SYDNEY — Retirement village operator Ryman Healthcare eked out a small profit in a year that was marked by a rare profit warning, management upheaval and headwinds from elevated interest rates in key markets.
Ryman reported a net profit of 4.8 million New Zealand dollars (US$2.9 million) for the 12 months through March, down from NZ$257.8 million a year earlier. That was despite an 18% rise in annual revenue to NZ$689.9 million.
The company didn’t declare a final dividend as it seeks to prioritize spending on completing retirement villages under construction and limiting any increase in its borrowings. Ryman expects to review its dividend policy in the 2026 fiscal year.
Ryman said its net debt totaled NZ$2.51 billion at the end of March, which it said was in line with its position six months earlier. Still, its gearing rose 3.1 percentage points to 36.2%, reflecting higher debt and the impact on shareholders’ equity from valuation movements and impairments.
“The financial focus of the board is to strengthen cash flow outcomes from existing operations and to recycle capital on new developments,” said Executive Chair Dean Hamilton.
Hamilton took on executive duties after Richard Umbers resigned as chief executive in April. Umbers quit two months after Ryman cut forecasts for its fiscal 2024 underlying profit to a range of NZ$265 million-NZ$285 million, citing in part lower sales of occupation rights agreements and weaker margins.
On Monday, Ryman reported an annual underlying profit of NZ$270 million, down 11% on a year ago.
“Current economic conditions remain challenging in both New Zealand and Victoria, and it is unclear when interest rates will begin to decline and support improved housing markets conditions and liquidity,” Hamilton said. “Key to our performance in FY 2025 will be our ability to maintain high occupancy in our existing facilities and settle new units and beds as they come onstream throughout the year.”