The continuum of care villages in and around Melbourne made an underlying profit of $69.7 million, up 36%, for New Zealand’s biggest retirement village operator

With another five villages being constructed in Australia, it will be interesting to see in 12 months’ time if the Australian division is still contributing approximately one quarter of Ryman Healthcare’s underlying profit.

The Christchurch-based company reported a profit of NZ$257.8 million, down 62.8% due to lower revaluation gains of investment property and costs associated with its early USPP repayment.

Ryman Healthcare said its underlying profit of NZ$301.9 million, up 18.4%, was driven by strong resale margins and a growing contribution from the Australian business.

Ryman Healthcare raised NZ$902.4 million in March 2023 and has reduced its net interest-bearing debt to NZ$2.30 billion, down from NZ$3 billion last September.

“As we look to achieve positive free cash flow by FY25, as signaled in our strategy, we have reprioritised our development programme over FY24 and FY25. We are also taking steps to refocus our future pipeline on lower density villages with lower peak debt and an improved cashflow profile,” Ryman Healthcare Group CEO Richard Umbers said.

New Zealand villages are reducing aged care beds. Why?

Five of the 14 villages under construction are in Australia:

• Brandon Park, Melbourne (Nellie Melba);
• Burwood East, Melbourne (John Flynn);
• Ocean Grove, Victoria (Deborah Cheetham);
• Highett, Melbourne (Bert Newton)
• Ringwood East, Melbourne

Ryman Healthcare also has 11 sites in its land bank, five in Australia.

• Mt Eliza (pictured), Victoria
• Essendon, Melbourne
• Coburg North, Melbourne
• Kealba, Melbourne
• Mulgrave, Melbourne