Ryman Healthcare targets $200m from land sales in strategy refresh
Wednesday, 4 February 2026
Ryman Healthcare wants to raise $200 million through sales of land from its land bank as part of its new capital management framework.
The retirement village giant made the decision after a review of its land bank, and already has land sales of $110m under contract.
But a further five sites - one in Kohimarama in Auckland, three in Canterbury, and one in Melbourne - have been identified for potential sale.
Ryman’s new capital management framework was announced at its Investor Day on Tuesday, alongside a refreshed strategy, and a dividend policy that aimed to restart payments to shareholders in 2028.
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The strategy would target a sustainable cash flow improvement of $150m by the 2029 financial year, driven by rising occupancy in its villages and care facilities, resetting pricing, and cost efficiencies, the company said.
It was also targeting a $500m cash release by the 2029 year, supported by improved resales, unlocking value from new and paid-out resale stock, and at least $200m from the land sales.
Dean Hamilton, the company’s chair, said the company’s governance and financial reset had laid the foundation for long-term value creation.
The dual-listed company’s first-half results, released in November, revealed an increase in revenue, and its first positive free cash flow result in a decade.
Hamilton said the board was now building on those foundations, and was firmly focused on long-term value creation.
“Our first priority is delivering a sustainable return on our existing asset base, and with the balance sheet reset now complete, we will pursue disciplined growth over time.
“Our new capital management framework outlines a path to return to sustainable dividends in FY28. This strategy refresh strengthens our commitment to delivering value for both residents and shareholders.”
The company suspended dividend payments in 2023 at the time of its first capital raise, which was intended to reduce its debt burden and strengthen its balance.
Ryman, which operates 49 integrated retirement villages and aged care facilities across New Zealand and Australia, had significant optionality for growth, the company said.
It would prioritise the most attractive expansion opportunities from the 2027 financial year, including 2500 identified units and beds across uncommitted developments, and potential brownfield expansion around existing villages.
Ryman Healthcare chief executive Naomi James said the company would retain six quality sites for potential development.
Australia was currently more attractive for greenfield development, with aged care reforms complete and a lower proportion of older adults living in retirement villages compared with New Zealand, she said.
“Meanwhile, New Zealand is more attractive for brownfield opportunities with Ryman’s mature portfolio of villages.
“Ryman is closely monitoring the progress of funding reforms in New Zealand, recognising its role in making aged care a more sustainable sector for the future.”
James said the business was well placed with capacity and flexibility to meet the fastest growing areas of demand in care and assisted living.
“By continuing to evolve our offering and leverage our scale, we can provide more choice for our residents while supporting improved long-term returns for our shareholders.”
New Zealand and Australia’s older populations are growing rapidly, with the number of people aged 80 and over expected to double by 2050.
There was likely to be a big shortfall in the number of retirement village units New Zealand needed to keep up with the ageing population, commercial real estate firm JLL warned recently.
In its latest market insights, Craigs Investment Partners picked another retirement village operator, Summerset, as one of its five New Zealand stock picks for 2026.
But it said that all three of the NZX-listed retirement village operators would benefit from the cyclical upswing in the housing market and an improving demand-supply balance.
Despite strong balance sheets and improved trading, valuations were still 30% to 50% below historic average, so the sector was poised to deliver much improved returns over coming years, it said.