Ryman Healthcare in announcing its 1H24 results to the NZX, said it had put on hold the proposed $200 million Ringwood East Retirement Village, 31km east of Melbourne's CBD, which commenced construction last year.
Ringwood East, on a 2.2ha site, was announced in May 2019 as its 10th village in Australia. It was to have 240 assisted living and independent living apartments, plus a 120-bed care centre.
Ryman announced it is selling two New Zealand village land sites, and another proposed village in Auckland, has been put on hold, together with the planned expansion of another village also in Auckland.
The biggest listed retirement living operator in New Zealand made a smaller profit after tax of $NZ186.7 million (4% down from $193 million a year ago) for the six months to 30 September 2023.
It was due to lower sales and property valuations, although its underlying performance is marginally ahead of last year. Ryman said it is "resetting” the business on cash flow and capital management.
“Following the equity raise, Ryman is in a reset phase with our near-term focus on matching our build programme to sales activity and reprioritising this programme to improve cash flow from development activity,” Ryman Group Chief Executive Officer, Richard Umbers (pictured) said.
Ryman Healthcare's six months ended September compared with a year ago:
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Net profit $NZ186.7M vs $NZ194M
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Revenue $NZ323M vs $NZ274.2M
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Underlying profit $NZ139.2M vs $NZ138.8M
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Booked new sales/resales 699 units vs 772 units
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Unsold units 453 vs 325
The continuum of care provider has 14 sites under construction, including Mulgrave Village, 25km from Melbourne's CBD, which recently commenced. It opened three new villages in 1H24, including Bert Newton in Highett, 16km southeast of Melbourne’s CBD.
It subsequently officially opened Deborah Cheetham Retirement Village in the seaside town of Ocean Grove, 98km southwest of Melbourne's CBD, on 24 November.
Ryman also said 192 of its residents in Melbourne were now receiving Home Care Packages, a 45% increase on 12 months ago.