Ryman Healthcare's Logan Campbell village on Campbell Rd, Greenlane, in Auckland. Photo / Michael Craig
Ryman Healthcare has reported new sales down 28% at only 73 new deals for the quarter to the end of June, yet CEO Naomi James says the situation is improving.
The company issued a statement to the NZX today, telling of the performance in the latest three months, which it calls Q1 FY26 because its financial year finishes on March 31.
It gave an update on the period between April 1 and June 30 this year, which contrasted sharply with rival Summerset Group, which this week revealed record sales for the same period.
Ryman’s total sales were 11% below the same period last year, with resales down 5%, performing better than new sales, which were down 28%.
Ryman sold 337 occupation rights agreements in the three months, including 73 new sales and 264 resales.
Sales figures reflect retirement village units only and exclude refundable accommodation deposits and occupational rights agreements on aged-care accommodation.
James said: “We have continued to see improving contracting and sales levels through the quarter as we rebuild sales momentum at a higher level of DMF [deferred management fee] compared to the past.”
Last year, Ryman ditched its 20% DMF. Now, new residents are offered either a 25% or 30% DMF, depending on how much they pay upfront for their licence to occupy.
The improved contracting momentum was in most regions, including Auckland, which had seen more challenging property market conditions recently, she noted.
“We still expect variability throughout the year given the flow-through impacts of softer contracting in the second half of last year and mixed market conditions.”
Occupancy rates of existing aged-care centres rose from 96% in Q4 FY25 to 96.2% in the latest quarter.
“Recently opened care centres continue to fill well, with average unoccupied beds at developing care centres reducing by 54 beds to 256 in Q1 FY26,” the company said.
The main building at Ryman’s Kevin Hickman in Riccarton is now open and welcomed its first residents early this month.
FY26 sales of occupation rights agreements are currently tracking towards the upper end of the previously guided 1100 to 1300.
Total FY25 sales were 1523.
One institutional investor took heart from today’s announcement. Historical sales drops were already priced in, he said.
“It’s the fact they are tracking at the top end of their financial year 2026 guidance that matters for investors.”
Meanwhile, Summerset Group issued a trading update this week, recording 402 sales for the quarter to June 30: 222 new sales and 180 resales.
CEO Scott Scoullar said that was the company’s most successful quarter for sales.
“We’ve seen continued high demand for our retirement living offering. It’s certainly not an easy sales environment for us, but we’re very happy with our progress so far this year.”
The result was also the company’s highest first-half total sales with 692, up 18% on 1H24.
More than 46.7% of sales were coming from outside Auckland, Wellington and Christchurch.
Summerset has forecast it will complete 650 to 730 homes, including the delivery of village centre buildings at Cambridge and Cranbourne North, in Australia, as well as the first villas at its Chirnside Park village in Australia.
Summerset now has a market capitalisation of $2.8 billion while Ryman’s has fallen to $2.4b. Summerset shares opened at $12 a piece today, while Ryman shares opened at $2.52.
Anne Gibson has been the Herald’s property editor for 25 years, written books and covered property extensively here and overseas.