New Zealand once again demonstrates that retirement villages are in high demand when the community understands the value proposition.
Ryman Healthcare has just announced its half year underlying profit of $NZ$103M from 34 NZ villages and two operational villages in Australia. They forecast between $250M and $265M for the full year.
This equates to the equivalent of $6-7M per village per year.
The value proposition is that they will support residents with care through to the end of their days.
The result is they have only 1.6% of their village units vacant and not sold.
The aged care homes have 97% occupancy.
Total assets are $7.26 billion. This compares with Aveo with 93 villages and care locations being valued at $6.6 billion.
The New Zealand retirement village sector has invested heavily in establishing its ‘social licence’ with government and the community; this is the objective of the new Code of Conduct.