Why Ryman Healthcare CEO Naomi James is smiling
Ryman sees early recovery as pricing reset gains traction
- Sales turning point: Applications exceed turnover post pricing reset
- New model accepted: 30% DMF gains traction with buyers
- Annual performance: 1,410 ORA sales within guidance range
- Care demand strong: Occupancy steady above 96% across portfolio
The New Zealand-based continuum-of-care business provided a fourth quarter trading update on Wednesday 15 April.
In the media release to the NZX and ASX - Ryman Healthcare dual listed on 1 October last year - it was CEO Naomi James' two sentences that were of most significance.
“We’re pleased with our final quarter trading results and encouraged by sustained improvement across lead indicators, including net sales applications exceeding turnover levels for the first time since we made changes to our contract terms in late 2024," Naomi said.
"Our new DMF (Differed Management Fee) of 30% is now widely accepted, and we continue to see evidence our targeted sales and marketing strategies are working, with growth in move-ins from external customers on these terms.”
After Ryman's implosion, Executive Chair Dean Hamilton announced in September 2024 new residents will be offered a new pricing structure for Occupation Rights Agreements (ORAs, known as Residence and Management Contracts in Australia) from 1 October 2024.
Ryman now offers a choice in Deferred Management Fee (DMF) of either 30% or 25% - with the latter option having a higher entry price.
New residents also choose between the "fixed for life" weekly fee model or new indexed weekly fees set at the time the resident moves in and linked to the annual increase in superannuation in New Zealand or the annual increase in the Consumer Price Index in Australia.
Ryman reported 331 sales of ORA for the quarter, marking a 10% increase compared to the same period last year. The quarterly result contributed to a total of 1,410 ORA sales for the full 2026 financial year.
When excluding the 39 resident relocations necessitated by the progressive closure of the Margaret Stoddart and Woodcote villages, total annual sales were 1,371, in line with Ryman’s market guidance of 1,300–1,400 provided at its half year results.
While new sales of independent units moderated due to fewer completions, serviced apartment demand remained high, particularly across the Bert Newton Retirement Village in Highett, 15km southeast of Melbourne’s CBD, Keith Park Retirement village in Auckland, and Kevin Hickman Retirement village in Christchurch.
Demand for Ryman’s care offering remained strong across its approximately 4,700 aged care beds, reflecting growing demand. Mature care centre occupancy was sustained at 96.1% in Q4, consistent with 96% in Q3. Developing care centres continue to fill ahead of expectations, with four of the five opened in the past two years now above 80% occupancy at 31 March 2026.
