Ryman lifts its full year underlying profits to $178M, up 13%

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The NZ operator has boosted its audited reported profit after tax, including valuation increases of 17%, to $357M, with the value of its 31 villages growing 24% to $4.9B. This values each village at $158M.

Chairman Dr David Kerr says: “Our target is to open five villages in Melbourne by 2020,” he said. “In the medium-term our goal is to be opening four new villages a year – two in New Zealand and two in Melbourne.”

They have invested a record $525M to meet demand – just 32 of their 6,000 units are available.

Two villages are under construction and nine new villages are in the design or consent phase.

Three of the new villages just approved – Brandon Park in Melbourne and Devonport and Tropicana in Auckland – have a combined value of over $1B.

Compare this to Aveo, which has 89 villages and is targeting an after-tax profit of around $100M.

Australia also has a population of 24M – well above NZ’s 4.6M (but now they add in VIC with a further 6M).

Do we need to pick up our game?

Ryman’s shareholders will receive a final dividend of 9.3 cents per share, paid on June 23. This takes their total dividend for the year to 17.8 cents, a jump of 13% in line with the increase in their underlying profit.

The result marks 15 years of consecutive underlying profit and dividend growth for the NZ operator. Chairman Dr David Kerr says Ryman’s medium-term target remains to grow this figure by 15% a year, which would double its profits and dividends every five years.

“We are confident demand for our villages will continue to grow,” he said. “Our villages meet a real and growing need in the community, and remain affordable for residents to move in and free up capital.”