Ryman Healthcare''s full year underlying profit up 13% to $178 million.
Consent received for three new villages with a value of more than $1 billion.
Ryman Healthcare''s underlying profit rose 13% to $178 million during the
year, while valuation gains lifted audited reported profit after tax by 17%
to $357 million. Total assets grew 24% to $4.9 billion.
Ryman''s shareholders will receive a final dividend of 9.3 cents per share,
which will be paid on June 23, with the record date for entitlements on June
9. This takes the total dividend for the year to 17.8 cents, up 13% in line
with the increase in underlying profit.
Chairman Dr David Kerr said strong gains from the resale of occupancy rights
had driven the result, and Ryman had invested a record $525 million to meet
the demands of a growing older population.
"We''ve made good progress thanks to growing resident demand for our unique
Ryman-style villages and a strong real estate market."
Dr Kerr said it was a satisfactory result given that four new villages were
in the establishment phase during the year, and there was no development
contribution from Melbourne.
Ryman has recently received consent to build three large new villages.
Together, the villages at Brandon Park in Melbourne and Devonport and
Tropicana in Auckland will have an asset value of more than $1 billion on
completion.
"They''re outstanding sites, we are delighted to have received consent for
them and we already have strong interest in all three from residents wanting
to move in," Dr Kerr said.
During the year Ryman increased its land bank by more than 30%, and now has
13 new villages in the pipeline in Australia and New Zealand.
As well as investment in building new villages and lifting the land bank,
Ryman had invested in upgrading existing villages, IT systems, leadership
training, and innovation - all to improve the resident experience and prepare
for the next phase of growth.
"All of this investment puts us ahead of the curve as we head into decades of
unprecedented increases to the number of people aged over 75."
Ryman''s established villages ended the year with care centre occupancy at
97%, and only 32 of the 6,000 units in its portfolio of town houses,
apartments and serviced apartments were available.
"We are confident demand for our villages will continue to grow," Dr Kerr
said. "Our villages meet a real and growing need in the community, and remain
affordable for residents to move in and free up capital."
"Our target is to open five villages in Melbourne by 2020. In the
medium-term our goal is to be opening four new villages a year - two in New
Zealand and two in Melbourne."
Ryman has delivered 15 consecutive years of underlying profit and dividend
growth. Dr Kerr said Ryman''s medium-term target remains to grow underlying
profits and dividends by 15% a year, which means the company doubles profits
and dividends every five years.
Existing villages under construction:
Bob Scott, Petone: Village and care centre open, final stages under way.
Possum Bourne, Pukekohe: Village and care centre open, final stages under
way.
Charles Upham, Rangiora: Village complete, extension planned.
Bert Sutcliffe, Birkenhead: Village and care centre open, remaining stages
under way.
New villages under construction:
Greenlane, Auckland: Construction continuing, first residents expected late
2017.
Brandon Park, Melbourne: Site works under way.
New villages consented:
Devonport, Auckland: Mediation successful, consent pending.
Tropicana, Auckland: Consent received, work about to begin.
New villages in design/consenting phase:
Burwood East, Melbourne.
Coburg, Melbourne.
River Rd, Hamilton.
Mt Eliza, Victoria.
Highton, Geelong.
Hobsonville, Auckland.
Newtown, Wellington.
Site A, New Zealand.
Site B, New Zealand.
For further information, photos, interviews or comment please contact
Corporate Affairs Manager David King on 03 366 4069 or 021 499 602
david.king@rymanhealthcare.com
CONSOLIDATED OPERATING STATEMENT FOR THE YEAR ENDED 31 MARCH 2017
Audited.
Current Year NZ$; Up/(Down) %; Previous Corresponding Year NZ$
UNDERLYING PROFIT:
178,268,000; + 13.0%; 157,713,000
OPERATING REVENUE:
Trading Revenue:
288,835,000; + 10.8%; 260,774,000
Other Revenue
355,000; 19.9%; 296,000
Total Operating Revenue
289,190,000; + 10.8%; 261,070,000
Fair value movement of investment properties:
324,966,000; + 18.3%; 274,627,000
TOTAL INCOME:
614,156,000; + 14.6%; 535,697,000
NET PROFIT BEFORE TAXATION:
362,989,000; + 17.3%; 309,331,000
Less tax on operating profit:
6,295,000; 61.1%; 3,908,000
NET PROFIT ATTRIBUTABLE TO SHAREHOLDERS OF LISTED ISSUER:
356,694,000; + 16.8%; 305,423,000
Earnings per share:
71.3 cps; + 16.8%; 61.1 cps (basic and diluted)
Final Dividend
9.3 cps; + 9.4%; 8.5 cps
Record Date: 9 June 2017
Date Payable: 23 June 2017
Imputation Tax Credit: No Imputation Credit
End CA:00301389 For:RYM Type:FLLYR Time:2017-05-19 08:30:05