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HALFYR: RYM: Ryman unaudited first half underlying profit $103m, up 6.2% 08:30am 
RYM
21/11/2019 08:30
HALFYR
PRICE SENSITIVE
REL: 0830 HRS Ryman Healthcare Limited

HALFYR: RYM: Ryman unaudited first half underlying profit $103m, up 6.2%

Ryman reports unaudited first half underlying profit of $103 million, up 6.2%

Highlights:

o Unaudited underlying profit $103 million, up 6.2%, driven by resales
o Reported (IFRS) profit increased 11.1% to $188.3 million
o Interim dividend lifted to 11.5 cents per share, in line with underlying
profit growth
o Full year underlying profit expected to be between $250 million and $265
million (between +10% and +17%)
o Operating cashflows up 17.6% to $256.1 million
o Total assets $7.26 billion, up 17.4% on September last year
o New sites in Highett in Victoria and Northwood in Christchurch
o Record activity in Victoria, target remains to have 5 villages open by the
end of 2020
o Increased investment in resident experience, team development and safety
o Continued strong demand with 97% occupancy at established care centres
o Only 1.6% of resale stock unsold at the end of September

Ryman Healthcare's unaudited first half underlying profit rose 6.2% to $103
million, driven by record resales volumes. As previously signalled, the
second half is expected to be stronger as the build programme lifts, and full
year underlying profits are expected to range from $250 million to $265
million.

Reported (IFRS) profit, which includes unrealised fair value gains on
investment property, increased 11.1% to $188.3 million.

Shareholders will receive an increased interim dividend of 11.5 cents per
share in line with the increase in underlying profit. The record date for
entitlements is December 6, and the dividend will be paid on December 13.

Cash generation was strong in the half, with operating cashflows up 17.6% to
$256.1 million. Total assets were $7.26 billion, up 17.4% on last year,
reflecting the value created by ongoing development and strong demand.

Full year profits are expected to lift in line with growth in the build
programme, and construction is targeted to be under way at 12 sites by March
2020, up from eight a year ago.

Chief Executive Gordon MacLeod said: "We have significantly lifted our land
bank over the past three years to match our growth aspirations in New Zealand
and Victoria.

"We are now moving into our biggest ever build programme on stunning sites,
which is exciting for the team and our next generation of residents."

Chairman Dr David Kerr said Ryman's unique integrated villages and
high-quality care continued to be in strong demand, with care occupancy in
established villages running at 97%. Only 1.6% of the retirement village
portfolio was available for resale at September 30.

Ryman's New Zealand resales volumes grew 11.3%, while volumes in the wider
real estate market declined 15%, which demonstrated the continued appeal of
Ryman villages.

"The first half result has been achieved against a background of tough market
conditions in Melbourne and Auckland, so we are satisfied with what has been
achieved," Dr Kerr said.

Mr MacLeod said the focus continued to be on delivering new villages,
innovating to improve the experience of living and working in a Ryman
community, and making sure everyone got home safe each day.

Ryman acquired two new sites - Highett in Victoria and Northwood in
Christchurch - during the first half taking the land bank to 7,074 units and
beds.

"The 22 sites in our land bank, 10 of which already have development under
way, represent the equivalent of 66% of our existing portfolio. On
development of the existing land bank over the coming years Ryman expects to
be providing homes and care for more than 20,000 people."

Ryman is targeting a build rate of 900 units and beds this year, up from 757
in the 2019 financial year. The build rate is lifting to meet Ryman's
financial aspirations of doubling underlying profit every five years and to
create a tail of growing earnings.

A highlight of the half was the progress in Victoria, Mr MacLeod said.

"The team exchanged a record 260 new sales, resales and care contracts in the
first half in Victoria. We are interacting with more people than ever and
there is no doubt our brand awareness is growing."

We have recently submitted our tenth development application in Victoria.
Five development approvals have been granted already, and Ryman continues to
target having five villages open by the end of 2020 calendar year.

"As well as a record amount of construction activity, we have a whole lot of
innovations feeding through that will make life in a Ryman village better
than ever for our residents,'' Mr MacLeod said.

"We have had great feedback from our residents and their families in our
recent surveys, and we continue to strive to get even better."

The Ryman operations team would continue to rollout a revamp of dementia care
called myRyman Life, and the trial of its new Ryman Delight entertainment and
wellbeing programme for residents continued.

Dr Kerr announced the board had been further strengthened with the
appointment of Melbourne-based director Paula Jeffs. Paula is a human
resources executive with experience across healthcare, finance and government
sectors.

"We're a high growth business and we know that finding and developing the
right sort of people is critical to our success," Dr Kerr said.

"Paula brings great insight into people and talent, and I am sure she will be
a great contributor. We have got a wealth of talent and an excellent mix of
skills and diverse views on the board which will see us into the future."

Dr Kerr said Ryman had now invested $4 billion in building communities and
returned $860 million in dividends since listing in 1999.

"We are moving into a record expansion phase in the next 18 months, but it is
not growth for growth's sake. Our growth reflects the fact that we want to
build as many communities as we can so that more people can benefit from the
Ryman experience."

Ten new villages currently under way:

Brandon Park, Melbourne (Nellie Melba)
Lynfield, Auckland (Murray Halberg)
Devonport, Auckland (William Sanders)
River Road, Hamilton (Linda Jones)
Burwood East, Melbourne
Lincoln Road, Auckland
Havelock North, Hawkes Bay
Hobsonville, Auckland
Highton, Geelong
Aberfeldie, Melbourne

New villages in planning and design phase:

Riccarton Park, Christchurch
Ocean Grove, Victoria
Kohimarama, Auckland
Highett, Melbourne
Bishopspark/Park Terrace, Christchurch
Ringwood East, Melbourne
Newtown, Wellington
Mt Eliza, Victoria
Northwood, Christchurch
Mt Martha, Victoria
Karori, Wellington
Coburg, Melbourne

About Ryman: Ryman Healthcare was founded in Christchurch in 1984 and owns
and operates 36 retirement villages in New Zealand and Australia. Ryman
villages are home to 11,400 residents, and the company employs over 5,700
staff.

Contacts: For media information or images contact David King, Corporate
Affairs Manager, on 021 499 602 (+64 21 499 602) or email
david.king@rymanhealthcare.com

For investor relations information contact Michelle Perkins, Investor
Relations Manager, on 027 222 9684 (+64 27 222 9684) or email
michelle.perkins@rymanhealthcare.com
End CA:00344626 For:RYM Type:HALFYR Time:2019-11-21 08:30:37

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