Ryman’s performance improves - despite softer village unit sales

Tuesday, 26 May 2026

Ryman Healthcare’s “business reset” has led to a significant improvement in its financial performance over the year to March - although its bottomline still reflected a net loss and sales were down.

The NZX-listed retirement village operator reported an after tax loss of $171.3 million in its 2026 results, but that was an improvement on a $513.7m loss the previous year.

Sales of occupancy rights agreements (ORA) for units in its villages were down 7% to 1410 from 1523 over the same period last year.

But demand for its aged care and serviced apartments had continued to grow, the company said.

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“That reflects the resilience of care-centric demand, supported by favourable long‑term demographics and increasing pressure on health and aged care systems.

“This needs-based demand is providing earnings diversification to retirement living demand.”

The company’s operating revenue was up 10% to $849.1m, and its earnings before interest, tax, and fair value movements were up 94% to $88.3m.

The improvement in revenue was driven by new aged care capacity filling, growth in aged care premiums, and growing numbers of retirement living residents on new pricing terms, the company said.

It also reported the company’s first positive free cash flow result - of $188.3m - in over a decade, and said that was underpinned by strong cash release from developments.

And the company’s debt had reduced by $94m, leaving it with the lowest gearing in the sector at 27.8%.

It had increased its land sale target to $250m from $200m, and to date it had settled or contracted $147m in land sales. That included the sale of its Kealba development site in Melbourne for A$30.9 million, it announced.

Ryman chief executive Naomi James said the operating model reset was delivering materially improved financial performance, despite mixed market conditions, and creating a more sustainable business.

“With our refreshed strategy and new capital management framework, Ryman is firmly focused on unlocking value for shareholders, while delivering a high-quality experience for residents.

“Our villages offer a genuine home for life, with access to increasing support and care as and when the needs of our residents change.”

But the ageing population and increasing pressure on health systems meant demand could not be met using the models of care relied on in the past, she added.

That was driving aged care reform in New Zealand and Australia, and leading to a clearer focus on how to deliver care more effectively across the whole system.

Amova Asset Management analyst Tim O’Loan said Ryman delivered a solid step forward on underlying performance.

Revenue growth was healthy and operating earnings nearly doubled, with losses narrowing materially as cost control and operating improvements started to come through, he said.

“The scale of the cash flow turnaround is something investors should be pleased with, and aged care profitability is also improving faster than expected, suggesting operational and pricing levers are working.”

What was most important was that the recovery was being driven by operating performance and cash flow, not asset revaluations, he said.

“This shows the business isn’t just a property play for investors, but also an age care business which will benefit from the structural tailwinds from the ageing population.”

But the key challenge for Ryman remained the soft housing market, particularly the impact on resale volumes and margins, he said.

“There is a clear pathway to earnings recovery through aged care, where occupancy, pricing and efficiency initiatives are already driving strong momentum.”

Another proof point for investors

Ryman’s results come hot on the heels of fellow listed retirement village operator Oceania Healthcare’s, which were released to the NZX on Friday.

Oceania reported profit after tax of just $119,000 over the year to March, down from $30.4m the previous financial year.

It reflected lower property revaluations than in the 2025 year, and the closure of the Wesley Institute of Nursing Education, the company said.

But more broadly it turned in solid results with earnings before interest and taxes up 20.2% to $97.7m, and total comprehensive income up 0.5% to $75m.

It also reported record sales of 603, an increase of 16%, and a 19.3% decrease in net debt, which left gearing at 30.1% - the lower end of the target range.

Oceania chief executive Suzanne Dvorak said they were proud of the result, given they started with a lot of unsold stock and that it came in a difficult market.

She believed they had found the right balance of aged care suites and independent living units, and that allowed them flexibility which was helpful.

They had sold 74% of The Helier, Oceania’s flagship luxury village in Auckland, and were just one sale away from having recovered the amount spent on it, she said.

“The Franklin opened in January, and 80% of the offering is now sold down. It shows it’s a great product in the right place, and there’s lots of demand for it.

“While we’re not doing much development work at the moment, we have sold down so much of the Franklin that we are progressing with stage two civil works.”

Dvorak said market conditions remained challenging, but the demand for aged care was increasing and they believed the results were repeatable.

For O’Loan, Oceania’s results showed headline earnings, care profitability, and sales were all strong, and the balance sheet de-risking was a good feature.

Sales volumes increasing by 16% in a subdued housing market was worth noting, and while resales margin was soft the demand was obviously there, he said.

“Care profitability is improving quickly, with EBITDA per bed up about 40% suggesting the operational levers are working well.

“What stands out is the improvement is not driven by the housing market, rather it’s due to stock sell-down and working capital release, a tightening of costs and debt reduction.”

The retirement village sector had been a little beaten up by the market over recent years, but was now showing some recovery, he said.

“Oceania’s result is another proof point of that from one of the operators, and should be encouraging news for investors.”

Neither Ryman Healthcare or Oceania Healthcare will be paying out dividends at this stage.