Ryman Healthcare first-half profit rises 15 percent

Thursday 15th November 2012

Ryman Healthcare, the retirement village operator whose shares jumped 51 percent this year, posted a 15 percent gain in first-half profit and bumped up its dividend as fee income grew.

Profit rose to $68.8 million, or 13.8 cents a share, in the six months ended Sept. 30, from $59.6 million, or 11.9 cents a year earlier, the Christchurch-based company said in a statement. Revenue rose 19 percent to $87.9 million.

Ryman's total retirement village units and care beds rose to 5,882 in the first half, from 5,107 a year earlier and it has another 2,295 units equivalent to be developed. In the latest period it completed its Diana Isaac Retirement Village in Christchurch. The company also gained approvals to build its first village in Melbourne.

"We are trading well and we're on track to achieve our target 15 percent underlying profit growth for the full year," said chairman David Kerr. "We've invested heavily in new aged care and retirement communities over the past 18 months and we are seeing some reward for that commitment."

Ryman will pay a first-half dividend of 4.6 cents a share, up 18 percent from a year earlier. The shares last traded at $4.08 and reached a record $4.16 in September. The shares are rated 'outperform' based on a Reuters survey of seven analysts, with a price target of $4.09.

In the first half, care fees rose 19 percent to $71.8 million and management fees climbed 19 percent to $15.7 million. Operating expenses rose 17.6 percent to $64 million.

BusinessDesk.co.nz

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