18 Nov 2016

Demand, property prices boost Ryman's profits

1:31 pm on 18 November 2016

New Zealand's biggest retirement village operator, Ryman Healthcare, has reported a 9 percent rise in its underlying first-half profit on improved sales.

The Retirement Commissioner is still pushing for the eligibility age to rise.

The Retirement Commissioner is still pushing for the eligibility age to rise. Photo: AFP

The company's underlying profit for the six months ended September was $76.5 million compared with $70.3m a year earlier.

Revenue was up nearly 10 percent to just under $139m, which was driven by the resale of occupancy rights to its units as strong demand pushed its occupancy rate to 97 percent.

"The four new villages we opened this year are rapidly expanding to meet that demand, and are on track to be completed within the next 12-18 months," said chairman David Kerr.

Ryman's bottom-line profit, which includes gains in the value of its properties, was up more than 40 percent to $187m.

It held its forecast full-year underlying profit at between $175m to $185m.

The interim dividend was increased to 8.5 cents a share.

"For shareholders, our medium-term target remains to grow our underlying profit and dividends by 15 percent per annum - doubling the company's profits every five years," Dr Kerr said.

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