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Ryman expects record profit

NZ NewswireNZ Newswire 17/11/2016 Tina Morrison

Ryman Healthcare lifted first-half earnings and said it expects to report another record profit for the full year, as New Zealand's largest retirement village operator inked higher sales and continues to expand.

Underlying profit, which excludes fair value changes from its property portfolio, rose 9 per cent to $76.5 million in the six months ended September 30 compared with the year earlier period, it said.

The company expects full-year underlying profit of between $175m-$185m, up from $157.7m last year.

Net profit, which includes $118.2m of unrealised revaluations of units on the back of new stock and a strong housing market, jumped 41 per cent to $187m.

Ryman owns and operates 30 villages in New Zealand and Australia and invested a record $272min new villages, innovation and upgrades to existing villages during the half.

It opened four new villages, has one under construction, four in the consenting phase and six in the planning and design phase.

It's continuing to landbank sites for future growth, acquiring a new site in Hobsonville, Auckland, during the first half, and is on track with its goal of having five villages open in Melbourne by 2020, having recently acquired a fifth site in the suburb of Coburg.

"We've made good progress thanks to growing resident demand for our unique Ryman-style villages and a strong real estate market," chairman David Kerr said. "The four new villages we opened this year are rapidly expanding to meet that demand, and are on track to be completed within the next 12-18 months."

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