HALFYR: RYM: Ryman unaudited first half underlying profit $103m, up 6.2% 08:30a.m. 
21/11/2019 08:30  
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%  
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  
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  
"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  
"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  
Contacts: For media information or images contact David King, Corporate  
Affairs Manager, on 021 499 602 (+64 21 499 602) or email  
For investor relations information contact Michelle Perkins, Investor  
Relations Manager, on 027 222 9684 (+64 27 222 9684) or email  
End CA:00344626 For:RYM Type:HALFYR Time:2019-11-21 08:30:37  

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