Ryman Healthcare cash flow positive after 10 years, but still reports a loss
Thursday, 27 November 2025
Ryman Healthcare’s first-half results represent a “major milestone” in its transformation, with revenue up and its first positive free cash flow result in a decade, the company says.
New Zealand’s largest retirement village operator still reported a net loss after tax of $45.2 million over the six months to September 30, a 155% decrease on a restated profit of $82m over the same period last year.
But its revenue was up 13% to $413.7m, underpinned by increasing resident numbers and strong fee growth, while its costs fell 2%, due to cost-out initiatives gaining traction, stronger performance across its villages and lower interest costs.
That led to a $57.6m reduction in losses before tax and fair value movements.
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The company’s free cash flow rose to $56.2m, off the back of strong development cash flows from new units being sold down and the scaling back of development investment.
While there was a strong improvement in operating earnings, the company said it was offset by lower fair value movement.
Turning a corner
Ryman Healthcare chief executive Naomi James said the results were a major milestone, and showed the company had turned an important corner in its transformation.
Its balance sheet reset, which included a $1 billion equity raise in February and the full refinancing of its $2b bank facilities in November, was now complete and providing a robust foundation for sustainable performance, she said.
“The business has stabilised, momentum is returning, and we are delivering results with meaningful progress achieved against the 2026 financial year priorities.
“Our focus is now moving to accelerating performance across our portfolio of high quality retirement villages.”
Total sales of occupancy rights agreements (ORA) for units in Ryman’s villages were down 15% to 704, from 827 over the same period last year.
But the company said there had been a “clear rebuild in sales momentum”, with 337 sales in the first quarter and then 367 in the second quarter.
That was due to improved sales performance and higher contract conversions, and has led the company to lift its full year guidance range to 1300 to 1400 sales, up from the previous range of 1100 to 1300.
James said the company was focused on selling down stock as a significant opportunity to drive cash flow.
“We are confident our sales effectiveness will support continued progress over the financial year.
“Importantly, our significantly higher deferred management fee value on new contracts will underpin revenue growth and improved business performance in the years ahead.”
Development, aged care bed moderation
Ryman has scaled back its development activity, with sites under active development down from seven to four, and delivery of those projects progressing to plan.
The timing of future stages at developing villages would be aligned with market demand, in a reflection of the company’s commitment to a disciplined approach to growth, James said.
“At our investor day in February, we’ll share more on the land bank review, including sites which have been earmarked for future development and additional sites selected for divestment.
“We’re pleased to have already secured two sales from the review, with Park Terrace contracted for $42m and Mount Eliza for $35m in recent weeks.”
Another operational area under review is the company’s aged care bed capacity in New Zealand Ryman confirmed a review in this space earlier this year, citing sector-wide underfunding as a cause.
Since then, two care centres - Margaret Stoddart and Woodcote, both in Christchurch - have been closed.
But James welcomed the Government’s announcement of a Ministerial Advisory Group to ensure the aged care sector can sustainably meet future demand.
“This is a critical step toward addressing the funding gap in aged care. Sustainable funding is essential to both maintaining existing capacity and growing the additional capacity needed for future growth in demand, and we are ready to play our part in the solution.”
Going forward, the company’s near-term focus was on continuing to build sales momentum, releasing cash from the business and driving operational efficiencies, she said.
“Ryman is well positioned for cash flow growth with significant leverage to a housing cycle rebound, aged care funding reforms, the strengthening demographic tailwinds from an ageing population and growing scarcity of quality care.”