New Zealand's largest listed retirement specialist, Ryman Healthcare, has pushed up reported after-tax profit by 23 per cent in the latest six months after its operating cash flows hit a record $157 million.
David Kerr, chairman, has just announced underlying profit up 6 per cent to $70.3 million in the September 30, 2015 half-year. Valuation gains lifted the reported profit after tax by 23 per cent to $132.6 million.
But the next half year could exceed that because residents will move into four new villages in the next six months.
The four new villages under construction are Petone opening late 2015; Birkenhead opening 2016; Pukekohe opening late 2015 and Rangiora opening 2016.
The company confirmed it was on track to achieve 15 per cent underlying profit growth for the full year.
"We've got more building activity going on than ever before which gives us great confidence about the second half," Kerr said.
More than 160 units were completed in the first half and with construction well advanced on the four new villages, the company is on track to complete 950 units and beds for the year.
"Our new villages are selling off the plans faster than ever before because we are building in areas where there is a real need," Kerr said. As well as those four villages about to open, the company has another four large scale projects awaiting consent.
They are: Greenlane where construction is expected to start early 2016, Devonport, Brandon Park in Melbourne and Tropicana in Auckland, all at consenting stage.
"The next four villages in the pipeline are all in high value locations in Melbourne and Auckland.
Two of the villages - Brandon Park in Melbourne and Tropicana in Auckland will, on completion, be home to more than 600 residents at each. The other two villages at Greenlane and Devonport are on iconic Auckland sites with great views of One Tree Hill and the city respectively," Kerr said.
A contract has been signed to buy a third site in Melbourne and confirmation of that deal is imminent.
The company is on target to open five villages in Melbourne by 2020 and to lift total resident numbers by 70 per cent to 15,500 in the same year.
Other new villages are planned but still at the design stage. They are Newtown in Wellington, River Rd in Hamilton, Site A in New Zealand and Site B in Melbourne, Ryman said.