on last year's sale of 472 agreements for $174.5 million.

David Kerr, chairman, said the result was driven by a lift in pricing and strong sales volumes as the village portfolio grew.

The Christchurch-headquartered company built a record 450 beds and units in the first half and the company's total assets had now passed the $3 billion mark, double the size of the asset base four years ago, it said.

"We've made significant progress in the first six months and we're on target to achieve our medium term target of growing underlying profits by 15% for the full year," Kerr said.

The first stages of Ryman's new village in Howick opened and work will begin soon on a new village at Birkenhead. Detailed planning and design work is being carried out on new villages at Pukekohe, Greenlane, Lynfield and Devonport, the business announced.

Construction is also well under way at Ryman's new village in Petone which will open in mid-2015.

Auckland is tagged for the biggest expansion, with more than $800 million worth of work to be carried out over the next five years, Kerr said.

Ryman's drive into Australia is ahead of projections.

"We opened our first village in Melbourne and bought a second site village at Brandon Park. Sales at our first village exceeded our expectations and that's given us the confidence to plan for more expansion. We're looking for more sites in Melbourne," Kerr said.

More than 8000 people now live in Ryman villages and the company's landbank has the potential for a further 4000 new units and hospital beds to be developed.

Read Ryman's half year result briefing here: