Bert Newton Retirement Village in Highett, 16km southeast of Melbourne’s CBD, is one of four villages identified as not having completed the building of its main building, which is hitting sales.
Ryman Healthcare NZ on Monday downgraded its profit outlook from NZ$300 million-NZ$330M to NZ$265M-NZ$285M, saying serviced apartments in particular are taking longer to sell than expected at villages where New Zealand's biggest listed retirement company has not built its main buildings.
A Ryman Healthcare spokeswoman said this impacted the four villages, Bert Newton Retirement Village in Melbourne and three continuum of care villages in New Zealand.
Ryman had expected to sell 273 villas, apartments and hospital (aged care) beds, but now says it will sell only 218 of those in the second half of the financial year – a 20% drop. By the afternoon, Ryman’s share price had fallen 58 cents, or 10.53%, to $4.93.
“This projection of the full-year result is disappointing,” Ryman Healthcare Chief Executive Richard Umbers said.
“Our current build programme is unusually weighted towards four main buildings which are nearing completion and form a key part of our resident value proposition. Although we have stock available to sell, a combination of market conditions and the expected phasing of main buildings will see sales deferred into FY25.”
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