Ryman Healthcare to keep six development sites as sell-off continues
The operator, which manages 49 integrated retirement villages and aged care facilities across Australia and New Zealand, is being forced to sell down land assets.
Ryman Healthcare wants to raise at least NZ$200 million through sales of land from its land bank as part of its new capital management framework, announced at its Investor Day on Tuesday, 3 February.
The operator has already banked NZ$110 million from recent land sales, including the $35 million sale of its Moondah Estate site on Victoria’s Mornington Peninsula to Village Glen founder Chas Jacobsen late last year.
Ryman held a NZ$1 billion equity raise in February last year, following a refinancing of its NZ$2 billion in bank facilities in November 2024. The group had NZ$1.65 billion in net debt as of 30 September last year, down NZ$14.1 million from six months ago.
Five more sites potentially up for sale
At the Investor Day, it was revealed that a further five sites have now been identified for potential sale: one in Melbourne and four in New Zealand.
Ryman’s new capital management framework was also unveiled, along with a refreshed strategy, and a dividend policy that aimed to restart payments to shareholders in 2028.
The strategy would target a sustainable cash flow improvement of NZ$150 million by the 2029 financial year, driven by rising occupancy in its villages and care facilities, resetting pricing, and cost efficiencies, the company said.
The group is also seeking a NZ$500 million cash release by the 2029 year, supported by improved resales, unlocking value from new and paid-out resale stock, and at least NZ$200 million from the land sales.
2,500 new units and beds identified
Ryman would prioritise the most attractive expansion opportunities from the 2027 financial year, including 2,500 identified units and beds across uncommitted developments, and potential brownfield expansion around existing villages.
Ryman Healthcare Chief Executive Officer Naomi James said the company would retain six quality sites for potential development.
Australia was currently more attractive for greenfield development, with aged care reforms complete and a lower proportion of older adults living in retirement villages compared with New Zealand, she added.
