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Ryman plans 28th village, 1Q ahead of last year

BUSINESSDESK: Retirement village builder and operator Ryman Healthcare says first quarter trading is ahead of last year and it plans to build its 28th retirement village in Petone in the Hutt Valley.

“We have reviewed the first quarter's trading and I'm pleased to advise that we are trading well and ahead of last year,” chairman Dr David Kerr told the annual shareholders' meeting.

The company reported a record underlying net profit of $84 million for the year ended March 31, up 17%, and unrealised valuation gains boosted the bottom line to $121 million.

Ryman is building 700 retirement units and aged care beds a year.

Mr Kerr says the new 3.3ha site which was once the Petone High School will be developed into a village providing the full continuum of care from independent and services apartments to resthome, hospital and dementia care facilities.

“It's a magnificent site for a village on the flat overlooking the Hutt River and surrounded by reserves on three sides, including Sladden Park.

“The residents will enjoy wonderful vistas in every direction – to the Western and Eastern hills of the Hutt to the Tararuas in the north and across Wellington Harbour to the city,” he said.

Lower Hutt is under-serviced by aged-care facilities relative to other New Zealand cities and has a growing retired population, the company said.

“The New Zealand government has recognised the need for an additional 12,000 to 20,000 care beds to meet the projected growth in demand over the next 15 years,” it said.

Ryman operates 24 villages nationwide and expects to start building a Melbourne village in the next few months.

Its shares are up 0.89% to $3.63, just below their recent record $3.65 and well above the $2.38 year low in September last year.

Comments and questions
6

Resthomes are a short illusion. Whos going to be able to afford to pay for them, after the baby boomers bubble passes.

Generation Y arent savers.

The government wont be able to front with the $600-700 per week charges.

This will mean families will have to start looking after their parents again. Hence, the last person out of these resthomes (shares) turn the lights out.

They'll be a lemon investment in 20 years.

Good luck for those investing over this period

If you feel they are that bad an investment you dont have to buy... but why dont you buy now on the way up and then get out when you see the old people moving out? Or you could just sit by and watch others do this?

What kind of stupidity is this?

They will be outstanding performers over the next 5-10 years.

The government will easily be able to front with the charges, because the alternative for rest homes (is, those needing the most care like dementia or those with mobility issues), is hospital, which is hugely more expensive, almost three times the price of rest homes.

The government already subsidises aged care for those who can't afford it.

With your kind of mentality, I suggest you upgrade your bed to California Super-King, because there's other place for you to stick your money except under the mattress.

These are retirement villages not rest homes

They have a smaller rest home component, but probably 10-20% of their villages. Most are individual units or apartments.

From the article:

"a village providing the full continuum of care from independent and services apartments to resthome, hospital and dementia care facilities"