Repairs are being carried out at Ryman Healthcare's large Edmund Hillary Retirement Village in Remuera. Video / Anne Gibson
Ryman Healthcare made a $436.8 million loss after devaluations rose 532%, hitting its bottom line hard.
But total revenue rose 10% from $689.9m to $760.7m after the business continued to sell nearly as many units in the latest year as it did a year previously.
In the year to March31, 2025, the retirement giant’s properties were devalued by $169m, a big jump on 2024’s $39m devaluation. That was what hit its bottom line, partly prompting the $436.8m loss.
One-off costs, non-cash asset write-downs and a higher interest expense were blamed for the loss.
The company referred to “challenging market conditions”, making 1523 sales of occupation rights, down on 2024’s record 1574 sales.
But it also recorded its highest build rate, creating 950 villas, beds and care suites, with four main buildings opened and three villages completed in the 12 months to the end of March.
Naomi James, chief executive of Ryman Healthcare.
CEO Naomi James said the year had been one of significant change, after the $1b capital raise in March.
“We are pleased to have made a step change in the value of new contracts and removed $23m of annualised costs in the second half of FY25.
“While there is still work to be done, we start the year with a strong balance sheet, reset in revenue and cost performance well under way and a portfolio positioned to deliver cash and returns as the housing and economic cycle improves.”
Ryman Healthcare result for the year to March 31, 2025.
Chairman Dean Hamilton said the company has completed a two-year financial reporting review, adopting a more conservative stance on revenue recognition, removing director judgment from asset valuations, increasing transparency of performance and improving accounts.
But there was still some way to go, he said.
Ryman has a 4% aged care vacancy, which it referred to as 96% occupancy.
Its villages are 92.8% full, or 7.2% empty, which is below the 12% previously.
The completed four main buildings are at Henderson’s Miriam Corban, Hobsonville’s Keith Park, Havelock North’s James Wattie, and Melbourne’s Bert Newton villages.
Hubert Opperman in Melbourne’s Mulgrave had also opened its first independent townhouses, today’s announcement said.
The main block under repair at Ryman Healthcare's Edmund Hillary Retirement Village in Remuera.
That brought the number of operational villages to 49: nine in Victoria and 40 in New Zealand.
Ryman has acknowledged problems with the ground under its main block in Remuera, which is the Aoraki Hospital, the village centre, reception, entertainment and some serviced apartments.
Reception moved for work to be carried out at Ryman Healthcare's Edmund Hillary retirement village in Remuera.
Analysts say the new board and management will require some runs on the board to regain some credibility.
Compounding Ryman’s problems has been a slow residential property market, which is strongly correlated to the retirement village sector.
If prospective Ryman residents can’t sell their own house, then they can’t move into a Ryman unit.
Today’s presentation said retirement village market conditions remain challenging with elevated industry stock and heightened competition.
Housing market uncertainty and longer selling times are impacting sales contracting levels. The third quarter of the latest year was particularly difficult.
Ryman referred to its new “flexible pricing model”: it ditched its 20% deferred management fee [DMF]. That cost it dearly.
Now, new residents are offered a 25% or 30% deferred management fee. They can choose between fixed or indexed weekly fees, including those who select the lower DMF. It is the entry price that changes, depending on the DMF that is selected.
Ryman Healthcare:left this lakeside site at Takapuna indefinitely. Photo / Jason Dorday
Selling land at Kohimarama after abandoning a controversial $150m plan strongly opposed by neighbours;
Selling land in Newtown, Wellington, described as an extremely capital-intensive site;
Pausing work at the ex-fire station lakefront site at Takapuna after substantial excavations;
Development of Melbourne’s new Ringwood East village has been paused, although basement work had also begun;
Expansion of Murray Halberg Village in Lynfield, Auckland, has been paused.
The $1b capital raise was, according to Hamilton, to reset the balance sheet, reducing gearing from 37.3% to 23.1%.
On the outlook, James hopes the economy recovers.
“As markets recover, we are confident that the changes we are making to our business will enhance our financial performance and strengthen our position as industry leaders in retirement living and aged care.”
As New Zealand and Australia’s older populations continue to grow and the gap between aged care bed supply and demand widens, Ryman’s model will become increasingly valuable, it said.
The company was founded in Christchurch in 1984, owns and operates 49 villages which house 15,300 residents and employs 7700 staff.
Anne Gibson has been the Herald‘s property editor for 25 years, written books and covered property extensively here and overseas.
