Latest news with #RymanHealthcare
NZ Herald
a day ago
- Business
- NZ Herald
$120m Wiri sale; Ryman's sinking village buildings; Former business boss Michael Barnett opposes Bay of Islands marina
Goldfinch was the sole agent on the sale. Auckland Council's rates records show the 9.2ha property, valued at $128.9m, has a 6100sq m building on it. Goldfinch said the sale reinforced the resilience of the industrial sector. The giant warehouse is leased to a number of tenants. ESR plans to demolish it and realise the site's potential. Goldfinch said redevelopment of the site was being planned in two stages over the next two to three years. It's not the only big industrial sector deal to get over the line of late. Last month, Goodman Property Trust revealed the sale of 28% of its East Tāmaki Highbrook estate to Goodman Group and Mercer for $580m. That was announced on May 29. Highbrook, the giant business park in Auckland. Photo / Jason Dorday In the inner city, Precinct Properties plans to sell its InterContinental Auckland to Singaporeans for $180m. That was announced in March. CBRE last month listed the largest buildings being developed in Auckland. James Kirkpatrick Group headed by James Kirkpatrick jnr has Auckland's largest new warehouse and logistics project under construction. That is a 65,000sq m South Auckland development of a number of separate buildings at Wiri that is expected to be worth $1 billion on completion. Ryman's sinking village buildings Ryman Healthcare is not just fixing the main building at its Edmund Hillary hub in Remuera. In its full-year results out last month, the company disclosed that the sinking problem may be more widely spread. The retirement village was built on an ex-rubbish dump and landfill. The Shackleton apartments, the village centre, the rest home and Aoraki Hospital were lifted in a job undertaken by Mainmark. 'The group has undertaken re-levelling works of the main building and one of the apartment buildings,' consolidated financial statements to March 31, 2025 said. That had cost approximately $8m. The Edmund Hillary Retirement Village, part of the Ryman portfolio. Ryman is monitoring ongoing settlement at its village and re-levelling works are likely to also be required at various other buildings in the future, it said. Some people say they are happy at the village, while others were concerned the main building had been shut for so long and have complained. Ryman is also assessing other villages for seismic risks, citing those particularly near the Hikurangi fault line. None of the villages are 'earthquake-prone' and independent experts confirmed there were no life-threatening safety concerns nor any need to vacate buildings, the company said. Naomi James, chief executive of Ryman Healthcare. However, known seismic issues could cost $30m to $35m to fix. On a separate topic, Ryman buyers are being charged in a different way to how they previously were. CEO Naomi James said Ryman no longer offered residents here and in Australia a 20% deferred management fee. This is the portion the business keeps when a resident leaves or dies. Instead, the fee is now 25% or 30%. Earlier this year: no entry to the main reception area of Ryman Healthcare's Edmund Hillary Village in Remuera. But James clarified this was not linked to weekly payments. Whether people paid 25% or 30% depended on how much they paid for their licence to occupy, she said. Out of all the retirement village operators, Ryman had offered the best deal financially for many years. But it has undergone a number of changes, including raising $1.9b capital. Marina fast-tracking opposition He was the Auckland Business Chamber CEO for more than 30 years and recognised as the voice of business in the city, but now he's opposing a Bay of Islands marina proposal. Plans for a new Bay of Islands marina by Azuma and Hoppers. Fast-tracking is sought for the plans. Photo / application document Michael Barnett is against the Waipiro Bay marina, saying he has a connection with the area because he owned property in the Bay of Islands in the mid-eighties, initially in Parekura Bay and then at Kororāreka Russell. Barnett particularly objects to the possibility of the marina being fast-tracked. Speaking on behalf of the Bay of Islands Preservation Society, he said the Fast-Track Approvals Act was intended to streamline infrastructure, housing and development projects with significant regional and national benefits. Bay of Islands hapū and community members opposed to a 250-berth marina near Kororāreka Russell going through the fast-track process make their feelings known outside a Far North District Council meeting. 'It is hard to see that this project satisfies any of these criteria,' Barnett said. Companies owned by multimillionaire businessmen Craig Heatley and Leigh Hopper have proposed the scheme. Heatley's Azuma Property and Hopper's Hopper Developments want to build the 200 to 250-berth marina. It is opposed by Ngāti Kuta, Patukeha and Far North Mayor Moko Tepania. Ministry for the Environment fast-tracking has been sought, citing several points in favour including boosting infrastructure and employment. An Azuma director and shareholder, Kallam Brown, said fast-tracking could take years off the process. Michael Barnett is against fast-tracking for the new marina plans. Barnett said half of prospective berth owners were likely to live elsewhere and he cited extensive capacity existing in nearby marinas. On May 5, Auckland and Northland had 246 berths available, Barnett said. He questioned how much of the facility's construction would be completed by regional firms rather than by generally larger and more experienced Auckland-based firms. The marina's proposed location didn't fit with regional strategies, which seek to concentrate most future growth in and around the more accessible and established locations of Ōpua and Kerikeri, Barnett said. In its defence, the application said the marina is projected to boost the local economy. 'The Waipiro Marina has been assessed to have a total economic impact of $177.9m to $218.8m in value-added GDP and support approximately 137 to 148 fulltime-equivalent jobs over a 30 year period,' the application for fast-tracking said. Anne Gibson has been the Herald's property editor for 25 years, written books and covered property extensively here and overseas.
Yahoo
31-05-2025
- Business
- Yahoo
Ryman Healthcare Limited (NZSE:RYM) Just Reported And Analysts Have Been Cutting Their Estimates
There's been a notable change in appetite for Ryman Healthcare Limited (NZSE:RYM) shares in the week since its full-year report, with the stock down 16% to NZ$2.10. The results were positive, with revenue coming in at NZ$761m, beating analyst expectations by 3.2%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. Following last week's earnings report, Ryman Healthcare's two analysts are forecasting 2026 revenues to be NZ$770.0m, approximately in line with the last 12 months. Earnings are expected to improve, with Ryman Healthcare forecast to report a statutory profit of NZ$0.091 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of NZ$810.6m and earnings per share (EPS) of NZ$0.13 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates. See our latest analysis for Ryman Healthcare The consensus price target fell 22% to NZ$2.85, with the weaker earnings outlook clearly leading valuation estimates. Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Ryman Healthcare's revenue growth is expected to slow, with the forecast 1.2% annualised growth rate until the end of 2026 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Ryman Healthcare. The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here. We don't want to rain on the parade too much, but we did also find 1 warning sign for Ryman Healthcare that you need to be mindful of. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
National Business Review
30-05-2025
- Business
- National Business Review
Tariff turnarounds miring Kiwi companies in uncertainty
It's been a busy end to the results season, with the last couple of days particularly flat out with NZX-listed companies with March year-ends releasing their earnings. Of note included Ryman Healthcare, which sunk deeper into the red on the back of one-off losses, but posted an improved underlying
Yahoo
29-05-2025
- Business
- Yahoo
Ryman Healthcare Ltd (RHCGF) (FY25) Earnings Call Highlights: Record Completions and Strategic ...
Units and Beds Completed: 950 units and beds completed, the highest ever for Ryman. Cost Savings: $23 million in costs removed in the second half of FY25, with a target to double by the end of the financial year. Free Cash Flow: Improved free cash flow reported. Gross Resale Margin: Almost $200,000 per unit in average gross resale margin. Sales Volumes: Sales volumes and pricing largely flat year on year. Occupancy: Stable occupancy in mature villages; drop in serviced apartments due to added units. Debt Position: Drawn debt at $1.67 billion with significant headroom of over $500 million. Equity Raise: $1 billion equity raise completed. Impairment: $148 million impairment recognized due to construction cost pressures. Net Tangible Assets Impact: Total impact of $576 million due to various changes. Interest Rate: Effective interest rate decreased to 6.2%. Cash Loss: $94 million cash loss, marking an improvement towards cash break-even. Warning! GuruFocus has detected 6 Warning Signs with RHCGF. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Ryman Healthcare Ltd (RHCGF) achieved a significant operational reset, removing $23 million in costs in the second half of FY25, with plans to double this by the end of FY26. The company strengthened its balance sheet by raising capital, making it resilient to extended difficult market conditions. FY25 was a peak build year for Ryman Healthcare Ltd (RHCGF), with the highest ever number of units and beds completed at 950. Sales momentum improved in Q4 FY25 compared to prior periods, with strategies in place to enhance sales effectiveness. Ryman Healthcare Ltd (RHCGF) maintained stable occupancy in mature villages and delivered improved free cash flow. Sales volumes and pricing remained largely flat year on year, indicating challenges in market conditions. The company experienced a drop in occupancy for serviced apartments due to added units in FY25. Ryman Healthcare Ltd (RHCGF) faced significant impairments and restatements in its financial reporting, impacting net tangible assets. The transition to new contract terms, including a 40% increase in DMF levels, presents challenges in market acceptance. The company anticipates continued challenging market conditions, impacting sales in the first half of FY26. Q: Has the gross sales contracts moved into the 80% range on the two-year PCP, and how is May looking? A: Contracting is lumpy and can be impacted by seasonality and sales activities. We have seen ongoing improvement in the contracting trend against the Q4 metric of 75%, although it's still below the two-year average. We expect recovery to progress through the year, with sales weighted to the second half. Importantly, all sales are at a 40% higher DMF, providing significant future value for Ryman. - Naomi James, CEO Q: Can you confirm that cancellations are reasonably steady? A: Yes, we are not seeing any significant change around cancellations. - Naomi James, CEO Q: What is your expectation for pricing in mature villages, assuming the housing market remains broadly flat? A: Resale pricing is generally steady with limited HPI growth, but this varies across the portfolio. In villages with more resale stock, we ensure pricing aligns with the market, and in others with high occupancy and waitlists, we are increasing pricing based on market conditions. Our focus is on aligning pricing with market conditions in each village. - Naomi James, CEO Q: How are new potential residents responding to the new pricing structure with higher DMF and weekly fees? A: We are seeing acceptance of the 30% DMF level, which aligns with industry standards. The take-up is weighted towards the 30% level rather than the flexible 25% option. We continue to improve communication and training for our sales team to effectively present the new pricing structure. - Naomi James, CEO Q: What are you doing in terms of sales incentives compared to a year ago? A: We are targeting incentives based on competition and performance at a village level. Unlike a year ago, we now have a clear view of performance at each village and tailor incentives accordingly. This ensures we secure sales where needed without giving away value where it's not required. - Naomi James, CEO Q: When do you expect to be free cash flow positive? A: The outlook for cash flow depends on sales cadence and the speed of the cost-out program. We have seen a slowdown in negative cash drag and expect further improvements in FY26, benefiting from cost savings and lower interest costs post-equity raising. - Rob Woodgate, CFO Q: Why have you chosen to focus on the non-GAAP metric of core operating performance? A: The emphasis is to show performance against guidance metrics from the equity raise. The operating EBIT DAF metric allows us to look through accounting changes and focus on core operational performance. We aim to provide relevant metrics that underline operating performance with accounting noise set aside. - Rob Woodgate, CFO Q: Are there any plans to tweak the weekly fee approach or strategy? A: We continue to monitor market acceptance of the fixed versus flexible fee levels. We are seeing changes in industry practices, such as removing certain costs from fixed fees, and we aim to ensure our offering aligns with regional and village-level market conditions. - Naomi James, CEO Q: Can you provide more color on the goodwill write-downs and the risk of further write-downs? A: The goodwill write-down was larger than expected due to the difference between freehold going concern value and land/buildings value. We have thoroughly reviewed and tested this position, and do not expect further changes. We have drawn a line under the review and are transparent in our accounts. - Rob Woodgate, CFO Q: Are you forecasting a high tax burden with reduced new development and cost deductibility? A: No, we are not currently in a taxpaying position. - Rob Woodgate, CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. 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National Business Review
28-05-2025
- Business
- National Business Review
Ryman sinks deeper into the red
NZX-listed Ryman Healthcare has sunk deeper into the red on the back of one-off losses, but has posted an improved underlying result. The company, which completed a $1b raise earlier this calendar year, has reported a $436.8m net loss for the 12 months ended March, which compares with a $170m loss
