Ryman reports FY24 full-year result
1
NZX Release: 27 May 2024
Ryman reports FY24 full-year result
Turnaround underway
Highlights
• Total revenue of $689.9 million, up 18% on FY23
• Reported net profit after tax (NPAT) of $4.8 million, down from $257.8 million in FY23
• IFRS profit before tax and fair-value movements (PBTF) of -$324.5 million (-47.2cps),
down from -$225.3 million in FY23 (-43.6cps per share)
• PBTF includes $283.9 million of one-off costs which predominantly reflects impairments
relating to the company’s land bank
• Cash flow from existing operations
1
of $43.3 million, an improvement of $51.8 million
on the prior year
• Cash flow from development activity
1
of -$230.2 million, an improvement of $150.8
million on the prior year
• Underlying profit
1
of $270.0 million, down 11% on the prior year, and in-line with
February 2024 guidance of $265 – 285 million
• Welcomed over 1,500 residents to our retirement villages and over 2,200 into our aged
care facilities
• Completed two villages (John Flynn, William Sanders), opened three (Northwood,
Patrick Hogan and Bert Newton) and commenced one new development (Mulgrave)
Ryman Healthcare Limited (Ryman) has reported an 18% increase in revenue to $689.9 million
for the year ended 31 March 2024, driven by growth in care, village and deferred management
fees. However, the combined impact of impairments and other one-off costs ($283.9 million,
FY23: $175.4 million) and a lower fair value gain on investment properties, has led to a
significant reduction in NPAT to $4.8 million against the $257.8 million achieved in FY23.
This result has been achieved against a particularly challenging operating environment with
residential property markets subdued and cost inflation impacting all areas of the business.
Executive Chair, Dean Hamilton commented, “The reported profit result was clearly
disappointing as the company took the hard decision to reassess the carrying value of a number
of its assets in light of the current economic environment and also place higher hurdles on new
developments. Despite these non-cash write-downs, it was pleasing that the company achieved
an improvement in cash flow from existing operations to $43.3 million (-$8.5 million in FY23).
2
Contributing to this was a record number of ORA resale settlements, which continues to
underline the attractiveness of the Ryman offering.”
Ryman achieved an underlying profit of $270.0 million, down 11% on the $301.9 million
achieved in the prior year, and within its February 2024 guidance range of $265 – 285 million.
The reduction in underlying profit on FY23 was primarily a result of lower margins on new
developments which have suffered from higher costs to complete through construction
inflation, the impact of delays and higher interest costs.
Ryman has traditionally used underlying profit as a key measure of its financial performance. It
now believes that there are better indicators of performance.
Moving forward, Ryman will focus on three key financial performance metrics:
1. Cash flow from existing operations;
2. Cash flow from development activity; and
3. IFRS profit before tax and fair value movements (PBTF) per share
Operational performance
During the year Ryman welcomed its first residents at three new villages – Northwood in
Christchurch, Patrick Hogan in Cambridge and Bert Newton in Melbourne. In addition, it
opened a new care centre at Deborah Cheetham in Melbourne, finishing the year with 48
operating villages, home to some 14,600 residents.
Occupancy in its mature aged care centres has returned to pre-COVID levels at 96.3%, up
from 94.6% in FY23. Ryman welcomed 1,500 residents to its independent and serviced
retirement units, and over 2,200 into its aged care facilities.
Ryman continued to be recognised by the industry for delivering great care and resident
experience and is proud to be named Reader’s Digest Most Trusted Brand in aged care and
retirement living in New Zealand for the tenth time as well as being named ‘Operator of the
Year-Ageing in Place’ at the 2024 Asia Pacific Eldercare Innovation Awards.
Development update
During the year, Ryman completed developments at both John Flynn (Melbourne) and William
Sanders (Devonport). “These are fabulous new villages for our residents, with state-of-the-art
amenities and a continuum of care,” said Mr Hamilton.
At year end, 10 villages are under active construction, nine of which have already opened to
residents. The current build program is unusually skewed to main buildings, of which four are
expected to be completed in FY25.
3
There were 736 units and beds recognised in its FY24 build rate, which includes both complete
and near complete units and beds. Going forward, Ryman intends to adopt a simpler measure
with build rate reported on a complete basis, including only units and beds which are able to be
occupied.
Mr Hamilton commented: “We have increased our focus on the efficiency of our new village
developments, with a much stronger lens on expected cash recycling and net present value. As
a result of this, sites in our land bank at Kohimarama, Karori and Newtown (decision taken in
FY23) are being held for sale, and our sites at Takapuna and Ringwood East have been put back
into the land bank. Carrying values for these sites, and our site at Mt Eliza, have been written
down to either an unconditional sale value (for Newtown) or a market value, resulting in an
impairment of $211.0 million being recognised in FY24.”
Ryman acquired a further parcel of land at Deborah Cheetham in Victoria. This 2.0ha site will
support an additional 58 two- and three-bedroom townhouses, which will be supported by the
recently opened main building.
Ryman’s land bank at 31 March 2024 has 5,371 units and beds available for development,
including 2,627 at sites currently under active development, and 2,744 at the balance of sites.
Capital management
Ryman continues to be committed to prudent capital management. The Board made the
decision during the year to suspend dividends. The need to continue to spend capital to
complete committed village buildings and the desire to limit increased borrowings being key
factors behind the decision.
As previously communicated the company intends to undertake a further review of the
dividend policy at FY26. Any future dividend policy is expected to be based on cash flow.
At March 2024, net interest bearing debt was $2.51 billion, up $0.21 billion from March 2023
and in-line with the position at September 2023. Total funding headroom at March 2024 was
$507 million (undrawn facilities and cash).
Gearing of 36.2% has increased 3.1 percentage points reflecting both higher debt and the impact
on shareholders equity from valuation movements and impairments. This sits slightly above its
medium-term target of 30-35%.
“The financial focus of the Board is to strengthen cash flow outcomes from existing operations
and to recycle capital on new developments. Over time, we aim to grow the value of Ryman
whilst gradually reducing our net debt position,” said Mr Hamilton.
4
Governance and leadership changes
“The year has seen a significant refresh at both Board and management,” said Mr Hamilton.
“During FY24 three directors retired and four new directors were appointed to the Ryman
Board, demonstrating its commitment to refreshing Board membership and bringing new
capability and experience to governing the company.”
There was also significant change in Ryman’s senior leadership team. New executive
appointments were made including Rob Woodgate as Group Chief Financial Officer and Marsha
Cadman as Chief Transformation and Strategy Officer, combining two previous executive roles.
In April 2024, Ryman announced that Group Chief Executive Officer Richard Umbers had
resigned. The search for a new Group CEO is underway.
Turnaround underway
FY24 marked a year of significant change for the company as it embarks on getting fit for the
future.
Mr Hamilton said: “We are clear on two things - our residents remain at the heart of what we
do, and our villages are the place where we create value. Everything else we do is in support of
these two principles.”
“We’re refining our strategy and driving a transformation program that will place stronger
emphasis on our financial performance, while maintaining our commitment to purpose-driven
care and exceptional resident experience. We know we need to create a more sustainable
balance.”
“Our areas of financial focus are on improving the financial performance of our existing villages,
improving the efficiency of our new developments and creating a sustainable and fit for purpose
structure to support our village and new development activities. We need to get fit for the
future,” he added.
Aged care legislative environment
Throughout the year, Ryman continued to advocate for change to the current aged care funding
models in both New Zealand and Australia. As the ageing population expands and longevity
increases, more older people are occupying hospital beds and require care, putting huge
pressure on healthcare systems.
As highlighted in the first phase of a Te Whata Ora Health New Zealand commissioned review,
the sector is facing unprecedented challenges and financial pressures, leading to bed closures
and limited new builds in the face of growing demand.
5
“We need Governments to acknowledge the crucial role the retirement living sector has to
play in meeting the housing and health needs of the growing number of older people in both
countries,” said Mr Hamilton.
He added: “Funding for aged residential care has proven to be far too low for a sustainable aged
care sector in New Zealand. As providers, we are limited by law as to what we are paid by
health authorities and what we can charge residents for added services. The model needs
urgent change to ensure bed numbers are not only retained but there are incentives for
significant new beds to be built. New Zealanders deserve to have a choice in the products and
services they wish to receive as they age. We’re optimistic that the new coalition Government
will create positive change to enable sustainable and equitable access.”
In Australia, Ryman has been actively engaging with the Government on key industry issues. It
provided a submission to the Aged Care Task Force, which subsequently provided
recommendations to the Government in March 2024, including support for a co-contribution
model. This a positive sign for the industry.
Sustainability progress
Ryman is committed to its sustainability journey and decarbonising its operations. It has today
released its first Sustainability Report (available on its website) which showcases progress
across three key priority areas: climate change, quality care and Indigenous engagement.
Ryman announced during the year that its greenhouse gas emissions targets have been validated
by the Science Based Targets initiative (SBTi). This achievement has been reached following
Ryman formally setting an emissions reduction target of 42% for scopes 1 and 2, to be achieved
by 2030 relative to a base year of 2021.
In addition, Ryman’s first Climate-Related Disclosures Report (CRD) will be published within its
upcoming FY24 Annual Report. This highlights how the company is embedding climate
considerations into its business model, as well as the impact its business has on the climate.
FY25 outlook
“Current economic conditions remain challenging in both New Zealand and Victoria, and it is
unclear when interest rates will begin to decline and support improved housing markets
conditions and liquidity.”
“Key to our performance in FY25 will be our ability to maintain high occupancy in our existing
facilities and settle new units and beds as they come onstream throughout the year,” said Mr
Hamilton.
6
FY25 guidance:
• We continue to target positive free cash flow (representing the combination of cash
flow from existing operations and cash flow from development activity);
• We expect to complete 850-950 retirement village units and aged care beds, which
includes 650 aged care beds and serviced apartments in four main buildings that will be
opened, and 200-300 independent retirement village units.
• We expect to spend $700 – 820 million on capex including $600 – 700 million on
development activity, and $100 – 120 million on existing operations.
Ryman’s outlook for FY25 is based on current market conditions and its assessment of the
future.
Looking ahead
Mr Hamilton said: “2024 is a significant year for Ryman marking our 40
th
anniversary since
opening our first village in New Zealand, our 10-year anniversary since opening our first village
in Victoria, and our 25
th
anniversary of being listed on the NZX. Whilst we have plenty to be
proud of in our history, we know we need to improve our financial performance and the Board
and management are aligned on this intent.”
Ends
About Ryman Healthcare:
Ryman Healthcare was founded in Christchurch in 1984 and owns and operates 48 retirement
villages in New Zealand and Australia. Ryman villages are home to approximately 14,600
residents, and the company employs approximately 7,700 staff.
Contacts:
For investor relations information contact Hayden Strickett, Head of Investor Relations, on 027
303 1132 (+64 27 303 1132) or email hayden.strickett@rymanhealthcare.com
For media information or images contact Silke Marsh, Group Corporate Affairs Manager on
027 294 3609 (+64 27 294 3609) or email silke.marsh@rymanhealthcare.com
1: Cash flow from existing operations, cash flow from development activity and underlying
profit are non-GAAP (Generally Accepted Accounting Principles) measures and do not have a
standardised meaning prescribed by GAAP, and so may not be comparable to similar financial
information presented by other entities. For detail on how these measures are calculated,
please refer to Ryman’s 2024 full year result presentation which is available on our website.
---
RYMAN HEALTHCARE
Consolidated
financial statements
31 MARCH 2024
RYMAN HEALTHCARE LIMITED
Consolidated income statement
FOR THE YEAR ENDED 31 MARCH 2024
The accompanying notes form part of these consolidated financial statements.
1
Notes 2024 2023
$000 $000
Care and village fees 510,380 437,341
Deferred management fees (DMF)
140,154 122,769
Interest received
2,326 2,140
Imputed income on
refundable accommodation deposits 24,455 12,777
Other income
12,571 8,727
Total revenue 2
689,886 583,754
Operating expenses 3 (651,883) (542,160)
Depreciation and amortisation expenses 4
(43,803) (37,716)
Finance costs 5
(50,642) (205,374)
Imputed interest charge on refundable accommodation
deposits
2
(24,455) (12,777)
Impairment loss 9
(243,573) (11,034)
Total expenses
(1,014,356) (809,061)
Loss before income tax and fair-value
movements (PBTF)
(324,470) (225,307)
Fai
r-value movement of investment properties 10 179,545 431,503
(Loss)/profit before income tax (144,925) 206,196
Income tax credit 6
149,700 51,640
Net profit after tax (NPAT)
4,775 257,836
Earnings per share (cents per share)
Basic and diluted 12
0.7 49.9
All net profit after tax and total comprehensive income/(loss) is attributable to parent company shareholders
and is derived from continuing operations.
RYMAN HEALTHCARE LIMITED
Consolidated statement of comprehensive income
FOR THE YEAR ENDED 31 MARCH 2024
The accompanying notes form part of these consolidated financial statements.
2
Notes 2024 2023
$000 $000
Net profit after tax 4,775 257,836
Items that will not be later reclassified to profit or loss
Revaluation of property, plant and equipment 9,13a
(251,774) 156,773
(251,774) 156,773
Items that may be later reclassified to profit or loss
Fai
r-value movement and reclassification of cash flow
hedge reserve 13b
(15,977) 21,470
Deferred tax movement recognised in cash flow hedge
reserve 13b
5,796 (6,006)
Movement in cost of hedging reserve 13c
- (1,554)
Reclassification adjustment to income statement 13c
- (3,518)
Deferred tax movement in cost of hedging reserve 13c
- 1,420
(Loss)/gain on hedge of foreign-owned subsidiary net
assets
13d
(1,552) 670
Gain/(loss) on translation of foreign operations 13d
12,795 (8,306)
1,062 4,176
Other comprehensive (loss)/income
(250,712) 160,949
Total comprehensive (loss)/income (245,937) 418,785
All net profit after tax and total comprehensive income/(loss) is attributable to parent company shareholders
and is derived from continuing operations.
RYMAN HEALTHCARE LIMITED Consolidated statement of changes in equity FOR THE YEAR ENDED 31 MARCH 2024 The accompanying notes form part of these consolidated financial statements.
3
Notes
Issued
capital
Asset
revaluation
reserve
Cash flow
hedge reserve
Cost of
hedging
reserve
Foreign-currency
translation
reserve
Treasury
stock
Retained
earnings Total equity
$000 $000 $000 $000
$000 $000 $000 $000
2024
Balance at 1 April 2023
953,239
610,341
30,955
-
(7,136)
(34,729)
3,111,227
4,663,897
Net profit after ta
x
(NPAT)
13
-
-
-
-
-
-
4,775
4,775
Other comprehensive (loss)/income for the year
13
-
(251,774)
(10,181)
-
11,243
-
-
(250,712)
Total comprehensive (loss)/income for the year 13
-
(251,774)
(10,181)
-
11,243
-
4,775
(245,937)
Issue of ordinary shares – equity raise (subsequent costs)
12
(352)
-
-
-
-
-
-
(352)
Treasury stock movement 13
-
-
-
-
-
(1)
-
(1)
Dividends paid to shareholders 13
-
-
-
-
-
-
-
-
Balance at 31 March 2024
952,887
358,567
20,774
-
4,107
(34,730)
3,116,002
4,417,607
RYMAN HEALTHCARE LIMITED Consolidated statement of changes in equity (continued) FOR THE YEAR ENDED 31 MARCH 2024 The accompanying notes form part of these consolidated financial statements.
4
Notes
Issued
capital
Asset
revaluation
reserve
Cash flow
hedge reserve
Cost of
hedging
reserve
Foreign-currency
translation
reserve
Treasury
stock
Retained
earnings
Total equity
$000
$000
$000
$000
$000
$000
$000
$000
2023
Balance at 1 April 2022
33,290
453,568
15,491
3,652
500
(38,174)
2,966,193
3,434,520
Net profit after tax (NPAT)
13 - - - -
- - 257,836 257,836
Other comprehensive income for the year
13 - 156,773 15,464 (3,652) (7,636) - - 160,949
Total comprehensive income for the year
13
-
156,773
15,464
(3,652)
(7,636)
-
257,836
418,785
Issue of ordinary shares
–
dividend reinvestment plan
12
43,911
-
-
-
-
-
-
43,911
Issue of ordinary shares
–
equity raise 12 876,038 - - -
- - - 876,038
Treasury stock movement 13 - - - -
- 3,445 - 3,445
Loss on treasury shares
13 - - - -
- - (802) (802)
Dividends paid to shareholders 13 - - - -
- - (112,000) (112,000)
Balance at 31 March 2023
953,239 610,341 30,955
-
(7,136) (34,729) 3,111,227 4,663,897
RYMAN HEALTHCARE LIMITED
Consolidated statement of financial position
AT 31 MARCH 2024
The accompanying notes form part of these consolidated financial statements.
5
Notes 2024 2023
$000 $000
Assets
Cash and cash equivalents 7
41,809 27,879
Trade and other receivables 8
688,398 719,121
Inventory
2,386 14,618
Advances to employees 25
6,169 14,217
Derivative financial inst
ruments 18,21 10,331 36,474
Assets held for sale 9
75,514 31,379
Property, plant and equipment 9
1,936,969 2,205,428
Investment properties 10
10,041,369 9,322,902
Intangible assets 11
85,065 84,832
Deferred tax asset 6
196,072 53,774
Total assets
13,084,082 12,510,624
Equity
Issued capital 12
952,887 953,239
Reserves 13
348,718 599,431
Retained earnings 13
3,116,002 3,111,227
Total equity
4,417,607 4,663,897
Liabilities
Trade and other payables 14
150,620 205,784
Employee entitlements 15
76,289 49,773
Revenue in advance 2
140,857 99,271
Refundable accommodation deposits 16
423,163 300,314
Derivative financial instruments 18,21
5,688 5,988
Interest-bearing loans and borrowings 17
2,546,947 2,330,950
Occupancy advances (non-interest bearing) 19
5,300,794 4,826,182
Lease liabilities 20
22,117 13,787
Deferred tax liability 6
- 14,678
Total liabilities
8,666,475 7,846,727
Total equity and liabilities
13,084,082 12,510,624
Net tangible assets (cents per share) 12 601.5 658.1
RYMAN HEALTHCARE LIMITED
Consolidated statement of cash flows
FOR THE YEAR ENDED 31 MARCH 2024
The accompanying notes form part of these consolidated financial statements.
6
Notes 2024 2023
$000 $000
Operating activities
Receipts from residents
Care and village fees
518,781 442,915
Net refundable accommodation deposits
108,651 100,619
New sale and resales of occupation rights
1,145,967 1,058,984
Interest received
2,394 2,198
Payments to suppliers and employees
(624,518) (478,529)
Repayment of occupational rights
(459,194) (437,375)
Interest paid
(33,599) (46,864)
Net operating cash flows
658,482 641,948
Investing activities
Purchase of property, plant and equipment
(99,719) (145,158)
Purchase of land
(56,998) (169,713)
Proceeds o
f land sales 15,284 19,652
Purchase of intangible assets
(15,482) (20,106)
Purchase of investment properties
(582,551) (608,784)
Capitalised interest paid
(107,703) (108,069)
Advances to employees
5,116 1,199
Net investing cash flows
(842,053) (1,030,979)
Financing activities
(Subsequent costs)/proceeds from equity raise (net) 12
(352) 876,038
Drawdown of bank loans (net)
201,218 146,574
Proceeds from issue of US Private Placement notes
- 290,149
Prepayment of US Private Placement notes
- (748,924)
Prepayment of cross-currency interest rate swaps
- (106,594)
Dividends paid and dividend reinvestment plan costs 12
- (68,089)
Sale of treasury stock (net)
- 2,643
Repayment of lease liabilities
(3,365) (3,196)
Net financing cash flows
197,501 388,601
Net increase/(decrease) in cash and cash equivalents
13,930 (430)
Cash and cash equivalents at the beginning of the yea
r 27,879 28,309
Cash and cash equivalents at the end of the yea
r 41,809 27,879
RYMAN HEALTHCARE LIMITED
Consolidated statement of cash flows (continued)
FOR THE YEAR ENDED 31 MARCH 2024
The accompanying notes form part of these consolidated financial statements.
7
Reconciliation of net profit after tax with net cash flow from operating activities
2024 2023
$000 $000
Net profit after tax 4,775 257,836
Adjusted for:
Movements in statement of financial position items
Occupancy advances
615,056 620,700
Deferred management fees
(136,677) (91,850)
Refundable accommodation deposits
108,651 100,619
Revenue in advance
41,586 18,019
Trade and other payables
(2,654) 41,114
Trade and other receivables
41,086 (46,554)
Inventory
12,232 11,632
Employee entitlements
26,516 9,961
Non-cash or non-operating items
Depreciation and amortisation
40,032 34,344
Depreciation of right-o
f-use assets 3,771 3,372
Close out of employee share scheme
2,931 -
Impairment
243,573 11,034
Deferred tax
(149,700) (51,640)
Unrealised foreign exchange (gain)/loss
(13,151) (3,459)
Fai
r-value movement of investment properties (179,545) (431,503)
Costs relating to swap amendments and US Private Placement
(USPP) prepayment
- 158,323
Net operating cash flows
658,482 641,948
Net operating cash flows includes the following:
2024 2023
$000 $000
Deferred management fees collected 66,530 60,284
Accounting policy: Statement of cash flows
The statement of cash flows is prepared exclusive of Goods and Services Tax (GST). This is consistent with the
method used in the income statement.
Operating activities are the principal revenue-producing activities of the Group and other activities that are not
investing or financing activities. Cash flows from operating activities include receipts and repayments of
occupancy advances and refundable accommodation deposits.
Investing activities are the acquisition and disposal of property, plant and equipment, investment properties,
intangible assets, and other investments.
Financing activities are activities relating to changes in the equity and debt structure of the Group, and include
dividends paid.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements
FOR THE YEAR ENDED 31 MARCH 2024
8
The notes to the consolidated financial statements include information that is considered relevant and material
to assist the reader in understanding changes in the Group’s financial position and performance. Information is
considered relevant and material if:
the amount is material because of its size or nature
it is important for understanding the results of the Group
it helps explain changes in the Group’s business
it relates to an aspect of the Group’s operations that is important to future performance.
1. GENERAL INFORMATION
Reporting entity
The consolidated financial statements presented are those of Ryman Healthcare Limited (the Company) and its
subsidiaries (the Group).
The Company is a profit-oriented entity incorporated and registered in New Zealand under the Companies
Act 1993. The Company’s registered office is at 92d Russley Road, Christchurch. The Company is listed on the
New Zealand Stock Exchange (NZX). The Group develops, owns and operates integrated retirement villages,
rest homes, and hospitals for older people within New Zealand and Australia.
All trading subsidiaries operate in the aged-care sector in New Zealand and Australia, are 100% owned and
have balance dates of 31 March. The operating subsidiaries are listed below.
Anthony Wilding Retirement Village Limited
Bert Newton Retirement Village Pty Ltd
Bert Sutcliffe Retirement Village Limited
Bob Owens Retirement Village Limited
Bob Scott Retirement Village Limited
Bruce McLaren Retirement Village Limited
Café Ryman Russley Road Limited
Charles Brownlow Retirement Village Pty Ltd
Charles Fleming Retirement Village Limited
Charles Upham Retirement Village Limited
Deborah Cheetham Retirement Village Pty Ltd
Diana Isaac Retirement Village Limited
Edmund Hillary Retirement Village Limited
Ernest Rutherford Retirement Village Limited
Essie Summers Retirement Village Limited
Evelyn Page Retirement Village Limited
Frances Hodgkins Retirement Village Limited
Grace Joel Retirement Village Limited
Hilda Ross Retirement Village Limited
James Wattie Retirement Village Limited
Jane Mander Retirement Village Limited
Jane Winstone Retirement Village Limited
Jean Sandel Retirement Village Limited
John Flynn Retirement Village Pty Ltd
Julia Wallace Retirement Village Limited
Keith Park Retirement Village Limited
Kevin Hickman Retirement Village Limited
Kiri Te Kanawa Retirement Village Limited
Linda Jones Retirement Village Limited
Logan Campbell Retirement Village Limited
Malvina Major Retirement Village Limited
Margaret Stoddart Retirement Village Limited
Miriam Corban Retirement Village Limited
Murray Halberg Retirement Village Limited
Nellie Melba Retirement Village Pty Ltd
Ngaio Marsh Retirement Village Limited
Patrick Hogan Retirement Village Limited
Possum Bourne Retirement Village Limited
Raelene Boyle Retirement Village Pty Ltd
Rita Angus Retirement Village Limited
Rowena Jackson Retirement Village Limited
Ryman Aged Care (Australia) Pty Ltd
Ryman Construction Pty Ltd
Ryman Healthcare (Australia) No. 11 Pty Ltd
Ryman Healthcare (Australia) Pty Ltd
Ryman Napier Limited
Ryman Northwood Retirement Village Limited
Shona McFarlane Retirement Village Limited
Weary Dunlop Retirement Village Pty Ltd
William Sanders Retirement Village Limited
Yvette Williams Retirement Village Limited
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
9
Statement of compliance
The Company is a Financial Markets Conduct reporting entity under the Financial Reporting Act 2013 and the
Financial Markets Conduct Act 2013. Its consolidated financial statements comply with these Acts.
The consolidated financial statements have been prepared in accordance with Generally Accepted Accounting
Principles in New Zealand (NZ GAAP), International Accounting Standards (IFRS), the New Zealand
equivalents to International Accounting Standards (NZ IFRS) and other applicable financial reporting standards,
as appropriate for a Tier 1 for-profit entity.
Basis of preparation
Accounting policies are selected and applied in a way that ensures the resulting financial information satisfies
the concepts of relevance and reliability, and the substance of the underlying transactions or other events is
reported. In all material respects, the accounting policies adopted have been consistently applied in preparing
the consolidated financial statements for the current period and the prior comparative period.
During the year, the Group has adopted a new accounting policy on the treatment of its refundable
accommodation deposits (RAD). This new policy is set out in note 2.
The Group adopted all mandatory new and amended NZ IFRS Standards and Interpretations in the current
year. None had a material impact on these consolidated financial statements.
There are a number of NZ IFRS Standards or Interpretations that have been issued but are not yet effective.
None are expected to have a material impact on the Group’s consolidated financial statements when adopted.
The information is presented in thousands of New Zealand dollars (NZD), except when otherwise indicated.
The functional currency of the Company and its New Zealand subsidiaries is NZD. The functional currency for
its Australian subsidiaries is Australian dollars (AUD).
The consolidated financial statements have been prepared on a historical cost basis, except when:
certain property, plant and equipment is subject to revaluation (note 9)
assets held for sale are measured at the lower of their carrying amounts and fair value less costs to sell
(note 9)
investment property is measured at fair value (note 10)
certain financial assets and liabilities are measured at fair value (notes 18 and 21).
Critical judgements and significant accounting estimates
In applying the Group’s accounting policies, management has made judgements, estimates, and assumptions
about the carrying values of assets and liabilities and the reported amounts of income and expenses.
The estimates and associated assumptions are based on historical experience and various other factors that are
reasonable under the circumstances. Actual results may differ from these estimates. The estimates and
underlying assumptions are reviewed on an ongoing basis, with the effect of any change in an accounting
estimate recognised prospectively.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
10
Critical judgements and significant accounting estimates that have the most significant effects on the amounts
recognised in the consolidated financial statements are described in the following notes.
Valuation of property, plant and equipment – note 9
Valuation of investment property – note 10.
The key changes in estimates applied in the current year are discussed further in the relevant notes and the
impact is shown below.
2024 impact
Notes
Property, plant
& equipment
impact
Investment
property
impact
$000 $000
Removal of directors range assumption 10 - (398,587)
Allowance for value provided by care facility reduced to
zero
9,10 (370,659) 429,724
Completed unsold investment property inclusion in
valuation
10 - 14,168
Total
(370,659) 45,306
The difference in the care facility allowance between property, plant and equipment and investment property
relates to villages where there are investment properties and no care centres which are subject to valuation.
Climate change risk
The Group recognises that climate-related risks, if not appropriately managed, will impact the way the Group
currently operates. Physical climate risks such as storms, flooding and heat have the potential to create
significant impacts on the business and its operations.
The Group continues to assess the impact of climate change on its assets and operations. Potential impacts of
climate change include:
Costs of regeneration and remediation of the Group’s existing portfolio of villages because of an
increase in susceptibility to physical risks such as flood, storm, and heat.
Increased expenditure required to develop new villages that are more resilient to physical risks
resulting from climate change.
These risks are specifically addressed in the selection of new development sites, the design and construction of
the Group’s new integrated retirement villages and aged care centres, and the refurbishment and enhancement
of its existing portfolio of villages.
While there currently is no significant impact identified for asset valuations; this may change in the future. Refer
to the valuation of property, plant and equipment (note 9) and the valuation of investment property (note 10).
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
11
Seismic risk
The Board continues to monitor the compliance of its buildings with required standards and is kept informed
of the results of all seismic engineering assessments that are undertaken. In addition, the process undertaken
and standards which are applied in seismic assessments evolve over time as the engineering profession's
understanding of seismic events develops. This means that the outcome of seismic assessments may be subject
to change over time. Changes to seismic requirements, or the interpretation and application of existing seismic
standards, or changes in science and knowledge relating to earthquakes and the performance of buildings or
geotechnical conditions could result in Ryman's buildings no longer meeting the minimum seismic standards.
This could result in significant costs if Ryman is required to carry out seismic strengthening works on its
buildings. Neither the independent valuers, nor Ryman have made any adjustment for any seismic strengthening
which could be required.
None of Ryman's properties have been notified to Ryman by a territorial authority in New Zealand as being
potentially ‘earthquake prone’ (being a New Building Standard (NBS) rating of less than 34%).
Summary of material accounting policies
Material accounting policies that are pervasive throughout the consolidated financial statements are set out
below. Material accounting policies that are specific to certain balances or transactions are set out within the
notes to which they relate.
Basis of consolidation
The consolidated financial statements are prepared by combining the financial statements of all the entities that
comprise the Group, being the Company (the parent entity) and its subsidiaries as defined in NZ IFRS 10 –
Consolidated Financial Statements. The financial statements of subsidiaries are prepared for the same reporting
period as the parent company, using consistent accounting policies. All significant inter-company transactions
and balances are eliminated in full on consolidation.
Income and expenses for each subsidiary whose functional currency is not NZD are translated at exchange
rates that approximate the rates at the actual dates of the transactions. Assets and liabilities of such subsidiaries
are translated at exchange rates at balance date. All resulting exchange differences are recognised in the
foreign-currency translation reserve.
Foreign currency translation
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange
rates that approximate the rates at the actual dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate at the
reporting date. Non-monetary items that are measured at historical cost in a foreign currency are translated
using the exchange rates at the dates of the initial transactions. Non-monetary items carried at fair value that
are denominated in foreign currencies are retranslated using the exchange rates at the date when the fair
values were determined.
Foreign exchange differences are generally recognised in profit or loss. However, exchange differences relating
to the translation of a foreign operation and the effective portion of a hedge of a net investment in foreign
operations are recognised in other comprehensive income.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
12
Goods and Services Tax (GST)
Revenue, expenses, assets and liabilities are recognised net of GST except when:
the GST incurred is not recoverable from the taxation authority, in which case the GST is recognised as
part of the cost of the asset or expense, as applicable.
receivables and payables are stated with the amounts of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of the
receivables or payables in the statement of financial position.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the
taxation authority.
Financial instruments
Financial assets and financial liabilities are recognised in the Group’s statement of financial position when the
Group becomes party to the contractual provisions of the instruments.
Impairment of non-financial assets
At each interim and annual reporting date, the Group reviews the carrying amounts of its assets to determine
whether there is any indication that those assets have suffered an impairment loss. If such an indication exists,
the recoverable amount of the asset is estimated to determine the extent of any impairment loss.
Where an asset does not generate cash flows that are independent from other assets, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use,
the estimated future cash flows are discounted to their present values. The Group uses a discount rate that
reflects current market assessments of the time value of money and the risks specific to the assets, for which
the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (cash-generating unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is
immediately recognised as an expense unless the asset is carried at fair value in which case the impairment loss
is treated as a revaluation decrease.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is
increased to the revised estimate of its recoverable amount. However, this is only to the extent that the
increased carrying amount does not exceed the carrying amount that would have been determined had no
impairment loss been recognised for the asset (cash-generating unit) in prior years. A reversal of an
impairment loss is immediately recognised as income unless the asset is carried at fair value in which case the
reversal of the impairment loss is treated as a revaluation increase.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
13
2. REVENUE
Accounting policy: Revenue
The Group recognises revenue from the following major sources.
Care and village fees
Deferred management fees
Imputed income on refundable accommodation deposits.
Care and village fees
Care fees relates to the provision of accommodation, care and related services to aged care residents. Village
fees relates to the provision of accommodation and related services to independent residents in the Group’s
retirement villages.
Care-facility and retirement-village service fees are linked to providing services on specific days (service dates).
Revenue from care-facility and retirement-village service fees is recognised on completion of the service dates.
Deferred management fees
Residents of the Group’s independent-living units and serviced apartments pay a deferred management fee for
lifetime occupation (or a shorter period at the residents’ discretion) and the right to share in the use of the
community facilities. The deferred management fee is calculated as a percentage of the occupation-right
agreement amount. The fee accrues monthly, for a set period, based on the terms of individual contracts.
Deferred management fees are recognised on a straight-line basis over the periods of service. The period of
service is determined as being the greater of the expected period of tenure and the contractual right to
deferred management fees.
The expected periods of tenure, based on historical experience across our villages, are estimated to be 7 years
for independent units and 3 years for serviced units. The estimated expected periods of tenure are unchanged
from last year.
The timing of when deferred management fees are recognised is an accounting estimate. Historical experience
across all villages is used in determining periods of tenure.
Imputed income on refundable accommodation deposits
Imputed income from the provision of accommodation is accounted for as a lease under NZ IFRS 16 - Leases.
Under NZ IFRS 16 - Leases, the fair value of non-cash consideration (in the form of an interest-free loan)
received from a resident that has elected to pay a RAD is required to be recognised as income and
correspondingly, interest expense with no net impact on profit or loss.
The Group has determined the use of the Maximum Permissible Interest rate (‘MPIR’) as the interest rate to be
used in the calculation of the imputed income on Australian RADs and Bonds. The MPIR is a rate set by the
Australian Government and is used to calculate the Daily Accommodation Payment (‘DAP’) to applicable
residents. In New Zealand, the implicit interest rate used to convert a room premium to a RAD is used to
calculate the imputed income.
The comparative period has been reclassified to align with this policy and to ensure comparability with the
current period. There is no impact on the net profit of the Group.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
14
2. REVENUE (CONTINUED)
Accounting policy: Revenue in advance
Revenue in advance represents those amounts by which the deferred management fees over the contractual
period exceed recognition of the deferred management fees based on expected tenure.
3. OPERATING EXPENSES
2024 2023
$000 $000
Employee expenses 484,880 418,923
Operations 88,184 86,162
Building and grounds
75,449 64,269
Direct selling expenses
28,422 20,370
Marketin
g 21,145 16,110
Software and technology
24,339 21,803
Administration
25,684 19,144
Gross operating expenses
748,103 646,781
Capitalised to qualifying assets (96,220) (104,621)
Reported operating expenses
651,883 542,160
Increased disclosure in respect of operating expenses has been provided for the current period and
comparatives. In the current year the Group has reclassified capitalised depreciation from operating expenses
to depreciation in Note 4, as this more appropriately reflects the net depreciation expense. The prior period
comparatives have also been reclassified, increasing the reported operating expenses by $8.9m.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
15
3. OPERATING EXPENSES (CONTINUED)
2024 2023
$000 $000
Employee expenses include:
Post-employment benefits (KiwiSaver/Superannuation) 17,524 14,291
Holiday Act 2003 remediation
18,000 6,000
Cash-settled share-based payments (note 25)
1,194 -
Other Leadership Share Scheme (LSS) costs (note 25)
3,802 -
Employee Share Scheme (ESS) loan write-of
f (note 25) 1,277 -
Other ESS costs (note 25)
2,827 -
Administration includes:
Directors’ fees (note 24)
1,162 1,319
Close out of employee share schemes
2,080 -
Holiday Act 2003 remediation
705 -
Auditor’s remuneration to Deloitte Limited comprises:
Audit of financial statements
573 563
Other assurance services related to Australia aged care
11 10
Climate-related disclosure assurance-readiness services
13 -
Marketing includes:
Donations^
699 347
^ No donations have been made to any political party (2023: $Nil).
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
16
4. DEPRECIATION AND AMORTISATION EXPENSE
Accounting policy: Depreciation and amortisation
Property, plant and equipment
Depreciation is provided on all property, plant and equipment, other than freehold land, at straight-line (SL)
rates calculated to allocate the asset’s cost or valuation, less estimated residual value, over their estimated
useful lives, starting from the time the assets are ready for use, as follows.
Buildings 2% SL
Plant and equipment 4-25% SL
Furniture and fittings 10-20% SL
Motor vehicles 20% SL
Right of use assets Term of lease SL.
Software
Amortisation is provided on internally generated software assets and acquired software assets as follows.
Internally generated software 10-20% SL
Acquired software 10-25% SL.
The estimated useful lives, residual value and depreciation/amortisation method are reviewed at the end of
each reporting period, with the effects of any changes in estimates accounted for on a prospective basis.
2024 2023
$000 $000
Depreciation (note 9)
Buildings 12,607 12,680
Plant and equipment
13,772 12,930
Furniture and fittings
4,964 4,261
Motor vehicles
1,393 1,612
Right-o
f-use assets 3,771 3,372
Gross depreciation
36,507 34,855
Capitalised to qualifying assets (6,726) (6,846)
Reported depreciation
29,781 28,009
Amortisation (note 11)
Software
16,073 11,742
Capitalised to qualifying assets
(2,051) (2,035)
Reported amortisation
14,022 9,707
Total
43,803 37,716
The 2023 comparatives have been reclassified to present the capitalised depreciation and amortisation against
the gross expense above, as this more appropriately reflects the net depreciation expense. This has reduced
the reported expense by $8.9m. This has also been applied to the face of the income statement.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
17
5. FINANCE COSTS
Accounting policy: Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets (assets
that take a substantial period of time to get ready for their intended use) are added to the costs of those assets
until the assets are substantially ready for use.
All other borrowing costs are recognised in profit or loss in the periods in which they are incurred.
Notes 2024 2023
$000 $000
Total interest paid on loans and borrowings (including
related fees)
175,992 119,175
Amortisation of issue costs on loans and borrowings 17
3,194 709
Release of cash flow hedge reserve 13
(30,323) 35,049
Amount of interest capitalised 9,11
(107,703) (108,069)
Net interest expense on borrowings
41,160 46,864
Interest on lease liabilities 20 250 187
Lease modification 20
(1,177) -
Costs relating to USPP prepayment
- 152,140
Costs relating to swap amendments
10,409 6,183
Total finance costs
50,642 205,374
Costs relating to swap amendments and USPP prepayment
are comprised of:
Fair value changes on derivatives (swap amendment) 18c
14,872 8,044
Reclassification adjustment
– modified interest rate
swaps (swap amendment) 13b,18c
(4,463) (1,861)
Loss on USPP notes prepayment
- 62,137
Foreign currency movement on USPP notes
- 24,405
Loss on close-out of cross-currency interest rate
swaps
- 75,512
Reclassification adjustment
– close-out of cross-
currency interest rate swaps
- (9,914)
Total costs relating to swap amendments and USPP
prepayment
10,409 158,323
For further information in relation to the swap amendment costs refer to Note 18(c).
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
18
6. INCOME TAX
Accounting policy: Income tax
Tax expense comprises current and deferred tax. Tax expense is recognised in the income statement except
when it relates to items recognised in other comprehensive income or directly in equity. In this case, tax
expense is recognised in other comprehensive income or in equity.
Deferred tax is provided for temporary differences between the carrying amount of assets and liabilities for
financial reporting and the amounts used for taxation purposes. Deferred tax is not provided for on land and
on temporary differences arising from the initial recognition of assets or liabilities that affect neither accounting
profit nor taxable profit, and do not give rise to equal taxable and deductible temporary differences.
The amount of deferred tax provided is based on the way the carrying amount of assets and liabilities are
expected to be realised and settled. The Group assesses deferred tax on investment properties on the basis
that the asset value will be realised through use. The carrying value of the Group’s investment properties is
determined on a discounted cash flow basis and includes cash flows that are both taxable and non-taxable in
the future. The Group recognises deferred tax on cash flows with a future tax consequence.
A deferred tax asset is recognised to the extent that the entity has sufficient taxable temporary differences or
it is probable that future taxable profits will be available against which the asset can be used.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation
authority and the Group intends to settle current tax assets and liabilities on a net basis.
(a) Income tax recognised in income statement
2024 2023
$000 $000
Tax expense comprises:
Current tax expense - -
Deferred tax credit
(149,700) (51,640)
Total income tax credit
(149,700) (51,640)
Reconciliation between prima facie taxation and tax expense
2024 2024 2023 2023
$000 % $000 %
(Loss)/profit before income tax (144,925) 206,196
Income tax expense calculated at 28% (40,579) 28.0% 57,735 28.0%
Tax effects of:
- non-taxable fair value movement of
investment property
(52,011) 35.9% (123,496) (59.9)%
- buildings tax base adjustment
81,682 (56.4)% - -
- property movements
(167,131) 115.3% 41,382 20.1%
- capitalised interest deducted for ta
x (30,979) 21.4% (30,681) (14.9)%
- non-deductible impairment
55,395 (38.2)% 3,143 1.6%
- other
3,923 (2.7)% 277 0.1%
Total income tax credit
(149,700) 103.3% (51,640) (25.0)%
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
19
6. INCOME TAX (CONTINUED)
(a) Income tax recognised in income statement (continued)
The tax rate used in the above reconciliation is the corporate tax rate in New Zealand of 28% (2023: 28%).
The corporate tax rate in Australia is 30% (2023: 30%).
The Taxation (Annual Rates for 2023-24, Multinational Tax, and Remedial Matters) Act, which received Royal
Assent on 28 March 2024, removes tax depreciation deductions for commercial buildings with effect from the
beginning of the 2025 income year. This legislative change reduces the tax base of serviced apartments, care
centres and village centres in New Zealand. This change increased the deferred tax liability recognised in
respect of property, plant and equipment, and investment properties by $81.7 million. The impact of this
change is recognised in the current year tax expense.
(b) Deferred tax asset/liability
Opening
balance
Recognised
in income
Recognised
in equity
Closing
balance
$000 $000 $000 $000
2024
Property, plant and equipment (67,333) (22,710) (4) (90,047)
Investment properties
(129,665) 96,115 7 (33,543)
Deferred management fee
(111,821) (25,439) (430) (137,690)
Derivative financial instruments
(12,158) - 9,261 (2,897)
Othe
r 11,717 6,892 26 18,635
Tax loss carry-forwards
recognised 348,356 94,842 (1,584) 441,614
Total deferred tax
asset/(liability)
39,096 149,700 7,276 196,072
Opening
balance
Recognised
in income
Recognised
in equity
Closing
balance
$000 $000 $000 $000
2023
Property, plant and equipment (59,958) (7,429) 54 (67,333)
Investment properties (67,999) (61,663) (3) (129,665)
Deferred management fee (89,541) (22,526) 246 (111,821)
Derivative financial instruments (7,675) - (4,483) (12,158)
Othe
r 8,323 3,414 (20) 11,717
Tax loss carry-forwards
recognised 209,426 139,844 (914) 348,356
Total deferred tax
asset/(liability) (7,424) 51,640 (5,120) 39,096
The 31 March 2024 deferred tax position is an asset in both countries, resulting in a deferred tax asset of
$196.1 million. In the comparative period the net deferred tax asset of $39.1 million is reflected in the
statement of financial position as a deferred tax asset of $53.8 million and a deferred tax liability of $14.7
million as they relate to different tax jurisdictions.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
20
6. INCOME TAX (CONTINUED)
(c) Tax losses
The Group has the following amounts of tax losses available in New Zealand and Australia.
2024 2024 2023 2023
NZ AU NZ AU
NZ$000 AU$000 NZ$000 AU$000
Tax losses - revenue
1,168,442 349,606 974,319 235,556
Tax losses - capital - 25,605 - 17,111
Total tax losses available
1,168,442 375,211 974,319 252,667
Recognised tax losses 1,168,442 349,606 974,319 235,556
Unrecognised tax losses
- 25,605 - 17,111
Total tax losses
1,168,442 375,211 974,319 252,667
Recognition of deferred tax asset on tax losses is based on management’s internal forecasts of expected taxable
earnings in future periods. One of the key drivers for this will be the uplift in the taxable deferred management
fees as new occupation rights are entered into at higher prices within the next 15-20 years. The Group also
expects improved profitability from its care business as villages move into a mature phase.
(d) Imputation credit memorandum account
2024 2023
$000 $000
Closing balance 1,295 105
Imputation credits available directly and indirectly to
shareholders of the parent company, through:
- parent company
1,294 104
- subsidiaries
1 1
Closing balance
1,295 105
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
21
7. CASH AND CASH EQUIVALENTS
Accounting policy: Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, cash in banks and on-demand deposits, and other short-
term, highly liquid investments readily convertible to a known amount of cash and subject to an insignificant
risk of changes in value. This includes all call borrowing, such as bank overdrafts, used by the Group as part of
its day-to-day cash management.
The Group has an arrangement with ANZ that on a nightly basis a sweep is performed across all transactional
bank accounts. This consolidates all transactional bank accounts into a single account.
There is a right to offset cash balances against bank debt documented in the Group’s facility agreement.
In accordance with the Construction Contracts (Retention Money) Amendment Act 2023, commencing 5
October 2023 retention money is held in a separate bank account on trust. This is held in a compliant account
with a registered bank and is not subject to the nightly sweep. This amounts to $13.9 million at 31 March 2024.
The Group has access to an overdraft facility. The bank overdraft facility is secured by a general security
agreement and mortgages over the freehold land and buildings of the Group in the same manner as the bank
loans (note 17). Interest is payable at the 3-month BKBM rate, plus a specified margin. The interest rate on all
overdraft facilities at 31 March 2024 was 10.75% (2023: 13.45%).
The Group has no bank accounts outside of the regions in which we currently trade (New Zealand and
Australia).
8. TRADE AND OTHER RECEIVABLES
Accounting policy: Trade and other receivables
Trade receivables are measured at amortised cost, less any impairment. This is equivalent to fair value, being
the receivable face (or nominal) value, less appropriate allowances for estimated irrecoverable amounts.
The allowance recognised is the lifetime expected credit losses based on an assessment of each individual
debtor. It is estimated based on the Group’s historical credit loss experience and general economic conditions.
Expected credit loss represents the expected credit losses that will result from all possible default events in the
expected life of a debtor. The Group has currently concluded that this amount is immaterial.
Trade receivables are written off when there is no realistic chance of recovery.
2024 2023
$000 $000
New sales receivables (occupancy advance) 241,137 322,016
Resales receivables (occupancy advance)
389,632 351,180
Care and village fees receivables
21,677 16,998
Refundable accommodation deposit receivables
18,091 7,728
Prepayments and other
receivables 17,861 21,199
Total trade and other receivables
688,398 719,121
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
22
8. TRADE AND OTHER RECEIVABLES (CONTINUED)
The receivable for an occupancy advance is recognised when a legally binding contract with the resident is in
place and the unit is either complete or is considered to have met the threshold for inclusion in the investment
property valuation (see note 10). At the same time as recognising the occupancy advance receivable the Group
recognises the corresponding occupancy advance liability. Occupancy advances are cash settled by residents on
occupation of a retirement-village unit.
Care fees from residents are payable monthly in advance in New Zealand and two weeks in advance and two
weeks in arrears in Australia. Village fees are payable two weeks in advance and two weeks in arrears in both
countries. Government-agency payment terms vary but the fees are typically paid fortnightly in arrears for care
services provided to residents.
These debtors are non-interest bearing, although the Group has the right to charge interest on overdue
settlements of occupancy advances or overdue care and village fees.
Credit risk
There is no significant concentration of credit risk as trade debtors are either individual residents or
government agencies. No changes have been made in the techniques or significant assumptions used in
determining expected credit losses during the reporting period.
9. PROPERTY, PLANT AND EQUIPMENT
Accounting policy: Property, plant and equipment
Property, plant and equipment includes land (including long-term leases of land), completed care facilities, care
facilities under development, corporate assets and right-of-use assets (refer note 20).
All property, plant and equipment is initially recorded at cost. Cost includes cost of land, materials, wages and
interest incurred during the period required to complete and prepare an asset for its intended use. It also
includes head office costs related to the construction of the care centres.
Completed care facilities that have residents but have not been operating for more than a full financial year are
classified as ‘immature’ care centres. These care centres are not subject to an independent valuation and held
at cost, but are assessed to determine if the carrying value is significantly different to fair value.
Completed care-facility land and buildings included within the definition of freehold land and buildings and with
sufficient trading history are carried at a revalued amount, which is the fair value at the date of the revaluation,
less any subsequent accumulated depreciation on buildings. The revaluations are undertaken annually
(previously every 2 years), unless there is sustained market evidence of a significant change in fair value, in
which case an earlier valuation will be obtained.
Revaluations to fair value are based on an independent valuation report prepared by registered valuers, CBRE
Limited and CBRE Valuations Pty Limited, at the reporting date in line with NZ IFRS 13 – Fair Value
Measurement. All valuers are registered valuers and industry specialists in valuing the aged care sector. The
valuers used multiple valuation techniques to estimate and determine fair value. As the fair value of land and
buildings is determined using inputs that are unobservable (such as capitalisation rates and market value per
care bed), the Group has categorised property, plant and equipment as Level 3 under the fair-value hierarchy in
line with NZ IFRS 13 – Fair Value Measurement.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
23
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Any revaluation surplus is recorded in other comprehensive income, unless it reverses a revaluation decrease
of the same asset previously recognised in the income statement. In this case, the increase is credited to the
income statement to the extent of the decrease previously charged. Any revaluation deficit is recognised in the
income statement unless it directly offsets a previous surplus of the same asset in the asset revaluation reserve,
in which case the revaluation deficit is recorded in other comprehensive income.
Any accumulated depreciation at the revaluation date is eliminated against the gross carrying amount of the
asset, and the net amount is restated to the revalued amount of the asset.
All other plant and equipment is stated at historical cost less depreciation and impairment. Historical cost
includes expenditure that is directly attributable to the acquisition of the items.
An item of property, plant and equipment is derecognised on disposal or when no future economic benefits are
expected to arise from the continued use of the asset. On disposal, any resulting gain or loss is included in the
income statement and any revaluation reserve relating to a particular asset being sold is transferred to retained
earnings.
Accounting policy: Assets held for sale
Non-current assets are classified as assets held for sale if it is highly probable that they will be recovered
primarily through sale rather than through continuing use.
Such assets are generally measured at the lower of their carrying amount and fair value less costs to sell.
Where a contracted sale price is available, the asset is carried at that value less associated costs as this is the
best indicator for fair value. Where no contracted price is available, the fair value is determined by independent
registered valuers. Any impairment losses on their initial classification as assets held for sale and any subsequent
gains and losses on remeasurement are recognised in profit or loss.
RYMAN HEALTHCARE LIMITED Notes to the consolidated financial statements (continued) FOR THE YEAR ENDED 31 MARCH 2024
24
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Freehold land
at valuation
Buildings at
valuation
Property
under
development
at cost
Plant and
equipment at
cost
Furniture
and fittings
at cost
Motor vehicles
at cost
Right-of-use
assets Total
$000 $000 $000 $000 $000 $000
$000
$000
2024
Gross carrying amount
Balance at 1 April 2023
772,336
594,661
747,878
133,050
69,981
17,562
27,890
2,363,358
Additions
1,539
4,563
152,225
2,190
1,558
480
15,926
178,481
Net foreign-currency exchange difference
3,783
3,152
7,366
189
131
18
50
14,689
Transfer from property under development
20,916
44,746
(71,061)
2,137
3,262
-
-
-
Transfer (to)/from investment property
(540)
1,462
130,869
237
263
-
-
132,291
Transfer (to)/from assets held for sale
-
-
(122,289)
-
-
-
-
(122,289)
Disposals
-
-
-
-
-
-
(7,950)
(7,950)
Impairment
(23,647)
-
(156,350)
-
-
-
-
(179,997)
Revaluation
(244,948)
(17,873)
-
-
-
-
-
(262,821)
Balance at 31 March 2024
529,439
630,711
688,638
137,803
75,195
18,060
35,916
2,115,762
Accumulated depreciation
Balance at 1 April 2023
-
(5,912)
-
(68,139)
(56,362)
(12,766)
(14,751)
(157,930)
Depreciation
-
(12,607)
-
(13,772)
(4,964)
(1,393)
(3,771)
(36,507)
Depreciation capitalised to property under development
-
-
-
-
-
-
(2,646)
(2,646)
Disposals
-
-
-
-
-
-
7,243
7,243
Revaluation
-
11,047
-
-
-
-
-
11,047
Balance at 31 March 2024
-
(7,472)
-
(81,911)
(61,326)
(14,159)
(13,925)
(178,793)
Total book value
529,439
623,239
688,638
55,892
13,869
3,901
21,991
1,936,969
FEAS
RYMAN HEALTHCARE LIMITED Notes to the consolidated financial statements (continued) FOR THE YEAR ENDED 31 MARCH 2024
25
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Freehold land
at valuation
Buildings at
valuation
Property under
development at cost
Plant and
equipment at cost
Furniture and
fittings at cost
Motor vehicles
at cost
Right-of-use
assets
Total
$000 $000
$000
$000
$000
$000 $000 $000
2023
Gross carrying amount
Balance at 1 April 2022
565,318
502,910
922,
349 144,460 62,394 16,
800 36,427 2,250,658
Additions 1,625
7,355
204,869
11,998 1,281 762 11,640 239,530
Net foreign-currency exchange difference
(1,018) (347)
(4,926)
(3)
13
- (11) (6,292)
Transfer from property under development
53,793 106,302
(158,693)
(7,695) 6,293
- - -
Transfer (to)/from investment property
(4,155)
(4,546)
(173,308)
-
-
-
-
(182,009)
Transfer (to)/from assets held for sale
-
-
(42,413)
-
-
-
-
(42,413)
Transfer (to)/from intangible assets
-
-
-
(15,710)
-
-
-
(15,710)
Disposals -
-
-
-
-
-
(20,166)
(20,166)
Revaluation 156,773
(17,013)
-
-
-
-
-
139,760
Balance at 31 March 2023
772,336 594,661
747,878
133,050
69,9
81 17,562 27,890 2,363,358
Accumulated depreciation
Balance at 1 April 2022
- (10,245)
-
(62,929)
(52,101)
(11,154) (23,228)
(159,657)
Depreciation -
(12,680)
-
(12,930)
(4,261) (1,612) (3,372) (34,855)
Depreciation capitalised to property under development -
-
-
-
-
-
(7,279)
(7,279)
Transfer to/(from) in
tangible
assets
- -
-
7,720
-
- - 7,720
Disposals -
-
-
-
-
-
19,128
19,128
Revaluation -
17,013
-
-
-
-
-
17,013
Balance at 31 March 2023
-
(5,912)
-
(68,139)
(56,362)
(12,766)
(14,751)
(157,930)
Total book value
772,336 588,749
747,878
64,911
13,619
4,796 13,139 2,205,428
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
26
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Independent valuers’ key assumptions
The valuers used a range of significant assumptions as follows:
Year ended Year ended
31 March 2024 31 March 2023
Capitalisation rate 10.75%–14.75% 10.25%–13.75%
Market value per care bed $70,000–$250,000 $70,000–$235,000
The land and building valuation within property, plant and equipment contains an allowance for the value
provided by the care facility to the Group’s independent-living and serviced apartment residents. The value of
this allowance is determined based on a portion of the deferred management fees paid by the Group’s
independent-living and serviced apartment residents. This portion of deferred management fees is excluded
from the investment property carrying value. In the current year, this accounting estimate has been reviewed
for appropriateness prompted by recent changes in the economic conditions, financial returns and strategic
plans. As a result this allocation has been reduced from 25% to zero. The allowance included in the
comparative period carrying value was $320.7 million. If the allowance had been applied consistently in the
current year the allowance would have increased to $370.7 million. This allowance has been added back to the
investment property valuation.
Sensitivity
A change in the independent valuers’ assumptions, all else equal, would impact the fair-value measurement as
follows:
0.5% decrease 0.5% increase
$000 $000
Capitalisation rate (nominal) 34,759 (31,985)
Impact of climate change
The Group has considered the impact of climate change on the business and valuation of completed care-
facility land and buildings. The Group acknowledges that the impact of climate change will likely have a greater
influence on valuations in the future as markets place a greater emphasis on the risks and impacts of climate
change.
To date, the independent valuers have made no explicit adjustments to valuations in respect of climate change.
Cost model
If freehold land and buildings were measured using the cost model, the carrying amounts would be as follows.
Freehold land Buildings Total
$000 $000 $000
Carrying amount under cost model at 31 March 2024 203,519 613,815 817,334
Carrying amount under cost model at 31 March 2023 179,034 577,195 756,229
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
27
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Property under development at cost
Property under development includes land held pending the development of care centres and retirement
villages amounting to $466.4 million (2023: $523.9 million) which is valued at cost less any impairment losses.
Interest for the Group of $107.1 million (2023: $106.5 million) was capitalised during the period of
construction in the current year. The weighted-average capitalisation rate on funds borrowed is 5.82% per
annum (2023: 5.66% per annum).
Right-of-use assets
Included within property, plant and equipment are the right-of-use assets relating to leases.
Buildings
Plant and
equipment Total
$000 $000 $000
Balance at 1 April 2023 11,549 1,590 13,139
Additions 13,534 2,392 15,926
Net foreign-currency exchange difference
50 - 50
Depreciation
(3,771) - (3,771)
Depreciation capitalised to property under development
- (2,646) (2,646)
Disposals
(707) - (707)
Balance at 31 March 2024
20,655 1,336 21,991
Balance at 1 April 2022 8,309 4,890 13,199
Additions 7,531 4,109 11,640
Net foreign-currency exchange difference (11) - (11)
Depreciation (3,372) - (3,372)
Depreciation capitalised to property under development (44) (7,235) (7,279)
Disposals (864) (174) (1,038)
Balance at 31 March 2023 11,549 1,590 13,139
Assets held for sale
Following a review of the Group’s land portfolio, the land at Newtown (Wellington, New Zealand), Karori
(Wellington, New Zealand) and Kohimarama (Auckland, New Zealand) are being held for sale. In addition,
excess land at Nellie Melba (Melbourne, Australia) is also being held for sale. These assets are measured at the
lower of their carrying amount and fair value less costs to sell.
A previous offer supporting the carrying value of the Newtown site was ended due to non-satisfaction of the
conditions by the purchaser to the agreement. Management obtained revised market valuations and an
unconditional sale with a new purchaser has now been agreed. This is expected to settle in September 2024.
An impairment loss has been recognised for $9.4 million reflecting the revised sales price. This is in addition to
impairments recognised in previous financial periods.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
28
9. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
The Group has recognised an impairment loss of $16.3 million for Kohimarama (acquired in 2018) and $37.6
million for Karori (acquired in 2017). A sale is expected within 12 months. These sites were valued by Jones
Lang LaSalle Limited using a comparable transactions and hypothetical development method.
Excess land at Nellie Melba is being actively marketed for sale and a sale is expected to take place within 12
months. There has been no impairment recognised in respect of this site.
2024 2023
$000 $000
Balance at 1 April 2023 31,379 -
Less sale realised (14,578) -
Add transfers from property, plant and equipment
122,289 42,413
Less impairment expense
(63,576) (11,034)
Balance at 31 March 2024
75,514 31,379
Property under development
The Group has also undertaken a review of sites for which no decision to sell has been made, but where there
is uncertainty about future plans to develop or where early-stage construction has been suspended with no
known date for resuming. This included the sites at Takapuna (Auckland, New Zealand) acquired in 2020,
Ringwood East (Victoria, Australia) acquired in 2019 and Mt Eliza (Victoria, Australia) acquired in 2016. These
sites have been impaired by $56.5 million, $55.0 million and $36.0 million respectively. The market value of
these sites were determined based on a direct comparison approach taking into consideration inputs from
independent valuers. Given the current status of the Takapuna and Ringwood East projects, a value-in-use
analysis is not deemed appropriate at this stage. Instead the Group considers that market value is the best
estimate of the recoverable amount of these assets.
Impairment loss
2024 2023
$000 $000
Assets held for sale (63,576) (11,034)
Property under development
(156,350) -
Care centre impairment
1
(23,647) -
Balance at 31 March 2024
(243,573) (11,034)
1
The care centre impairment relates to Frances Hodgkins Retirement Village Limited, Linda Jones Retirement
Village Limited, Murray Halberg Retirement Village Limited, William Sanders Retirement Village Limited and
Charles Brownlow Retirement Village Pty Ltd.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
29
10. INVESTMENT PROPERTIES
Accounting policy: Investment properties
Investment properties include land and buildings (including long-term leases of land), equipment and furnishings
relating to retirement-village units and community facilities, including units and facilities under development.
They are intended to be held for the long term to earn rental income and for capital appreciation. Rental
income from investment properties, being the management fee and retirement-village service fees, is accounted
for in line with note 2.
Investment properties are not depreciated.
Retirement-village units and community facilities are revalued on a semi-annual basis and restated to fair value.
Fair value is determined by independent registered valuers, CBRE Limited, CBRE Valuations Pty Limited and
Jones Lang LaSalle Limited, at the reporting date. All valuers are registered valuers and industry specialists in
valuing the aged care sector. These valuations consider the requirement of NZ IFRS 13 – Fair Value
Measurement to assume that market participants act in their economic best interests. Where multiple
valuations are obtained, a midpoint of the two valuations is applied to provide a stable and balanced estimate of
value without bias.
Previously the directors used their judgement in arriving at an adopted valuation using a range of data points
including both a 20% and 30% deferred management fee rate. In developing the previous view, the deferred
management fee was benchmarked against industry peers resulting in a 30% assumption being applied on future
rollovers. In the current year the assumptions related to deferred management fee have been reassessed. This
is based on the valuers view that Ryman’s preferred contractual terms are appropriate in determining the fair
value of the operators interest, despite the difference in the maximum deferred management fee with the
wider sector as other key variables in the discounted cash flows, for example the discount rate, sufficiently
allow for the opportunity for change given the interdependency of other variables. As a result, the current year
assessment of fair value has been determined using the value of operators interest from the independent
registered valuers which is based on current contractual terms (predominately 20% deferred management fee)
and includes consideration of the impact on associated valuation inputs. In the current year the directors are
satisfied that the assumptions adopted by the independent registered valuers result in valuations which reflect
the price that would be received to sell an asset in an orderly transaction between market participants at the
measurement date. The impact of this change is $398.6 million reduction in the investment property valuation.
Where fair value is able to be reliably measured, valuers utilise a discounted cash flow approach to assess the
fair value of retirement-village units.
As the fair value of investment property is determined using inputs that are unobservable, the Group has
categorised investment property as Level 3 under the fair-value hierarchy, in line with NZ IFRS 13 – Fair Value
Measurement. NZ IFRS 13 requires that the inputs are consistent with the characteristics of the asset that a
market participant would take into account in a transaction for the asset.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
30
10. INVESTMENT PROPERTIES (CONTINUED)
The carrying value of completed investment property and investment property under development, where fair
value is able to be reliably measured, is based on the independent valuers’ reports and also includes occupancy
advances liability, adjusted for accrued deferred management fees and revenue in advance. As required by NZ
IAS 40 - Investment Property, the fair value is adjusted for assets and liabilities already recognised on the
balance sheet which are also reflected in the cash flow analysis. This includes the impact of discounting of the
accrued DMF within the valuation. It also included adjusting gross occupancy advances for units which may have
two occupation advance liabilities recorded against them due to the previous resident not being repaid at
balance date.
Any change in fair value is taken to the income statement.
Where the fair value of investment property under development is unable to be reliably measured it is carried
at cost.
The directors have reviewed the current approach of holding completed investment property without an
agreement to occupy at cost. The directors have determined valuing these units would provide a more fair and
accurate representation of fair value at balance date. Fair value is determined by independent registered valuers
CBRE Limited and Jones Lang LaSalle Limited in the current year. These are valued on the basis of a ‘Sale in
One Line or Single Transaction’. This incorporates an appropriate discount to reflect holding costs and a profit
and risk factor. The operators interest includes a vacancy period before each unit is subject to hypothetical
sale. The fair value uplift at 31 March 2024 relating to the valuation of completed unsold stock is $14.2 million.
A key judgement in determining the fair value of investment property is deciding which units to include in the
valuation. The following table illustrates this.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
31
10. INVESTMENT PROPERTIES (CONTINUED)
Determining whether fair value can be reliably measured
The table below details the considerations made in assessing whether the fair value of a unit can be reliably
measured at reporting date and whether the unit should therefore be included in the valuation.
Considerations made in determining if fair value can be reliably measured
Units that are or can be occupied at
reporting date
Units that are under development at
reporting date
Agreement to
occupy in place
31 March 2024: The directors have
determined that any units which are
complete and capable of being occupied can
be reliably measured, irrespective of an
agreement to occupy in place. These units
will be subject to valuation.
31 March 2023: The directors have
determined that fair value can only be
reliably measured if there is an agreement
to occupy in place. These units will be
subject to valuation. Units without an
agreement to occupy are carried at cost.
The directors have determined that fair value
can only be reliably measured if there is an
agreement to occupy in place. These units will
be subject to valuation. Units without an
agreement to occupy are carried at cost.
Development
progress
To determine the progress of the
development, the stage and site costs
incurred to date are considered with
reference to the forecast total costs of the
stage and site under development.
The proportion of units from the site
included in the valuation is compared to the
costs incurred to date as a proportion of
total costs. The number of units included in
the valuation should not exceed the
proportion of costs incurred to date.
Units that are under development that cannot
be reliably measured are carried at cost.
Resident move-
in date
The date when a resident will be able to take
possession of their unit is considered relative
to the development timetable.
Units that are under development at reporting date and for which it has been determined, after the
considerations detailed above, that fair value cannot be reliably measured, are carried at cost.
Management and the directors undertake regular physical inspections of villages under development to verify
progress, particularly around reporting period ends, to help inform their judgements.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
32
10. INVESTMENT PROPERTIES (CONTINUED)
2024 2023
$000 $000
At fair value
Balance at 1 April 9,322,902 8,027,267
Additions (including transfers to/from property, plant and
equipment)
506,132 873,952
Realised fair-value movement 310,601 357,842
Unrealised
fair-value movement
(131,056) 73,661
Fai
r-value movement 179,545 431,503
Net foreign-currency exchange differences
32,790 (9,820)
Balance at 31 March
10,041,369 9,322,902
A reconciliation between the valuation and the amount recognised as investment property is as follows:
2024 2023
$000 $000
Investment property under development (cost) 702,787 786,953
Completed stock not subject to agreement to occupy (cost)
- 168,661
Investment property held at cost
702,787 955,614
Manage
r’s net interest for units subject to occupancy agreement 3,468,870 3,596,087
Completed stock not subject to agreement to occupy
224,668 -
Allowance for the value provided by care facilities - (319,981)
Other adjustments required by NZ IAS 40
105,217 91,218
Manage
r’s net interest 3,798,755 3,367,324
Revenue in advance 140,857 99,271
Gross occupancy advance (note 19)
6,112,727 5,498,020
Accrued DMF (713,757) (597,327)
Investment property fair valued
9,338,582 8,367,288
Total investment property
10,041,369 9,322,902
Manager’s net interest is the value of the operator’s interest having taken into consideration the range of
valuations produced by independent registered valuers and the requirement of NZ IFRS 13 – Fair Value
Measurement to assume that market participants act in their economic best interests. Manager’s net interest is
a non-GAAP (Generally Accepted Accounting Principles) measure which does not have a standardised meaning
prescribed by GAAP. Manager’s net interest may not be comparable to similar financial information presented
by other entities.
In the current year the directors have adopted the mid-point of the valuation reports prepared by the panel of
valuers to provide a stable and balanced estimate of value free from bias. The directors have met with the
valuers to review the inputs in their models and are satisfied that the market participant test has been
adequately met. The directors have also determined that fair value can be determined for completed stock
irrespective of whether an agreement to occupy is in place.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
33
10. INVESTMENT PROPERTIES (CONTINUED)
The land and building valuation within property, plant and equipment contains an allowance for the value
provided by a care facility to the Group’s independent-living and serviced apartment residents. The value of this
allowance is determined based on a portion of the deferred management fees paid by the Group’s
independent-living and serviced apartment residents. This portion of deferred management fees is excluded
from the investment property value. In the current year, this accounting estimate has been reviewed for
appropriateness and the allocation has been reduced to zero. The investment property valuation increased by
$429.7 million in 2024 because of this change in estimate. The difference between $429.7 million and the
$370.7 million in note 9 relates to allowances deducted from investment property for which there is no care
centre subject to valuation.
The valuation comprises those units for which fair value is judged as being able to be reliably measured. The
breakdown of units is as follows:
Year ended Year ended
31 March 2024 31 March 2023
No. of units No. of units
Currently (or previously) subject to an occupancy
agreement
8,949 8,499
Completed but not yet subject to occupancy agreement
238 -
Under development at reporting date
63 167
Total units included in the valuation
9,250 8,666
Independent valuers’ key assumptions
The valuers used a range of significant assumptions as follows:
Year ended Year ended
31 March 2024 31 March 2023
% %
Growth rate (nominal) 0.50 – 4.70 0 – 4.70
Discount rate 12.00 – 16.50 11.75 – 16.50
Sensitivity
A change in the independent valuers’ assumptions would impact the fair-value measurement as follows:
0.5% decrease 0.5% increase
$000 $000
Growth rate (nominal) (245,399) 222,196
Discount rate 134,446 (147,045)
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
34
10. INVESTMENT PROPERTIES (CONTINUED)
Other inputs used in the fair-value measurement of the Group’s investment property portfolio include the
average age of residents and the occupancy periods. A significant increase in the average age of entry of
residents or a decrease in the occupancy periods would result in a significantly higher fair-value measurement.
Conversely, a significant decrease in the average age of entry of residents or increase in the occupancy periods
would result in a significantly lower fair-value measurement.
Market risk
The valuers comment that property markets both nationally and globally are being heavily impacted by the high
interest rate environment instigated by central banks to combat high inflation. Markets are also impacted by
ongoing disruption to global supply chains and geopolitical instability in certain regions. The valuers reiterate
that their conclusions are based on data and market sentiment as at the date of valuation. For the avoidance of
doubt, this does not constitute a ‘material valuation uncertainty’.
Impact of climate change
The Group has considered the impact of climate change on the business and valuation of investment property.
The Group acknowledges that the impact of climate change will likely have a greater influence on valuations in
the future as markets place a greater emphasis on the risks and impacts of climate change.
The independent valuers have made no explicit adjustments to valuations in respect of climate change.
Work in progress
Investment property includes investment property under development of $702.8 million (31 March 2023:
$786.9 million), which has been valued at cost. The directors have determined that for work in progress, cost
represents fair value. No independent valuation of investment property work in progress is obtained.
Operating expenses
Direct operating expenses arising from investment property that generated income from deferred management
fees during the period amounted to $70.7 million (31 March 2023: $53.2 million). All investment property
generated income for the Group from deferred management fees, except for investment property work in
progress.
Security
Residents make interest-free advances (occupancy advances) to the retirement villages in exchange for the right
to occupy retirement-village units. Under the terms of the majority of New Zealand occupancy agreements,
the occupancy advance is secured by a registered first mortgage in favour of the Statutory Supervisor over the
assets of the retirement village. There are a relatively small number of older occupancy agreements where the
residents instead received a life interest in their unit, with Ryman holding the reversionary interest. These
residents’ occupancy advances are secured by a registered first mortgage over that residual interest. Residents
in Victoria, Australia have the benefit of a charge over the title for the land under the Retirement Villages Act
1986.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
35
11. INTANGIBLE ASSETS
Accounting policy: Intangible assets
Expenditure on research activities is recognised as an expense in the period in which it is incurred.
Internally generated software assets
An internally generated intangible software asset arising from development (or from the development phase of
an internal project) is only recognised if all the following criteria have been demonstrated.
It is technically feasible to complete the intangible asset so that it is available for use or sale.
The Group intends to complete the intangible asset and use or sell it.
The intangible asset can be used or sold.
Probable future economic benefits of the intangible asset can be generated.
Adequate technical, financial, and other resources are available to complete the development and use or sell
the intangible asset.
The expenditure attributable to the intangible asset can be measured during its development.
The amount initially recognised for internally generated intangible assets is the sum of the expenditure incurred
from the date when the intangible asset first meets the recognition criteria listed above. Where no internally
generated intangible asset can be recognised, development expenditure is recognised in profit or loss in the
period in which it is incurred.
After initial recognition, internally generated intangible assets are reported at cost less accumulated
amortisation and accumulated impairment losses.
Acquired software assets
Acquired software assets are reported at cost less accumulated amortisation and any accumulated impairment
losses.
Software-as-a-Service (SaaS)
SaaS arrangements are service contracts providing the Group with the right to access a cloud provider’s
application software over the contract period.
Costs incurred to configure or customise, and the ongoing fees to obtain access to a SaaS provider's
application software, are recognised as operating expenses when the services are received.
However, where costs incurred are for the development of software code that enhances or modifies, or
creates an additional capability for, existing software assets and meets the definition of and recognition criteria
for an intangible asset, those costs are recognised as software assets and amortised over the useful life of the
software on a straight-line basis.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
36
11. INTANGIBLE ASSETS (CONTINUED)
2024 2023
$000 $000
Gross carrying amount
Opening balance
122,274 69,664
Additions
16,014 36,900
Net foreign-currency exchange differences
292 -
Transfer from property, plant and equipment
- 15,710
Closing balance
138,580 122,274
Accumulated amortisation
Opening balance
(37,442) (17,980)
Transfer from property, plant and equipment
- (7,720)
Amortisation (note 4)
(16,073) (11,742)
Closing balance
(53,515) (37,442)
Total book value
85,065 84,832
Intangible assets relate to internally generated and acquired software. In the prior year, the Group reclassified
acquired software from property, plant and equipment to intangible assets.
Interest for the Group of $0.6 million (2023: $1.6 million) has been capitalised to intangible assets during the
current year. The weighted-average capitalisation rate on funds borrowed is 5.95% per annum (2023: 5.66% per
annum).
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
37
12. SHARE CAPITAL
Accounting policy: Ordinary shares
Incremental costs directly attributable to the issue of ordinary shares are recognised as deductions from equity.
Although the shares purchased for the leadership share scheme are treated as treasury stock under financial
reporting standards, they are not of the type contemplated by section 67A of the Companies Act 1993. They
carry the usual rights attaching to shares such as the right to receive dividends (albeit subject to contractual
requirements under the share scheme to applying dividend payments to repay loans) and the right to
participate in corporate actions. On this basis, the treasury stock has been included in the calculation of basic
and diluted earnings per share.
Issued and paid-up capital consists of 687,641,738 fully paid ordinary shares (2023: 687,641,738 shares) less
treasury stock of 2,494,282 shares (2023: 2,494,282 shares) (note 25). All shares rank equally in all respects.
Shares purchased on market under the leadership share scheme (note 25) are treated as treasury stock (note
13) until they are vested to the employees.
Fully paid ordinary shares
Weighted average
number of ordinary
shares
2024 2023 2024 2023
’000 ’000 ’000 ’000
Total ordinary shares (including
treasury stock) at 1 April
687,642 500,000 687,642 500,000
Ordinary shares issued:
- Dividend reinvestment plan
- 7,166 - 2,081
- Equity raise
- 180,476 - 14,242
Total ordinary shares (including
treasury stock) at 31 March
687,642 687,642 687,642 516,323
In the prior year, the Company issued new ordinary shares in respect of a fully underwritten dividend
reinvestment plan (DRP) that applied to the 2023 interim dividend, followed by an equity raise in February and
March 2023. The increase in share capital of $919.9 million was net of directly attributable share issue costs of
$26.4 million.
Additional costs of $0.4 million related to the prior year equity raise were paid in the current year. As these
costs are directly attributable to the issuance of shares, they have been recognised in equity.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
38
12. SHARE CAPITAL (CONTINUED)
Basic and diluted earnings per share (EPS)
2024 2023
Net profit after tax ($000) 4,775 257,836
Weighted average number of shares (in ’000)
687,642 516,323
Basic and diluted EPS (cents per share)
0.7 49.9
Net tangible asset (NTA) per share
2024 2023
NTA ($000) 4,136,470 4,525,291
Ordinary shares at 31 March (in ’000)
687,642 687,642
NTA per share (cents per share)
601.5 658.1
NTA is calculated as total assets less intangible assets and deferred tax assets, and less total liabilities.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
39
13. RESERVES
Notes 2024 2023
$000 $000
Reserves
Asset revaluation reserve 13a 358,567 610,341
Cash flow hedge reserve 13b
20,774 30,955
Cost of hedging reserve 13c
- -
Foreign-currency translation reserve 13d
4,107 (7,136)
Treasury stock 13e,25
(34,730) (34,729)
348,718 599,431
(a) Asset revaluation reserve
Opening balance
610,341 453,568
Revaluation
(251,774) 156,773
Closing balance
358,567 610,341
(b) Cash flow hedge reserve
Opening balance
30,955 15,491
Valuation of interest rate derivatives
18,809 28,121
Valuation of cross-currency interest rate swap
- (33,443)
Released to income statement
(30,323) 35,049
Reclassification adjustment to income statement
–
close-out of cross-currency interest rate swaps 18
- (6,396)
Reclassification adjustment to income statement
–
modified interest rate swaps 18
(4,463) (1,861)
Deferred tax movement on cash flow hedge
reserve
5,796 (6,006)
Closing balance
20,774 30,955
(c) Cost of hedging reserve
Opening balance
- 3,652
Valuation of cross-currency interest rate swap
- (1,554)
Reclassification adjustment to income statement 18
- (3,518)
Deferred tax movement on cost of hedging
reserve
- 1,420
Closing balance
- -
(d) Foreign-currency translation reserve
Opening balance
(7,136) 500
(Loss)/gain on hedge of foreign-owned subsidiary
net assets
(1,552) 670
Gain/(loss) on translation of foreign operations
12,795 (8,306)
Closing balance
4,107 (7,136)
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
40
13. RESERVES (CONTINUED)
2024 2023
$000 $000
(e) Treasury stock (note 25)
Opening balance (34,729) (38,174)
Acquisitions
- -
Vesting/
forfeiture of shares (1) 3,445
Closing balance
(34,730) (34,729)
(f) Retained earnings
Opening balance
3,111,227 2,966,193
Net profit attributable to shareholders
4,775 257,836
Loss on disposal of treasury stock
- (802)
Dividends paid
- (112,000)
Closing balance
3,116,002 3,111,227
Dividends paid
2024 2024 2023 2023
Cents per
share
$000
Cents per
share
$000
Recognised amounts
Final dividend paid – prior year - - 13.60 68,000
Interim dividend paid
– current year - - 8.80 44,000
- 112,000
Full-year dividend – current year - - 8.80 44,000
No dividends have been paid during the current year. In the prior year, the Company adopted a DRP that
applied to the 2023 interim dividend.
The directors have determined that no final dividend will be paid in respect of the 2024 financial year (2023: nil)
and that dividends will remain suspended in the near future. The directors intend to undertake a further review
of the dividend policy in the 2026 financial year. Any future dividend policy is expected to be based on cash
flow.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
41
14. TRADE AND OTHER PAYABLES
Accounting policy: Trade and other payables
Trade and other payables are measured at amortised cost. This is equivalent to the face (or nominal) value of
payables, which is assumed to approximate their fair value.
2024 2023
$000 $000
Trade payables 117,502 108,371
Land accruals
27,819 71,755
Other payables
5,299 25,658
Total trade and other payables
150,620 205,784
Trade payables are typically paid within 30 days of the invoice date or on the 20th of the month following the
invoice date.
15. EMPLOYEE ENTITLEMENTS
Accounting policy: Employee entitlements
A liability for benefits accruing to employees for wages and salaries, annual leave and long-service leave is
accrued and recognised in the statement of financial position when it is probable that settlement will be
required and the liabilities are capable of being measured reliably.
Holidays Act remediation
As disclosed in the prior year contingent liability note, the Group has identified that past and present New
Zealand employees may have received incorrect payments dating back to 2010 due to the complexity of the
Holidays Act 2003 and the nature of our dynamic workforce. The issues relate to entitlements under the
Holidays Act 2003, and how a range of allowances and entitlements have been interpreted and calculated.
External consultants are working with the Group to quantify the value and employees affected, which could be
as many as 26,000 employees. Based on their quantification, a provision of $24.0 million has been recorded
within employee entitlements at 31 March 2024 (with $18.0 million being recorded in the year to 31 March
2024). This is the best estimate based on facts and circumstances at 31 March 2024, however this is not final
and may be subject to change.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
42
16. REFUNDABLE ACCOMMODATION DEPOSITS
Accounting policy: Refundable accommodation deposits
Refundable accommodation deposits relate to deposits held on behalf of residents who reside in rooms in the
care centres in Australia and New Zealand. Refundable accommodation deposits confer to residents the right
of occupancy of the rooms for life, or until the residents terminate the agreements. The deposit is repayable
following the termination of the right to occupy.
Amounts payable under refundable accommodation deposits are non-interest bearing and recorded as a liability
in the statement of financial position.
As a resident may terminate their occupancy with limited notice, and the refundable accommodation deposit is
non-interest bearing and has demand features, it is carried at face value, which is the original deposit received.
In New Zealand, a refundable accommodation deposit is repayable within 30 working days of a resident
vacating their care room. The Group is liable to pay interest at 3% above our bank's normal overdraft rate if it
does not repay the deposit within that period.
In Australia, the repayment obligation is within 14 days of a resident vacating their care room, or of sighting the
probate or letters of administration. The Group is liable to pay interest at a base interest rate (31 March 2024:
2.25%) within the 14-day period, and at the higher maximum permissible interest rate (31 March 2024: 8.38%)
after that.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
43
17. INTEREST-BEARING LOANS AND BORROWINGS
Accounting policy: Interest-bearing loans and borrowings
Bank loans and borrowings are initially recorded at fair value, less directly attributable transaction costs. After
initial recognition, loans and borrowings are measured at amortised cost. Any differences between the initial
amounts recognised and the redemption values are recognised in profit and loss using the effective interest rate
method.
Accounting policy: Hedges of a net investment
Hedges of a net investment in a foreign operation are accounted for in two ways. Gains or losses relating to
the effective portion of a hedge are recognised in other comprehensive income. Any gains or losses relating to
the ineffective portion of the hedge are recognised in profit or loss.
At 31 March 2024 interest-bearing loans and borrowings include secured bank loans, an institutional term loan
and unsubordinated fixed-rate retail bonds (2023: secured bank loans, an institutional term loan and
unsubordinated fixed-rate retail bonds). The Group fully prepaid its USPP notes in March 2023.
Notes 2024 2023
$000 $000
Bank loans 17a 2,137,079 1,922,769
Institutional term loan
17b
272,807 267,265
Retail bonds
– RYM010
17c
150,000 150,000
Total loans and borrowings at face value
2,559,886 2,340,034
Issue costs for the institutional term loan
capitalised
17b
(1,717) (726)
Issue costs for the retail bond capitalised 17c
(1,557) (2,109)
Issue costs for bank loans capitalised
1
17a (3,805) -
Total loans and borrowings at amortised cost
2,552,807 2,337,199
Revaluation of institutional term loan debt in fai
r
value hedge relationship 17b
(5,860) (6,249)
Total loans and borrowings
2,546,947 2,330,950
Contractual cash outflows in respect of these interest-bearing loans and borrowings are disclosed in note
21(e).
1
During the year, the group reclassified issue costs for bank loans from trade and other receivables to align
with the treatment of the issue costs for the institutional term loan and retail bond. Issue costs for bank loans
capitalised were $4.1 million in the comparative period.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
44
17. INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED)
(a) Bank loans (secured)
The bank loan facilities have varying maturity dates through to April 2029 (2023: May 2027) and are subject to
floating interest rates. The average interest rates disclosed below exclude the impact of interest rate swap
agreements described in note 18.
2024 2023
$000 $000
Bank loans (secured) – NZD 1,483,980 1,277,590
Bank loans (secured)
– AUD in NZD 653,099 645,179
Total bank loans (secured)
2,137,079 1,922,769
Issue costs for bank loans capitalised
Opening balance
- -
Reclassified from trade and other receivables
(4,130) -
Capitalised during the yea
r (2,039) -
Amortised during the yea
r 2,364 -
(3,805) -
Total bank loans at amortised cost
2,133,274 1,922,769
Less cash and cash equivalents (41,809) (27,879)
Net bank loans
2,091,465 1,894,890
Less than 1 year
1
- 117,597
Within 1
–5 years 2,137,079 1,805,172
Total bank loans (secured)
2,137,079 1,922,769
Average interest rates for bank loans – NZD 6.75% 7.41%
Average interest rates for bank loans
– AUD 5.41% 5.24%
1
The Group has $251.4 million of bank loan facilities maturing within the next year, however these are
undrawn. In April 2024 $136.4 million of these facilities were refinanced with maturity extended past 1 year.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
45
17. INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED)
(b) Institutional term loan (secured)
The Group entered into an AU$250.0 million 7-year institutional term loan in May 2021, which matures in May
2028. A portion of the loan (AU$153.9 million) is subject to a fixed interest rate. The remaining portion of the
loan (AU$96.2 million) is subject to floating interest rates.
2024 2023
$000 $000
Institutional term loan 272,807 267,265
Total institutional term loan at face value
272,807 267,265
Issue costs for the institutional term loan capitalised
Opening balance
(726) (876)
Capitalised during the yea
r (1,259) -
Amortised during the yea
r 268 150
(1,717) (726)
Total institutional term loan at amortised cost
271,090 266,539
Revaluation of debt in fair value hedge relationship (5,860) (6,249)
Total institutional term loan
265,230 260,290
Average interest rate (which includes both the fixed
and the floating portion)
6.49% 5.14%
(c) Retail bonds (secured)
The Group issued a retail bond for $150.0 million in December 2020. The retail bond has a maturity date of 18
December 2026 and is listed on the NZX Debt Market (NZDX) with the ID RYM010. The coupon rate for the
retail bond is 2.55%.
2024 2023
$000 $000
Retail bond – RYM010 150,000 150,000
Total retail bonds at face value
150,000 150,000
Issue costs for the retail bond capitalised
Opening balance
(2,109) (2,605)
Capitalised during the yea
r (10) (63)
Amortised during the yea
r 562 559
(1,557) (2,109)
Total retail bonds at amortised cost
148,443 147,891
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
46
17. INTEREST-BEARING LOANS AND BORROWINGS (CONTINUED)
(d) Security
The bank loans, institutional term loan and retail bonds are secured by a general security agreement over the
parent and subsidiary companies and supported by first mortgages over the freehold land and buildings
(excluding retirement-village unit titles provided as security to residents – note 10).
The subsidiary companies listed in note 1 have all provided guarantees for the Group’s secured loans as parties
to the general security agreement.
(e) Covenants
The Group is subject to capital requirements imposed by its bank and the lenders included in the banking
syndicate through covenants agreed as part of the lending facility arrangements, and bond holders through
covenants in the Master Trust Deed.
In February 2023, the Group’s banking syndicate and institutional term loan lenders agreed to amend the
Interest Coverage Ratio covenant included in the lending facility agreements to 1.75x until 31 March 2025,
increasing to 2.00x at 30 September 2025 and 2.25x at 31 March 2026. The retail bonds are not subject to the
Interest Coverage Ratio covenant.
In September 2023 as part of the renegotiated bank facilities the Interest Coverage Ratio covenant was further
amended to be calculated as adjusted EBITDA to total interest. The covenant levels remain unchanged at 1.75x
for all reporting periods through to 31 March 2025, then moving to 2.00x at 30 September 2025 and 2.25x
thereafter.
The Group has met all externally imposed capital requirements for the 12 months ended 31 March 2024 and
31 March 2023.
(f) Going concern
These financial statements have been prepared on a going concern basis, which requires the Board to have
reasonable grounds to believe that the Group will be able to pay their debts as and when they become due.
The minimum requirement by NZ IAS 1 - Presentation of Financial Statements being at least, but not limited to,
12 months from the end of the reporting period. The Group has prepared cash flow projections factoring in
the current market, covering a period of at least 12 months after these financial statements have been
authorised for issue. Net cash flow and net profit after tax are both forecast to be positive for the 12 months
ended 31 March 2025. In addition, at 31 March 2024 the Group had $507.5 million in cash liquidity, with $41.8
million in cash and $465.7 million of undrawn syndicated bank facilities. The undrawn facilities have a weighted
average tenor of 2.4 years. Due to the above, the Board determined that the going concern basis of accounting
is appropriate in the preparation of these financial statements.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
47
18. DERIVATIVE FINANCIAL INSTRUMENTS
Accounting policy: Derivative financial instruments
Derivatives are initially recognised at fair value on the date a contract is entered into and remeasured to their
fair value at each reporting date.
The fair values of these derivatives are categorised as Level 2 under the fair value hierarchy in NZ IFRS 13 –
Fair Value Measurement. The fair values of these derivatives are derived using inputs supplied by third parties
that are observable, either directly (prices) or indirectly (derived from prices). The fair value of interest rate
swaps is determined by discounting the future cash flows using the yield curves at the end of the reporting
period and the credit risk inherent in the contract.
Hedge accounting
The Group designates most of its derivatives as hedging instruments. At inception, each hedge relationship is
formalised in hedge documentation. The Group uses Bancorp Treasury Services Limited (BTSL) as an
independent valuer to determine the existence of an economic relationship between the hedging instrument
and the hedged item based on the currency, amount and timing of respective cash flows, interest rates, tenors,
repricing dates, maturities and notional amounts. BTSL assesses whether the derivative designated in each
hedging relationship is expected to be, and has been, effective in offsetting the changes in cash flows of the
hedged item.
When the derivatives meet the requirements of cash flow hedge accounting, the effective portion of the change
in the fair value of the derivatives are recognised in other comprehensive income and accumulated as a
separate component of equity. Amounts deferred in equity are recycled to profit or loss in the periods when
the hedged item is recognised in profit or loss. The ineffective portion is recognised in the income statement.
When the derivatives meet the requirements of fair value hedge accounting, changes in the fair value of the
derivatives are taken directly to the income statement for the year, to offset the change in fair value of the
hedged item also recorded in the income statement.
Hedge accounting is discontinued when the hedge instrument expires, is terminated or no longer qualifies for
hedge accounting. When hedge accounting for cash flow hedges is discontinued, the amount accumulated in the
hedging reserve remains in equity until it is reclassified to profit or loss in the same periods as the hedged
expected future cash flows affect profit or loss. If the hedged future cash flows are no longer expected to
occur, the amounts accumulated in the hedging reserve are immediately reclassified to profit or loss.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
48
18. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
At 31 March 2024 the Group’s derivative financial instruments consist of interest rate swaps, caps, floors and
collars (2023: interest rate swaps, caps, floors and collars). The Group closed out its cross-currency interest
rate swaps (CCIRS) in March 2023.
The Group uses these derivative financial instruments to manage cash flow and interest rate risks.
The Group designates most of its derivatives as hedging instruments. All hedging instruments are recorded
under derivative financial instruments in the statement of financial position. The details of the Group’s hedging
instruments are as follows.
Currency
Interest
rates Maturity
Notional
amount of
hedging
instrument
Carrying
amount of
the hedging
instrument:
asset /
(liability)
Change in
value used for
calculating
hedge
effectiveness
Years
NZ$000 NZ$000
2024
Cash flow hedges
Interest rate
derivatives
NZD
2.309%–
4.613%
0–6
NZ$1,160
million
12,688 (7,015)
Interest rate
derivatives
AUD
1.463%–
4.378%
0–6
AU$535
million
(2,357) (4,310)
Fair value hedge
Interest rate swaps
AUD Floating 4
AU$54
million (5,688) 300
4,643 (11,025)
Currency
Interest
rates
Maturity
Notional
amount of
hedging
instrument
Carrying
amount of
the hedging
instrument:
asset /
(liability)
Change in
value used for
calculating
hedge
effectiveness
Years
NZ$000 NZ$000
2023
Cash flow hedges
Interest rate
derivatives NZD
2.309%
–
4.112% 1–5
NZ$610
million 19,703 13,823
Interest rate swaps AUD 1.463% 2
AU$60
million 1,953 412
Fair value hedge
Interest rate swaps AUD Floating 5
AU$54
million (5,988) (557)
15,668 13,678
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
49
18. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
(a) Interest rate derivatives as cash flow hedges
The Group holds various interest rate derivatives to provide an effective cash flow hedge against floating
interest rate variability on a defined portion of core debt. The hedge ratio is 1:1. The face value of the interest
rate derivatives is the same value as the face value of the hedged bank loans. As the critical terms of the
interest rate derivative contracts and the hedged item are the same, significant hedge ineffectiveness is not
expected.
At 31 March 2024, the Group had several interest rate derivatives that were designated as cash flow hedges.
These derivatives have a total notional principal amount of approximately NZ$1,744 million, which is made up
of NZ$1,160 million and AU$535 million (2023: NZ$674 million). These derivatives cover terms of up to 6
years (2023: 5 years) and are effective for various periods. Some of these derivatives will become effective at a
future date.
2024 2023
$000 $000
Notional principal amount
Already effective at balance date 1,428,333 594,144
Forward startin
g 315,474 80,000
1,743,807 674,144
These interest rate derivatives effectively change the Group’s interest rate exposure on the principal covered
from a floating rate to an average fixed rate ranging from 3.991% to 4.297% (2023: 2.443% to 3.198%). The
notional principal amounts covered by these derivatives and the average contracted fixed interest rates for
their remaining maturities are shown below.
Average contracted
fixed interest rate
Notional principal amount
covered
2024 2023 2024 2023
% % $000 $000
Within 1 yea
r 3.991% 3.198% 1,338,333 614,144
1–2 years 4.040% 3.134% 1,223,333 574,144
2
–3 years 4.069% 2.965% 1,115,596 310,000
3
–4 years 4.060% 2.931% 892,859 130,000
4
–5 years 4.264% 2.443% 605,561 60,000
5
–6 years 4.297% - 339,158 -
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
50
18. DERIVATIVE FINANCIAL INSTRUMENTS (CONTINUED)
(b) Interest rate swap as a fair value hedge
In 2022, the Group entered into an interest rate swap to mitigate its exposure to fair value changes arising
from the fixed-rate portion of the institutional term loan. The swap, which has a total notional principal amount
of AU$53.9 million and a term of 7 years, effectively changes the Group’s interest rate exposure on the
principal covered from a fixed to a floating rate. The Group has designated AU$53.9 million of its institutional
term loan in a fair value hedge relationship.
Under a fair value hedge, the change in the fair value of the hedged risk is attributed to the carrying value of the
underlying institutional term loan. This debt revaluation is recognised in the income statement to offset the
mark-to-market revaluation of the hedging derivative.
(c) Modified interest rate swaps
In November 2022 the Group modified four interest rate swaps that had been designated in a cash flow hedge
relationship to maximise its interest rate risk coverage and minimise its near-term interest costs. The
modification resulted in a higher notional principal amount covered and a reduction in the remaining maturities
of those swaps.
Currency
Original
notional
principal
Original
fixed
interest
rates
Original
maturity
Amended
notional
principal
Amended
fixed
interest
rates
Amended
maturity
Interest rate
swaps
NZD
NZ$120
million
2.066%–
2.080%
Aug 2028
NZ$420
million
2.098%
–
2.188%
Feb 2024
Interest rate
swap
AUD
AU$70
million
1.785% Oct 2026
AU$280
million
2.110%
Jan 2024
The modification resulted in the original hedge relationship being discontinued. Immediately prior to
discontinuation, there were gains of NZ$16.6 million and AU$5.8 million (excluding tax effects) in the cash
flow hedge reserve for these swaps. As the hedged cash flows are still expected to occur, and notwithstanding
the modified swaps have matured during the current year, these gains remain in the cash flow hedge reserve
and will be reclassified to profit or loss over the original hedge period. The amounts reclassified to profit or
loss during the year are NZ$2.8 million and AU$1.5 million (totalling NZ$4.5 million) (2023: NZ$1.2 million
and AU$0.6 million (totalling NZ$1.9 million)). At balance date the unamortised balance (excluding tax effects)
in the cash flow hedge reserve for the amended swaps is NZ$12.6 million and AU$3.7 million (2023: NZ$15.4
million and AU$5.2 million).
As the modified interest rate swaps did not qualify for hedge accounting, the fair value movement of these
swaps following modification have been recognised directly in profit or loss. The current year fair value loss on
these modified swaps is NZ$14.9 million (2023: NZ$8.0 million loss) (refer note 5).
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
51
19. OCCUPANCY ADVANCES (NON-INTEREST BEARING)
Accounting policy: Occupancy advances
An occupation agreement confers on a resident a right to occupy a retirement-village unit for life, or until the
resident terminates the agreement. The occupancy advance, net of deferred management fee, is repayable
following both the termination of the occupation agreement and the settlement of a new occupancy advance
for the same retirement-village unit. If settlement of a new occupancy advance for the same retirement-village
unit has not occurred within six months, the Group has a policy of repaying the occupancy advance.
Occupancy advances are non-interest bearing and recorded as a liability in the statement of financial position,
net of deferred management fees and suspended contributions receivable. The occupancy advance is initially
recognised at fair value and later at amortised cost.
As a resident may terminate their occupancy with limited notice, and the occupancy advance is non-interest
bearing and has demand features, it is carried at face value, which is the original advance received.
In New Zealand the contractual timeframe for repayment, if settlement of a new occupancy advance for the
same retirement-village unit has not occurred, is three years with interest payable after six months at 3% above
our bank's normal overdraft rate. The Group has never utilised this contractual right.
2024 2023
$000 $000
Gross occupancy advances
Opening balance 5,498,020 4,864,713
Plus net increases in occupancy advances:
new retirement-village units
330,379 418,322
existing retirement-village units.
234,550 234,901
Net foreign-currency exchange differences
20,318 (6,540)
Increase/(decrease) in occupancy advance balances
29,460 (13,376)
Closing balance
6,112,727 5,498,020
Net occupancy advances
Less deferred management fees
(713,757) (597,327)
Less suspended contributions (resident loans)
(98,176) (74,511)
Closing balance
5,300,794 4,826,182
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
52
20. LEASE LIABILITIES
Accounting policy: Leases
Group as a lessee
Apart from short-term or low-value assets, leases are included in the statement of financial position through
the recognition of right-of-use assets and associated lease liabilities.
At inception of a lease, a lease liability is calculated based on the present value of the remaining cash flows,
discounted using the Group’s incremental borrowing rate, which is calculated with reference to the external
borrowing facilities available to the Group. The right-of-use asset is initially measured at the value of the initial
lease liability.
The lease liability is subsequently adjusted for interest and lease payments, as well as the impacts of lease
modifications. The right-of-use asset is subsequently measured at cost less accumulated depreciation, adjusted
for any remeasurement of the lease liability.
Depreciation and finance costs associated with right-of-use assets and lease liabilities associated with equipment
used in the construction of assets are capitalised as a cost of constructing the assets.
Where a lease contract contains both lease and non-lease components (for example, tower cranes), the Group
does not separate non-lease components from lease components, and instead accounts for the whole contract
as a lease.
The lease payments for short-term leases and leases of low-value assets are recognised in the profit and loss
over the lease terms.
Group as a lessor
The Group acts as a lessor under occupation-right agreements with village residents. The assets leased by the
Group as a lessor are classified as investment properties. Lease income on occupation right agreements is
generated in the form of deferred management fees and is accounted for in line with note 2. The lease term is
determined to be the greater of the expected period of tenure or the contractual right to deferred
management fees. The Group uses the portfolio approach to account for leases of units to village residents and
allocates individual leases to different portfolios depending on the type of unit.
The Group does not have any sub-leases.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
53
20. LEASE LIABILITIES (CONTINUED)
Group as a lessee
The Group leases office buildings, sales offices, office equipment (such as photocopiers) and plant and
equipment used in the construction of retirement-village units and aged-care beds. The right-of-use assets
relating to these leases are included within property, plant and equipment (note 9).
The Group also has long-term leases of land which are recognised within either property, plant and equipment
or investment property.
Amounts recognised in profit and loss
2024 2023
$000 $000
Depreciation of right-of-use assets (note 9) 3,771 3,372
Interest expense on lease liabilities (note 5)
250 187
Lease modification (note 5)
(1,177) -
Expenses relating to short-term or low-value leases
1,358 1,826
Maturity profile for lease liabilities
The maturity profile for lease liabilities is included in note 21(e).
The Group has lease contracts that include extension options. These options, which have been included to
provide operational flexibility, are exercisable only by the Group and not the lessors. The Group assesses at
lease commencement date whether it is reasonably certain to exercise the extension options. The Group
estimates that the potential future lease payments, should it exercise all the extension options, would result in
an increase in lease liability of $17.3 million (2023: $12.4 million).
Commitments
At 31 March 2024 the Group is committed to $3.3 million for short-term leases (including short-term
construction equipment leases) (2023: $6.6 million).
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
54
21. FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT
(a) Categories of financial instruments and fair values
The Group has the following categories of financial assets and financial liabilities.
2024 2023
$000 $000
Financial assets
Financial assets at amortised cost:
- Cash and cash equivalents (note 7)
- Trade and other receivables (note 8)
- Advances to employees (note 25)
736,376 761,217
Interest rate derivatives designated as hedging instruments
10,331 21,656
Interest rate derivatives not designated as hedging
instruments
- 14,818
746,707 797,691
Financial liabilities
Financial liabilities at amortised cost:
- Trade and other payables (note 14)
- Refundable accommodation deposits (note 16)
- Interest-bearing loans and borrowings (note 17)
- Occupancy advances (note 19)
8,421,524 7,663,230
Interest rate derivatives desi
gnated as hedging instruments 5,688 5,988
Lease liabilities
22,117 13,787
8,449,329 7,683,005
Apart from the financial instruments noted below, the carrying amounts of financial instruments in the Group’s
statement of financial position are the same as their fair value in all material aspects, due to the demand
features of these instruments and/or their interest rate profiles. The face (or nominal) value less estimated
credit adjustments of trade receivables and payables is assumed to approximate their fair values.
Carrying amount Fair value Carrying amount Fair value
2024 2024 2023 2023
$000 $000 $000 $000
Institutional term loan
265,230 269,505 260,290 264,735
Retail bond 148,443 134,910 147,891 131,445
The fair value of the fixed-rate portion of the institutional term loan has been determined at balance date on a
discounted cash flow basis and by applying discount factors to the future AUD interest payment and principal
payment cash flows. The fair value of the floating rate portion is assumed to be the same as its carrying
amount. The fair value of the institutional term loan is categorised as Level 2 under the fair value hierarchy in
accordance with NZ IFRS 13 – Fair Value Measurement.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
55
21. FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT
(CONTINUED)
(a) Categories of financial instruments and fair values (continued)
The fair value of the retail bond is based on the price traded on the NZX market at 31 March 2024. The fair
value of the retail bond is categorised as Level 1 under the fair value hierarchy in accordance with NZ IFRS 13
– Fair Value Measurement.
The fair value of interest rate derivatives are derived using inputs supplied by third parties that are observable,
either directly (prices) or indirectly (derived from prices). The fair value of these derivatives is categorised as
Level 2 under the fair value hierarchy contained within NZ IFRS 13 – Fair Value Measurement (note 18).
(b) Credit risk management
Credit risk is the risk of a failure of a debtor or counterparty to honour its contractual obligations, resulting in
financial loss for the Group.
The Group’s exposure to credit risk relates to cash and cash equivalents, derivative financial instruments, trade
and other receivables, and advances to employees. The maximum credit risk at 31 March 2024 is the carrying
amount of these financial assets.
Credit risk relating to cash and cash equivalents and derivative financial instruments is managed by spreading
such exposures across a range of creditworthy institutions and by restricting the amounts that can be placed
with any one institution.
The Group does not require collateral from its debtors. The directors consider the Group’s exposure to any
concentrations of credit risk from trade and other receivables and advances to employees to be minimal given
that (typically):
the occupancy advance receivables relate to individual residents and the occupation of a retirement-
village unit does not take place until an occupation advance has been received
care and village fees have a portion payable in advance when due from residents (note 8)
care and village fees not due from residents are paid by government agencies
advances to employees are subject to the terms of the employee share schemes (note 25).
There were no material overdue debtors at 31 March 2024 (2023: $Nil).
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
56
21. FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT
(CONTINUED)
(c) Interest rate risk
Interest rate risk is the risk that fluctuations in interest rates affect the Group’s financial performance or future
cash flows or the fair value of its financial instruments.
The Group’s interest rate risk arises mainly from loans and borrowings. Loans and borrowings issued at fixed
rates expose the Group to changes in the fair value of the borrowings. Loans and borrowings issued at variable
interest rates (including bank overdraft) expose the Group to changes in interest rates.
The Group manages its interest rate exposure from loans and borrowings using a mix of fixed and variable-rate
debt and interest rate derivatives that are designated as hedging instruments for those loans and borrowings
(note 18). The Group ensures there is an adequate spreading of debt providers and always seeks to obtain the
most competitive interest rates. The interest rates on bank loans are reviewed at each 3-monthly rollover.
The Group also has interest rate exposure under the terms of its occupancy agreements in New Zealand, and
in respect of its refundable accommodation deposits in both New Zealand and Australia. Refer to Note 16 and
19.
Although the occupancy agreements in New Zealand provide that occupancy advance is repayable at
the earlier of the receipt of the new occupancy advance from the incoming resident or at the end of 3
years, the Group is liable to pay interest if it does not repay the occupancy advance within 6 months
from the date residents vacating their unit. Historically, the Group has been managing this interest rate
exposure by repaying the occupancy advance within 6 months.
In New Zealand, a refundable accommodation deposit is repayable within 30 working days of a
resident vacating their care room. The Group is liable to pay interest if it does not repay the deposit
within that period. In Australia, the repayment obligation is within 14 days of a resident vacating their
care room, or of sighting the probate or letters of administration. The Group is liable to pay interest
at a base interest rate within the 14-day period, and at a higher interest rate beyond that period. The
Group manages these interest rate exposures by repaying the deposits within the prescribed refund
period where possible.
Sensitivity
The following sensitivity analysis is based on the interest rate risk exposures in existence at the reporting date.
The net exposure at balance date is representative of what the Group was and is expecting to be exposed to in
the 12 months from balance date. At balance date, had the floating interest rates increased or decreased by 50
basis points, with all other variables held constant, profit and equity would have been affected as follows:
2024 2023
$000 $000
Increase in interest rates of 50 basis points
Effect on profit after taxation – increase/(decrease) (696) 993
Effect on equity after taxation
– increase/(decrease) 16,815 5,052
Decrease in interest rates of 50 basis points
Effect on profit after taxation
– increase/(decrease) 696 (1,002)
Effect on equity after taxation
– increase/(decrease) (17,176) (5,109)
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
57
21. FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT
(CONTINUED)
(d) Foreign currency risk
Foreign currency risk is the risk that the value of the Group’s assets, liabilities and financial performance will
fluctuate due to changes in foreign currency rates.
The Group is exposed to currency risk in AUD primarily due to its subsidiaries in Australia. The risk to the
Group is that the value of the Australian subsidiaries’ financial position and financial performance will fluctuate
in economic terms and as recorded in the consolidated financial statements, due to changes in the NZD/AUD
exchange rates.
The Group hedges the currency risk relating to its Australian subsidiaries by holding a portion of its
borrowings (bank debt and the institutional term loan) in AUD. Any foreign currency movement in the net
assets of the Australian subsidiaries is partially offset by an opposite movement in the AUD debt.
Sensitivity
The following sensitivity analysis is based on the foreign currency risk exposures in existence at the reporting
date. The net exposure at balance date is representative of what the Group was and is expecting to be
exposed to in the 12 months from balance date. At balance date, had the NZD moved either up or down by
10%, with all other variables held constant, profit and equity would have been affected as follows.
2024 2023
$000 $000
Increase in value of NZ dollar of 10%
Impact on profit after taxation – increase/(decrease) (3,431) (11,860)
Impact on equity after taxation
– increase/(decrease) (52,295) (50,495)
Decrease in value of NZ dollar of 10%
Impact on profit a
fter taxation – increase/(decrease) 4,194 14,496
Impact on equity after taxation
– increase/(decrease) 63,916 61,716
(e) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due.
The ultimate responsibility for liquidity risk management rests with the directors, who have built an
appropriate liquidity risk management framework for the management of the Group’s short, medium, and long-
term funding and liquidity-management requirements.
Occupancy advances and refundable accommodation deposits
The Group manages the liquidity risk on occupancy advances through the contractual requirements in the
occupation agreement.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
58
21. FINANCIAL INSTRUMENTS – FAIR VALUES AND RISK MANAGEMENT
(CONTINUED)
Occupancy advances and refundable accommodation deposits (continued)
In New Zealand, following a termination of the occupancy agreement, the occupancy advance is repaid at the
earlier of five days following the receipt of the new occupancy advance from the incoming resident or at the
end of 3 years. In Australia, following a termination of the occupancy agreement, the occupancy advance is
repaid at the earlier of 14 days after a new resident takes up residence, the receipt of the new occupancy
advance from the incoming resident or at the end of 6 months.
The repayment obligation for refundable accommodation deposits in New Zealand is within 30 working days of
a resident vacating their care room. The repayment obligation for refundable accommodation deposits in
Australia is within 14 days of a resident vacating their care room, or of sighting the probate or letters of
administration.
Lines of credit and undrawn facilities
The Group also manages liquidity risk by maintaining adequate reserves, banking facilities, and reserve
borrowing facilities, and by regularly monitoring forecast and actual cash flows and the maturity profiles of
financial assets and liabilities. The Group maintains the following lines of credit.
Notes 2024 2023
$000 $000
Secured overdraft facility 7 NZ$2,800 NZ$2,800
Syndicated NZD bank loan facilities 17(a)
NZ$1,813,293 NZ$1,788,443
Syndicated AUD bank loan facilities 17(a)
AU$723,500 AU$639,500
Institutional term loan 17(b)
AU$250,000 AU$250,000
Retail bonds 17(c)
NZ$150,000 NZ$150,000
At balance date the Group had NZ$329.3 million (2023: NZ$510.9 million) and AU$125 million (2023:
AU$36.0 million) of undrawn facilities at its disposal to further reduce liquidity risk.
Lease liabilities
The Group does not face a significant liquidity risk with regard to lease liabilities (note 20).
RYMAN HEALTHCARE LIMITED Notes to the consolidated financial statements (continued) FOR THE YEAR ENDED 31 MARCH 2024
59
21. FINANCIAL INSTRUMENTS – RISK MANAGEMENT AND FAIR VALUES (CONTINUED) Maturity profile The following table details the Group’s exposure to liquidity ri
sk (including contractual interest obligations for interest-bea
ring loans and borrowings).
Contractual maturity dates
2024 2023
On
demand
Less than 1
year
1–5
years
Greater
than 5
years Total
On
demand
Less than
1 year 1–5 years
Greater
than 5
years Total
$000 $000 $000 $000 $000
$000 $000 $000 $000 $000
Financial liabilities:
Trade and other payables
-
150,620
-
-
150,620
- 205,784
-
- 205,784
Interest rate swaps
-
1,790
4,751
-
6,541
- 1,372 5,213 383 6,968
Refundable accommodation deposits (non-interest bearing)
423,163
-
-
-
423,163 300,314 - - - 300,314
Bank loans (secured)
-
135,513
2,342,720
85,763
2,563,996
- 103,985 2,130,439
- 2,234,424
Institutional term loan (secured)
-
15,821
330,316
-
346,137
- 12,784 56,530 270,655 339,969
Retail bond (secured)
-
3,690
156,694
-
160,384
- 3,687 160,519
- 164,206
Occupancy advances (non-interest bearing)
1
-
5,300,794
-
-
5,300,794
- 4,826,182
-
- 4,826,182
Lease liabilities
-
5,416
14,482
5,461
25,359
- 5,198 7,257 2,788 15,243
423,163
5,613,644
2,848,963
91,224
8,976,994 300,314 5,158,992 2,359,958 273,826 8,093,090
1
As detailed in note 19, occupancy advances have demand features
and therefore have contractual maturity dates that could occur
in less than one year. The Group repays residents on the
earlier of settlement of a new occupancy advance for the same unit or six months after termination of the occupation right agre
ement. In New Zealand, in the event a new settlement is not
received, the Group has the contractual righ
t to defer repayment until three years after termination of the occupation right ag
reement. After six months interest is payable at 3% pa above
the banks normal overdraft rate. The Group has never utilised this
contractual right. To date, new occupancy advances received
have always exceeded repaid occupancy advances (net of
deferred management fees) and represent a positive net operating ca
sh flow to the Group. The Group has reclassified the compara
tives which were previously based on historical
experience.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
60
21. FINANCIAL INSTRUMENTS – RISK MANAGEMENT AND FAIR VALUES
(CONTINUED)
Changes in liabilities arising from financing activities
Opening
balance
Financing
cash flow
Foreign
exchange
movement
Net
changes in
fair values
Other
Closing
balance
$000 $000 $000 $000 $000 $000
2024
Interest-bearing loans
and borrowings
2,330,950 201,218 18,636 389 (4,246) 2,546,947
Lease liabilities
13,787 (3,365) 74 - 11,621 22,117
Total
2,344,737 197,853 18,710 389 7,375 2,569,064
Opening
balance
Financing
cash flow
Foreign
exchange
movement
Net
changes in
fair values Other
Closing
balance
$000 $000 $000 $000 $000 $000
2023
Derivatives (net) 7,717 (106,594) - 66,978 1,413 (30,486)
Interest-bearing loans
and borrowings 2,576,737 (312,201) (9,937) 42,811 33,540
1
2,330,950
Lease liabilities 13,494 (3,196) (29) - 3,518 13,787
Total 2,597,948 (421,991) (9,966) 109,789 38,471 2,314,251
1
This figure includes make-whole payments (net) of $30.7 million for the USPP prepayment in March 2023.
(f) Market risk
Market risk is the risk that changes in market prices such as interest rates and currency rates will affect the
Group’s income. Refer to note 21(c) and 21(d) on how these risks are managed.
(g) Capital management
The Group’s capital includes share capital, reserves and retained earnings. The objective of the Group’s capital
management is to ensure that long-term business plans can be achieved in a profitable and financially sustainable
manner that enhances shareholder returns and benefits all stakeholders.
The Group’s capital is managed at the parent company level, with oversight from the Board of Directors.
Adjustments are made to the structure with Board approval, considering economic conditions at the time. Key
capital management initiatives during the year included the suspension of the Company’s dividend policy.
The Group is also subject to capital requirements imposed by its banks and lenders (refer note 17).
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
61
22. SEGMENT INFORMATION
The Ryman Group operates in one industry, being the provision of integrated retirement villages for older
people in New Zealand and Australia. The service-provision process for all villages is similar, and the classes of
customer and methods of distribution and regulatory environments are consistent across all the villages. The
Group does not separately report care or village operation and these are aggregated within each region.
The Group’s chief operating decision maker is the Board of Directors and Group CEO. The operating
segments have been determined based on the information regularly reviewed by the Board of Directors and
Group CEO for the purposes of allocating resources and assessing performance. The Board and Group CEO
regularly receives information based on regional performance of New Zealand and Australian operations.
During FY24 amongst other criteria, performance was measured based on segmental underlying profit before
realised fair-value movement and underlying profit. Underlying profit is a non-GAAP measure which has
historically been the most relevant measure in evaluating the performance of segments relative to other
entities that operate within the aged care and retirement village industries. Cashflow performance is monitored
through the movement in the debt balance of each region.
The Group has announced that underlying profit will no longer be a key performance measure going forward.
Going forward performance measurement will be focused on cash flow from existing operations, cash flow
from development and IFRS profit before tax and fair value movements.
In FY2024 changes were made to internal reporting structures and the allocation of internal corporate function
costs to allow a Group / Regional reporting structure. For this reason, it is not possible to restate the 2023
operating segments’ profit measures in the same manner. For comparison purposes the profit measures by
segment have been disclosed for the current period using both the old and new basis of segmentation.
The ‘other’ segment primarily reflects the revenue and costs associated with the Group corporate function.
Other revenues in this segment primarily relate to rental income. Currently this Group corporate function
includes some operational and shared services functions which are performed centrally for cost efficiency
purposes and not recharged to the region.
Non-current assets are based on the geographical locations of the assets with some assets being allocated to
Group functions such as the myRyman software and corporate fixed assets. Loans and borrowings are based
on the geographical location of the debt without any allocation to corporate functions, with an adjustment
between regions to account for start-up funding borrowed in New Zealand which was used as equity in the
Australian operation. The accounting policies of the reportable segments are the same as the Group’s
accounting policies.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
62
22. SEGMENT INFORMATION (CONTINUED)
New Zealand Australia Othe
r Group
$000 $000 $000 $000
2024
Total revenue 556,500 132,800 586 689,886
Interest income 1,758 568 - 2,326
Finance costs
(40,228) (10,414) - (50,642)
Depreciation and amortisation
(17,458) (8,194) (18,151) (43,803)
Underlying (loss)/profit before
realised fair value movements
(non-GAAP)
36,588 (26,535) (50,654) (40,601)
Realised fair value movement (non-
GAAP) (note 10)
256,694 53,907 - 310,601
Underlying profit (non-GAAP)
293,282 27,372 (50,654) 270,000
Non-current assets
9,491,794 2,654,539 113,142 12,259,475
Loans and borrowings
1,705,651 841,296 - 2,546,947
The reconciliation from underlying profit to net profit after tax split by geographical region is shown on the
following page.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
63
22. SEGMENT INFORMATION (CONTINUED)
Underlying profit before realised fair value movements and underlying profit for the current period has been
presented using the previous segmentation methodology below. This also shows revenues from external
customers on the basis of the customer’s geographical location.
New
Zealand
Australia Group
2024 $000 $000 $000
Total revenue 557,061 132,825 689,886
Interest income 1,758 568 2,326
Finance costs
(40,228) (10,414) (50,642)
Depreciation and amortisation
(33,017) (10,786) (43,803)
Underlying (loss)/profit before realised fair value
movements (non-GAAP)
(8,192) (32,409) (40,601)
Realised fair value movement (non-GAAP) (note 10)
256,694 53,907 310,601
Underlying profit (non-GAAP)
248,502 21,498 270,000
Unrealised fai
r-value movement (note 10) (158,337) 27,281 (131,056)
Deferred tax credit (note 6)
112,209 37,491 149,700
Impairment loss (note 9)
(150,846) (92,727) (243,573)
Costs relating to swap amendments
(8,598) (1,812) (10,410)
Close out of employee share schemes
(11,181) - (11,181)
Holiday Act 2003 provision
(18,705) - (18,705)
Net profit after tax
13,044 (8,269) 4,775
Non-current assets 9,597,265 2,662,210 12,259,475
2023
Total
revenue 499,290 84,464 583,754
Interest income 1,916 224 2,140
Interest expense (199,672) (5,702) (205,374)
Depreciation and amortisation (30,126) (7,590) (37,716)
Underlying (loss)/profit before realised fair value
movements (non-GAAP) (34,203) (21,747) (55,950)
Realised fair value movement (non-GAAP) (note 10) 266,425 91,417 357,842
Underlying profit (non-GAAP) 232,222 69,670 301,892
Unrealised fai
r-value movement (note 10) 20,233 53,428 73,661
Deferred tax credit (note 6) 31,261 20,379 51,640
Impairment loss (note 9) (250) (10,784) (11,034)
Costs relating to USPP prepayment and swap amendments (156,090) (2,233) (158,323)
Net profit after tax 127,376 130,460 257,836
Non-current assets 9,301,590 2,365,346 11,666,936
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
64
22. SEGMENT INFORMATION (CONTINUED)
Underlying profit is a non-GAAP (Generally Accepted Accounting Principles) measure and differs from NZ
IFRS profit for the year. Underlying profit does not have a standardised meaning prescribed by GAAP and so
may not be comparable to similar financial information presented by other entities. The Group uses underlying
profit, with other measures, to measure performance. Underlying profit is a measure that the Group uses
consistently across reporting periods.
Underlying profit includes realised movement on investment property for units in which a right-to-occupy has
been sold during the period and for which a legally binding contract is in place at the reporting date. The
occupancy advance for these units may have been received or be included within the trade receivables balance
at reporting date (see note 8).
The realised gain for each resale is determined to be the difference between the price for the previous
occupation right for a unit and the occupation right resold for that same unit during the period. The
recognition point is the date the contract is entered. Realised resale gains exclude deferred
management fees, refurbishment costs and other direct selling expenses.
Realised development margin is the margin earned on the first-time sale of an occupation right
following the development of a unit. The margin for each new sale is determined to be the price for
the occupation right, less the cost of developing that unit. This excludes costs relating to the
community facilities, amenities and other direct selling expenses. The recognition point is the date the
contract is entered for units which are either complete or capable of having fair value determined
(near complete).
Underlying profit excludes deferred taxation, taxation expense, unrealised movement on investment
properties, impairment losses on non-trading assets, costs relating to the close out of employee share schemes,
Holidays Act 2003 provision and the costs relating to USPP prepayment and swap amendments.
The Group has reconsidered the treatment of the Holidays Act 2003 provision which was previously included
in underlying profit (2023: $6.o million). The current year quantification has led to a significant increase in the
provision, which relates to remediation of previous years. Consequently, excluding the $18.7 million impact for
the current year is deemed appropriate.
Information about major customers
Included in total revenue is revenue that arose from sales to the Group’s largest customers.
The Group derives care-fee revenue for eligible government-subsidised, aged-care residents who receive rest
home, hospital, or dementia-level care. The government aged-care subsidies within care and village fees for
New Zealand received from Health New Zealand – Te Whatu Ora amounted to $157.5 million (2023: $138.6
million) and for Australia from Australian Government Services Australia amounted to $46.6 million (2023:
$25.1 million). There are no other significant customers.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
65
23. RELATED-PARTY TRANSACTIONS
The Group enters into transactions with other entities that some of the directors may have interest in or sit
on the Board of. Any transactions undertaken with these entities have been entered into on an arm’s-length
basis and in the ordinary course of business. No director is involved in the quoting for or provision of services
by these entities to the Group.
Transactions
Amounts owing at
year-end
2024 2023 2024 2023
$000 $000 $000 $000
Construction and infrastructure services
– Fulton Hogan Limited
2,190 - 159 -
Legal services – Chapman Tripp (to July
2023)
1,117 3,359 - -
Rental costs
– Airport Business Park
(to July 2023)
694 1,919 - -
Equipment purchases (including design)
– Tectonus Limited
127 95 - -
Anthony Leighs is a director/shareholder of Tectonus Limited, which supplied seismic devices and related
design services to the Group during the financial year.
Dean Hamilton is a director/shareholder of Fulton Hogan Limited, which provides construction and
infrastructure services to the Group.
Since August 2012 Ryman Healthcare Limited has leased office accommodation from Airport Business Park
Christchurch Limited (the Airport Business Park). Warren Bell is an independent director or trustee of the
Airport Business Park’s shareholders. He does not have any personal ownership interest. Under the lease, the
office accommodation is recognised as a right-of-use asset and associated lease liability. Rental costs detailed in
the table above are the total cash payments made in the current financial year in respect of the lease agreement
until July 2023. Warren retired as a director in July 2023.
Jo Appleyard is a Partner at Chapman Tripp, which provides the Group with legal services. Jo retired as a
director in July 2023.
The following are not quoted in the table above given they are utilities and insurance products and the
directors have no involvement from the day to day operations.
James Miller is a director of Mercury NZ Limited, which supplies electricity to the Group.
George Savvides is a director of Insurance Australia Group Limited (IAG), which provides, through its New
Zealand subsidiary NZI, the Group with insurance coverage. George retired as a director in June 2023.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
66
24. KEY MANAGEMENT PERSONNEL COMPENSATION
The compensation of the key management personnel of the Group is as follows.
2024 2023
$000 $000
Short-term employee benefits (Senior Executive Team) 7,563 6,897
Employer contributions to post-employment benefits
- KiwiSaver/Superannuation (Senior Executive Team)
243 214
Directors’ fees
1,162 1,319
Total key management personnel and directo
rs’
compensation
8,968 8,430
Senior Executive Team
Key management personnel are the Senior Executive Team of the Group and include the Group Chief
Executive Officer and eight Senior Executive Team members at 31 March 2024 (2023: Group Chief Executive
Officer and eight Senior Executive Team members). The composition and number of members of the Senior
Executive Team fluctuated throughout the year. The average number of members was 9.5 in the current year
(2023: 9.25 members).
The Company provides certain senior employees with limited recourse loans on an interest-free basis to
support their participation in the leadership share scheme (note 25). The loan amounts owed by these
employees for vested shares are included within ‘Advances to employees’ in the statement of financial position.
This balance includes $267,261 owed by the Senior Executive Team in the leadership share scheme (2023:
$267,261).
Directors
At 31 March 2024 all directors were non-executive and are not involved in the day-to-day operations of the
Group (2023: all directors). Following the resignation of the Group CEO post balance date (effective 22 April
2024) the Chair of the Board assumed the role of Executive Chair until a new Group CEO is recruited. The
Board of Ryman has determined that Dean Hamilton will be a non-independent director whilst he is the
Executive Chair and he will not receive director fees. A sub-committee of the Board will oversee the
performance of the Executive Chair function during the period, and that committee will comprise independent
directors Paula Jeffs (Chair and lead independent director), Anthony Leighs and James Miller.
The number of directors fluctuated during the financial year. There are seven directors at balance date (2023:
seven directors). David Pitman joined the Board after balance date (appointment effective 1 May 2024) bringing
the total directors to eight. The average number of directors was 7 in the current year (2023: 8 directors).
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
67
25. EMPLOYEE SHARE SCHEMES
Accounting policy: Treasury stock
Shares purchased on market under the leadership share scheme are treated as treasury stock on acquisition at
cost. On vesting to an employee, treasury stock shares are credited to equity and an employee advance is
recorded initially at fair value and later at amortised cost.
Any loss on disposal if the treasury shares are sold by the company (for example, when the employee leaves
before the end of the restrictive period) is taken directly against equity.
Due to the features of the scheme, it is accounted for as share options under NZ IFRS 2 – Share-based Payment.
Under NZ IFRS 2 the Group measures the fair value of the services received by reference to the fair value of
the share options granted.
Leadership share scheme
The Group has been operating a leadership share scheme for certain senior employees, other than non-
executive directors, to purchase ordinary shares in the Company. The key terms of the scheme are as follows:
The Group provides the employees with limited recourse loans on an interest-free basis to support
their participation in the scheme. The loans are applied to the purchase of shares on market.
Shares purchased under the scheme are held by two directors as custodians, and the shares carry the
same rights as all other ordinary shares.
All net dividends received in respect of the shares must be applied to repayments of the loans.
Shares subject to this scheme usually vest 3 years from the date of purchase, unless extended in
accordance with the terms.
Following vesting, the limited recourse loans become full recourse loans. A loan on vested shares is
repayable at the discretion of the employee but is repayable when the employee leaves the Group.
Scheme wind down
Following a review of the leadership share scheme during the year, the directors resolved to make a one-off
offer to eligible participants who are not members of the Senior Executive Team in connection with winding
down the scheme. No future offers will be made under the scheme.
96.1% accepted the offer, which resulted in one-off payments totalling NZ$4.5 million being made to those
participants. This amount comprises cash-settled share-based payments of NZ$1.2 million and employee
benefits of NZ$3.3 million. These payments are expensed in the profit or loss (note 3).
Further payments are anticipated in relation to the Senior Executive Team, who were not included in the initial
offer. These are not expected to exceed $0.5 million and this has been provided for in these accounts.
At balance date, the Company has gross advances to employees (in relation to vested shares) totalling NZ$9.4
million. Although these loans are full recourse in nature, the Company has provided for an impairment loss of
NZ$2.8 million against these advances taking into account the share price at 31 March 2024 of $4.55.
In accordance with NZ IFRS 2, the loans in relation to unvested shares are not recorded on the statement of
financial position within advances to employees. These are accounted for within the Treasury Stock reserve.
Accordingly, no impairment loss has been provided against these loans.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
68
25. EMPLOYEE SHARE SCHEMES (CONTINUED)
Leadership share scheme (continued)
Treasury stock and share options
At balance date, the scheme holds 2,494,282 fully allocated (unvested) shares, which represents 0.36% of the
total shares on issue (2023: 2,494,282 fully allocated shares, which represented 0.36% of the total shares on
issue). The following table reconciles the shares purchased on market under the scheme at the beginning and
end of the financial year. The weighted average exercise price is calculated based on the share price on the
purchase date less any net dividends received since the purchase date.
2024 2024 2023 2023
Number
of
shares
Weighted
average
exercise
price
Number
of
shares
Weighted
average
exercise
price
Balance at beginning of the financial year 2,494,282 13.57 2,741,246 13.72
Purchased on market during the yea
r - - - -
Forfeited during the financial yea
r - - (246,964) 13.67
Vested during the financial yea
r - - - -
Repayment
- (0.05) - -
Balance at end of the financial yea
r 2,494,282 13.52 2,494,282 13.57
Represented by:
Shares granted in August 2019
736,291 12.81 736,291 12.88
Shares granted in August 2020
793,292 13.10 793,292 13.13
Shares granted in August 2021
964,699 14.42 964,699 14.45
Balance at end of the financial yea
r 2,494,282 13.52 2,494,282 13.57
The restrictive period for participants that accepted the offer was extended on each tranche of unvested
shares until the earlier of the aggregate market value of the shares in that tranche being at least equal to their
purchase price or 1 November 2026, in the directors’ sole discretion. The restrictive period was not further
extended for participants in the Senior Executive Team and participants that did not accept the offer.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements (continued)
FOR THE YEAR ENDED 31 MARCH 2024
69
25. EMPLOYEE SHARE SCHEMES (CONTINUED)
All employee share scheme
The Group has also been operating a share scheme that is available for all employees. The key terms of the
scheme are as follows:
Participants in this scheme contribute a minimum of $500 (and up to a maximum amount of $10,000)
towards the on-market purchase of Ryman Healthcare Limited shares. To help an employee purchase
shares, the Group advances an interest-free loan equal to the employee’s contribution to the share
purchase (financial assistance).
All shares purchased under the scheme are held in the employee’s name.
Most of the loans were made on a limited recourse basis.
The loan is repayable at the discretion of the employee but is repayable when the employee leaves the
Group.
Scheme wind down
Following a review of the all employee share scheme during the year, the directors resolved to make a one-off
offer to existing eligible participants in connection with winding down the scheme. No future offers will be
made under the scheme. The participating employees who accepted the offer sold their loan-funded shares on-
market (at a share price of NZ$5.87), with the sale proceeds (net of brokerage fees) being applied to repay
their outstanding loans. To the extent the proceeds did not fully repay the loans, the loans were deemed to be
repaid in full.
The offer resulted in NZ$2.6 million of advances to employees being repaid and NZ$1.3 million of advances to
employees being written off. This amount is expensed in the profit or loss and disclosed within employee
benefits (note 3).
Since not all participating employees accepted the offer, the Company still has gross advances to employees
totalling NZ$0.7 million in relation to this scheme at balance date. Due to the limited recourse nature of most
loans and the current share price, the Company has provided for an impairment loss of NZ$0.1 million against
these advances.
26. COMMITMENTS
Capital expenditure commitments
The Group had commitments relating to construction contracts amounting to $217.2 million at 31 March 2024
(2023: $385.7 million).
The Group has an ongoing commitment to maintaining the land and buildings of the integrated retirement
villages, rest homes and hospitals.
Commitments relating to leases have been disclosed in note 20.
RYMAN HEALTHCARE LIMITED
Notes to the consolidated financial statements ( continued)
FOR THE YEAR ENDED 31 MARCH 2024
27. CONTINGENT LIABILITIES
There are no contingent liabilities at 3 I March 2024. The previously reported Holiday Act remediation is now
included in note 15.
28. SUBSEQUENT EVENTS
On
22 April 2024 it was announced that Richard Umbers had resigned from his position as Group CEO and
was immediately leaving the Group. Chair Dean Hamilton was appointed Executive Chair until a Group CEO is
recruited. Refer to note 24.
There have been no other events subsequent to 31 March 2024 that materially impact on the results reported.
29. AUTHORISATION
The directors authorised the issue of these consolidated financial statements on 24 May 2024.
70
JameYMiller
Non-executive director and
Chair of Audit, Finance and Risk committee
Independent Auditor’s Report
To the Shareholders of Ryman Healthcare Limited
Opinion
Basis for opinion
Audit materiality
Key audit matters
We have audited the consolidated financial statements of Ryman Healthcare Limited and its
subsidiaries (the ‘Group’), which comprise the consolidated statement of f inancial position as at 31
March 2024, and the consolidated income statement, statement of comprehensive income,
statement of changes in equity and statement of cash flows for the year then ended, and notes to
the consolidated financial statements, including material accounting policy information.
In our opinion, the accompanying consolidated
financial statements, on pages 1 to 70, present fairly,
in all material respects, the consolidated financial position of the Group as at 31 March 2024, and its
consolidated financial performance and cash flows for the year then ended in accordance with New
Zealand Equivalents to IFRS Accounting Standards (‘NZ IFRS’) as is
sued by the External Reporting
Board and IFRS Accounting Standards (‘IFRS’) as iss ued by the International Accounting Standards
Board.
We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) and
International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a bas
is
for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1
I
nternational Code of Ethics for Assurance Practitioners (including International Independence
Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and
the International Ethics Standards Board for Accountants’ International Code of Ethics for
Profe
ssional Accountants (including International Independence Standards), and we have fulfilled
our other ethical responsibilities in accordance with these requirements.
Our firm carries out other assurance services for the Gro
up relating to Australian aged care and
climate related disclosure assurance readiness services. These services have not impaired our
independence as auditor of t he Company and Group.
In addition to this, partners and employees of our firm deal with the Company and its su
bsidiaries on
normal terms within the ordinary course of trading activities of the business of t he Company and its
subsidiaries. The firm has no other relationship with, or i nterest in, the Company or any of i ts
subsidiaries.
We consider materiality primarily in terms of t he magnitude of misstatement in the financial
statements of the Group that in our judgement would make it probable that the economic decisions
of a reasonably knowledgeable person would be changed or influenced (the ‘quantitative’
materiality). In addition, we also assess whether other matters that come to our attention dur ing
the audit would in our judgement change or influence the decisions of such a person (the
‘qualitative’ materiality). We use materiality both in planning the scope of our audit work and in
evaluating the results of our work.
We determined materiality for th
e Group financial statements as a whole to be $24.5m.
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of t he consolidated financial st
atements of t he current period. These matters were
addressed in the context of our audit of t he consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
71
Key audit matter How our audit addressed the key audit matter
Valuation of Investment Property
As explained in note 10 in the consolidated financial
statements, investment properties are carried at fair
value on the consolidated balance sheet. The fair value
of these properties is determined based on the mid
point of external valuations at 31 March 2024, which is
supported by independent external valuations. The
valuations are subject to a number of complex
estimates and assumptions.
The valuation models are discounted cash flow models.
The Directors adjust the value for occupancy advances
received from residents, deferred management fees,
and revenue in advance. The external valuations rely
on various estimates and underlying assumptions,
including current unit pricing, discount rates, future
long term house price growth rates and the occupancy
periods of residents. A small percentage difference in
certain input assumptions could result in a material
change to the valuations.
These properties were valued at $10,041m (2023:
$9,323m). The revaluation gain recognised in the
consolidated income statement was $180m (2023:
$432m).
We included the valuation of investment properties as
a key audit matter for two reasons:
1. The significance to the financial statements:
The investment properties account for 77% of the total
assets (2023: 75%), making it the most significant
balance on the consolidated statement of financial
position.
2. The complexity of the valuation models that support
the valuations.
Our procedures focused on:
•The appropriateness of the valuation methodology, including the
appropriateness of assessments made by the valuers and Directors in
determining the carrying value of investment property;
•Th
e reasonableness of underlying assumptions in the valuation
models.
Our procedures included, amongst others:
•Evaluating the Group’s processes for determining the valuation of the
investment properties, including the consideration of the valuations
obtained from the independent valuers;
•Reading the valuation reports for properties within the group and
reviewing t
he valuation methodology and the reasonableness of the
significant underlying assumptions;
•Discussing with management the nature of key assumptions, and
assessing the reasonableness of adjustments made in determining the
carrying value of investment property;
•Evaluating the appropriateness of the mid point of the valuations
consi
dered by the directors and the reasonableness of the fair value
adopted;
•Assessing the competence, objectivity, and integrity of the
independent registered valuers. We assessed their professional
qualifications and experience. We also obtained representation from
t
hem about their independence and the scope of their work and
considered restrictions imposed on the valuation process (if any);
•Meeting with the valuers to understand the valuation process adopted.
T
he purpose of the meetings was to identify and challenge the critical
judgment areas in the valuation model and to confirm the valuation
approach was in accordance with NZ IFRS 13 Fair Value Measurement.
We critically challenged the changes made to key assumptions and
their reasonableness relative to the 31 March 2023 valuations;
•Revi
ewing management’s assessment of the change in accounting
estimate relating to the allocation of a portion of the Investment
Property valuations to the care facilities; and
•Usi
ng our in-house valuation specialists to assess the appropriateness
of the valuation methodology, discount rates and other market
evidence
;
•Agreeing a sample of sales and resales to contracts, calculating actual
growth rates on resales for the sample to compare to growth rates
appli
ed by the valuers, and calculating the average tenure of residents
based on a sample of contracts to compare to occupancy periods
presented by the valuers;
•Comparing a sample of current unit market values determined by the
valuer
to actual prices received at comparable units within the village;
•Assessing the discount rates for reasonableness by comparing the
rates to those adopted in the previous year and the rates adopted by
comparable entities; and
•Considering the appropriateness of the disclosures in note 10.
7
1
Key audit matter How our audit addressed the key audit matter
Valuation of care-facility land and buildings
As explained in note 9 in the consolidated financial
statements, care facility land and buildings are carried
at their fair value at the date of revaluation less any
subsequent accumulated depreciation and impairment
losses.
The fair value was determined by independent
registered valuers appointed by the Group. The net
book value of care facility land and buildings as
reflected in note 9 is $1,153m (2023: $1,361m). The
revaluation loss recognised in other comprehensive
income was $252m (2023 gain of $157m) and in profit
or loss was $24m (2023 $nil).
We included the valuation of care-facility land and
buildings as a key audit matter for two reasons:
1.The materiality of the account balance, and the
revaluation movements.
2.The complexity of the valuation models:
The valuation models include both observable
and non-observable inputs. They include
significant assumptions, including the
determination of the earnings that were
capitalised, the capitalisation rates adopted, and
the assessment of the market value per care bed.
These inputs require significant judgement.
Our procedures focused on:
• the appropriateness of the valuation methodology
• the reasonableness of underlying assumptions in the valuation models.
Our procedures included, amongst others:
•Agreeing material additions to supporting documentation, such as
the number of care beds added during the period;
•Evaluating the Group’s processes regarding the independent
valuations of the care facility land and buildings;
•Reviewing the valuation methodology and the reasonableness of
the significant valuation assumptions;
•Assessing the competence, objectivity and integrity of the
independent registered valuers. We assessed their professional
qualifications and experience. We obtained representation from
them about their independence and the scope of their work;
•Meeting with the valuers to understand the valuation process
adopted. The purpose of the meeting was to identify and challenge
the critical judgment areas in the valuation model s and to confirm
the valuation approach is in accordance with NZ IFRS 13 Fair Value
Measurement;
•Using our in-house valuation specialists to assess the
appropriateness of the valuation methodology and challenge the
reasonableness of the underlying assumptions. Our specialists
focused on the assumptions for earnings and capitalisation rates
and other market information;
•Assessing the reasonableness of the capitalisation rates and market
value per care bed adopted in the valuations;
•A
greeing, on a sample basis, the earnings capitalised to the
underlying accounting recorded and challenging the valuers on the
adjustments made to actual earnings in arriving at the earnings
used in the valuations;
•R
eviewing management’s assessment of the change in accounting
estimate relating to the allocation of a portion of the Investment
Property valuations to the care facilities; and
•Considering the appropriateness of the disclosures in Note 9.
7
3
Other information The directors are responsible on behalf of the Group for the other information. The other
information comprises the information in the Annual Report that accompanies the consolidated
financial statements and the audit report, and in the Climate Statement, which are expected to be
made available to us after the date of this auditor’s report.
Our opinion on the consolidated financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and consider whether the other information is
materially inconsistent with the consolidated financial statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated.
When we read the other information in the Annual Report and in the Climate Statement, if we
conclude that there is a material misstatement therein, we are required to communicate the matter
to the directors and consider further appropriate actions.
Directors’ responsibilities for the
consolidated financial statements
The directors are responsible on behalf of the Group for the preparation and fair presentation of the
consolidated financial statements in accordance with NZ IFRS and IFRS, and for such internal control
as the directors determine is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf of the
Group for assessing the Group’s ability to continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the Group or to cease operations, or have no realistic alternative
but to do so.
Auditor’s responsibilities for the
audit of the consolidated financial
statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs and ISAs (NZ) will
always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial
statements.
A further description of our responsibilities for the audit of the consolidated financial statements is
located on the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-
report-1
This description forms part of our auditor’s report.
Restriction on use This report is made solely to the Company’s shareholders, as a body. Our audit has been undertaken
so that we might state to the Company’s shareholders those matters we are required to state to
them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the Company’s shareholders as a body, for
our audit work, for this report, or for the opinions we have formed.
Mike Hoshek, Partner
for Deloitte Limited
Christchurch, New Zealand
24 May 2024
7
4
---
Results for announcement to the market
Name of issuer Ryman Healthcare Limited
Reporting Period 12 months to 31 March 2024
Previous Reporting Period 12 months to 31 March 2023
Currency NZD
Amount (000s) Percentage change
Revenue from continuing operations $689,886 18.2%
Total Revenue (see explanation below) $869,431 -14.4%
Net profit/(loss) from continuing
operations
$4,775 -98.1%
Total net profit/(loss) $4,775 -98.1%
Interim/Final Dividend
Amount per Quoted Equity Security No final dividend is to be paid for the year ended 31 March 2024
Imputed amount per Quoted Equity
Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per Quoted Equity
Security (cents per share)
601.5 658.1
A brief explanation of any of the
figures above necessary to enable the
figures to be understood
Total revenue
The figure detailed as total revenue above includes total revenue
per the financial statements of the group plus the fair-value
movement of investment properties .
Underlying profit
Amount (000s): $270,000 Percentage change: -10.6%
Underlying profit is a non-GAAP (Generally Accepted Accounting
Principles) measure and differs from NZ IFRS profit for the year.
Underlying profit does not have a standardised meaning
prescribed by GAAP and so may not be comparable to similar
financial information presented by other entities. The Group uses
underlying profit, with other measures, to measure performance.
Underlying profit is a measure that the Group uses consistently
across reporting periods.
Underlying profit includes realised movement on investment
property for units in which a right-to-occupy has been sold
during the period and for which a legally binding contract is in
place at the reporting date. The occupancy advance for these
units may have been received or be included within the trade
receivables balance at reporting date.
• The realised gain for each resale is determined to be the
difference between the price for the previous occupation right
for a unit and the occupation right resold for that same unit
during the period. The recognition point is the date the
contract is entered. Realised resale gains exclude deferred
management fees, refurbishment costs and other direct selling
expenses.
• Realised development margin is the margin earned on the first-
time sale of an occupation right following the development of a
unit. The margin for each new sale is determined to be the
price for the occupation right, less the cost of developing that
unit. This excludes costs relating to the community facilities,
amenities and other direct selling expenses. The recognition
point is the date the contract is entered for units which are
either complete or capable of having fair value determined
(‘near complete’).
Underlying profit excludes deferred taxation, taxation expense,
unrealised movement on investment properties, impairment
losses on non-trading assets, costs relating to the close out of
employee share schemes, Holidays Act 2003 provision and the
costs relating to USPP prepayment and swap amendments.
Authority for this announcement
Name of person authorised to make
this announcement
Deborah Marris
Contact person for this announcement Deborah Marris
Contact phone number +64 3 366 4069
Contact email address Deborah.Marris@rymanhealthcare.com
Date of release through MAP 27 May 2024
---
RYMAN HEALTHCARE
Full year result
For the period ending 31 March 2024
Presented 27 May 2024
RYMAN HEALTHCARE | 2024 Result Presentation2
Today’s
Speakers
Dean Hamilton
EXECUTIVE CHAIR
Rob Woodgate
GROUP CHIEF FINANCIAL
OFFICER
RYMAN HEALTHCARE | 2024 Result Presentation3
Agenda
Change programme
Financials
Balance sheet and capital
Sales and settlements
Development
Strategic focus
Governance and remuneration
Outlook
Keith Park Village resident Mary and her grandson.
3
RYMAN HEALTHCARE | 2024 Result Presentation4
Change programmeprogressing
Board refresh
•Board renewal with three members retiring and four new Board members in FY24
•Two further retirements in calendar 2024
•New Chair of the Board and new Chairs of all Board subcommittees
Management refresh
•Group CEO resignation on 19 April 2024 with Chair Dean Hamilton stepping into Executive Chair role while
Group CEO search is underway
•New executive appointments, including Group CFO, Head of Corporate Finance and Treasury and
Chief Transformation and Strategy Officer (combining prior Chief Strategy Officer and Chief Experience and
Engagement Officer roles)
Remuneration reset
•New minimum share purchase plan for directors
•Majority of SET on reset remuneration structure from 1 April 2024
Objective
performance metrics
•New financial performance measures (1) cash flow from existing operations, (2) cash flow from development
activity, and (3) IFRS profit before tax and fair value movements per share
•Recognition of build rate moved to completed units and beds which are able to be occupied
•Focusing on settlement of sales with accounting recognition under review
•Improved financial disclosures and transparency including breakdown of operating expenses and net resales cash
flows
Balance sheet
assessment
•Sites in land bank reviewed against current investment criteria, resulting in land moved to held for sale and
impairments on land where the outcome is yet to be determined
•Asset valuations approach reassessed with investment property and property, plant and equipment now held at
independent valuation (previously held at director’s valuation)
Strategic urgency
•‘Fit for the future’ transformation programme commenced
•Focus on (1) new developments, (2) existing villages, (3) revenue, (4) services and support, (5) culture and change
Assurance
•External Auditor Independence Policy released (link to NZX announcement)
•2025 external audit RFP underway and expected to be announced at the Annual Shareholder Meeting
RYMAN HEALTHCARE | 2024 Result Presentation5
Ryman at a glance
Teammembers
7,691
NZ: 6,242 | AU: 1,449
Residents
14,606
NZ: 12,561 | AU: 2,045
Units and beds in
land bank
5,371
NZ: 3,161 | AU: 2,210
Open villages
48
NZ: 40 | AU: 8
Sites under construction
10
NZ: 6 | AU: 4
Greenfield sites
10
NZ: 5 | AU: 5
(excluding 3 sites held for sale)
Retirement village units
9,187
NZ: 7,843 | AU: 1,344
Aged care beds
4,339
NZ: 3,659 | AU: 680
(Includes 9
open villages)
Reader’s Digest
Most Trusted Brand
1
10x winner
1Aged Care and Retirement Villages Category
(Includes 9 villages
under construction)
RYMAN HEALTHCARE | 2024 Result Presentation6
Financials
6
Patrick Hogan Village.
RYMAN HEALTHCARE | 2024 Result Presentation7
Financial reporting
Earnings guidance
met for FY24
•Underlying profit of $270.0 million, in-line with February 2024 guidance of $265–285 million
New financial metrics
•Measuring financial performance on (1) cash flow from existing operations
1
(CFEO), (2) cash flow from
development activity
1
(CFDA), and (3) IFRS profit before tax and fair value movements (PBTF)
•PBTF demonstrates profitability excluding sales of occupation right agreements (ORAs)
•Purposeful move away from underlying profit and operating EBITDA
1
. Will still report on adjusted EBITDA
1
for lender
ICR covenant
Accounting
changes
•Investment property and property, plant and equipment held at independent valuation (previously director’s
valuation) with no apportionment of DMF to aged care valuation. Uncontracted completed stock now included
in independent valuation and held at fair value
•Imputed interest on RADs recognised as revenue, reflecting non-cash consideration under an operating lease
designation (NZ IFRS 16). Corresponding expense also recognised in profit and loss (nil impact on NPAT)
•Changes to cost capitalisation approach going forward. See slide 11
Disclosure
improvements
•Breakdown of operating expenses detailing gross costs and costs capitalised to projects
•Net resales cash flows disclosed, including unit refurbishment costs and direct selling costs
•Breakdown of trade and other receivables detailing new sales and resales ORA receivables
•Reconciliation between managers net interest and carrying value of investment property
Looking forward
•Accounting recognition for sale of ORAs under review
•Work underway to segment village financial performance between retirement living and aged care
Financials
1 Cash flow from existing operations, cash flow from development activity, operating EBITDA and adjusted EBITA are non-GAAP (Generally Accepted Accounting Principles) measure and do not have a standardised meaning
prescribed by GAAP, and so may not be comparable to similar financial information presented by other entities
RYMAN HEALTHCARE | 2024 Result Presentation8
Financial metrics
Cash flow from
development activity
1
($230.2m)
Up $150.8m | FY23: ($381.0m)
Net interest-bearing
debt
$2.51b
Up $0.21b | FY23: $2.30b | 1H24: $2.47b
Gearing: 36.3% | FY23: 33.1%
Net profit after tax
(NPAT)
$4.8m
Down 98% | FY23: $257.8m
Cash flow from existing
operations
1
$43.3m
Up $51.8m | FY23: -$8.5m
IFRS profit before tax and fair
value moments (PBTF)
($324.5m)
Down -$99.2m | FY23: ($225.3m)
Per share: (47.2cps) | FY23: (43.6cps)
Total one-off costs
1
($283.9m)
FY23: ($175.4m)
1Cash flow from existing operations, cash flow from development activity and one-off costs are non-GAAP (Generally Accepted Accounting Principles) measures and do not have a standardised meaning prescribed
by GAAP, and so may not be comparable to similar financial information presented by other entities
Financials
Key metrics
RYMAN HEALTHCARE | 2024 Result Presentation9
Statutory profit and loss
•Net profit after tax (NPAT) of $4.8 million, driven by impairment losses
and lower fair-value movements, offset by a higher deferred tax credit
•Profit before tax and fair-value movements (PBTF) declined from
-$225.3 million in FY23 to -$324.5 million in FY24
•Operating expenses up 20% to $651.9 million, including $29.9 million
of one-off costs
1
relating to wind-up of employee share schemes and
Holidays Act 2003 provisions (up 16% excluding these items)
•Total finance costs lower than FY23 which was impacted by USPP
prepayment. Finance costs excluding USPP prepayment and swap
amendments down 14% to $40.2 million
•Impairment loss of $243.6 million driven by adjustments to the carrying
amount of assets held for sale and review of land bank sites (see slide 12)
•Fair-value moment on investment property of $179.5 million, down 58%
reflecting changes to valuation methodology (see slide 18)
1Refer to slide 12 for breakdown of one-off costs
Profit and loss ($m)FY23FY24YoY
Care and village fees437.3510.417%
Deferred management fees (DMF)122.8140.214%
Interest received2.12.39%
Imputed income on RADs12.824.591%
Other income8.712.644%
Total revenue583.8689.918%
Operating expenses(542.2)(651.9)20%
Depreciation and amortisation(37.7)(43.8)16%
Imputed income charge on RADs(12.8)(24.5)91%
Finance costs - interest expense(47.1)(40.2)-14%
Finance costs - USPP prepayment, swap amendments(158.3)(10.4)nm
Impairment loss(11.0)(243.6)nm
Total expenses(809.1)(1,014.4)25%
Profit before tax and fair-value movements (PBTF)(225.3)(324.5)44%
Fair-value movement of investment properties431.5179.5-58%
Profit before tax206.2(144.9)-170%
Income tax credit/(expense)51.6149.7190%
Net profit after tax (NPAT)257.84.8-98%
Per share
Weighted shares on issue (m)516.3687.633%
PBTF per share (cps)(43.6)(47.2)8%
NPAT per share (cps)49.90.7-99%
One-off costs (non-GAAP)
1
Total one-off costs(175.4)(283.9)62%
Profit before tax, fair-value movements and one-offs(50.0)(40.6)-19%
Financials
326.0
264.7
423.1
692.9
257.8
4.8
36.5
26.7
(6.3)
(23.8)
(225.3)
(324.5)
(400)
(200)
200
400
600
800
FY19FY20FY21FY22FY23FY24
NPATPBTF
RYMAN HEALTHCARE | 2024 Result Presentation10
Revenue
Aged care
•Total aged care revenue of $443.3 million, up 20% on FY23 driven by
6% increase in occupied beds, and 14% growth in revenue per bed
•Care revenue per occupied bed up 14% to $302 per day,
predominantly driven by occupancy growth weighted to Australian
villages (with higher average daily fees) as well as imputed income
on RADs, regulated care fees and room premiums. See Appendix 1
for further detail.
•Increased occupancy across all care centres from 90.9% in FY23 to
93.3% , reflecting a lift in both mature care centres and filling care
centres
•Increased occupancy across mature care centres from 94.6% in
FY23 to 96.3%
Retirement village
•Total serviced apartment revenue of $89.6 million, up 15% on FY23
reflecting 6% growth in occupied units and 9% growth in revenue
per unit
•Total independent unit revenue of $142.1 million, up 13% reflecting
6% growth in occupied units and 7% growth in revenue per unit
Revenue by accommodation type
1
($m)FY23FY24YoY
Aged care beds
Care fees356.4418.918%
Imputed income on RADs12.824.591%
Total aged care revenue369.2443.320%
Occupied bed days (#)1,389,7171,469,5716%
Total revenue per occupied bed per day ($)26630214%
Serviced apartment RV units
Village fees45.050.412%
Deferred management fees (DMF)32.939.219%
Total serviced apartment revenue77.889.615%
Occupied unit days (#)716,672757,1056%
Total revenue per occupied unit per day ($)1091189%
Independent RV units
Village fees35.941.114%
Deferred management fees (DMF)89.9101.012%
Total independent unit revenue125.8142.113%
Occupied unit days (#)2,052,2062,167,6636%
Total revenue per occupied unit per day ($)61667%
Financials
302.0
333.4
359.2
398.2
437.3
510.4
78.9
88.7
93.2
105.6
122.8
140.2
1.4
1.8
3.4
5.0
10.9
14.9
12.8
24.5
382.3
423.9
455.8
508.8
583.8
689.9
FY19FY20FY21FY22FY23FY24
Reported revenue ($m)
Total care and village fees
Total DMF
Interest and other income
Imputed interest on RADs
1Revenue by accommodation type in table excludes interest and other income
RYMAN HEALTHCARE | 2024 Result Presentation11
Operating expenses
Gross operating expenses up 16% (up 12% excluding one-offs)
•Employee expenses up 16% reflecting legislative increases for clinical
team members (in-line with care funding rates), general wage increases
and one-offs (up 11% excluding one-offs
1
)
•Operations expenses up 2% on FY23, consistent with resident
growth and inflation, offset by reduced medical consumables
•Building and grounds expenses up 17% reflecting higher rates,
insurance, power and general maintenance costs
•Marketing and direct selling expenses higher due to recent
campaigns and sales incentives to residents
•Administration expenses up 34% reflecting general cost inflation
and one-offs (up 20% excluding one-offs
2
)
•Village gross operating expenses up 15%, and non-village expenses up
19% (up 2% excluding one-offs
1,2
)
•Non-village expenses reflect group and regional office and shared
services functions
Reported operating expenses up 20% (up 16% excluding one-offs)
•Reported operating expenses include gross operating expenses,
less costs capitalisedto projects
•Capitalisedexpenses of $96.2 million is down -8%, reflecting changes
to methodology including a lower proportion of non-village costs
being capitalisedto development projects
•Changes to cost capitalisationapproach will impact further in FY25
with reported operating expenses expected to grow at a higher rate
than gross operating expenses
Financials
303.7
349.2
395.3
466.2
542.2
651.9
200
400
600
800
FY19FY20FY21FY22FY23FY24
Reported operating expenses ($m)
Operating expenses ($m)FY23FY24YoY
Employee expenses(418.9)(484.9)16%
Operations(86.2)(88.2)2%
Building and grounds(64.3)(75.4)17%
Direct selling expenses
3
(20.4)(28.4)40%
Marketing(16.1)(21.1)31%
Software and technology(21.8)(24.3)12%
Administration(19.1)(25.7)34%
Gross operating expenses(646.8)(748.1)16%
Capitalised to projects104.696.2-8%
Reported operating expenses(542.2)(651.9)20%
By location
Village(499.7)(573.8)15%
Non-village(147.1)(174.3)19%
Gross operating expenses(646.8)(748.1)
16%
Village(483.3)(565.0)17%
Non-village(58.8)(86.8)48%
Reported operating expenses(542.2)(651.9)20%
1Non-village employee expenses includes $27.1 million of one-offs, comprising $18.0 million for Holidays Act 2003
remediation (FY23: $6.0 million) and $9.1 million of costs for close-out of employee share schemes (FY23: nil)
2Non-village administration expenses includes $2.8 million of one-offs, comprising $2.1 million for close-out of
employee share scheme (FY23: nil), and $0.7 million for Holidays Act 2003 remediation
3Include salaries and commissions for sales advisors, sales incentives to residents and legal expenses
RYMAN HEALTHCARE | 2024 Result Presentation12
Impairments and one-off costs
•Total one-off costs
1
of $283.9 million in FY24, up from $175.4 million
in FY23
Impairment loss
•$63.6 million relating to sites held for sale including Mt Martha (settled
in FY24), Newtown (unconditionally sold), Kohimarama and Karori.
Excess land at Nellie Melba which is held for sale is not deemed
impaired
•$147.5 million relating to land bank sites which no decision to sell has
been made, but where there is uncertainty about future plans to
develop or where early-stage construction has been suspended
•$23.6 million reflecting changes to valuation methodology relating
to five operational care centres. Balance of care centrefair-value
movements recognisedin balance sheet reserves
•$8.9 million of other impairments due to review of fixed asset register
Other one-off costs
•Costs relating to swap amendments of $10.4 million, reflecting
non-cash impact of amendments made to interest rate swaps in FY23
•Close out of employee share schemes of $11.2 million, reflecting wind
down of share schemes. Further detail is provided in note 25
of the 2024 financial statements
•Holidays Act 2003 costs of $18.7 million, reflecting issues relating
to entitlements under the Holidays Act dating back to 2010. Further
detail is provided in note 15 of the 2024 financial statements
Financials
Total impairments and one-off costs ($m)FY23FY24
Impairment loss11.0243.6
Costs relating to USPP prepayment152.1-
Costs relating to swap amendments6.210.4
Close out of employee share schemes-11.2
Holidays Act 20036.018.7
Total one-off costs175.4283.9
Breakdown of impairment loss ($m)FY23FY24
Mt Martha
1
10.80.2
Newtown
2
0.39.4
Kohimarama-16.3
Karori-37.6
Subtotal – sites held for sale11.063.6
Takapuna-56.5
Mt Eliza-36.0
Ringwood-55.0
Subtotal - land bank sites-147.5
Care centre impairment-23.6
Other assets-8.9
Total impairment loss11.0243.6
1Mt Martha settled in FY24
2Unconditionally sold, due to settle in September 2024
1Total one-off costs are a non-GAAP (Generally Accepted Accounting Principles) measure and do not
have a standardised meaning prescribed by GAAP, and so may not be comparable to similar financial
information presented by other entities
RYMAN HEALTHCARE | 2024 Result Presentation13
Cash flow from existing operations
•CFEO increased $51.8 million to $43.3 million
•Increase driven by $86.2 million uplift in net cash flow from resales of
ORAs and $13.5 million saving in net interest paid, offset by -$39.4 million
decline in village operations and -$8.5 million decline in non-village cash
flow
•Decline in cash flow from village operations resulted from cost inflation
outpacing growth in aged care and RV village fees and DMF collected,
as well as working capital impacts in both FY23 and FY24
•Significant uplift in net cash flow from resales of ORAs to $160.5 million
reflecting strong settlement activity, with a record 1,060 resale units
settling in FY24, up from 936 in FY23 (see slide 23)
•Net cash flow from resales of ORAs impacted -$9.7 million in FY24 from
movement in total payouts (repurchased resales stock), down from a
-$68.1 million impact in FY23 (see appendix 7)
•Net cash flow from resales includes unit refurbishments of $30.8 million
and direct selling expenses on resale RV units of $20.2 million
•Non-village cash flow down -$8.5 million to -$74.4 million resulting
from general cost inflation and changes to approach on capitalising
of non-village costs to projects
Financials
2See appendix 3 for bridge to gross value of resales settlements shown on slide 23
3Relates to employee share schemes
Cash flow from existing operations
1
(CFEO) includes operating villages,
group and regional office and shared services functions and net interest,
demonstrating net cash flow to equity holders on existing business
operations, excluding cash flows relating to development of new villages
1Cash flow from existing operations is a non-GAAP (Generally Accepted Accounting Principles) measure
and does not have a standardised meaning prescribed by GAAP, and so may not be comparable to similar
financial information presented by other entities
$mFY23FY24YoY
Village operations
Care and village fees442.9518.875.9
DMF collected60.366.56.2
Payments to suppliers and employees(405.3)(530.2)(124.9)
Capex on existing villages and technology(70.2)(66.7)3.4
Cash flow from village operations27.7(11.6)(39.4)
Resales of ORAs
Resale settlements of occupation rights
2
611.7737.2125.5
Repayment of occupation rights(437.4)(459.2)(21.8)
Gross receipts from resales174.4278.0103.7
Less DMF collected(60.3)(66.5)(6.2)
Net receipts from resales114.1211.597.4
Capex on RV unit refurbishments(28.4)(30.8)(2.4)
Direct selling expenses - resales(11.4)(20.2)(8.8)
Net cash flow from resales of ORAs74.2160.586.2
Total village cash flow102.0148.946.9
Non-village cash flow
Payments to suppliers and employees(52.8)(65.9)(13.1)
Capex on head office and other projects(13.7)(10.2)3.5
Office leases(3.2)(3.4)(0.2)
Purchase of treasury stock (net)
3
2.6-(2.6)
Advances to employees
3
1.25.13.9
Non-village cash flow(65.9)(74.4)(8.5)
Cash flow from existing operations pre interest36.174.538.4
-
Net interest paid(44.7)(31.2)13.5
-
Cash flow from existing operations (CFEO)(8.5)43.351.8
RYMAN HEALTHCARE | 2024 Result Presentation14
Cash flow from development activity
•CFDA increased $150.8 million to -$230.2 million in FY24 driven
predominantly by a reduction in land settlements and construction
spend, offset by lower cash from resident receipts
•Cash flow from resident receipts declined by -$29.7 million primarily
due to lower new sales settlements of occupation rights, with 438 in FY24,
down from 530 in FY23 (see slide 22)
•Net development capex was $180.6 million lower in FY24 resulting from
lower land acquisitions and a reduction in direct construction capex
•Land acquisitions predominantly reflect previous land purchases
with full or partial deferred settlement
Financials
$mFY23FY24YoY
Resident receipts
New sale settlements of occupation rights
2
447.2408.8(38.5)
Direct selling expenses - new sales(8.9)(8.2)0.7
Net increase in RADs on aged care beds100.6108.78.0
Cash flow from resident receipts538.9509.2(29.7)
Development capex
Land acquisitions
3
(169.7)(57.0)112.7
Land disposals19.715.3(4.4)
Direct construction capex(568.4)(502.3)66.1
Capitalised interest(108.1)(107.7)0.4
Non-village expenses capitalised to projects(77.0)(78.9)(1.9)
Village expenses capitalised to projects(16.4)(8.8)7.6
Net development capex(920.0)(739.4)180.6
Cash flow from development activity(381.0)(230.2)150.8
Cash flow from development activity
1
(CFDA) includes resident
receipts from new sales of occupation rights, the net increase
in refundable accommodation deposits on aged care beds and
net development capex
1Cash flow from development activity is a non-GAAP (Generally Accepted Accounting Principles) measure
and does not have a standardised meaning prescribed by GAAP, and so may not be comparable to similar
financial information presented by other entities
2See appendix 3 for bridge to gross value of resales settlements shown on slide 22
3Land acquisitions reflect land purchased in prior periods with full or partial deferred settlements. FY24 land
acquisitions include Karaka, Cambridge, Rolleston, Coburg North, Deborah Cheetham
RYMAN HEALTHCARE | 2024 Result Presentation15
Free cash flow
Financials
$mFY23FY24YoY
Alternative cash flow presentation
Cash flow from existing operations (CFEO)(8.5)43.351.8
Cash flow from development activity (CFDA)(381.0)(230.2)150.8
Free cash flow(389.6)(186.9)202.6
Reconciliation to IFRS cash flow statement
Net operating cash flows641.9658.516.5
Net investing cash flows(1,031.0)(842.1)188.9
Repayment of lease liabilities
2
(3.2)(3.4)(0.2)
Purchase of treasury stock (net)
2
2.6-(2.6)
Free cash flow(389.6)(186.9)202.6
2Included in net financing cash flows on IFRS cash flow statement. Included in cash flow from existing
operations in alternative cash flow presentation
Free cash flow
1
combines cash flow from existing operations (CFEO)
and cash flow from development activity (CFDA), reflecting all
operating and development cash flows
(158.2)
(270.5)
(436.9)
(206.8)
(389.6)
(186.9)
(500)
(400)
(300)
(200)
(100)
FY19FY20FY21FY22FY23FY24
Free cash flow ($m)
1Free cash flow is a non-GAAP (Generally Accepted Accounting Principles) measure and does not have
a standardised meaning prescribed by GAAP, and so may not be comparable to similar financial information
presented by other entities
•Free cash flow improved by $202.6 million to -$186.9 million
•Increase driven by $51.8 million increase in cash flow from
existing operations and $150.8 million increase in cash flow from
development activity
•Targeting positive free cash flow in FY25
RYMAN HEALTHCARE | 2024 Result Presentation16
Underlying profit
Financials
Underlying profit
1
in-line with guidance
•Underlying profit of $270.0 million, down -11% on FY23 and in-line with
February guidance of $265–285 million
•Underlying profit per share of 39.3 cps, down 33% on FY23
Non-GAAP items included in underlying profit
•Gross development margins of $86.5 million, down 30% on FY23
•Gross resale margins of $224.1 million, down 5% on FY23
Underlying profit reconciliation ($m)FY23FY24YoY
Net profit after tax (NPAT)257.84.8-98%
Items excluded from underlying profit:
Fair-value movement of investment properties(431.5)(179.5)-58%
Income tax (credit)/expense(51.6)(149.7)190%
Impairment loss11.0243.62107%
Costs relating to USPP prepayment152.1--
Costs relating to swap amendments6.210.468%
Close out of employee share schemes-11.2na
Holidays Act 2003 provision-18.7na
Non-GAAP items included in underlying profit:
Gross development margin122.986.5-30%
Gross resales margin234.9224.1-5%
Underlying profit (UP)301.9270.0-11%
Per share
Weighted shares on issue (m)516.3687.633%
UP per share (cps)58.539.3-33%
1Underlying profit is a non-GAAP (Generally Accepted Accounting Principles) measure and does not have
a standardised meaning prescribed by GAAP, and so may not be comparable to similar financial information
presented by other entities
RYMAN HEALTHCARE | 2024 Result Presentation17
Deborah Cheetham Village.
17
Balance sheet
and capital
RYMAN HEALTHCARE | 2024 Result Presentation18
Valuation movements
Financials
Transfer of sites between fixed assets
•Costs within investment property relating to Ringwood East and
Takapuna moved from investment property to property, plant and
equipment (reference A)
•Kohimarama and Karori have been transferred from property, plant
and equipment to assets held for sale (reference B)
Allowance for value provided by care facilities reduced to zero
•Removal of the apportionment of DMF value within investment property
valuation to property, plant and equipment (reference C). Previously
the accounting estimate for this allocation was 25%. See Note 9
1
Inclusion of completed unsold units
•Completed unsold RV units are now fair-valued by the independent
valuer (previously held at cost) within investment property (reference D).
This incorporates a discount to reflect holding costs and a profit and risk
factor. See Note 10
1
Removal of director’s range assumption
•Investment property now held at independent valuation (reference E).
Previously a director’s range assumption was applied, where the DMF
was benchmarked against industry peers resulting in a 30% assumption
being applied for future residents. See Note 10
1
Other fair-value movements
•In addition to the movements noted above and impairments, the
underlying fair-value movements in property, plant and equipment,
was $107.8 million in FY24
•In addition to the movements noted above, the underlying fair-value
movement in investment property, was $134.2 million in FY24
Property, plant and equipment ($m)FY24
Opening gross carrying value2,363,358
Additions178,481
Transfer from investment property - sites moved to land bankA132,291
Transfer to assets held for saleB(122,289)
Impairment of land bank sites(147,472)
Impairment of care centres and other assets(32,525)
Allowance for value provided by care facilities reduced to zeroC
2
(370,659)
Other revaluation movements107,838
Other movements6,739
Closing gross carrying value
2,115,762
Accumulated deprecation(178,793)
Closing balance1,936,969
Assets held for sale ($m)FY24
Opening balance31,379
Sale realised(14,578)
Transfers from property, plant and equipmentB122,289
Impairment of sites held for sale(63,576)
Closing balance75,514
Investment property ($m)FY24
Opening balance9,322,902
Additions
638,423
Transfer to property, plant and equipment - sites moved to land bank
A(132,291)
Additions (including transfers)
506,132
Allowance for value provided by care facilities reduced to zero
C
2
429,724
Revaluation uplift related to including completed unsold unitsD14,168
Removal of directors range assumptionE(398,587)
Other fair-value movements134,240
Total fair-value movement179,545
FX movement32,790
Closing balance10,041,369
2 The difference in the care facility allowance between property, plant and equipment and investment property
relates to villages where there are investment properties and no care centres which are subject to valuation
1 Reference to financial statements
RYMAN HEALTHCARE | 2024 Result Presentation19
Capital management
Financials
Balance sheet
•Total equity down -$246 million to $4,418 million
•Net tangible assets (NTA) down $389 million to $4,136 million
•NTA per share down -56.5cps to 601.5cps
Debt and gearing
•Net interest-bearing debt of $2,505 million at March 2024,
up $202 million on March 2023 and in-line with September 2023
•Gearing of 36.2%, up 3.1 percentage points on March 2023,
and slightly higher than the medium-term target of 30–35%
Covenants
•Compliant with all lending covenants at March 2024 (see appendix 11)
•In conjunction with bank refinance in 1H24, the interest cover ratio
(ICR) covenant, which applies to bank debt and the ITL was amended
to be calculated on adjusted EBITDA (previously adjusted EBIT)
Dividends suspended
•The Board made the decision during the year to suspend dividends.
The need to continue to spend capital to complete committed
village buildings and the desire to limit increased borrowings being
key factors behind the decision
•As previously communicated the company intends to undertake
a further review of the dividend policy at FY26. Any future dividend
policy is expected to be based on cash flow
1,610
1,752
1,853
1,895
2,058
2,091
147
147
148
148
148
148
261
263
275
260
260
265
0.42
0.39
0.72
2,435
2,548
3,000
2,303
2,466
2,505
Sep-21Mar-22Sep-22Mar-23Sep-23Mar-24
Net interest-bearing debt ($m)
Bank loans net of cashRetail bondsITLUSPP notes
$mMar-23Mar-24YoY
Balance sheet summary
Total assets12,51113,084573
Total liabilities7,8478,666820
Total equity4,6644,418(246)
Net tangible assets
Net tangible assets (NTA)
1
4,5254,136(389)
Shares on issue (m)688688-
NTA per share (cps)658.1601.5(56.5)
Gearing
Net interest-bearing debt2,3032,505202
Gearing
2
33.1%36.2%3.1pp
Debt covenants
ICR covenant (>1.75)2.351.87-0.48
Adj' total liabilities to NTA (<1.00)0.600.710.11
1Total equity less intangible assets and deferred tax asset
2 Net interest-bearing debt to net interest-bearing debt plus total equity
RYMAN HEALTHCARE | 2024 Result Presentation20
Funding and treasury
Financials
115
104
157
779
521
295
136
44
398
55
150
273
251
147
705
779
849
295
FY25FY26FY27FY28FY29FY30
Debt facility maturity profile at March 2024
Bank facilities - NZDBank facilities - AUDRetail bondITL
Total
Facility refinanced
in April 2024.
Maturity now in FY26
Debt funding
•Bank refinance in 1H24 increased total bank facilities to $2,603 million
•Total debt facilities, including retail bond and ITL, of $3,026 million
at March 2024
•Funding headroom, including cash, of $508 million at March 2024
•Average term to expiry across all facilities of 3.1 years at March 2024,
in-line with March 2023
•FY25 bank expiry of $136 million refinanced in April 2024
Treasury management
•$781 million of new hedging entered into in FY24
1
at an average
fixed swap rate of 4.23% (excluding margin on loans)
•At March 2024, 63% of drawn debt was on fixed rates, including
the retail bond, fixed component of ITL and active hedging in place
(see appendix 10)
•Weighted Average Cost on Drawn Debt (WACD) of 6.5% at
March 2024, up 110bps from 5.4% at March 2023
Debt facilities (NZ$m)Mar-23Mar-24
NZD & AUD Bank facilities2,4722,603
NZD retail bond150150
AUD institutional term loan267273
Total facilities at face value2,8893,026
Drawn debt at face value2,3402,560
Debt headroom549466
Cash and cash equivalents2842
Total funding headroom577508
Weighted average term to expiry of debt facilities3.1 years3.1 years
Cost of debt and hedging (NZ$m)Mar-23Mar-24
Total active fixed rate debt1,5701,606
Percentage of drawn debt at fixed rates67%63%
Weighted average cost on fixed rate debt4.9%5.7%
Weighted average cost on drawn debt (WACD)5.4%6.5%
1Excludes forward starts effective after 31 March 2024
RYMAN HEALTHCARE | 2024 Result Presentation21
Artist’s impression of our Northwood Village.
21
Sales and settlements
of occupation right
agreements
RYMAN HEALTHCARE | 2024 Result Presentation22
Settled new sales of ORAs
Sales
Settled new sales volume by country
Settled new sales volume by unit type
326
384
352
409
380
322
104
82
92
93
150
116
430
466
444
502
530
438
-
100
200
300
400
500
600
FY19FY20FY21FY22FY23FY24
IndependentServiced
Total
343
379
326
330
252
237
87
87
118
172
278
201
430
466
444
502
530
438
-
100
200
300
400
500
600
FY19FY20FY21FY22FY23FY24
New ZealandAustralia
Group
•Gross value of settled new sales down -8% to $412.1 million with
a decline in volumes being partially offset by an increase in average
price per unit
•Settled new sale volumes down -17% to 438 units, largely driven
by lower unit deliveries in Australia impacting move-ins
•Average price per unit up 11% across all new sales, with independent
units up 9% to $1,040,000 and serviced apartments up 16% to $667,000
•Movements in average price per unit predominantly driven by village
mix for units which settled in each period
FY23FY24YoY
Gross value
of settlements
1
Independent$361.1m$334.7m-7%
Serviced$86.1m$77.3m-10%
Total$447.2m$412.1m-8%
Volume
Independent380322-15%
Serviced150116-23%
Total530438-17%
Average
unit price
Independent$950k$1,040k9%
Serviced$574k$667k16%
Total$844k$941k11%
1Gross of suspended contributions (ref appendix 3)
RYMAN HEALTHCARE | 2024 Result Presentation23
Settled resales of ORAs
Settled resales volume by country
Settled resales volumes by unit type
Sales
790
845
862
876
861
952
14
25
20
40
75
108
804
870
882
916
936
1,060
-
200
400
600
800
1,000
1,200
FY19FY20FY21FY22FY23FY24
New ZealandAustralia
Group
379
415
410
451
424
553
425
455
472
465
512
507
804
870
882
916
936
1,060
-
200
400
600
800
1,000
1,200
FY19FY20FY21FY22FY23FY24
IndependentServiced
Group
•Gross value of settled resales up 21% to $778.7 million driven by higher
volumes and higher average price
•Settled resales volumes up 13% to a record 1,060 units, driven by 11%
growth in New Zealand and 44% growth in Australia as this portfolio
matures
•Average price per unit up 6% across all resales, with independent
units up 2% to $878,000 and serviced apartments up 6% to $579,000
FY23FY24YoY
Gross value
of settlements
1
Independent$365.9m$485.3m33%
Serviced$280.0m$293.3m5%
Total$645.9m$778.7m21%
Volume
Independent42455330%
Serviced512507-1%
Total9361,06013%
Average
unit price
Independent$863k$878k2%
Serviced$547k$579k6%
Total$690k$735k6%
1Gross of suspended contributions (ref appendix 3)
RYMAN HEALTHCARE | 2024 Result Presentation24
Booked new sales of ORAs
Booked new sales volume by country
•Booked new sale volumes down -24% to 352 units, predominantly
reflecting lower unit deliveries in Australia
•Average unit pricing up 4% across all new sales, with serviced
apartments up 10% to $686,000 and independent units down -3%
to $1,024,000
•Average gross development margin down -6.4 percentage points
to 23.0%, with independent units down -8.5 percentage points to 20.5%
and serviced apartments up 3.6 percentage points to 34.3%
•Margins impacted by (1) higher construction cost estimates,
(2) village mix with declining volumes on higher margin developments
nearing completion
FY23FY24YoY
Volume
Independent303263-13%
Serviced15989-44%
Total462352-24%
Average unit price
Independent$1,052k$1,024k-3%
Serviced$626k$686k10%
Total$905k$939k4%
Average gross
development margin
per unit
1
Independent$305k$209k-31%
Serviced$192k$236k22%
Total$266k$216k-19%
Average gross
development margin %
Independent29.0%20.5%-8.5pp
Serviced30.7%34.3%3.6pp
Total29.4%23.0%-6.4pp
1Gross development margins are included in underlying profit and are a non-GAAP measure
Sales
Booked new sales volume by unit type
322
390
332
318
223
242
92
123
171
242
239
110
414
513
503
560
462
352
-
100
200
300
400
500
600
FY19FY20FY21FY22FY23FY24
New ZealandAustralia
Group
302
426
412
428
303
263
112
87
91
132
159
89
414
513
503
560
462
352
-
100
200
300
400
500
600
FY19FY20FY21FY22FY23FY24
IndependentServiced
Group
RYMAN HEALTHCARE | 2024 Result Presentation25
Booked resales of ORAs
Booked resales volume by country
FY23FY24YoY
Volume
Independent49056415%
Serviced5675945%
Total1,0571,15810%
Average unit price
Independent$887k$883k-0%
Serviced$565k$582k3%
Total$714k$729k2%
Average gross resale
margin per unit
1
Independent$335k$300k-10%
Serviced$125k$110k-12%
Total$222k$203k-9%
Average gross resale
margin %
2
Independent37.7%33.9%-3.8%
Serviced22.2%18.9%-3.3%
Total31.1%27.8%-3.3%
1Gross resale margins are included in underlying profit and are a non-GAAP measure
2Percentage points
•Booked resale volumes up 10% to 1,158 units, reflecting a 7% increase
in New Zealand and a 34% increase in Australia
•Average unit pricing up 2% across all resales, with serviced apartments
up 3% to $582,000 and independent units flat at $883,000
•Average gross resales margin down 3.3 percentage points to 27.8%,
with independent units down 3.8 percentage points to 33.9% and
serviced apartments down 3.3 percentage points to 18.9%
Sales
Booked resales volume by unit type
378
425
433
478
490
564
446
498
492
505
567
594
824
923
925
983
1,057
1,158
-
200
400
600
800
1,000
1,200
1,400
FY19FY20FY21FY22FY23FY24
IndependentServiced
Group
809
891
898
923
966
1,036
15
32
27
60
91
122
824
923
925
983
1,057
1,158
-
200
400
600
800
1,000
1,200
1,400
FY19FY20FY21FY22FY23FY24
New ZealandAustralia
Group
RYMAN HEALTHCARE | 2024 Result Presentation26
Uncontracted RV units available for sale
Uncontracted new sale units
Uncontracted resale units
1Uncontracted new units includes units which are complete and can be occupied
2Percentage of total asset base of independent units and serviced apartments at March 2024 (9,187 units)
•Uncontracted new RV units of 238 at March 2024, up 34% on
FY23 reflecting an increase in independent units, offset by a decrease
in serviced apartment units
•Uncontracted new serviced apartments are expected to increase at
March 2025 due to the completion of four main buildings through FY25
(totaling 290 serviced apartments)
•Uncontracted resale RV units of 198 at March 2024 down 22 units
since September 2023 and broadly consistent with March 2023
Uncontracted units at period end
Mar-23Mar-24YoY% asset base
2
New units
1
Independent91195114%2.9%
Serviced8643-50%1.8%
Total17723834%2.6%
Resale units
Independent
77
8612%1.3%
Serviced
115
112-3%4.6%
Total1921983%2.2%
Sales
37
33
91
158
195
204
148
86
75
43
241
181
177
233
238
0
50
100
150
200
250
300
Mar-22Sep-22Mar-23Sep-23Mar-24
IndependentServiced
Group
45
52
77
108
86
75
92
115
112
112
120
144
192
220
198
0
50
100
150
200
250
Mar-22Sep-22Mar-23Sep-23Mar-24
IndependentServiced
Group
RYMAN HEALTHCARE | 2024 Result Presentation27
Artist’s impression of our Mulgrave Village.
Development
27
RYMAN HEALTHCARE | 2024 Result Presentation28
Development summary
Build rate
•FY24 build rate of 736 RV units and aged care beds
•Build rate to be reported on a complete basis going forward for greater
clarity on deliveries each year and aligning with focus on cash flow
Construction
•Three villages and one main building opened in FY24
•10 sites under active construction across New Zealand (six) and
Australia (four)
•Five main buildings under construction, including four expected
to open in FY25
•Forward build programmemoderated in light of market conditions
and focus on prudent capital management
Land bank
•Active management of land bank to ensure new projects meet
development hurdles in current market conditions, with three
sites held for sale (Newtown, Kohimarama, Karori)
•Greenfield land bank totals 10 sites, including Takapuna and Ringwood
which have been moved from active construction to land bank
•Total of 5,371 units and beds in land bank, including 2,627 at sites
under construction, 2,473 at greenfield sites and 271 at established
villages with brownfield expansion opportunities
Cash flow
•Focusing on cash flow metrics, prioritisingcapital recycling and net
present value
Bert Newton main building under construction, 7 March 2024
Development
RYMAN HEALTHCARE | 2024 Result Presentation29
Development capital recycling
•Capital recycling represents total cash from resident receipts on first
occupancy of RV units and aged care beds (ORAs and RADs), less
total development cost over the life of a development
•10 sites under construction are projected to cost $3.05 billion, and
generate $2.55 billion of resident receipts, resulting in a capital
recycling deficit of $503 million
•Projected capital recycling across these 10 projects has declined
by $256 million compared to the projection in 1H24 reflecting
(1) $64 million relating to higher construction cost, (2) $160 million
relating to correction of cost allocations within the forecast relating
to head office and interest, (3) $32 million relating to lower assumed
RAD penetration in New Zealand on aged care beds, partially offset
by higher pricing on ORAs
•On a to-go basis, the 10 sites under construction are projected to
cost a further $1.05 billion to complete, and generate an additional
$1.65 billion of receipts from resident funding, resulting in a to-go
recycling surplus of $603 million from March 2024
•Methodology for calculating total development cost was reviewed
in FY24 and now includes all allocated costs within the forecast
(head office and interest costs). Previous methodology used in 1H24
included partial allocations
•Six recently completed villages
1
are expected to have combined
capital recycling of -$280 million, and deliver capital recycling to-go
of $200 million
Financials
Projected total capital recycling
($m)
Projected capital recycling
to-go ($m)
Total costResident
receipts
Capital
recycling
Cost to-goResident
receipts
to -go
Capital
recycling
to -go
Keith Park
(514)361(153)(168)25890
Miriam Corban
(359)240(119)(15)119103
James Wattie
(231)169(63)(31)8553
Kevin Hickman
(318)219(99)(126)16641
Northwood
(248)191(57)(139)17333
Patrick Hogan
(230)212(18)(157)18426
Nellie Melba
(370)45383(62)8625
Deborah Cheetham
(254)226(28)(63)14481
Bert Newton
(211)181(30)(43)13592
Mulgrave
(320)301(18)(243)30158
Sites under
construction
(3,054)2,552(503)(1,048)1,651603
1William Sanders, Murray Halberg, Linda Jones, John Flynn, Charles Brownlow, Raelene Boyle
RYMAN HEALTHCARE | 2024 Result Presentation30
New Zealand development pipeline
Photo, February 2024
6
5
Greenfield sites
In land bank
Sites under
construction
Development pipeline
Sites under construction
William Sanders complete and removed
from development pipeline
Murray Halberg Stage 8 complete and
removed from development pipeline,
with future stages moved to long-term
brownfield land bank
Miriam Corban
1
, Keith Park, James Wattie
main buildings under construction and
expected to open in FY25
Kevin Hickman main building under
construction expected to open in FY26
Greenfield sites in land bank
Karaka council approved in March 2024
Taupō in advanced stages of consenting
Takapuna moved from active construction
to land bank
Newtown, Kohimarama and Karori held
for sale
VillageLand
(ha)
Asset
base
1
Land
bank
2
DesignCouncil
approved
Under
construct'
Village
open
Main
building
open
Target
village
complete
Miriam Corban
Henderson, Auckland
7.5186159
●●●●●
FY25
James Wattie
Havelock North
6.1123191
●●●●●
FY26
Patrick Hogan
Cambridge
8.566247
●●●●●
FY27
Northwood
Christchurch
9.254242
●●●●●
FY27
Keith Park
Hobsonville, Auckland
4.1124373
●●●●●
FY28
Kevin Hickman
Christchurch
5.0102274
●●●●●
FY29
Takapuna
Auckland
0.7-134
●●●●●
TBC
Park Terrace
Christchurch
1.7-259
●●●●●
TBC
Rolleston
9.5-354
●●●●●
TBC
Karaka
10.4-334
●●●●●
TBC
Taupō
8.9-323
●●●●●
TBC
FY24 changes
3,161
Units and beds
in land bank
1Asset base at 31 March 2024 includes completed units and beds (ref appendix 14)
2Total New Zealand land bank of 3,161 units includes brownfield expansion of 271 units at established villages not shown in this table
1Miriam Corban opened on 9 May 2024
Development
RYMAN HEALTHCARE | 2024 Result Presentation31
Australian development pipeline
VillageLand
(ha)
Asset
base
1
Land
bank
DesignCouncil
approved
Under
construct'
Village
open
Main
building
open
Target
village
complete
Bert Newton
Highett
1.285124
●●●●●
FY25
Nellie Melba
Wheelers Hill
5.553176
●●●●●
FY26
Deborah Cheetham
2
Ocean Grove
9.1254122
●●●●●
FY27
Mulgrave
4.6-289
●●●●●
FY29
Ringwood East
2.2-396
●●●●●
TBC
Mt Eliza
8.9-186
●●●●●
TBC
Essendon
1.8-272
●●●●●
TBC
Kealba
6.0-264
●●●●●
TBC
Coburg North
2.6-481
●●●●●
TBC
Sites under construction
John Flynn complete and removed
from development pipeline
Mulgrave commenced construction in
September 2023 and expected to deliver
first townhouses in FY25
Bert Newton main building (final stage)
under construction and expected to open
in FY25, which will complete this village
Greenfield sites in land bank
Deborah Cheetham phase 4 expansion
land acquired
Essendon in advanced stages
of consenting
Ringwood moved from active
construction to land bank
Mt Martha site sale settled in FY24
1Asset base at 31 March 2024 includes completed units and beds (ref appendix 14)
2Deborah Cheetham land bank of 122 units includes 58 units relating to the phase 4 expansion land acquired in FY24
4
5
Greenfield sites
In land bank
Sites under
construction
2,210
Units and beds
in land bank
Development pipeline
Development
FY24 changes
RYMAN HEALTHCARE | 2024 Result Presentation32
FY24 build rate – previous methodology
•FY24 recognisedbuild rate of 736 units and beds
•Higher end of build range achieved due to the inclusion of
Kevin Hickman main building on a near complete basis which
wasn’t certain when guidance was provided in February 2024
•FY24 build rate based on previous methodology:
oIndependent RV units (townhouses and independent apartments)
included when near complete
oAged care beds and serviced apartments in main buildings are
recognised in the near complete number on a proportional basis
when the cost to date is over 60% of the forecast cost. Near
complete main buildings at March 2024 include Miriam Corban,
Keith Park, James Wattie, Kevin Hickman and Bert Newton
•Build rate methodology going forward will be on a complete basis
•On the new methodology, the FY24 build rate would have been
637 RV units and aged care beds, including 172 townhouses,
292 independent apartments, 53 serviced apartments (totalling
517 RV units) and 120 aged care beds
FY24 build rate
15%
24%
26%
35%
TownhouseApartmentServicedCare
79%
21%
New ZealandAustralia
IndependentMain buildings
TownhouseApartmentServicedCareTotal
William Sanders-6--6
Murray Halberg-12--12
Miriam Corban1422102167
Keith Park-503239121
Patrick Hogan44---44
James Wattie--7889167
Northwood2244--66
Kevin Hickman-9404998
Bert Newton-383460132
Deborah Cheetham23---23
Total build103181194258736
Development
Build unit mixBuild country mix
RYMAN HEALTHCARE | 2024 Result Presentation33
Build rate outlook –new methodology
Build rate outlook
1Main buildings include care beds and serviced apartments
2Independent units include townhouses and independent apartments
FY25
FY26-FY27
(combined)
Next
3-years
Main buildings opening
Miriam Corban
●●
James Wattie
●●
Keith Park
●●
Bert Newton
●●
Kevin Hickman
●●
Patrick Hogan
●●
Northwood
●●
Target completions - main buildings
1
Care beds359208567
Serviced apartments290196486
Subtotal main buildings6494041,053
Target completions - independent units
2
Independent units200-300600-800800-1100
Townhouse mix of independent units50-70%50-80%50-80%
Target build - total units and beds850-9501000-12001850-2150
Outlook
•FY25 guidance of 850–950 completed units and beds underpinned
by four main buildings opening (totaling 649 care beds and serviced
apartments)
•Guidance for FY26–FY27 combined of 1,000–1,200 completed units
and beds based on current projection and market conditions
Main buildings
•Miriam Corban main building opened in May 2024 and James Wattie
is expected to open in June 2024 (both 1H FY25). Keith Park and Bert
Newton are expected to open towards the end of 2024 (both 2H FY25)
•Kevin Hickman main building is under construction and expected
to open in FY26
•Two additional main buildings are planned to commence construction
in FY25 and expected to open in FY27 (Patrick Hogan and Northwood)
Independent units
•Forward build programmehas been reprioritisedto lower-density
development with the proportion of townhouses lifting in the targeted
mix of independent units to 50–70% in FY25 (vs ~25% over FY19–FY24)
•Townhouse-style villages contribute to the targeted build rate over
FY25–FY27 include Patrick Hogan, Northwood, and Taupōin
New Zealand, and Deborah Cheetham and Mulgrave in Victoria
•Target build for independent apartments over FY25–FY27 includes
apartment blocks at Keith Park, Northwood and Kevin Hickman
in New Zealand and Nellie Melba and Mulgrave in Victoria
Development
+=
RYMAN HEALTHCARE | 2024 Result Presentation34
Land bank of RV units and aged care beds
•Active management of the land bank
oDeborah Cheetham land acquisition adding capacity
for 58 townhouses
oSelling sites which don’t meet revised development
hurdles (Newtown (sold), Karori, Kohimarama held for sale)
oReducing footprint of care centres(Kealbaand Ringwood East)
•Reconfiguring care centreswhere possible to include premium care
suites sold under an ORA (with DMF)
•Land bank of serviced apartments and aged care beds in sites under
construction will materially reduce in FY25 following the delivery of four
main buildings (totaling 649 units and beds)
•Greenfield land bank of 2,473 units and beds across 10 sites
FY24 Land bank
TownhouseApartmentServicedCareTotal
FY23 reported land bank1,1852,2431,0841,3565,868
FY24 recognised build-103-181-194-258-736
FY24 rebase to complete2889310377804
FY24 reconfigurations-128-9-62-44
Land additions and disposals
2
Deborah Cheetham phase 458---58
Karori - held for sale--179-68-60-307
Kohimarama - held for sale--126-86-60-272
FY24 reported land bank1,1671,8741,0371,2935,371
New Zealand8358306868103,161
Australia3321,0443514832,210
1Brownfield land bank reflects extension opportunities at established villages, including Murray Halberg, Grace Joel and Jean Sandel
2Newtown not included in list as this was removed from the land bank in FY23
Development
Land bank
Unit mix – sites under construction
Unit mix – greenfield sites
2,627
2,473
271
Under constructionGreenfieldBrownfield
16%
31%
25%
28%
TownhouseApartmentServicedCare
28%
34%
16%
22%
TownhouseApartmentServicedCare
1
RYMAN HEALTHCARE | 2024 Result Presentation35
Deborah Cheetham land acquisition
Phase 4 expansion land acquired in January 2024
2.0-hectare parcel will support an additional
58 townhouses across three stages
Phase 4 is the third parcel of land acquired
following the original site and phase 3
Photo, February 2024
Phase 4 land
Size2.0 ha
Units58
CostA$7.5 m
SettlementFY25
Total site footprint
Phase 1&2 land (purchased Feb 2018)4.7 ha
Phase 3 land (purchased Oct 2021)2.4 ha
Phase 4 land (purchased Jan 2024)2.0 ha
Total9.1 ha
Total site unit mix
Townhouse203
Serviced53
Care120
Total376
Acquisition details
Phase 4
Photo, 28 March 2024
Development
RYMAN HEALTHCARE | 2024 Result Presentation36
Completed developments
Murray Halberg
Lynfield, Auckland
Townhouse: 0 | Apartment: 344 | Serviced: 86 | Care: 122
•Stage 8 apartments completed in March 2024 (70 units)
•Construction activity stopped and Stage 5, 6, 7 moved to brownfield land bank
(totaling 116 units)
William Sanders
Devonport, Auckland
Townhouse: 0 | Apartment: 189 | Serviced: 77 | Care: 112
•Stage 5 apartments completed in October 2023 (6 units)
•Site complete and removed from active development pipeline
Stage 8
Stage 5
Photo, 5 April 2024
Photo, 2 April 2024
Stage 8
Photo, 9 April 2024
Development
RYMAN HEALTHCARE | 2024 Result Presentation37
Development progress
Keith Park
Hobsonville, Auckland
Townhouse: 0 | Apartment: 276 | Serviced: 101 | Care: 120
•Stage 6 apartments completed in July 2023 (40 units)
•Stage 7 apartments under construction (40 units)
•Main building expected to open in 2H FY25 (care and serviced)
Miriam Corban
Henderson, Auckland
Townhouse: 32 | Apartment: 176 | Serviced: 65 | Care: 71
•Stage 6 apartments completed in July 2023 (22 units)
•Stage 5 townhouses completed in March 2024 (32 units)
•Main building opened in May 2024 (care and serviced)
Main building
Stage 5
Stage 6
Photo, 3 April 2024
Stage 6
Stage 7
Main building
Photo, 2 February 2024
Development
RYMAN HEALTHCARE | 2024 Result Presentation38
Development progress
James Wattie
Havelock North
Townhouse: 103 | Apartment: 44 | Serviced: 78 | Care: 89
•Main building expected to open in June 2024 (care and serviced)
•Final two townhouse stages (stage 7 and 9) under construction
(totaling 24 units)
Patrick Hogan
Cambridge
Townhouse: 185 | Apartment: 0 | Serviced: 60 | Care: 80
•Village opened in July 2023, with Stage 2 townhouses completed (18 units)
•Stage 3 townhouses completed in September 2023 (22 units)
•Stage 4 and 5 townhouses completed in December 2023 (totaling 26 units)
Photo, February 2024Photo, February 2024
Main building
Photo, February 2024
Stage 2
Stage 5
Stage 3
Stage 4
Photo, 2 April 2024
Main building
Stage 7
Photo, 2 February 2024
Development
RYMAN HEALTHCARE | 2024 Result Presentation39
Development progress
Northwood
Christchurch
Townhouse: 82 | Apartment: 83 | Serviced: 71 | Care: 60
•Village opened in June 2023, with Stage 9 townhouses completed (12 units)
•Stage 4 apartments completed in July 2023 (18 units)
•Stage 8 townhouses completed in October 2023 (6 units)
•Stage 3 apartments opened in March 2024 (18 units)
Kevin Hickman
Riccarton Park, Christchurch
Townhouse: 59 | Apartment: 172 | Serviced: 65 | Care: 80
•Stage 3 townhouses completed in May 2023 (7 units)
•Stage 4 apartments completed in May 2023 (33 units)
•Main building expected to open in FY26 (care and serviced)
Photo, February 2024Photo, February 2024Photo, February 2024
Main building
Stage 3
Stage 4
Photo, 28 March 2024
Stage 9
Stage 4
Stage 8
Stage 3
Photo, 25 March 2024
Development
RYMAN HEALTHCARE | 2024 Result Presentation40
Development progress
Bert Newton
Highett, Melbourne
Townhouse: 0 | Apartment: 85 | Serviced: 45 | Care: 79
•Village opened in June 2023, with Stage 2 apartments completed (27 units)
•Stage 3 apartments completed in September 2023
•Stage 4 apartments completed in February 2024
•Main building (final stage) expected to open towards the end of 2024
Nellie Melba
Wheelers Hill, Melbourne
Townhouse: 0 | Apartment: 322 | Serviced: 85 | Care: 190
•Final stage (stage 4) apartments under construction (30 units)
•0.9ha surplus land held for sale (currently used for construction site storage)
Photo, February 2024Photo, February 2024
Photo, March 2024
Stage 4
Main building
Stage 3Stage 2
Stage 4
Photo, 7 March 2024
Photo, 22 Jan 2024
Stage 4
Land held for sale
Development
RYMAN HEALTHCARE | 2024 Result Presentation41
Development progress
Deborah Cheetham
Ocean Grove
Townhouse: 203 | Apartment: 0 | Serviced: 53 | Care: 120
•Main building opened in July 2023 (care and serviced)
•Stage 7 and 8 townhouses completed in July 2023 (25 units)
•Stage 6 townhouses completed in December 2023 (8 units)
•Stage 9 townhouses under construction (26 units)
Mulgrave
Melbourne
Townhouse: 70 | Apartment: 105 | Serviced: 54 | Care: 60
•Site commenced construction in September 2023
•Stage 1 and 2 townhouses under construction (totaling 24 units)
Photo, February 2024Photo, February 2024Photo, February 2024
Photo, March 2024
Photo, March 2024
Photo, March 2024
Stage 2
Stage 1
Photo, 4 April 2024
Land acquisition
Stage 9
Stage 6
Main building
Stage 8Stage 7
Photo, 28 March 2024
Development
RYMAN HEALTHCARE | 2024 Result Presentation42
Caregivers at our Anthony Wilding Village.
Strategic focus
42
RYMAN HEALTHCARE | 2024 Result Presentation43
Value created
Developing
our people
Enhancing
our expertise
Growing
our communities
Strengthening
our relationships
Protecting
our environment
Delivering improved
returns to shareholders
Our resources
Our
people
Our
expertise
Our
communities
Our
relationships
Our
environment
Our
financial resources
Creating value for our stakeholders
Strategy
RYMAN HEALTHCARE | 2024 Result Presentation44Strategy
Driving business improvement: Focus areas
RYMAN HEALTHCARE | 2024 Result Presentation45
Aged care funding – sector under pressure
Current environment
•Current aged care funding model not working in New Zealand and Australia, leading to
bed closures and limited new builds in the face of growing demand.
•We believe Governments need to urgently address the models to ensure sustainability of
the sector
•We are committed to providing the best care for our residents, howevergoing forward
we will build smaller care facilities,prioritisingcontinuum ofcare for Rymanresidents
New Zealand
•Stage oneof a review byTeWhatuOra (Sapere Report) outlines failings of the current
model. Stage two of review is underway - recommendations expected in June 2024
•Select Committee Inquiry into aged care will now commence in July
•Model needs urgent change to ensure bed numbers are not only retained but there are
incentives for significant new beds to be built
Australia
•Ryman actively engaging with the Government on key issues. Australian Aged Care Task
Force provided recommendations to Government in March 2024, including support for a
co-contribution model. Review is a positive sign for the industry
Strategy
RYMAN HEALTHCARE | 2024 Result Presentation46
Sustainability progress
•Following the launch of our sustainability strategy in late 2022,
we’ve released our first Sustainability Report, available on our
website today
•Highlights include progress across three key priority areas of climate
change, quality care and Indigenous engagement
•In March 2024, our greenhouse gas emissions targets were
validated by theScience Based Targets initiativeafter formally
setting an emissions reduction target of 42% for scopes 1 and 2,
to be achieved by 2030 relative to a base year of 2021
•Our first Climate-related Disclosures will be included in our
FY24 Annual Report – an important step in identifying and
improving our understanding of our long-term climate-related
risks and opportunities
Strategy
We remain committed to our sustainability journey and decarbonising
our operations
RYMAN HEALTHCARE | 2024 Result Presentation47
Governance and
remuneration
Artist’s impression of our Bert Newton Village.
47
RYMAN HEALTHCARE | 2024 Result Presentation48
Retiring in 2024
Elected at
2023 ASM
Geoffrey Cumming
NON-EXECUTIVE
DIRECTOR
Joined 2018
Claire Higgins
NON-EXECUTIVE
DIRECTOR
Joined 2014
Up for re
-election
at 2024 ASM
Board of directors
Dean Hamilton
EXECUTIVE
CHAIR
Joined 2023
James Miller
NON-EXECUTIVE
DIRECTOR
Joined 2023
Kate Munnings
NON-EXECUTIVE
DIRECTOR
Joined 2023
David Pitman
NON-EXECUTIVE
DIRECTOR
Joined 2024
Governance
Anthony Leighs
NON-EXECUTIVE
DIRECTOR
Joined 2018
Paula Jeffs
NON-EXECUTIVE
DIRECTOR
Joined 2019
The board has four committees that meet
regularly, as follows:
1. Audit, Finance and Risk
Chair: James Miller
2. People, Safety and Remuneration
Chair: Paula Jeffs
3. Clinical Governance
Chair: Kate Munnings
4. Governance and Nominations
Chair: Anthony Leighs
Interim committee
A committee of the Board will oversee
the performance of the Executive Chair
function until a new Group CEO is appointed.
Members are Paula Jeffs (Chair and lead
independent director), James Miller, Anthony
Leighs.
Board committees
Elected in prior years
RYMAN HEALTHCARE | 2024 Result Presentation49
Executive team
Dean Hamilton
EXECUTIVE
CHAIR
Joined 2023
Rob Woodgate
GROUP CHIEF
FINANCIAL OFFICER
Joined 2023
Cheyne Chalmers
CHIEF EXECUTIVEOFFICER
– NEW ZEALAND
Joined 2020
Cameron Holland
CHIEF EXECUTIVE OFFICER
– AUSTRALIA
Joined 2021
Chris Evans
CHIEF DEVELOPMENT
ANDCONSTRUCTION OFFICER
Joined 2021
Marsha Cadman
CHIEF TRANSFORMATION
AND STRATEGY OFFICER
Rejoined 2024
Di Walsh
CHIEF PEOPLE
AND SAFETY OFFICER
Joined 2023
Rick Davies
CHIEF TECHNOLOGY
AND INNOVATION OFFICER
Joined 2019
Deborah Marris
GROUP GENERAL COUNSEL
AND COMPANY SECRETARY
Joined 2022
Governance
RYMAN HEALTHCARE | 2024 Result Presentation50
Remuneration
Group CEOExecutive Chair
•Agreed resignation effective 19 April
•As per contract, final payment of $1,525,000:
o$1,300,000 being six months notice, plus six months
severance
o$225,000 equivalent to 12.2% of total potential STI and MTI
for FY24 ($1,840,000)
oForfeit of FY24 LSS compensation and any future LTI
•Non-compete for 6 months
•Temporary role until new Group CEO in place
•Existing Chair fee of $300,000 pa suspended
•Executive Chair pay of $100,000 per month
•No additional incentives
•To reinvest 33% of post-tax pay in Ryman shares
Governance
Revised SET remuneration frameworkBoard remuneration
•Majority of SET members on new remuneration structure from
1 April 2024
•Base + 50% STI + 40% LTI
•60% of STI is financial performance against new metrics
•100% of LTI is based on TSR
(50% absolute against cost of equity, 50% relative to NZX50 gross)
•Minimum shareholding plan relating to LTI shares
•Board remuneration envelope of $1,500,000 hasn’t changed
since 2021 Annual Shareholder Meeting
•Minimum share purchase plan
RYMAN HEALTHCARE | 2024 Result Presentation51
Outlook
Residents John and Bev at our Northwood Village.
51
RYMAN HEALTHCARE | 2024 Result Presentation52
FY25 outlook – turnaround underway
Cash flow
We continue to target positive free cash flow (representing the
combination of cash flow from existing operations and cash flow from
development activity)
Capex
We expect to spend $700–820 million on capex , including:
•$600–700 million on development activity
•$100–120 million on existing operations
Completed
build rate
1
We expect to complete 850–950 retirement village units and aged care
beds, which includes:
•650 aged care beds and serviced apartments in four main buildings
that will be opened
•200-300 independent retirement village units
Outlook
Ryman’s outlook for FY25 is based on current
market conditions and its assessment of
the future
Current economic conditions remain
challenging in both New Zealand and Victoria,
and it is unclear when interest rates will begin
to decline and support improved housing
markets conditions and liquidity
Key to our performance in FY25 will be our ability
to maintain high occupancy in our existing
facilities and settle new units and beds as they
come onstream throughout the year
1Includes units and beds reported at March 2024 as near complete
RYMAN HEALTHCARE | 2024 Result Presentation53
A Ryman resident receiving home care services.
Appendices
53
RYMAN HEALTHCARE | 2024 Result Presentation54
Appendix 1: Aged care summary
UnitFY23FY24YoY
Operational care centres#3434-
Mature care centres#32346%
Occupancy
Occupied bed days#1,257,0431,287,6382%
Capacity bed days#1,337,2091,339,8330%
Occupancy%94.0%96.1%2.1 pp
Occupancy - mature%94.5%96.1%1.6 pp
Revenue
Care fees - base fees$m269.1303.013%
Care fees - room premiums$m46.448.85%
Imputed income on RADs
1
$m4.77.663%
Total aged care revenue$m320.2359.412%
Revenue per occupied bed per day$25527910%
Penetration- premium and RAD rooms
3
Beds with room premium%76%73%-3 pp
Beds with RAD%7%10%2 pp
Beds with room premium or RAD%83%83%0 pp
RAD balance
Total RAD balance$m115.3143.524%
No. outstanding RADs
3
#27034528%
Average RAD balance$428,000416,000(3%)
UnitFY23FY24YoY
Operational care centres#5620%
Mature care centres#22-
Occupancy
Occupied bed days#132,674181,93337%
Capacity bed days#191,253235,93723%
Occupancy%69.4%77.1%7.7 pp
Occupancy - mature%95.9%98.0%2.1 pp
Revenue
Care fees - AN-ACC, basic daily fee, other$m38.162.664%
Care fees - DAP$m2.84.564%
Imputed income on RADs
2
$m8.116.8108%
Total aged care revenue$m48.983.972%
Revenue per occupied bed per day$36946125%
Penetration - non-concessional rooms
3
Beds with DAP%24%19%-5 pp
Beds with RAD%56%62%6 pp
Beds with RAD or DAP%81%82%1 pp
RAD balance
Total RAD balance$m185.0279.651%
Total RAD balance (exc. probate)$m170.6254.949%
No. outstanding RADs
3
#24934940%
Average RAD balance$686,000730,0006%
New Zealand aged care centresAustralia aged care centres
Appendices
1The implicit interest rate to convert a room premium to a RAD in New Zealand ranged from 5.20% to 6.05% in FY24 (FY23: 5.20%)
2The maximum permissible interest rate (MPIR) used to convert a DAP to a RAD in Australia ranged from 7.46% to 8.33% in FY24 (4.07% to 7.06% in FY23). Imputed income on RADs is not calculated on RAD balances subject to probate
3Where residents have opted for a room premium / RAD combination in New Zealand, or DAP / RAD combination in Australia, penetration and no. outstanding RADs are presented on a proportional basis
RYMAN HEALTHCARE | 2024 Result Presentation55
Appendix 2: Booked sales of ORAs
New sale of ORAs
Volume
(#)
Gross value
($000s)
Average unit price
($000s)
Gross margin booked
($000s)
Gross margin
(%)
FY23FY24YoYFY23FY24YoYFY23FY24YoYFY23FY24YoYFY23FY24YoY
IndependentNZ
16520122%156,131196,12026%9469763%37,82033,728-11%24.2%17.2%-7.0%
AU
13862-55%162,66173,187-55%1,1791,1800%54,54121,357-61%33.5%29.2%-4.3%
Group303263-13%318,792269,307-16%1,0521,024-3%92,36055,085-40%29.0%20.5%-8.5%
ServicedNZ
5841-29%28,98222,833-21%50055711%9,1693,638-60%31.6%15.9%-15.7%
AU
10148-52%70,54838,239-46%69879714%21,41217,329-19%30.4%45.3%15.0%
Group15989-44%99,53061,072-39%62668610%30,58120,967-31%30.7%34.3%3.6%
All unitsNZ
2232429%185,113218,95318%8309059%46,98937,365-20%25.4%17.1%-8.3%
AU
239110-54%233,209111,426-52%9761,0134%75,95238,686-49%32.6%34.7%2.2%
Group462352-24%418,322330,379-21%9059394%122,94176,051-38%29.4%23.0%-6.4%
Resale of ORAs
Volume
(#)
Gross value
($000s)
Average unit price
($000s)
Gross margin booked
($000s)
Gross margin
(%)
FY23FY24YoYFY23FY24YoYFY23FY24YoYFY23FY24YoYFY23FY24YoY
IndependentNZ
43849313%381,528427,07212%871866-1%152,527158,7074%40.0%37.2%-2.8%
AU
527137%52,97171,05234%1,0191,001-2%11,43910,354-9%21.6%14.6%-7.0%
Group49056415%434,499498,12415%887883-0%163,966169,0613%37.7%33.9%-3.8%
ServicedNZ
5285433%290,651308,1296%5505673%66,84660,636-9%23.0%19.7%-3.3%
AU
395131%29,43237,84129%755742-2%4,0904,85319%13.9%12.8%-1.1%
Group5675945%320,083345,9708%5655823%70,93565,489-8%22.2%18.9%-3.2%
All unitsNZ
9661,0367%672,179735,2019%6967102%219,372219,343-0%32.6%29.8%-2.8%
AU
9112234%82,403108,89332%906893-1%15,52915,207-2%18.8%14.0%-4.9%
Group1,0571,15810%754,582844,09412%7147292%234,901234,550-0%31.1%27.8%-3.3%
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation56
Appendix 3: Cash flow from ORA settlements
Resident funding from RV units ($m)Financial statement referenceFY23FY24YoY
New sales of occupation rights
Gross new sale settlements
447.2412.1(35.2)
Suspended contributions on new sales
-(3.3)(3.3)
Settlements on new sales
447.2408.8(38.5)
Resales of occupation rights
Gross resale settlements
645.9778.7132.8
Suspended contributions on resales
(34.1)(41.5)(7.3)
Settlements on resales
611.7737.2125.5
Total sales of occupation rights
Gross settlements on total sales
1,093.11,190.897.7
Suspended contributions on total sales
(34.1)(44.8)(10.7)
Settlements on total salesCash flow statement
1,059.01,146.087.0
Repayment of occupation rights
Gross resale repayments
(458.0)(480.3)(22.3)
Suspended contributions on repayments
20.721.10.5
Repayment of occupation rightsCash flow statement
(437.4)(459.2)(21.8)
Suspended contributions
Suspended contributions balance - opening balanceNote 19
(61.1)(74.5)(13.5)
Suspended contributions balance - closing balanceNote 19
(74.5)(98.2)(23.7)
Movement in suspended contributions
(13.5)(23.7)(10.2)
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation57
Appendix 4: Alternative cash flow detail
Cash management fees ($m)Financial statement referenceFY23FY24YoY
Accrued DMF - openingNote 19
(517.2)(597.3)(80.1)
Accrued DMF - closingNote 19
(597.3)(713.8)(116.4)
Movement in accrued DMF
(80.1)(116.4)(36.3)
Revenue in advance - openingBalance sheet
81.399.318.0
Revenue in advance - closingBalance sheet
99.3140.941.6
Revenue in advance - closing
18.041.623.6
Plus: DMF revenue
122.8140.217.4
Plus: Accommodation credit adjustment / FX movement
(0.4)1.21.6
Cash management fees
(included in cash flow from existing operations)
60.366.56.2
Payments to suppliers and employees ($m)Financial statement referenceFY23FY24YoY
Included in cash flow from existing operations
Village cash flow(405.3)(530.2)(124.9)
Non-village cash flow(52.8)(65.9)(13.1)
Direct selling expenses - resales of RV units(11.4)(20.2)(8.8)
Subtotal(469.6)(616.3)(146.7)
Included in cash flow from development activity
Direct selling expenses - new sale of RV units(8.9)(8.2)0.7
Total payments to suppliers and employeesCash flow(478.5)(624.5)(146.0)
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation58
Appendix 5: Capex on existing operations
Capex on existing operations ($m)FY23FY24YoY
Property projects
1
22.124.32.2
Property general
2
19.222.12.9
Technology projects
1
25.318.5(6.8)
Technology general
2
3.61.9(1.8)
Capex on existing villages and technology
70.266.7(3.4)
RV unit refurbishments
2
28.430.82.4
Head office and other projects
1
13.710.2(3.5)
Total capex on existing operations
112.2107.8(4.4)
Appendices
1Included in “care / systems / projects” category in prior year reporting
2Included in “village upgrades” category in prior year reporting
RYMAN HEALTHCARE | 2024 Result Presentation59
Appendix 6: Balance sheet summary
$mMar-21Sep-21Mar-22Sep-22Mar-23Sep-23Mar-24YoY change ($)
Cash and cash equivalents2015282628334214
Trade and other receivables543509671792719678688(31)
Assets held for sale----31717644
Property, plant & equipment1,6591,8472,0912,2302,2052,2381,937(268)
Investment properties6,8377,3398,0278,7379,3239,83310,041718
Intangible assets425452608586850
Deferred tax asset323635455478196142
Other assets
1
384961144656919(46)
Total assets9,1729,84910,96612,03312,51113,08513,084573
Trade and other payables106181264248206146151(55)
Interest bearing loans and borrowings2,2742,4502,5773,0262,3312,5002,547216
Resident loans - occupancy advances3,7023,9024,2864,6324,8265,0165,301475
Resident loans - RADs114147200252300364423123
Other liabilities
2
14613520424718319524561
Total liabilities6,3426,8157,5328,4057,8478,2218,666820
Total equity2,8293,0343,4353,6284,6644,8644,418(246)
Net tangible assets (NTA)
3
2,7542,9443,3483,5234,5254,7014,136(389)
Shares on issue (m)500500500500688688688-
NTA per share (cps)550.9588.7669.6704.6658.1683.6601.5(56.5)
Net interest-bearing debt
4
2,2542,4352,5483,0002,3032,4662,505202
Gearing
5
44.3%44.5%42.6%45.3%33.1%33.6%36.2%3.1pp
1Includes inventory, advances to employees, and derivative financial instruments.
2Includes employee entitlements, revenue in advance, derivative financial instruments, lease liabilities and deferred tax liability.
3Total equity less intangible assets and deferred tax asset.
4Interest bearing loans and borrowings less cash and cash equivalents.
5Net interest-bearing debt to net interest-bearing debt plus total equity.
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation60
Appendix 7: RV unit receivables and payouts
1Includes care and village fees receivable, RAD receivables, prepayments and other receivables
2Net amounts paid out on existing RV units for vacating residents or internal transfers where the unit has not been settled under a new contract
$mMar-21Sep-21Mar-22Sep-22Mar-23Sep-23Mar-24
12-month
change
Trade and other receivables
Gross new sales receivable290.6209.9358.4389.9322.0249.9241.1(80.9)
Gross resales receivable188.2247.6262.3350.3351.2357.3389.638.5
Other
1
64.051.950.851.645.970.657.611.7
Total trade and other receivables per BS542.8509.4671.5791.9719.1677.7688.4(30.7)
Committed new sales
Gross new sales receivable290.6209.9358.4389.9322.0249.9241.1(80.9)
Contracted new sales not booked100.5162.474.9122.525.528.791.566.0
Total committed new sales391.1372.3433.3512.4347.6278.6332.7(14.9)
Resales payouts
2
Existing payouts on contracted units34.035.536.761.765.069.781.216.2
Existing payouts on uncontracted units40.534.833.242.074.081.167.5(6.5)
Total payouts74.771.170.8103.8138.9150.8148.79.7
Net resales receivable on contracted stock
Gross resale receivable188.2247.6262.3350.3351.2357.3389.638.5
Expected payouts on contacted units(86.3)(111.8)(108.0)(129.4)(125.3)(131.2)(144.6)(19.3)
Net resale receivable101.9135.8154.4220.9225.8226.1245.019.2
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation61
Appendix 8: Investment property valuation
Investment Property ($m)Mar-23Mar-24YoY
Investment property held at cost
Investment property under development (cost)787703(84)
Completed stock not subject to agreement
to occupy (cost)
169-(169)
Investment property held at cost956703(253)
Manager's net interest
Manager’s net interest for units subject
to occupancy agreement
3,5963,469(127)
Completed stock not subject to agreement
to occupy
-225225
Allowance for the value provided by care facilities(320)-320
Other adjustments required by NZ IAS 409110514
Manager’s net interest3,3673,799431
Revenue in advance9914142
Gross occupancy advance5,4986,113615
Accrued DMF(597)(714)(116)
Investment property fair valued8,3679,339971
Total investment property9,32310,041718
Appendices
Valuation assumptions for manager's net interest
As at 31 March 2024Valuer unit price inflation assumption
Discount
rate
Yr 1Yr 2Yr 3Yr 4Yr 5+
Auckland1.1%1.8%2.4%3.0%3.5%12.9%
Rest of New Zealand1.1%1.8%2.3%2.9%3.5%13.2%
Australia2.9%3.1%3.3%3.6%3.5%13.2%
As at 31 March 2023Valuer unit price average growth assumption
Discount
rate
Yr 1Yr 2Yr 3Yr 4Yr 5+
Auckland0.1%0.6%2.3%3.0%3.5%12.9%
Rest of New Zealand0.2%0.7%2.2%2.8%3.4%13.1%
Australia3.5%3.1%3.2%3.4%3.6%13.2%
RYMAN HEALTHCARE | 2024 Result Presentation62
Appendix 9: Key funding metrics
Interest bearing debt ($000s)Financial statement referenceSep-22Mar-23Sep-23Mar-24
NZD bank loansNote 171,192,7401,277,5901,415,1301,483,980
AUD bank loansNote 17686,141645,179676,357653,099
AUD intitutional term loanNote 17284,706267,265268,183272,807
NZD retail bondNote 17150,000150,000150,000150,000
US Private Placement (USPP)Note 17708,644---
Drawn interest bearing debt at face value
Note 17
3,022,2302,340,0342,509,6702,559,886
IFRS adjustmentsNote 173,721(9,084)(9,999)(12,939)
Interest bearing loans and borrowings per balance sheet
Balance sheet
3,025,9512,330,9502,499,6712,546,947
Cash and cash equivalentsBalance sheet(25,874)(27,879)(33,295)(41,809)
Net interest-bearing debt3,000,0772,303,0712,466,3762,505,138
Facilities and headroom ($000s)Financial statement referenceSep-22Mar-23Sep-23Mar-24
Total facilities at face value3,477,3962,889,3733,010,2613,025,602
Drawn interest bearing debt at face value3,022,2302,340,0342,509,6702,559,886
Debt headroom455,166549,339500,591465,717
Cash and cash equivalentsBalance sheet25,87427,87933,29541,809
Total funding headroom481,040577,219533,886507,526
Weighted average term to expiry of all debt facilities5.3 years3.1 years3.6 years3.1 years
Interest rate management ($000s)Financial statement referenceSep-22Mar-23Sep-23Mar-24
Total active fixed rate debt instruments
1
1,148,5851,570,3871,572,0021,605,613
Weighted average term of fixed rate debt instruments4.0 years2.0 years2.7 years3.4 years
Percentage of drawn debt at face value at fixed rates38%67%63%63%
Weighted average interest rate on drawn fixed rate debt
2
4.5%4.9%4.7%5.7%
Weighted average interest rate on all drawn debt
3
5.4%5.4%5.7%6.5%
1 Includes retail bond, fixed portion of institutional term loan, and interest rate swaps (ref appendix 10).
2 Total cost of fixed rate debt including retail bond (fixed coupon), fixed portion of institutional term loan (fixed coupon), interest rate swaps (fixed swap rate plus average margin and line fees on bank debt, including
margin on undrawn facilities weighted on drawn facilities), and fixed component of USPP notes (fixed coupon).
3 Total cost of all debt including fixed rate debt, floating rate debt and line fees on bank debt, including margin on undrawn facilities weighted on drawn facilities.
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation63
Appendix 10: Fixed rate debt profile
109109109109109109109109109
150150150150150150
910
870
820
705
840
730
630
560
380
330
210
436
436
436
436
436
436
404
404
371
295
262
1,606
1,566
1,516
1,401
1,536
1,426
1,143
1,073
860
625
472
-
$200m
$400m
$600m
$800m
$1,000m
$1,200m
$1,400m
$1,600m
$1,800m
Mar
24
Sep
24
Mar
25
Sep
25
Mar
26
Sep
26
Mar
27
Sep
27
Mar
28
Sep
28
Mar
29
Notional value of fixed rate debt ($m)
1
ITLRetail bondNZD swapsAUD swapsTotal fixed rate debt
5.7%
5.7%
5.8%
5.8%
5.8%
5.8%
6.1%
6.2%
6.2%
6.5%
6.5%
-
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
Mar
24
Sep
24
Mar
25
Sep
25
Mar
26
Sep
26
Mar
27
Sep
27
Mar
28
Sep
28
Mar
29
Average interest rate on fixed rate debt (%)
2
Appendices
1 All amounts shown in NZD. AUD fixed rate debt instruments (ITL and AUD swaps) converted to NZD at 31 March 2024 NZD/AUD rate of 0.9164. Face value of Institutional term loan (ITL) is A$250m, of which A$100m is fixed
(NZ$109m as presented in the chart).
2 Total cost of fixed rate debt including retail bond (fixed coupon), fixed portion of institutional term loan (fixed coupon) and interest rate swaps (fixed swap rate plus average margin and line fees on bank debt, including
margin on undrawn facilities weighted on drawn facilities)
RYMAN HEALTHCARE | 2024 Result Presentation64
Appendix 11: Financial covenants
1 In February 2023, the Group’s banking syndicate and institutional term loan lenders agreed to amend the Interest Coverage Ratio covenant included in the lending facility agreements to 1.75x until 31 March 2025,
increasing to 2.00x at 30 September 2025 and 2.25x at 31 March 2026. The retail bonds are not subject to the Interest Coverage Ratio covenant.
Interest coverage ratio (ICR) for the 12 months ending 31 March 2024
$000sFY24
Gross interest expense
Total finance costs50,642
Costs for USPP prepayment and swaps(10,409)
IFRS 16 interest expense927
Interest costs incurred on repaid USPP notes -
Interest expense41,160
Capitalised interest paid107,703
Interest income(2,326)
Gross interest expense146,537
Adjusted EBITDA
Underlying profit270,000
Interest expense41,160
Interest income(2,326)
Depreciation and amortisation43,803
Management fees(140,154)
Cash management fees66,530
Other(4,292)
Adjusted EBITDA274,721
Ratio (adjusted EBITDA to gross interest)1.87
Covenant - greater than:1.75
1
Adjusted total liabilities to net tangible assets at 31 March 2024
$000sFY24
Adjusted total liabilities
Total liabilities8,666,475
Less net occupancy advances(5,300,794)
Less RADs(423,163)
Less Lease Liability(22,117)
Adjusted total liabilities2,920,401
Net tangible assets
Total equity4,417,607
Less intangible assets(85,065)
Less deferred tax asset(196,072)
Less right-of-use assets(21,991)
Net tangible assets4,114,479
Ratio0.71
Covenant - no greater than:1.00
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation65
Appendix 12: Gross resale bank and resales affordability
Appendices
2 The average price shown for Ryman units is for resales only. The median house price reflects the average
median house price over the last 6 months in the areas surrounding our villages.
1.54
1.19
0.75
0.96
1.06
0.71
0.74
0.69
0.50
-
$0.3m
$0.6m
$0.9m
$1.2m
$1.5m
$1.8m
Melbourne (A$)Auckland (NZ$)Rest of NZ (NZ$)
Resales affordability ($m)
Median house price - village areasRyman - 2 bed independentRyman - serviced
2
1.55
1.74
1.77
1.60
1.55
1.43
0.12
0.13
0.18
0.18
0.16
0.18
1.67
1.87
1.95
1.78
1.71
1.61
-
$0.40b
$0.80b
$1.20b
$1.60b
$2.00b
Sep-21Mar-22Sep-22Mar-23Sep-23Mar-24
Gross resale bank ($b)
1
New ZealandAustralia
Group
1 Gross resale bank reflects the cumulative difference between current pricing for RV units and the unit
pricing on existing contracts. This excludes the cost of unit refurbishment and direct selling costs.
RYMAN HEALTHCARE | 2024 Result Presentation66
Appendix 13: FY24 portfolio rebasing
•Previous methodology for asset base included complete and near
complete units and beds at period end
•New methodology for asset base includes only complete units and
beds. FY24 asset base and land bank have been rebased to reflect
this methodology
•Build rate to be presented on a complete basis going forward,
reflecting the movement in complete units and beds
•Units and beds are considered complete when they can be occupied
oFor independent townhouses and apartments this reflects
practical completion
oFor aged care beds and serviced apartments this reflects the
date at which the main building has opened and residents are
able to move in
•Net movement in asset base of -72 units and beds includes:
oMovement of 732 units under previously methodology
(including 736 recognisedFY24 build, -4 reconfigurations)
oRebasing of 804 near complete units and beds at March 2023
Total units and bedsComplete
Near
complete
TotalRebase
Reported
asset base
31 March 202312,89370513,598-13,598
31 March 202413,52680414,330-80413,526
FY24 movement+633+99+732-804-72
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation67
Appendix 14: Asset base and land bank
TH= independent townhouse, IA= independent apartment, SA= serviced apartment, Res= rest home care bed, Hos= hospital care bed, Dem= dementia care bed
New Zealand - established villages
VillageLocationOpenedTHIASAResHosDemAsset
base
THIASAResHosDemLand
bank
Total
WoodcoteChristchurchFY9118-749--74-------
74
Essie SummersChristchurchFY9222-58304124175-------
175
Margaret StoddartChristchurchFY9420-2145--86-------
86
Frances HodgkinsDunedinFY95-423250--124-------
124
Rowena JacksonInvercargillFY97103-46596332303-------
303
Malvina MajorWellingtonFY99-123395858-278-------
278
Ngaio MarshChristchurchFY99119-404173-273-------
273
Shona McFarlaneLower HuttFY01130-503840-258-------
258
Rita AngusWellingtonFY02-99492049-217-------
217
Hilda RossHamiltonFY02167-51426940369-------
369
Grace JoelAucklandFY034232642770-235-96----96
331
Princess AlexandraNapierFY04551754246024234-------
234
Jane WinstoneWhanganuiFY0654-50292020173-------
173
Anthony WildingChristchurchFY07110-50358033308-------
308
Julia WallacePalmerston NorthFY07111-50283521245-------
245
Edmund HillaryAucklandFY0890282605011430626-------
626
Ernest RutherfordNelsonFY081002475274225293-------
293
Jean SandelNew PlymouthFY0914427604940223424514----59
401
Jane ManderWhangāreiFY101156871206032366-------
366
Evelyn PageŌrewaFY103621263206037428-------
428
Kiri Te KanawaGisborneFY11842161414016263-------
263
Yvette WilliamsDunedinFY11--3235728120-------
120
Bob OwensTaurangaFY1210511379404040417-------
417
Diana IsaacChristchurchFY122332379404039454-------
454
Charles FlemingWaikanaeFY131386379404040400-------
400
Bruce McLarenAucklandFY15-19472404141388-------
388
Possum BournePukekoheFY162174284404040463-------
463
Bob ScottPetoneFY16-25489344040457-------
457
Charles UphamRangioraFY161986687404040471-------
471
Bert SutcliffeBirkenheadFY17-22581404038424-------
424
Logan CampbellAucklandFY18-11680434330312-------
312
Murray HalbergAucklandFY19-22886424238436-116----116
552
William SandersAucklandFY20-18977383836378-------
378
Linda JonesHamiltonFY209115793404036457-------
457
Subtotal2,5022,6172,0691,2621,55584210,84745226----27111,118
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation68
Appendix 14: Asset base and land bank cont.
New Zealand - development
VillageLocationOpenedTHIASAResHosDem
Asset
base
THIASAResHosDemLand
bank
Total
Miriam CorbanAucklandFY2132154----186-2266202031159
345
James WattieHawkes BayFY217944----12324-78353519191
314
Keith ParkAucklandFY22-124----124-152101404040373
497
Kevin HickmanChristchurchFY223963----1022010965202040274
376
NorthwoodChristchurchFY241836----54644771151530242
296
Patrick HoganWaikatoFY2466-----66119-60171734247
313
TakapunaAuckland--------5930151515134
134
KarakaAuckland-------1426460171734334
334
TaupōWaikato-------203-64141428323
323
Park TerraceChristchurch--------15127203130259
259
RollestonCanterbury-------218-64181836354
354
KaroriWellington--------------
-
KohimaramaAuckland--------------
-
Subtotal234421----6557906046862312423372,8903,545
Appendices
TH= independent townhouse, IA= independent apartment, SA= serviced apartment, Res= rest home care bed, Hos= hospital care bed, Dem= dementia care bed
RYMAN HEALTHCARE | 2024 Result Presentation69
Appendix 14: Asset base and land bank cont.
Australia - established villages
VillageLocationOpenedTHIASAResHosDemAsset
base
THIASAResHosDemLand
bank
Total
Weary DunlopMelbourneFY15-20048204220330-------
330
Charles BrownlowVictoriaFY21572360404020240-------
240
Essendon TerraceMelbourneFY22-36----36-------
36
John FlynnMelbourneFY21-17495393936383-------
383
Raelene BoyleMelbourneFY22-6427193718165-------
165
Subtotal57497230118158941,154-------1,154
Australia - development
VillageLocationOpenedTHIASAResHosDemAsset
base
THIASAResHosDemLand
bank
Total
Nellie MelbaMelbourneFY19-25685777736531-76----76
607
Deborah CheethamVictoriaFY2181-53404040254122-----122
376
Bert NewtonMelbourneFY24-85----85--45303019124
209
MulgraveMelbourne-------7010554-3030289
289
Ringwood EastMelbourne--------23779202040396
396
Coburg NorthMelbourne--------33265-6420481
481
EssendonMelbourne--------16250-3030272
272
KealbaMelbourne-------1403331202020264
264
Mt ElizaVictoria--------9927-3030186
186
Subtotal81341138117117768703321,044351702241892,2103,080
Total portfolio
VillageLocationOpenedTHIASAResHosDemAsset
base
THIASAResHosDemLand
bank
Total
Australia1388383682352751702,0243321,044351702241892,2104,234
New Zealand2,7363,0382,0691,2621,55584211,5028358306862312423373,16114,663
Total2,8743,8762,4371,4971,8301,01213,5261,1671,8741,0373014665265,37118,897
Appendices
TH= independent townhouse, IA= independent apartment, SA= serviced apartment, Res= rest home care bed, Hos= hospital care bed, Dem= dementia care bed
RYMAN HEALTHCARE | 2024 Result Presentation70
Appendix 15: Movement in RV units and aged care beds
At 31 March 2023
CompleteNear
complete
Complete
and near
complete
Contracted RV units8,3071678,474
Uncontracted RV resale stock192-192
Uncontracted new RV units
(included in valuation)
---
Total units held at fair-value in investment
property valuation
1
8,4991678,666
Uncontracted new RV units
(not included in valuation)
177299476
Aged care beds4,2172394,456
Total RV units and aged care beds12,89370513,598
At 31 March 2024
CompleteNear
complete
Complete
and near
complete
Contracted RV units8,751638,814
Uncontracted RV resale stock198-198
Uncontracted new RV units
(included in valuation)
238-238
Total units held at fair-value in investment
property valuation
1
9,187639,250
Uncontracted new RV units
(not included in valuation)
-364364
Aged care beds4,3393774,716
Total RV units and aged care beds13,52680414,330
Movement in complete and
near complete RV units and
aged care beds
732
1 RV units are held at fair-value in the investment property valuation when the directors have deemed that fair value can be reliable measured at reporting date. See Note 10 Investment Properties in the 2024 financial statements
for further details.
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation71
Appendix 16: Build rate trend
869
781
532
757
841
736
711
852
736
950
-804
850
FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25
•Previous methodology for build rate based on portfolio movement
of complete and near complete units and beds at year end
•Build rate outlook based on new methodology reflecting portfolio
movement of complete units and beds at year end
•FY24 asset base rebased by 804 units and beds, reflecting near
complete units and beds at March 2024
•These 804 units and beds are expected to be completed over
FY25 and FY26
Independent units
1
Main buildings
2
Total units and beds
Historical build
(complete + near
complete movement)
Outlook build range
(complete
movement)
Rebase
(near complete
at March 2024)
1Independent units include townhouses and independent apartments
2Main buildings include care beds and serviced apartments
388
443
382
402
349
429441447
284
300
-117
200
FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25
481
338
150
355
447
307
266
374
452
649
-687
FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation72
Appendix 17: Accommodation summary
Independent
townhouse or apartment
Serviced
apartment
Aged care
Asset base
6,750 units2,437 units4,339 beds
Accommodation
pricing
•
Licensed under ORA with standard DMF pricing of
20% accruing over four years
•
DMF capped for internal transfers
•
Licensed under ORA with standard DMF pricing
of 20%
accruing over three years
•
DMF capped for internal transfers
•
New Zealand
: Daily room premium or RAD
•
Australia
: RAD or DAP
•
Aged care suite (NZ only
): Licensed under ORA
with standard DMF pricing of 30% (new residents)
or 20% (transferring residents), accruing over
two years
Standard services
and charges
•
Base weekly fee covering rates, water rates, building
insurance, exterior maintenance and gardening
•
Base weekly fee covering independent weekly fee
services as well as a daily main-meal, daily morning
and afternoon tea, weekly linen, housekeeping and
electricity
•
Australia
: potential to partially offset standard fees
through government funded home care packages
•
New Zealand
: Regulated maximum weekly fee
covering 24-hour rest home, hospital or dementia
level care
•
Government subsidised for residents meeting
means testing
•
Australia (aged care rooms only)
: Combination
of basic daily fee and daily AN-ACC fees based on
individual assessment for residential aged care
•
Paid via a combination of government subsidies
and resident contributions per means testing
Additional
services
•
New Zealand
: Private-paying home care add-ons
available such as domestic tasks and meals
•
Australia
: Government funded home care packages
including services such as domestic tasks, personal
care and companionship
•
New Zealand / Australia
: Various assisted living
packages up to rest home care, including services
such as additional meals, personal laundry,
showering, dressing, and administering medication
•
Australia
: potential to partially offset additional
service fees through government funded home
care packages
•New Zealand: Cannot charge (extra) forservices
that are mandated under theARRC agreement.
Can charge for non-ARRC services (i.e. additional
services).
•Australia: Fees charged for additional services such
as premium food and beverage offerings (wine /
coffee etc)
Typical format
and amenities
•
Mostly two or three bedroom with kitchen, bathroom
and attached garage (independent townhouse)
or optional carpark (independent apartment)
•
Combination of one-bedroom apartments and
studio apartments with separate bathroom
•
Includes kitchenette, fridge-freezer and microwave
•
Single room certified to deliver aged residential
care services
•
Majority of rooms include a full ensuite
•
Aged care suite (NZ only)
: Premium
accommodation within aged care centre which
offers a more spacious layout and additional
amenities compared to a standard aged
care room
Floor area
•
Two bedroom
: Approximately 70-90 sqm
•
Three bedroom
: Approximately 100-130 sqm
•
Studio
: Approximately 25-35 sqm
•
One bedroom
: Approximately 40-60 sqm
•
Standard room
: Approximately 15-30 sqm
•
Care suites (NZ only)
: Approximately 30-40 sqm
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation73
Appendix 18: New Zealand market share
Aged care sectorRetirement village sector
Source: CBRE, as at 4 March 2024
2.4%
2.6%
3.0%
4.1%
4.2%
4.4%
4.9%
6.8%
9.2%
10.3%
Metlifecare
The Ultimate Care Group
Summerset
CHT Healthcare Trust
Arvida Group
Oceania Healthcare
Radius Care
Heritage Lifecare
Bupa Healthcare
Ryman Healthcare
1.4%
1.4%
1.4%
1.9%
4.8%
5.8%
8.4%
11.5%
12.6%
15.6%
Heritage Lifecare
Freedom Villages
Qestral Corporation
Generous Living Group
Bupa Healthcare
Oceania Healthcare
Arvida Group
Metlifecare
Summerset
Ryman Healthcare
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation74
Glossary
TermDefinition
AUAustralia
Capital recycling
(non-GAAP)
Capital recycling represents total cash from resident receipts on first occupancy of RV
units and aged care beds (ORAs and RADs), less total development cost over the life
of a development
Care bedRest home, hospital and dementia level care
Care suiteRest home, hospital and dementia level care rooms subject to an
ORA that attracts a DMF
Continuum of careCo-location of aged care beds / care suites and RV units at the
same village
DMFDeferred management fee
Free cash flow
(non-GAAP)
Free cash flow combines cash flow from existing operations (CFEO)
and cash flow from development activity (CFDA), reflecting all operating and
development cash flows
Cash flow from
existing operations
(non-GAAP)
Cash flow from existing operations (CFEO) includes operating villages, group and
regional office and shared services functions and net interest, demonstrating net cash
flow to equity holders on existing business operations, excluding cash flows relating to
development of new villages
Cash flow from
development activity
(non-GAAP)
Cash flow from development activity (CFDA) includes resident
receipts from new sales of occupation rights, the net increase
in refundable accommodation deposits on aged care beds and
net development capex
FYFinancial year
Gearing
(non-GAAP)
Net debt / (Net debt + equity), pre IFRS-16
ILUIndependent living unit
ITLInstitutional term loan
NZNew Zealand
TermDefinition
ORAAn occupation right agreement within the meaning of the Retirement Villages Act
2003 (for Villages in New Zealand) or a residence contract within the meaning
of the Kaela Retirement Villages Act 1986 (Vic) (for Villages in Australia)
Pro-formaAdjusted for the impact of the equity raise
RADRefundable accommodation deposit
ResalesThe sale of an ORA contract on an existing unit when a resident departs a unit
Gross resale gain
(non-GAAP)
Resale gains occur in the event resale price is higher than outgoing ORA
Gross resale bank
(non-GAAP)
Gross resale bank reflects the cumulative difference between the price paid by the
last resident and the price that would be paid by an incoming resident across the
portfolio
ResidentA person who is resident in a Ryman Village in an ILU, SA or care room
Retirement village
(RV) unit
Any independent unit or serviced apartment
RVRetirement village. A retirement village unit includes ILUs and SAs, excludes
care beds.
SAServiced apartment
Suspended
contribution
The portion of the unit price that is suspended until the resident’s occupation comes
to an end and they vacate the unit
Underlying profit
(non-GAAP)
Underlying profit is a non-GAAP measure and differs from NZ IFRS profit for the
period. Refer to Slide 16 for a breakdown of underlying profit.
UnitAny independent unit or serviced apartment
USPPUS private placement
VillageAny retirement village owned by a Ryman Group member that:
• in New Zealand is registered as a retirement village under the
Retirement Villages Act 2003, and
• in Australia is registered as a retirement village under The Retirement
Villages Act 1986 (Vic).
Appendices
RYMAN HEALTHCARE | 2024 Result Presentation75
Disclaimer
This presentation has been prepared by Ryman
Healthcare Limited and its group companies
("Ryman") for informational purposes.This
disclaimer applies to this document and the
verbal or written comments of any person
presenting it.
This presentation provides additional comments
on the full year result for the period to 31 March
2024 presented on 27 May 2024.It should be read
in conjunction with all other material which we
have released, or may release, to NZX from time
to time. That material is also available on our
website at rymanhealthcare.com
.
Purpose of this presentation
This presentation isnot an offer of financial products, or a proposal or invitation to make any such
offer.It is not investment advice, or any otheradvice, or a recommendation in relation to financial
products, and does not take into account any person’s individual circumstances or objectives. Every
investor should make an independent assessment of Ryman on the basis of expert financial advice.
Forward-looking statements
This presentation contains forward-looking statements and projections.These reflect our current
expectations, based on what we think are reasonable assumptions.However, any of these
forward-looking statements or projections may be materially different due to a range of factors and
risks. Ryman gives no warranty or representation as to our future financial performance or any future
matter.Actual results may differ materially from those projected. Except as required by law or the NZX
Listing Rules, Ryman undertakes no obligation to update any forward-looking statements whether as a
result of new information, future events, or otherwise.
Non-GAAP information
A number offinancial measures used in this presentation are based on non-generally accepted
accountingprinciples (i.e.non-GAAP financial information).This includes, in particular, our ‘underlying
profit’ which Ryman has used for many years as a means of showing our profit absent any unrealised
valuation movements.We show our underlying profit together with our reported profit based on
NZ IFRS (a GAAP measure). You should not considerany of these statements in isolation from, or in
substitution for the information provided in the Financial Statements for the 12 months ended
31March 2024.
---
Sustainability
Report
MAY 2024
RYMAN HEALTHCARE
1. A message from our Executive Chair 03
2. Our progress: A snapshot 04
3. Progress on: Our key priorities 05
Climate change: Establish science-based emission targets
Quality care: Deliver future-focused dementia design
Indigenous engagement: Enhance Indigenous engagement
4. Framing our sustainability strategy 10
Our materiality matrix
The United Nations Sustainable Development Goals
5. Progress on: Our three pillars 11
Our Places
Our People
Our Purpose
About this report
Ryman's inaugural Sustainability Report
showcases advancements made across
our strategic pillars of Our People,
Our Places, and Our Purpose since
our sustainability strategy was
launched in October 2022. It also
provides a snapshot view of progress,
followed by a more detailed
exploration of our three key priority
areas: climate change, quality care
and Indigenous engagement.
Pictured on the front cover: Dementia care resident Linda and carer Sami, enjoying the gardens at Logan Campbell Village.
Ryman Healthcare | Sustainability Report 2
A message from our
Executive Chair
It is a privilege to introduce our first Sustainability
Report highlighting progress following the launch
of our sustainability strategy in late 2022. As outlined
in our strategy, we grouped our material issues
under three core pillars – Our Places, Our People
and Our Purpose – with an initial focus on three
key priorities: climate change, quality care and
Indigenous engagement.
Dean Hamilton
Executive Chair
Ryman Healthcare
This report documents our achievements against those pillars.
Care is at the heart of everything we do, and it is that ethos that
we adopt when making decisions to ensure long-term sustainable
value for our residents, people, communities and shareholders.
I am hugely proud of the way our teams have taken our care ethos
and applied it to our sustainability goals, making solid progress.
I am particularly pleased that we have completed our first
Climate-Related Disclosures (CRD) Report, which is included in
our FY24 Annual Report. The CRD outlines how we are embedding
climate considerations into our Build-Sell-Operate business
model, as well as the impact our business has on the climate. Our
comprehensive emissions measurements and reporting are also
incorporated in our Annual Report; hence this is not covered in
detail within this report.
I wish to thank all our Rymanians for their dedication to progressing
our sustainability agenda. Our teams are passionate and dedicated
to enhancing freedom, connection and wellbeing for people as we
grow older. That commitment is essential on our journey to build
climate-resilient villages that are well placed for generations to come
and a business that delivers sustainable value for all our stakeholders
into the future.
Ryman Healthcare | Sustainability Report 3
Material issueGoalKPIProgress against 2023 targetOur progress
Climate changeAddressing our emissions and ensuring our organisation
is resilient to a changing climate
Science-based targetDetailed emissions reduction plan, including milestones to
achieve our verified science-based emissions target.
Risk preparedness86% of climate disclosure road map actions completed.
Environmental
Footprint
Ensuring energy and resource efficiency and minimising
waste
Renewable energy
procurement
Review completed, target identified.
Waste reductionWork progressed to inform future metrics.
Green buildingsIncorporating green building design, elements or
materials in new developments or refurbishments
Feasibility studyThe feasibility study into green buildings was delayed during
2023, but was replaced by other initiatives to progress this work.
Internal leadership
and governance
Growing leaders with the specific capabilities and
knowledge needed to guide our business
Internal promotionsMethodology determined and target confirmed.
Health, safety
and wellbeing
Empowering workplaces that protect the safety of our
people and promote their wellbeing
Total Recordable
Injury Frequency Rate
Baseline data collected and target identified.
Staff wellbeing scoreBaseline data collected and target identified.
Culture and valuesNurturing a purpose-led culture that attracts great
people and motivates them to deliver to a standard that
is “good enough for mum and dad”
Team Net Promoter
Score (NPS)
Baseline data collected and target identified.
Employee attraction,
development and
retention
Ensuring comprehensive workforce management policy
and practice to attract, retain and grow the right talent
Voluntary turnoverBaseline data collected and target identified.
Our progress: A snapshot
Indigenous
engagement
Cultivating meaningful relationships with Ngā iwi Māori
in Aotearoa New Zealand and First Nations People in
Australia to empower an Indigenous perspective across
our business model and into all of our services
To be determinedTaha Māori Strategic Plan completed and endorsed in accordance
with New Zealand Ministry of Health (MoH) Ngā Paerewa standards
and New Zealand Health Strategy. ‘Reflect’ Reconciliation Action Plan
submitted, in line with Reconciliation Australia standards.
Resident
experience
Continuing to provide a resident experience that challenges
the conventions of ageing, ensuring greater freedom,
richer connection and deeper wellbeing for our residents
To be determinedSuccessfully trialled The Wellbeing of Older People measure,
and will use this as the KPI for resident experience.
Quality careBeing the exemplars of quality in the aged-care industry;
delivering care that is tailored to our residents’ health
needs, preferences and rights and innovating for the future
Relevant external
health quality of care
standards
4-year certification for >80% of New Zealand villages; and
3-year accreditation for all Australian care with 100% of
recommendations met.
Supplier
collaboration
Collaborating with our suppliers to maximise mutually
beneficial outcomes
Documented supplier
engagement
Goal developed to work with 75.5% of our suppliers by spend
(covering purchased goods and services, capital goods and
waste generated in operations), to have them set their own
science-based emissions reduction targets by 2028.
Our Places
Our People
Our Purpose
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 4
When we set our sustainability strategy,
we committed to developing an emissions
reduction target aligned with science.
We are pleased to report that we have
completed this work.
Our emissions inventory has been measured
and we have set targets that have been
verified by the Science Based Targets
initiative (SBTi). We have established an
absolute emissions reduction target of
42% for scopes 1 and 2, to be achieved by
2030 relative to a base year of 2021.
In joining the SBTi, we are one of only two
retirement operators in New Zealand to
have established a verified near-term
science-based target.
To meet this target, we have developed
a detailed plan focusing on reducing
emissions from our vehicle fleet, the natural
gas we use to heat water and cook with
in our villages, and those associated
with the electricity we use to heat and
cool our villages.
The following table illustrates the targeted
impact of this plan, based on current
emission forecasts.
42% target
EV eet60% growthBase yearTotal 2030Renewable
energy NZ
Electric
boilers NZ
Renewable
energy AU
DeliverableDueOur progress
Establish a formal commitment to set a science-based target and
register with the Science Based Targets Initiative (SBTi)
2023
Carry out an assessment of our scope 3 inventory to support the
establishment of a science-based target
2023
Establish a verified near-term science-based target and develop
emissions reductions plans to achieve targets
2023
Scope 1 and 2 decarbonisation roadmap for our New Zealand and Australia operations
Climate change:
Establish science-based emission reduction targets
Key priority 1
Progress on: Our key priorities
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 5
Our total emissions inventory also
revealed our scope 3 emissions make up
approximately 95% of our total emissions,
with embodied carbon in our building
materials making up a significant portion
of this.
Scope 3 emissions are indirect emissions
generated through the goods and services
we buy, including the materials we use to
construct our villages and embodied carbon
associated with construction materials.
Preparing the inventory gave us a much
deeper understanding of the opportunity
to include lower emissions materials or
techniques into our construction design.
We then set out to quantify the impact that
innovative techniques and materials can have
to support reduction, without compromising
safety or building performance, with pilots
like our mass timber structural trial at our
Kevin Hickman Village, discussed on page 14.
Reducing our scope 3 emissions will take
time and ‘whole of sector’ collaboration.
Pending final SBTi construction sector-based
target setting guidance (as an interim step
to setting an intensity-based reduction
target for scope 3 emissions) we have
established a supplier engagement goal.
To encourage emissions reduction
throughout our supply chain, this goal
commits us to working with 75.5% of our
suppliers by spend, (covering purchased
goods and services, capital goods and
waste generated in operations) to have
them set their own science-based emissions
reduction targets by 2028.
You can read more about our supplier
engagement and collaboration on
pages 20 and 21.
Image: Mass timber structural trial at our Kevin Hickman Village.
Ryman Healthcare | Sustainability Report 6
DeliverableDueOur progress
Research and pilot leading dementia design for sustainable
dementia communities
2024
Quality care:
Deliver future-focused dementia design
Key priority 2
Seventy thousand New Zealanders are living
with dementia, and this is set to more than
double by 2050
1
. In Australia, the number
of people living with dementia is 400,000,
and this is set to double by 2058.
There is a large discrepancy in the demand
for care, and the number of beds that are
available in both countries. We believe
the lack of available beds will increase the
demand for Ryman’s services and therefore
we need to plan to ensure the sustainability
of our services.
In progressing this deliverable, this year we
developed a future-focused dementia design
project to ensure the sustainability of our
services, targeting an ageing population in the
face of dramatically increasing demand and
advances in dementia care.
The project encompasses dementia
architectural design; consumer and family
engagement; model of care and clinical
workforce training.
1
alzheimers.org.nz/explore/facts-and-figures/
Key highlights from 2023
• Completing a comprehensive stocktake
of the current state of special care units
across all Ryman villages against best
practice design principles
• Initiating dementia unit refurbishment
pilot projects using an updated dementia
unit design spec at Jane Mander and
Ernest Rutherford villages; and minor
upgrades at multiple other older villages
to meet specific new dementia
design standards
• Successfully launching a new special care
unit in Australia, applying the latest in
our dementia design principles
• 5,618 team members completing a newly
launched module to ensure that dementia
awareness underpins all aspects of
our business.
“My work with Ryman is deeply rooted
in a human rights based approach.
Recognising the complex needs of
people living with dementia, we
see technology as a key enabler in
empowering them to maintain as much
autonomy and control over their lives
as possible.
I am immensely proud to be part
of Ryman, a pioneering team with
a compassionate heart with the courage
to innovate. We are not just about
taking care of people with dementia;
we are about championing their rights
and enhancing their lives through bold,
ground-breaking initiatives.”
Caroline Bartle,
Dementia Project Specialist
Image: Ryman Dementia Project Specialist, Caroline
and dementia care resident Del.
The cross-functional project team includes
Ryman dementia specialists who share
practical research findings, alongside best
practice knowledge. We are proud to employ
leaders contributing to the global debate
on dementia care.
The team have reviewed and prioritised
opportunities across our dementia
services, including consideration of emerging
technologies and new evidence-based
practices. Engagement with our communities,
teams, residents and families was central
to this process.
Rather than a single pilot, the team formed
the view that progressing future-focused
dementia design should take an agile
approach, with multiple innovation
experiments and pilots across all aspects
of dementia care, informing a constant
improvement approach that stays aligned to
a constantly changing practice environment.
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 7
1. Honouring Te Tiriti O Waitangi
Objective
Seeking strong relationships and capability
that will empower a Māori perspective and
Te Tiriti-founded practices as appropriate
across our business and services.
Key 2023 highlights
• Piloting Māori cultural practices including
Mihi whakatau for induction for all
office employees
• Building our knowledge and understanding
of Te Ao Māori and Tikanga so that we can
authentically embed these concepts into
Ryman culture
• Providing internal Tiriti partnership
guidance and leadership support for key
cultural engagements regarding land
acquisition or development.
2. Ngā Paerewa standards
Objective
Upholding Pae Ora and support standards
across all our New Zealand villages and
ensuring village and service delivery
maintain high standards in this sector.
Key 2023 highlights
• Appointing cultural skills into our Quality
and Audit team as well as reviewing and
updating all clinical policies with
a cultural lens
• Developing a Māori cultural audit process,
that supports our audit team and
service delivery
• Developing a process for and leading
multiple culturally enriching, kaumatua
and whanau-centric, restorative disputes
resolution processes across the network.
3. Building regional Māori community
networks and relationships
Objective
Creating and growing meaningful relationships
with Ngā Iwi Māori, local hapu, and kaupapa
hauora (health) community organisations,
to support village and construction site
culturally-safe practices.
Key 2023 highlights
• Initiating engagement with Māori Women’s
Welfare League (Ōtautahi branch) to
empower a regional and national
relationship and capacity
• Creating a register for each village
to connect with local iwi and kaupapa
Māori hauora organisations.
4. Our He Pa framework
Objective
Designing a He Pa (village) learning resource
e-site to enhance team members, residents,
and their whānau, to support our villages
to have the cultural tools to respond to the
growing needs of our whānau of Kaumatua.
Key 2023 highlights
• Developing our He Pa e-site prototype
which is expected go live May 2024.
We are pleased to report the completion of our Taha Māori Strategic Plan. The plan was
endorsed in November 2023 in accordance with New Zealand Ministry of Health (MoH)
Ngā Paerewa standards and New Zealand Health Strategy.
Enhance iwi engagement
DeliverableDueOur progress
Complete Taha Māori Strategic Plan in accordance with
New Zealand Ministry of Health (MoH) standards
2023
Indigenous engagement:
Enhance indigenous engagement
Key priority 3
With guidance and in partnership with Māori partner agencies and iwi, our plan guides us to
support and address the challenges kaumatua Māori face. The strategy has been designed in
three key phases to guide us through the cultural learning that is necessary to ensure Māori
are appropriately supported by Ryman.
We are now working through the first phase – Mauri Oho – awakening, building awareness
and new practices across four focus areas:
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 8
Enhance First Nations Engagement
DeliverableDueOur progress
Submit a ‘Reflect’ Reconciliation Action Plan (RAP) in line with
Reconciliation Australia standards and implement actions
identified in the plan
2023
Indigenous engagement:
Enhance indigenous engagement
Key priority 3
We are pleased to report we have submitted
our ‘Reflect’ RAP to Reconciliation Australia,
in line with Reconciliation Australia standards.
Reconciliation is about strengthening
relationships between Aboriginal and Torres
Strait Islander peoples and non-Indigenous
peoples, for the benefit of all Australians. Our
role is to grow and nurture our understanding
of Aboriginal and Torres Strait Island people’s
history, practice and customs, to build
engagement with First Nations people.
As part of the Australian Reconciliation
Action Plan (RAP), there are four stages
– Reflect, Innovate, Stretch and Elevate –
which guide organisations to develop their
reconciliation commitments.
Over the past year our team worked to
understand our existing relationships with
First Nations people and our opportunities to
strengthen them.
This included hosting a bilateral Trans-Tasman
Indigenous engagement event in Melbourne,
as part Reconciliation Action Week 2023.
The event facilitated deep relationship
building between Indigenous engagement
leads for Ryman in both countries and
offered powerful cultural education for team
members across the business, listening to
a rich conversation about what engagement
means for Indigenous people.
A Reconciliation Working group was
established, with representation from
across our wider team, with RAP and First
Nations Consultants Nyuka Wara facilitating
workshops to enable our team to learn more
about First Nations histories and customs.
A number of initiatives identified in these
workshops were included in our RAP
submission, including having First Nations
library sections in our villages and guidance
for team members on when and how to
perform an Acknowledgment of Country.
Having now submitted our ‘Reflect’ RAP to
Reconciliation Australia, we will work with
Reconciliation Australia to publish the RAP
and continue our journey.
Image: An exchange of gifts during our National Reconciliation Week event in Melbourne during May 2023.
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 9
Framing our
sustainability strategy
Affordability &
financial certainty
Brand reputation
Communication &
relationship management
Community,
diversity & inclusion
Continuum of care
Culture & values
Diversity of offering
Employee a raction,
development & retentio
n
Environmental footprint
ESG leadership
Government funding
& regulatory changes
Green buildings
Health, safety
& wellbeing
Indigenous
engagement
Innovation
Internal leadership
& governance
Partnerships & sponsorship
Quality care
Resident & data privacy
Resident
experience
Supplier collaboration
Sustainable financial
performance
Technology
Village location
B
u
s
in
e
s
s
im
p
ac
t
Stakeholder importance
Our PurposeOur PlacesOur People
Climate change
Our materiality matrix
In preparing our sustainability strategy,
we completed a stakeholder exercise that
identified material issues for us to address
to ensure we are moving towards a
sustainable future.
The top 25 material issues were ranked by
importance and identified the issues where
stakeholders believe we have the most
opportunity to improve our performance.
Our Senior Executive Team reviewed and
assessed the issues in terms of their
impact on our business. This materiality
assessment reflects this work, ranking
external stakeholder importance and impact
on the business.
The United Nations Sustainable
Development Goals
The United Nations Sustainable Development
Goals (SDGs) remain a key blueprint for
aligning sustainability efforts globally. On the
following pages, we highlight how the material
issues we have been addressing are aligned
to these global goals.
Our Places
Our People
Our Purpose
The top 5 material issues where our stakeholders thought Ryman has the most
opportunity to improve its performance are marked with diamonds.
Ryman Healthcare | Sustainability Report 10
Establish science-based emission reduction targets
See update on page 5 under Progress on: Our key priorities.
Identify alternative fuel vehicles
DeliverableDueCommentary
Complete an alternative fuel vehicle feasibility report across
construction and operations, identifying path and targets
for removing combustion engine vehicles from our fleet
2023
Our progress
In 2023 we engaged an expert independent fleet advisor to complete the alternative fuel
vehicle feasibility. They provided a detailed review that enabled us to better understand our
fleet requirements, identify opportunities to reduce our fleet size, and propose the pathway
to reduce our reliance on combustion engine vehicles and our transition to electric vehicles (EVs).
Building on the review, we are now in the final stage of project planning to reduce our total
fleet in 2024 and launch a robust EV trial for target vehicles.
Implement climate change risk management roadmap
DeliverableDueCommentary
Complete 100% of External Reporting Board (XRB) climate
disclosure roadmap actions
2024
Our progress
During 2023 we reviewed our climate risk management and emissions reporting frameworks;
deliberately aligning our business processes to the recently released New Zealand Climate
Standards, and our emissions reduction targets to science, in preparation for our first
Climate-related Disclosures Report.
As noted earlier, we are pleased to be providing our disclosures in our FY24 Annual Report,
to be released later this year.
Progress on: Our Places
KPI
Science-based
target
KPI
Risk preparedness
With the verification of our science-based target in March 2024, we will now use our target as our KPI. In terms of
risk preparedness, for the 2024 financial year we successfully completed the climate related disclosures that were
required in year one of our roadmap.
Goal
Addressing our emissions and ensuring our organisation
is resilient to a changing climate
Climate change
2023 target
Detailed emissions reduction plan, including milestones to achieve
our verified science-based emissions target
2023 target
86% of climate disclosure roadmap actions completed
Our progress
Our progress
We strive to minimise any adverse impact on our communities.
We seek to leave the environment in better shape for generations to come.
Completed/on track
In progress
Not completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 11
KPI
Renewable energy
procurement
KPI
Waste reduction
Following a robust procurement process across both our regional businesses, we are in the final stages of negotiating
electricity supply contracts targeting 100% electricity from renewable sources for our main buildings. In the coming
year we will confirm targets aligned to our SBTi scope 1 and 2 targets. Our work in waste, particularly around improved
data capture, will inform future metrics.
Goal
Ensuring energy and resource efficiency and minimising waste
Environmental footprint
Reduce construction waste
DeliverableDue
2023
Our progress
Adopt standard process to measure construction waste across
all Ryman construction sites and deliver comprehensive
waste reporting
DeliverableDue
2023
Our progress
Develop sustainable model for management of construction
waste alternatives
DeliverableDue
2024
Our progress
Identify and endorse pathway to waste reduction, and set targets
Commentary
In developing a standard process to measure construction waste, we have ensured our
waste contractors provide compulsory measurement and reporting of waste tonnage by
category, including data on diversion from landfill where an alternative is available. Internal
data systems development has also been completed to enable us to accurately complete
monthly reporting on square metre construction performance.
We have identified the importance of onsite education, change management and available
downstream solutions in supporting a sustainable model for management of construction
waste. In continuing with this deliverable, in 2024 our actions will include increasing site
education and working with waste management providers to drive waste reduction.
Finally, a comprehensive audit of our construction waste management processes was
completed to identify opportunities to remove waste and drive greater cost efficiencies.
The audit findings will be combined with the evaluation findings from our trial projects
in refurbishment waste (see below) to guide our ongoing waste reduction workplan.
2023 target
Review completed, target identified
2023 target
Deliverables achieved
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 12
Our progress
Our progress
Reduce refurbishment waste
DeliverableDue
Complete analysis and measurement of unit refurbishment waste2023
Our progress
DeliverableDue
Recommend reuse and recycle strategies and set targets2024
Our progress
Commentary
Waste from the refurbishment of independent units also constitutes a significant portion
of our environmental footprint.
Over the past 18 months we have carried our three trials quantifying refurbishment waste,
focusing on how units can be refurbished with greater efficiency, less waste and improved
diversion of materials that can be reused from landfill. These insights will be combined
with our construction waste learnings to reduce waste in the future.
Identify renewable energy solutions in Australia
DeliverableDue
Complete review of renewable energy sources for Australian
villages consistent with a goal of 100% renewable energy
procurement by 2030
2023
Our progress
DeliverableDue
Recommend renewable energy sources and set targets2024
Our progress
Commentary
We are seeking a similar opportunity in Australia as per the previously announced
Mercury NZ and Solar Bay partnership in New Zealand, to ensure that the power our
Australian villages use is renewable in the future.
A partner for renewable electricity has been identified and negotiations are progressing.
The target is for 100% electricity from renewable sources aligned to our SBTi target. We’ve
sought external advice regarding the pathway to alternatives to all other non-renewable
energy sources across our operations, including natural gas, and are on track to confirm
targets for all other scope 1 and 2 emissions sources in 2024.
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 13
KPI
Feasibility study
The feasibility study into green buildings was delayed during 2023, but was replaced by other initiatives to progress
this work.
Goal
Incorporating green building design, elements or materials
in new developments or refurbishments
Green buildings
2023 target
To be established
Identify opportunities for green buildings
DeliverableDue
2023
Our progress
Complete a green buildings feasibility study and present
recommendations to the Board relating to accreditation levels
for current and future villages
Continue improvements in construction materials selection
DeliverableDue
2023-2025
Our progress
Advance the use of construction materials in village design
and construction to reduce carbon intensity to its lowest level
DeliverableDue
2024
Our progress
Implement approved recommendations
Commentary
While the feasibility study remains a work in progress, we completed an audit of the
construction design of a sample of village units and townhouses against Green Building
Accreditation Standards (both New Zealand and Australian standards) to understand key
areas of focus to achieve accreditation.
In addition, we adopted a Green Building Council approved climate risk assessment
review framework within our feasibility and construction governance approvals processes.
This ensures we deliver against a high standard and protect both the value of our assets,
and the quality of life and security for future residents.
Commentary
As noted in relation to our scope 3 emissions, Ryman is committed to exploring low carbon
materials and technologies. We have completed the first phase of a project to introduce
mass timber construction technology to our Kevin Hickman Village in Christchurch. Mass
timber construction is a structural form that will deliver lower-carbon sustainable villages.
We continued engaging with other materials suppliers (concrete and steel) to explore
alternatives to reduce the embodied carbon emissions of our buildings.
We also completed a case study with Mid-Rise Wood Construction on this project at our
Kevin Hickman Village, with the aim of showcasing mass timber construction in New Zealand
and supporting widespread adoption of alternative low-carbon building materials.
Through this case study, we have estimated a reduction of 60-70% in our up front C02
emissions in the structure of the building.
Our progress
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 14
Progress on: Our People
KPI
Internal promotions
During the year we shifted from developing an internal promotions KPI to measuring our success in growing our leaders.
We focused on developing a talent and succession framework and governance group. A scorecard is in place to track
progress and we will consider how to measure our success in the medium to long term over the next 12 months.
Goal
Growing leaders with the specific capabilities and knowledge
needed to guide our business
Internal leadership and governance
2023 target
Methodology determined and target confirmed
Develop our environmental sustainability leadership
DeliverableDue
2023
Our progress
Develop and provide environmental sustainability leadership
and governance training to leaders
Continue our investment in leadership to support sustainable
business performance
DeliverableDue
Ongoing
Our progress
Continue to evolve and deliver our leadership development
programmes matched to our business requirements
Commentary
Since the launch of our sustainability strategy, we have enhanced our governance
structure for the effective oversight of our sustainability objectives. Our management
governance framework has clear lines of responsibility assigned to executives with specific
climate-related accountabilities.
Two forums were held to support leadership development, focusing on sustainability
and climate risk with the executive and senior management. These forums have helped
to significantly enhance our leadership teams’ knowledge and shared understanding of
climate risk and opportunities as they impact our business.
Commentary
Between April 2023 to March 2024, we delivered 655 hours of leadership training
across the following skill requirement specific programmes:
• Advanced Leadership Programme for all senior leaders and pilot of a new Amplify
executive and senior leader training program integrating the Life Styles Inventory (LSI)
• BRICKS programme for construction site leaders
• Boost leadership development programme for sales leaders
• Clinical leaders development programme
In addition, targeted continuous education support addressed specific business capability
requirements. For example, we committed to upskilling our construction team to develop
climate risk management and green building capabilities, with a focus on managing our
carbon footprint across construction planning and procurement.
Our people are Ryman. We invest in them to enable them to grow, to care for
and support our residents, as well as accelerate our business performance.
Our progress
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 15
KPI
Total Recordable
Injury Frequency Rate
Goal
Empowering workplaces that protect the safety of our people
and promote their wellbeing
Health, safety and wellbeing
2023 target
Baseline data collected and target identified
KPI
Staff wellbeing score
2023 target
Baseline data collected and target identified
In 2023 we completed a major review of all incident data to create reliable visibility over our Total Recordable
Injury Frequency Rate. From a baseline of 2023 data we have set a target of a decreasing trend.
Ryman also became the first healthcare provider to become accredited under the Wellbeing Tick accreditation
framework. The target for wellbeing is to maintain our accreditation status.
Continue our digital improvement programme for contractor
management, plant and machinery registers, audits and
wellbeing engagement
DeliverableDue
2024
Our progress
Deliver digital processes across contractor management, audits,
wellbeing programmes and plant and machinery registers
for the Group
Commentary
In 2023 we continued to develop and deliver enhancements to our digital safety
management platform Donesafe. This platform has improved our capabilities of inducting
contractors, identifying high-risk work, and managing all contractor movements to keep
residents and team members safe.
Our progress
Our progress
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 16
KPI
Team Net Promoter
Score (NPS)
Goal
Nurturing a purpose-led culture that attracts great people and
motivates them to deliver to a standard that is “good enough
for Mum and Dad”
Culture and values
2023 target
Baseline data collected and target identified
Ryman uses the internationally recognised Net Promoter Score index embedded within our annual team
engagement survey. The baseline Team NPS score for 2023 and our NPS target, along with the detailed
information from the survey provide data for internal monitoring, reporting and improvement planning.
Enable greater Diversity, Equity and Inclusion (DEI)
DeliverableDue
2023
Our progress
Develop DEI monitoring methodology, establish data capture
processes and confirm DEI objectives
Commentary
In 2023 Ryman confirmed a leadership gender diversity target of a minimum of
40% representation for both males and females, with the remaining 20% open to
any gender, and created a monitoring and reporting framework to empower reporting
against that target.
As of March 2024 we had 43% female representation in the Senior Leadership Team,
38% on the Board of directors, and a notable 61% across all leadership positions.
This data affirms our dedication to promoting gender diversity.
In addition, in 2023 we conducted a comprehensive gap analysis aligned with the
Ngā Paerewa Health and Disability Service standards in New Zealand. The gap analysis
highlighted areas where we could do more to support equitable health outcomes
for Māori and Pasifika, through targeted workforce development. This led to the
establishment of our inaugural Māori and Pasifika Nursing Scholarship. The first
of these scholarships was awarded in 2023.
Our progress
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 17
KPI
Voluntary turnover
Goal
Ensuring comprehensive workforce management policy
and practice to attract, retain and grow the right talent
Employee attraction, development
and retention
2023 target
Baseline data collected and target identified
In 2023, in the context of global workforce shortages in our sector, a significant initiative was launched to reduce
voluntary turnover. Baseline data was validated and an action plan launched to reduce turnover, specifically in
the first 12 months of employment. We achieved a 20% improvement in total turnover, and a 10% improvement in
turnover within the first 12 months.
Ensure we have the capability and capacity to deliver
on our sustainability strategy
DeliverableDue
2023
Our progress
Map sustainability strategy to identify and recruit skill sets
in key areas to deliver on our strategic targets
Managing critical workforce shortages for sustainable
business performance
DeliverableDue
2023
Our progress
Launch a new employer brand campaign; with sub campaigns
in specific markets impacted by workforce shortage
Commentary
We completed a mapping exercise following the launch of the sustainability strategy,
and rather than recruiting for specific skills, we invested in existing employees, particularly
senior leaders in relation to climate change and climate risks.
More than 35 senior leaders participated in a series of KPMG-led Climate Change, Risks
and Opportunities leaders’ workshops, providing insightful perspectives to enable them
to embed climate risk related considerations within business decision making processes.
In addition, 66 new recruits including 24 leaders completed a new sustainability
training module as a core component of their inductions. 32 employees also completed
training to understand how Ryman’s sustainability strategy connects to the
UN Sustainability Development Goals.
Commentary
Our focus this year was the Australian Employer Brand Campaign, ‘One of a Kind’
in May 2023 to promote the kindness and care that Ryman is built on.
The campaign increased awareness of Ryman as an attractive employer with nine million
impressions of our digital ads and more than 40,000 views of our newly created Australian
careers website landing page, with 10% resulting in the user searching for a job. Most
importantly, the campaign saw an average increase in applications of 170% across our six
Victorian villages.
Our progress
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 18
Progress on: Our Purpose
KPI
To be determined
KPI
To be determined
With the development of plans as our deliverable for this year, we are now focused on setting KPIs specific
to Australia and New Zealand. These will be designed to measure the effectiveness of those plans in enhancing
our Indigenous engagement.
A detailed update on this work is on pages 8 and 9 under Our key priorities.
We successfully trialled The Wellbeing of Older People measure, and will use this as the KPI for resident experience.
Our target will be to maintain or improve on these results into the future.
Goal
Cultivating meaningful relationships with Ngā iwi Māori
in Aotearoa New Zealand and First Nations People in Australia
to empower an indigenous perspective across our business
model and into all of our services
Goal
Continuing to provide a resident experience that challenges
the conventions of ageing, ensuring greater freedom, richer
connection and deeper wellbeing for our residents
Indigenous engagement
Resident experience
2023 target
Plans developed
2023 target
To be established
Monitor and measure our impact on the wellbeing of our residents
DeliverableDue
2023
Our progress
Establish an holistic wellbeing index to measure the wellbeing
of our residents
DeliverableDue
2024
Our progress
Establish targets for the positive impact of our services on our
residents’ holistic wellbeing
Commentary
In 2023, Ryman initiated a research project using an internationally validated wellbeing
of older populations assessment tool.
1,526 residents responded to the survey and findings showed that residents enjoy high
overall levels of wellbeing, with an 87% average wellbeing score.
The project has created a powerful baseline of wellbeing for our independent residents,
helping us to understand the impact of future initiatives and ensure we continue to deliver
on our core purpose.
Our purpose is our glue. We know that by focusing on our purpose – greater freedom,
richer connections and deeper wellbeing for people as we grow older – our business will succeed.
Our progress
Our progress
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 19
KPI
Relevant external
health quality
of care standards
KPI
Documented supplier
engagement
Goal
Being the exemplars of quality in the aged-care industry;
delivering care that is tailored to our residents’ health needs,
preferences and rights and innovating for sustainable care
into the future
Goal
Collaborating with our suppliers to maximise mutually
beneficial outcomes
2023 target
4-year certification for >80% of New Zealand villages; and 3-year
accreditation for all Australian care with 100% of recommendations met
2023 target
Engagement metric achieved
Leading in our category for externally audited quality, 4-year certification has been achieved for more than
80% of New Zealand villages and 3-year accreditation for all Australian care centres was achieved,
with 100% of recommendations met.
A detailed update on our work to deliver future-focused dementia design is on page 7 under Our key priorities.
Goal developed to work with 75.5% of our suppliers by spend (covering purchased goods and services, capital
goods and waste generated in operations), to have them set their own science-based emissions reduction targets
by 2028.
Quality care
Supplier collaboration
Drive supplier engagement
DeliverableDue
2023-2024
Our progress
Engage with 50 key suppliers in New Zealand and 20 suppliers
in Australia to understand their sustainability business maturity
relative to our sustainability objectives
Commentary
After completing an inventory of our baseline scope 3 emissions we have developed
a goal to work with 75.5% of our suppliers by spend (covering purchased goods and
services, capital goods and waste generated in operations), to have them set their own
science-based emissions reduction targets by 2028.
Our agreed engagement agenda with each supplier focuses on:
• Establishing the supplier’s current sustainability priorities
• Presenting Ryman’s target and our own emissions journey
• Supporting supplier understanding of the rationale behind and necessary data capture,
measurement and reporting against progress to establish a science-based target
• Reviewing of shared interest areas such as supply chain security and materials and
technique innovation.
Our progress
Our progress
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 20
Develop supplier code of ethics
DeliverableDue
2023-2024
Our progress
Develop and implement a formal group supplier code of ethics
that will promote Ryman’s sustainability aspirations across our
supply chain
Build mutually beneficial relationships
DeliverableDue
2024-2025
Our progress
Evaluate existing supplier relationships to identify and draw
on synergies, including industry best practice, to drive sustainable
value (cost efficiency/reuse, recycle/reduce)
DeliverableDue
2025
Our progress
Identify and report on measurable efficiencies and cost savings
Commentary
In 2023 we were pleased to release our inaugural supplier code of ethics to support our
partnerships and ensure our suppliers share our approach to business and care delivery.
In addition, we have successfully engaged with over 650 suppliers to ensure the digital
health and safety pre-qualification information we hold meets our internal audit standards
and is held in a central supplier information management system.
Further to this, throughout 2023, over 6,000 individual supplier/contractor team members
have electronically registered with us, using that Donesafe platform, to support safe work
across all our sites.
This process has involved deep supportive supplier relationship building focused on safety
values and has established the integrated data systems that will enable us to more rapidly
scale engagement on our code of ethics and other sustainability initiatives.
Commentary
These deliverables are not scheduled to commence until 2024 or 2025 but are significantly
empowered by the work that is under way and reported above.
Completed/on trackIn progressNot completed/not on trackNot commenced
Ryman Healthcare | Sustainability Report 21
Governance and reporting
We are committed to a governance
framework that drives delivery
of our sustainability strategy.
Governance
In 2023 we confirmed a new internal and
Board governance, management and
reporting framework – our Sustainability and
Climate Risk Governance and Management
Framework – to oversee our work to deliver
our sustainability agenda.
Internal reporting on progress across all
associated projects and actions is routinely
collated and presented for executive oversight.
In addition, key metrics for management
of climate risks and opportunities have been
identified, forming a detailed dashboard
that supports continuous progress towards
our targets.
This framework forms a key component
of our reporting for our first Climate-Related
Disclosures Report.
Looking ahead
As mentioned, this is our first update highlighting
progress against our sustainability strategy.
We were aware that we set ourselves an
ambitious programme in 2023 and are
pleased with the progress we have made
on the deliverables we committed to.
We are mindful of the need to set clear
targets to agreed KPIs that will measure
our progress in addressing material issues
over the coming years. Our SBTi sets us
a clear target and we have developed a path
to reducing our emissions by 2030, and we
want to ensure we have this clarity for our
other goals.
During the coming 12 months, we will seek
to apply this same approach across our
other goals, ensuring we have clear KPIs and
targets that will measure our progress toward
addressing our material issues in the medium
to long term. We look forward to sharing
them over the course of the year.
Reporting
We will consider how to best continue
reporting on our progress in the
future, ensuring we provide ongoing
transparency and updates on our
sustainability journey.
Ryman Healthcare | Sustainability Report 22
rymanhealthcare.co.nz
rymanhealthcare.com.au
=== IR PAGE TRANSCRIPT: Transcript ===
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 1 of 30
Start of Transcript
Dean Hamilton: Good morning, everyone, and welcome to Ryman Healthcare's 2024
Annual Shareholder Meeting. My name is Dean Hamilton. I joined the Board in June last
year, becoming Chair in August. Following the resignation of former Group CEO Richard
Umbers in April this year I transitioned to an Executive Chair role. This is a temporary role
until a new Group CEO is in place.
As Chair it is my pleasure to welcome all shareholders to the meeting, both here in person
and online. I would also like to welcome all the Ryman team who have joined us today,
including members of our senior executive team.
Joining me this morning on stage are fellow directors Anthony Leighs, Paula Jeffs, James
Miller, Geoff Cumming, Claire Higgins, Kate Munnings and David Pitman. Also on stage are
Deborah Marris, our Group General Counsel and Company Secretary, and Rob Woodgate,
our Group Chief Financial Officer.
For today's proceedings I will provide an overview of the last financial year and an outlook
of the year ahead. Following this we will move to the meeting resolutions, of which we
have three, and then on to general business where you will have the opportunity to ask
questions. Following the conclusion of the meeting we invite you to join us for
refreshments afterwards.
You will have a chance to ask questions and vote on each of the meeting resolutions as
they are considered. I will provide further instructions as we move through the meeting.
However, if you encounter any issues please refer to the virtual portal guide or you can
phone the helpline on 0800 200 220.
You can send through your questions at any time via the online portal by clicking the link
shown here on screen. I would encourage you to do so as early as possible as this will
allow us to answer these questions at the appropriate time during the meeting.
Voting on the resolutions will be conducted by way of a poll. For shareholders joining us in
person today you would have validated or been given your shareholder voting card. If you
are a shareholder and did not register on arrival and wish to vote please make your way to
the registration desk outside the room and staff from MUFG will assist you.
Shareholders joining us online will be able to cast a vote using the electronic voting card
received when online registration was validated. To vote you will need to click on the Get
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 2 of 30
a Voting Card button within the online meeting platform, which is shown here. You will be
asked to enter your shareholder or proxy number to validate your voting card. Voting will
remain open until five minutes after the conclusion of the meeting.
The Company Secretary has confirmed to me that the Notice of Meeting has been sent to
shareholders and other persons entitled to receive it. We have not received any apologies.
The Company's constitution prescribes a quorum of shareholders. Based on the
information from the Registrar I can confirm that we have a quorum present here today.
Proxies have been appointed for the purposes of this meeting in respect of approximately
417 million shares, representing approximately 61% of the total number of shares
outstanding.
I would like to thank shareholders for participating in today's meeting. My fellow Directors
and I will vote all discretionary proxies we have received in favour of the resolutions as set
out in the Notice of Meeting. As detailed in the Notice of Meeting, all Directors
unanimously support each resolution.
Our Annual Report for the year ended 31 March 2024 has been circulated to shareholders.
This is available online on the Investor section of our website and the New Zealand Stock
Exchange. Copies are also available in the foyer.
There is no doubt that we are in a period of change as Ryman embarks on getting fit for
the future. Whilst Ryman continues to set the benchmark for retirement living and quality
of care for our residents, in terms of returns to you, our shareholders, we have fallen well
short in recent years.
Rest assured, as a Board and management team we are very focused on improving our
financial performance, which we believe over time should be reflected in an improved
share price.
As we embark on our new future we are clear on two things; our residents remain at the
heart of everything we do because without delighted residents there is no Ryman, and
secondly, our villages are the place where we create our value. That is where our assets
are, that is where we deliver our fabulous services. Everything else we do is in support of
these two guiding principles.
As we highlighted at our recent result, we are refining our strategy and driving an
improvement program that will place a much stronger emphasis on our financial
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 3 of 30
performance, while maintaining our commitment to purpose driven care and exceptional
resident experience.
We know we need to create a more balance existence between care and financial
performance. We are focusing on three areas for our financial improvement; (1)
improving the performance of our villages, (2) improving the efficiency of our new
developments and (3) creating a sustainable and fit for purpose overhead structure to
support our villages and new development opportunities. We need to get fit for the future.
I am looking forward to working with the team and eventually our new Group CEO as we
focus intently on restoring our financial performance and, with that, our returns to
shareholders. More on these areas later.
There has been significant change at both Board and management over the past 15
months. Three Directors have retired from the Board and four new Directors have been
appointed, demonstrating our commitment to refresh our Board membership and bring in
new capability and experience to governing your Company.
Of the four new Directors two of those were appointed post the Annual Shareholder
Meeting last year. Both of those Directors, therefore, are up for re-election today.
Kate Munnings joined the Board on 1 November 2023. Kate brings extensive commercial
healthcare experience from her role as CEO at Virtus and COO role at Ramsay in Australia
where she oversaw the operation of some 80 hospitals. Earlier in her career Kate held
senior roles in construction and facilities management.
David Pitman joined the board on 1 May of this year. He brings strong leadership,
strategic and transformation experience across a range of sectors, including retirement
living in Australia. David has held senior roles at Boston Consulting Group in Australia and
the US and as well as The Stockton Group in Australia.
I'm delighted that we have been able to attract two new Directors of the quality of Kate
and David.
In addition to these two new Directors, Dr Bernadette Eather has joined Ryman's Clinical
Governance Committee as a Clinical Advisor. Bernadette started her role on 2 April this
year, replacing Dr David Kerr, who retired 31 March.
Bernadette is a highly regarded clinical governance professional in Australia. She is the
Chief Nurse and Clinical Services Director for Ramsay Health Care, prior to which she was
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 4 of 30
New South Wales Director of Patient Safety at the Clinical Excellence Commission. She
brings valuable external oversight and input to our clinical governance processes.
We have also made several changes to our Board sub-committees and all of these
committees have new Chairs. James chairs Audit Finance and Risk, Paula chairs our
People Safety and Remuneration, Kate chairs our Clinical Governance and Anthony chairs
our Governance and Nominations.
We have also established a temporary Board Oversight Committee to oversee my
performance during my time as Executive Chair. Paula chairs that as the Lead
Independent Director and is supported by James and Anthony.
2024 will see the retirement of two Directors. Geoff Cumming will be retiring at the end of
today's meeting. Geoff rejoined the Board in 2018, having been a substantial shareholder
in Ryman since its listing in 1999. Geoff has been a passionate supporter of Ryman for a
long period of time and I'm sure will continue to stay close to the Company. On behalf of
the Board, Geoff, I would like to thank you for your significant contribution.
Claire Higgins will be stepping down at the end of the calendar year after 10 years on the
Board. Claire stepped into the role of Interim Chair in November 2022 and was instrument
in the capital raise and the subsequent Board renewal. Claire, whilst it's premature to say
farewell as it is your last day [unclear] and it's appropriate to thank you today for your
contribution, particularly over the last 18 months. Thank you, Claire.
There has also been significant change in our senior leadership team over the last year. In
April 2024 we announced that Group CEO Richard Umbers had resigned. I would like to
thank Richard for his energy and commitment during his time leading Ryman. The search
for a new Group CEO is well underway. Our goal, all going well, is to have someone
physically in the seat by the end of this calendar year.
In November '23 we appointed Rob Woodgate as our new Group Chief Financial Officer.
Rob joined us from Fulton Hogan where he was the Group CFO and he has a strong track
record as a senior finance leader, bringing a wealth of experience to the role at an
important time.
A number of longstanding employees have left in the last 12 months. I would like to take
the opportunity to thank them all for their efforts.
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 5 of 30
Ryman has traditionally used underlying profit as the key measure of its financial
performance. We now believe that there are better indicators of performance that are
more closely tied to our audited financial accounts.
We have turned our focus to three key financial metrics. Firstly, the cashflow from our
existing operations, secondly, the cashflow from our development activity, and thirdly, our
net profit before tax and fair value movements per share.
The first two measures are cash measures. We believe cashflow, like in any traditional
business, is the most objective measure of performance over time. Existing operations
and new developments have very different performance drivers and cashflows and we
believe are best reported on separately. The combination of these two measures we term
as free cashflow.
Net profit before tax and fair value measures the operating performance of our existing
villages. It excludes development activity, it excludes refinancing gains on occupation
rights and the unrealised valuation movement in the portfolio between the start and the
finish of the year.
The latter will fluctuate year to year and over time we believe, whilst it's very relevant to
the growth and shelters equity, it is unrealised because, as you all know, we don't sell the
underlying properties to residents. We instead grant a right to occupy.
Our financial results for the year ended 31 March 2024 were disappointing on a number of
fronts. Firstly, on the positive side, we reported an 18% increase in revenue to $689.9
million, driven by growth in our care, village and deferred management fees, primarily as
our new villages continued to mature.
However, the combined impact in impairments and one-off costs, some $283.9 million in
total, has led to a significant reduction in reported net profit after tax to just $4.8 million,
against the $257.8 million we achieved the prior year.
The result has been achieved in a particularly challenging operating environment with
residential property markets subdued and cost inflation impacting all areas of our business.
We took the necessary decision to reassess the carrying value of our land bank sites in
light of the current economic environment and with a high hurdle on whether they could be
financially successful new developments.
This led to two sites being deemed unsuitable for us at Karori and Kohi and these will be
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 6 of 30
put up for sale in coming months. The two sites that we had started but paused have now
been written down and brought back into our land bank at Ringwood in Victoria and
Takapuna. Despite these non-cash write downs, it was pleasing we achieved an
improvement in our cashflow from our existing operations to $43.3 million compared to
minus $8 million last year.
Contributing to this was a record number of resale settlements of occupation rights, which
in my view, continues to underline the attractiveness of Ryman as a place for residents to
live.
Ryman achieved an underlying profit of $270 million, down 11% on the $302 million
achieved in the prior year, and within our February 2024 guidance of $265 million to $285
million.
The reduction in underlying profit was primarily a result of lower margins on new
developments which have suffered from higher costs to complete, the impact of delays,
and higher interest costs.
We are committed to prudent capital management. The Board made the decision during
the year to suspend dividends. The need to continue to spend capital to complete our
village buildings, to deliver on our promise to residents, and the desire to limit increased
borrowings being key factors behind what I believe to be a logical decision and in the best
interests in the short term of shareholders.
As previously communicated, the Company intends to undertake a further review of the
dividend policy at fiscal year '26. It's important to note that any future dividend policy is
expected to be based on cash flow.
At March 2024, net interest bearing debt was $2.51 billion, up $210 million from the March
2023 number. However, in line with our position at September '23. We had total funding
headroom at March of $507.5 million.
Gearing of 36.2% has increased 3.1 percentage points reflecting both higher debt and the
impact on shareholders equity from valuation movements and impairments. This sits
slightly above our medium-term target of 30% to 35% gearing.
The financial focus of the Board is to strengthen cash flow outcomes from our existing
operations, to release capital from our inflight developments, and grow the value of Ryman
whilst gradually reducing our net debt position.
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 7 of 30
Turning to new developments. During FY24 we completed developments at both John
Flynn in Melbourne and William Sanders in Devonport. These are fabulous new villages for
our residents, with state-of-the-art amenities and a continuum of care.
We also opened the main building at Deborah Cheetham in Ocean Grove, welcoming
residents into our sixth main building in Australia. At year end, we had 10 villages under
active construction, including nine of which were already open.
The current build program is unusually skewed to main buildings, of which four are
expected to be completed in FY25. Since year end, I’m pleased to announce that the main
buildings at Miriam Corban and James Wattie, as shown, have both opened.
Our village and regional teams have done a fantastic job of operationalising these buildings
which offer a wide range of village amenities and are a key part of our proposition for new
residents.
Care beds and serviced apartments in these buildings will now gradually fill over the next
couple of years, with both new residents and existing Ryman residents who transition from
independent living to more care-based offerings.
We are very focused on finishing the 10 inflight projects on time and at our forecast cost
which will allow us to repay bank debt as we sell down the occupation rights. We have
increased our focus on the efficiency of potential brand new village developments, with a
much stronger lens on expected cash recycling.
We expect to operate with a smaller land bank going forward and with a smaller number of
developments underway at any one time. We need to have the capital discipline to only
start a development when we know we have the financial capacity to finish it.
At March 2024 we had 5371 units and beds available for development, including 2627 at
sites already under active development, and 2744 at our land banks where we are yet to
have started building.
Ryman is committed to our sustainability journey and decarbonising our operations. We
are pleased to have released our first sustainability report in May this year which
showcases progress across our three priority areas of climate change, quality care, and
Indigenous engagement.
This report is available on our website and I’d encourage you to read it. During the year
we announced that our greenhouse gas emissions targets have been validated by the
Science Based Targets initiative.
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 8 of 30
This achievement has been reached following Ryman formally setting an emissions
reduction target of 42% for our scope 1 and 2 emissions to be achieved by 2030, relative
to our starting position in 2021.
We remain committed to reducing our environmental footprint. The procurement of
renewable energy is a key initiative in our emissions reduction plan. In 2023 we signed a
long-term power purchasing agreement with Solar Bay, through Mercury Energy.
As part of this agreement, during FY24, Ryman’s New Zealand electricity emissions were
offset by renewable energy certificates, which helped to materially reduce our New
Zealand based emissions.
In addition, in our 2024 annual report, we have published our first climate related financial
disclosures, as required by the New Zealand External Reporting Board. The disclosure
report outlines how we are embedding climate considerations into our business model, as
well as the impact of our business is having on the climate.
This year, Ryman celebrated a number of key achievements. We were proud to open
three new villages during the year, welcoming our first residents at Northwood, not far
from here, Patrick Hogan in Cambridge, and Bert Newton in Victoria.
In addition, as mentioned earlier, we opened a new care centre at Deborah Cheetham in
Melbourne. We finished the year with 48 operating villages, home to some 14,600
residents.
We continue to be recognised by the industry for delivering great care and by the
community for their trust in our brand. We were proud to be named Reader’s Digest Most
Trusted Brand in aged care and retirement living in New Zealand for the 10th time.
In addition, we won four awards at the 2024 Asia Pacific Eldercare Innovation Awards,
including Operator of the Year for the second year running. We also continued to play an
important role in our local communities, working with our teams and residents to raise
funds for the Fred Hollows Foundation across New Zealand and Australia, who work
tirelessly to put an end to avoidable blindness.
We are committed to improving our financial performance. As I mentioned earlier, we are
focused on three key areas. Firstly, improving the financial performance of our existing
villages. We are looking at both revenue and cost opportunities. What is the optimal mix
of our deferred management fee, weekly fees, and the services that we offer?
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 9 of 30
On the cost side, how do we match the operating efficiencies of our best performing
villages right across our portfolio? Secondly, we need to improve the financial efficiency of
our new village developments. We have been unable to fully recycle our build costs with
the first sell down of occupation rights across 14 of our last 16 developments.
Many reasons have driven this, including a combination of challenging land sites, higher
construction cost inflation than we thought when we started, greater overheads, our own
changes to scope once underway, or significant delays through either COVID or financial
prudence.
This has come at a significant cost to shareholders. However, the best thing for residents
and shareholders now is for us to finish the 10 developments that are underway and to
meet our revised forecasts. I’m very confident our team can do this.
In terms of new developments, we intend to delay putting any spades in the ground until
we are very confident that any new development can 100% recycle capital. Thirdly, we
need to re-create a sustainable overhead structure that supports the villages.
We have, over the last eight years, seen our support costs grow at a faster rate than our
unit and bed numbers. At Ryman, we have to become leaner in what we do. All of these
three areas are under current review. We know change is necessary and we will be
leaning into this in coming months. We look forward to providing an update on that at our
interim result in November.
Ryman released its external auditor independence policy in December 2023, providing
guidance on the appointment and independence of the external auditor. The policy
requires the tendering and formal assessment of the external auditor at least every 10
years.
The Company’s current auditor, Deloitte, has been our auditor since listing on the stock
exchange in 1999, a total of 25 years. Deloitte has worked constructively with the
Company as its auditor since this time.
In accordance with the external auditor independence policy, the Company carried out a
tender process overseen by Ryman’s audit, finance and risk committee. Following a
careful review and consideration of the responses, the committee recommended to the
Board that PwC Auckland was the most suitable appointment as the external auditor for
the current financial year and looking ahead.
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 10 of 30
The Board agreed with the recommendation of that committee and seeks approval today
from you, our shareholders, for the appointment of PwC Auckland as auditor for the
financial year commencing 1 April 2024.
The decision to recommend a change of auditor in no way reflects the performance of
Deloitte, or the services that they have provided to Ryman. We would like to thank
Deloitte for the services they’ve given the Company during their 25 year tenure as our
auditor.
Throughout the year, Ryman continued to advocate for change to the current aged care
funding models in both New Zealand and Australia. As the ageing population expands and
age longevity increases, more older people are occupying hospital beds and require care,
putting huge pressure on healthcare systems around the world.
As highlighted in the first phase of a Te Whatu Ora Health New Zealand commission
review, the sector in New Zealand is facing unprecedented challenges and financial
pressures. Leading to care bed closures by some operators and limited new builds despite
growing demand.
Despite this independent review in their hands, Te Whatu Ora, with limited consultation,
has provided only a 3.2% increase in funding for the whole sector for the current year and
said that they will provide financial support to weaker operators on a case by case basis.
We, at Ryman, don’t believe that is the right answer for aged care in New Zealand. We
question what measure of sustainability, let alone incentive to grow with new beds, does
that provide the broader sector which has some 37,000 care beds? Two thirds of which
are actually in charitable and private hands.
We need governments to acknowledge the crucial role that retirement living sector has to
play in meeting the housing and health needs of the growing number of older people in
both countries.
We believe the government needs to change the funding mechanism rather than tinkering
at the edges. At Ryman, we believe that New Zealanders deserve to have a choice in the
products and services they receive as they age.
If it’s not fixed, aged care will inevitably become a broader healthcare issue. Instead of
paying - the government paying $250 a night to aged care providers, Te Whatu Ora will be
paying $1400 a night for a public hospital bed and blocking those beds from the general
public.
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 11 of 30
We’re optimistic that the new coalition government will see the bigger picture here and
create positive change to enable sustainable and equitable access for New Zealanders. In
Australia, Ryman has been actively engaging with the government on similar issues.
It provided a submission to the Aged Care Taskforce, which subsequently provided
recommendations to the government earlier this year, including support for a co-
contribution model.
We are hopeful of bipartisan support being reached in current negotiations shortly. The
changes will be a positive sign for the industry and make investing in new aged care assets
in Australia potentially more attractive than in New Zealand.
Looking ahead. Current economic conditions remain challenging in both New Zealand and
Australia, and it is unclear when interest rates will begin to decline and support the
improved housing market conditions and liquidity.
Incoming residents to a Ryman independent living village in most cases need to sell their
home in order to fund an occupation right. As a result, residential market conditions do in
fact have an impact on the timing and affordability for potential new residents.
Most market commentators are expecting tough housing conditions to continue for the
balance of calendar 2024. At Ryman we can do little about these external factors.
However, we do need to be focused on improving our own performance.
There continues to be demand for living in a Ryman village, as evidenced by strong
demand for our independent living opportunities, noting we achieved over 1500 ORA
settlements last financial year, our high care bed occupancy at our existing villages and
the growing occupancy at our new care facilities.
We are assuming that tough housing market conditions will continue for the balance of our
financial year. In my mind, market conditions simply reinforce our need to get fit for the
future.
Our guidance for the full year remains unchanged from what we disclosed at the full year
result. We expect to be cash flow positive. We expect to build between 850 and 950
retirement village units and aged care beds. We expect to spend between $700 million
and $820 million on capital expenditure.
Your Board is positive about the future of Ryman. We are energised by the need for
change and are committed to improving Ryman’s financial performance, whilst at the same
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
Page 12 of 30
time maintaining great care and great experience for our residents. I thank you very
much for your time.
Before we move to general business and your opportunity to ask questions of both the
Board and management, we will now move to the formal meeting resolutions which were
outlined in the notice of meeting.
Each resolution set out in the notice of meeting is to be considered as an ordinary
resolution and, as such, must be approved by a simple majority of the votes cast by
shareholders entitled to vote and voting on each resolution.
A poll will be held on each of today’s resolutions. For those of you here today, you will be
issued a voting card. Please mark your voting intention for each resolution and the voting
cards will be collected at the conclusion of the meeting.
If you require assistance with this, please see MUFG outside the room. For those of you
voting online, you will need to click get voting card within the online meeting platform.
Please mark your electronic voting card in the way you wish to vote by clicking for,
against, or abstain.
Once you have made your selection please click submit vote on the bottom of the card to
lodge your vote. Please refer to the virtual meeting online portal guide or use the help line
specified if you require assistance.
A quick reminder, voting will remain open until five minutes after the conclusion of the
meeting. Results of the vote will be announced via the New Zealand stock exchange. The
outcome of proxy votes received prior to the meeting will be displayed for your information
after voting on all the resolutions.
There will be an opportunity for shareholders to ask questions on each matter being put to
the shareholders. For the sake of good order, shareholder questions raised should relate
directly to the matter currently being considered.
Th ere will be time at the end to ask general questions. When I call for questions, can
shareholders present in the room please wait until a microphone is provided to you and
clearly state your name.
I will take questions from those present in the meeting first before moving onto any
questions from shareholders online. I ask that in the interest of fairness to all
shareholders attending this meeting, that anyone wishing to ask questions be as concise
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
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as possible and be considerate of other shareholders also wishing to ask questions.
Turning to resolution 1. Pursuant to section 207P(2) of the Companies Act 1993, the
Board seeks approval of the shareholders to the appointment of PwC Auckland as the
auditor of the Company and pursuant to section 207S of the Companies Act 1993, to
authorise the Board to fix the auditor’s remuneration for the ensuing year.
The Board unanimously supports the appointment of PwC Auckland as the external auditor.
Are there any questions of the Board concerning the resolution from shareholders in the
room? Are there any questions online?
Moderator: There are no questions online.
Dean Hamilton: Thank you. I now propose that PwC Auckland is appointed as auditor of
the Company and the Board is authorised to fix the auditor’s remuneration for the year.
Please mark your voting cards in the way you wish to vote by ticking for, against, or
abstain in the appropriate place on the voting card.
Turning to resolution 2. Under NZX listing rules 2.7.1, a director appointed by the Board
must not hold that office, without re-election, past the next annual general meeting
following the director’s appointment.
Kate Munnings was appointed as a non-executive director by the Board with effect from 1
November 2023. Kate accordingly retires and offers herself for re-election today. Kate is
considered by the Board to be independent. The Board unanimously supports the re-
election of Kate. She will now introduce herself. Thank you, Kate.
Kate Munnings: Thank you, Dean and good morning, everyone. My name is Kate
Munnings and as you've heard, I joined the Ryman Board in November 2023, and today I
seek your support for my re-election.
Ryman Healthcare is an iconic company and I am honoured to have the opportunity to
serve you on the Company’s Board. Thank you for the opportunity to share what I hope to
bring to the Ryman Board and to the wider Ryman family.
My career has been quite diverse and I think it marries nicely with the needs of Ryman, at
this stage of the company’s history. I started my career many, many years ago as an
assistant in nursing, working in aged care.
I generally worked night duty because I was training to be an RN. So I spent many nights
talking with residents about their lives and experiences, as well as providing residents and
their families with nursing care and support.
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1 August 2024
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So I bring to Ryman frontline experience in caring for residents and I have a deep
understanding of how important that responsibility is for a company like Ryman. I then
became an registered nurse and specialised in HIV and AIDS nursing.
AIDS patients in the 80’s were ostracised and isolated, often for reasons that had nothing
to do with their disease. That experience led me to study law and I left one of the most
loved professions and joined one of the least loved when I became a solicitor in the 1990s.
I spent 12 years in private legal practice, specialising in construction law and I progressed
to partner and had a leadership role in the international law firm Baker McKenzie.
I spent those years in private practice, solving complex legal and commercial problems for
my clients. So, I bring to Ryman an understanding of legal issues in the property and
construction sector, as well as experience in solving the complex legal problems.
I then left private practice and spent eight years at ASX listed company, Transfield
Services as their Chief Risk & Legal Officer and Company secretary, there I did extensive
international M&A work and corporate governance advisory work, across Australia, New
Zealand, the US, Canada, Chile and the United Emirates.
This was a dramatic change, as in that role, I was a corporate lawyer, advising an ASX
listed Board on their responsibilities as directors; developing an enterprise risk
management program and running large international acquisitions. So I bring to Ryman an
understanding of corporate law, risk management and corporate governance.
When I eventually moved into an operations role, I was responsible for Transfield Services
construction, logistics and consulting businesses across Australia and New Zealand. This
included providing facilities management services in complex environments such as social
housing, schools and defence bases.
My business unit was also responsible for rolling out the NBN across Australia and the fibre
rollout for Enable, here in Christchurch. So, I bring to Ryman operational experience in
running a facilities management and logistics business in sensitive environments, as well
as experience in running a construction business which included a large infrastructure
project here in Christchurch.
After 23 years working outside of healthcare, I returned to the sector about 10 years ago.
Since then, I have been running large health care organisations, first as Chief Operating
Officer at Ramsay Health Care and then as Chief Executive Officer at Virtus Health Care.
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1 August 2024
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So, I bring to Ryman operational and leadership experience in running complex health
services, where I was required to balance the need to provide exceptional patient care,
with sustainable commercial performance.
Importantly, I have also led a number of transformation programs. They include a
significant transformation program across Ramsay’s hospital network, where I was
responsible for 73 private and public hospitals; another program across 46 Assisted
Reproduction Technology clinics that spanned five countries at Virtus and I also guided a
transformation program from a Board role across eight hospitals and multiple primary
health networks at South-East Sydney Local Health District.
So, I bring to Ryman experience in delivering transformation programs in large complex
healthcare environments. My experience also includes delivering impact from a governance
role.
I was previously a director of South-Eastern Sydney Local Health District and Ramsay
Hospital Research Foundation. I currently Chair the Digital Health CRC and have recently
been appointed to the Board of Wesfarmers Limited, an iconic company with operations
across Australia and New Zealand.
So, I bring to Ryman governance experience as a director of large and complex
organisations. I commit to you, that I will bring all that I have learned in my career to the
Ryman Board. I will help to support and guide the Ryman team and I will work extremely
hard to ensure that Ryman delivers on its ambition and promise of providing exceptional
care to residents and exceptional returns to shareholders. Thank you.
Dean Hamilton: Thank you, Kate. Are there any questions for Kate or the Board concerning
this resolution from shareholders in the room?
Are there any questions online?
[Unidentified Company Representative]: There are no questions online.
Dean Hamilton: I now propose that Kate Munnings be re-elected a director of the
company. Thank you. Please mark your voting cards in the way you wish to vote by ticking
for, against or abstain in the appropriate place on the voting card.
Now turning to resolution 3. Under NZX Listing Rule 2.7.1 a director appointed by the
Board must not hold office without re-election past the next Annual Meeting following the
director’s appointment.
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1 August 2024
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David Pitman was appointed as a non-executive director by the Board with effect from 1
May this year. David accordingly retires and offers himself for re-election at the 2024
Annual Meeting.
David is considered by the Board to be independent. The Board unanimously supports the
re-election of David. David will introduce himself now.
David Pitman: Thank you Dean. Good morning. My name is David Pitman and as you've
heard Dean mention, I joined the Ryman Board on 1 May 2024 and today I seek your
support for re-election. As this is my first time before you, it seems appropriate to give you
a sense of my background.
I have accumulated 40 years’ experience in general, operational and financial
management, strategy development and M&A in Executive and consulting roles. My
undergraduate training was at the University of Sydney where I earned a Bachelor of
Aeronautical Engineering with honours, which led to a nine year career in the aviation
sector, holding commercial management roles in Sydney and Los Angeles with
responsibilities for aircraft maintenance and product support businesses.
Wishing to broaden my career, I undertook an MBA at the University of New South Wales,
from which I was chosen to attend the Wharton School in Philadelphia on exchange. Upon
completing my degree, I joined the Boston Consulting Group, where I remained for 12
years advising on a diverse range of issues from competitive strategy through to
transformation across many industrial sectors including financial services, industrial goods,
airlines, forestry and consumer products. I served clients in Australia and New Zealand and
also in the USA, being based in Los Angeles again for a period of time.
I became a Partner of the Global firm in 2003 and, having developed some expertise in
shareholder value management, I was chosen to lead the Corporate Finance and Strategy
practice in the Asia Pacific region.
In 2007, I transitioned to Stockland Corporation as Executive General Manager of Strategy
and Corporate Development, later assuming the role of CEO of Stockland’s Retirement
Living division.
In that role, I led a transformation of the Retirement business, growing the portfolio from
24 Melbourne-focused villages to a national network of 62 villages through a combination
of organic development and acquisition.
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Cash profitability was restored and grown in both established operations and in new village
development and the culture of the organisation became more performance-oriented,
while retaining high levels of resident satisfaction and employee engagement,
outperforming the relevant external benchmarks. I also drank a lot of cups of tea.
After more than six years at Stockland, I returned to BCG as a partner again, this time in
Boston, Massachusetts, as Global Finance Director, overseeing the firm’s finance
operations, accounting and control across 50 countries. I subsequently relocated back to
Sydney in 2018 with my family, assuming a senior advisor role at BCG before moving into
private consulting.
I am excited to have the opportunity to be involved with Ryman, a business which has
earned a reputation for outstanding resident care and high-quality villages. The business is
now undergoing a transformation and, as one of your representatives on the Board, I can
say I am personally committed to seeing that we maintain our record of great care while
driving a material improvement in shareholder value.
If elected today, I look forward to leveraging my experience in finance, strategy, property
and retirement living to help achieve that goal. I would appreciate your support to be
re-elected as a Director of Ryman. Thank you.
Dean Hamilton: Thank you, David. Are there any questions for David or the Board
concerning this resolution from shareholders in the room?
Are there any questions online?
[Unidentified Company Representative]: There are no questions online.
Dean Hamilton: I now propose that David Pitman be re-elected a director of the Company.
Thank you. please mark your voting cards in the way you wish to vote by ticking for,
against or abstain in the appropriate place on the card.
I am sure you'll join me in being delighted that we've been able to attract new directors of
the quality of Kate and David and we're delighted that they've settled in very well to the
Board as you would hope.
I would now like to give shareholders the opportunity to ask questions - whether related to
the presentations, the Financial Statements, or the management of the Company. We will
do our very best to answer these.
Shareholders online can continue to provide questions through the portal, and we will also
Ryman Healthcare Annual Shareholder Meeting
1 August 2024
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address questions from the room. If you are asking a question from the floor please state
your name, whether you are a shareholder, or if a proxy holder, the name of the
shareholder represented.
Please wait until we bring a microphone to you so that the people in the room as well as
online can clearly hear you. Do we have any questions in the room? Down here.
Malcolm Aim: (Shareholder) Good morning. [Malcolm Aim]. I'm speaking on behalf of my
wife, [Annie] who is right here. The first thing is we've heard nothing about the Park
Terrace property. I don't think there was anything in the Annual Report. I'm wondering if
you could tell me what the plans are for that.
Secondly, I wonder whether Ryman's fixed weekly fees policy is the right one because
Summerset, who seem to have stolen an arch on Ryman's do not have a fixed fees policy
and increase their weekly fees each year. Those are my questions.
Dean Hamilton: Thank you for your questions. On Park Terrace, we have no immediate
plans for that. It's a development that we would like to do at some stage. In terms of our
financial capability, we have our hands full with 10 on the go at the moment.
As I look back, some of the trouble that we got ourselves into was having too much on our
plate. When the music got challenging through COVID, we had over 14 live developments
and that really stretched our capability.
So I think we just have to have that capital discipline to get done what we have in flight; a
lot of these we've committed to existing residents, that are there already. We haven't
finished the main buildings. We need to get that done and deliver on our promise and then
we need to look at what's going to come next. Park Terrace is definitely part of that
review.
We're committed to Christchurch. We've got a lot of villages in Christchurch. Kevin
Hickman underway, Northwood underway. I'm sure we'll get to that at some stage. We'd
all love that to be done. It's a little bit of an eyesore on the side of the river there but yes,
I think we just have to be disciplined in the current position.
In terms of your comment on fixed versus indexing, yes, that’s currently under our review.
Certainly, fixing has been part of the Ryman way and residents value that but at the same
time it's proven to be very expensive because as you'd all know, probably if you're in
private residence, your rates bill has gone through the roof, your insurance bill has gone
through the roof.
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Getting a plumber probably costs twice what it used to. So those have just become
expensive and we didn’t anticipate that when we set the fee in 2016 or 2017 and they are
fixed for life. So that's certainly been quite a financial drag on us. We're staring at that
now and we may well offer a choice I think. It's under consideration. It's a good point.
Other questions in the room? This lady here in the pink has put her hand up twice.
Monica Chang: (Shareholder) Hello. Hi, [Monica Chang]. I'm a shareholder. I have two
questions. One is on the slide there was an indicator of a net asset per share that's $6 and
the formula is a bit strange. It use - equity usually is residual after the asset deduct the
liability.
It sounds a bit boring what my question is, but in small letters it says it deduct intangible
asset and then tax asset and it come to $6. I think that's a bit strange compared to
current share price. There was another one.
Dean Hamilton: Sorry, is, shall I answer that? Would you like...
Monica Chang: (Shareholder) Could I ask both questions first?
Dean Hamilton: Of course.
Monica Chang: (Shareholder) I might forget it straight away.
Dean Hamilton: Sure. One of us is going to forget it straight away.
Monica Chang: (Shareholder) There's another one. I understand the Company went
through a lot of change so it says it's getting fit for the future, but from the whole
presentation I failed to see what competitive landscape is like in both New Zealand and
Australia.
I would love to see more on that because we're buying the share for the future and also a
little bit benchmarking how we are doing because we are seeing what the Company thinks
but I would think we'll be objective to see some external forces and players situation.
Dean Hamilton: Sure, thank you. Ye s, so in terms of the NTA, it's a relatively traditional
measure. So for us it's our shareholders equity and then that will be our net asset backing.
Then to be a tangible asset backing, we deduct two things.
We deduct our intangible, which is primarily our computer systems that we've invested in,
but also our deferred tax asset. So those two things under most accounting definitions get
deducted from an NTA. So without those deductions it's about $6.60. With those
deductions, it's about $6.01.
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Let's put that to one side. We have traditionally traded at a premium to those numbers.
We've traded at a premium to our shareholders funds and over the last four years we've
steadily detracted down such that we're now trading today roughly $4.50. So that's about
0.7 of that number. I think at our peak we might be three times that.
So the whole sector has come down no more so than Ryman. I think in part that is
because we've really been challenged by our new developments and we've taken on a lot
more debt and I think that's hurt our equity. So we're very conscious of our desire to trade
that back up.
Ideally over time, can we get back to a premium? Time will tell, but certainly that's a
reasonable ambition to be trading back in our share price at least equivalent to what our
equity is worth. That's the first point.
On the second point, we look a lot internally at our competitive position relative to what
other people are doing. We didn't present it today. I thought half an hour of listening to
me was probably going to be enough, but rest assured we are very external in our
perspectives as well because you can become quite insular.
No, we certainly look at what our main competitors in New Zealand do. I think probably in
20 years there are very few competitors if you look out there today. You just have to
watch the news as an advert for Arvida before it or other people's villages. So we're very
conscious that we need to be very aware of what competitors do and that potential
residents have choice.
We need to make sure we continue to have great care; great resident experience and our
commercials are also competitive and we do a similar thing in Australia as well. So maybe
next time we'll present some of that, but certainly internally we look at that a lot.
Next question. Some questions down here or there's one you're walking past.
Marlene Rowan: (Shareholder) My name's [Marlene Rowan] and I'm a shareholder. In
relation to the fixed fees - and you alluded to the fact that the Board is presently looking at
those for existing residents, they have signed a legal agreement, therefore their fixed fee
couldn't be altered, could it?
Dean Hamilton: Correct. Yes. If I wasn't clear, that's totally confirmed. It would be for a
future resident. So it's fixed for life.
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Marlene Rowan: (Shareholder) So you say in the future, if you do decide to change the
weekly fixed fee, would that mean that people have a choice to have the fixed fee or to
have the annual fee reviewed?
Dean Hamilton: Yes. We haven't landed on that decision at the moment, but just to be
very, very clear, those contracts are sacrosanct. We will not change an existing resident at
all. It would be the resident who starts, for example, tomorrow here's the contractual
terms that we will propose and that will have a fixed fee element in it.
That's been part of the Ryman way. The consideration will be should it also have a choice
where people can have a fee that goes up over time at the pension or whatever rate that
happens to be. We haven't made that decision, but we fully expect we will continue to
have a fixed fee alternative.
Marlene Rowan: (Shareholder) Thank you.
Dean Hamilton: There's a gentleman up there that we've walked past a couple of times.
We've got plenty of time. We'll get through the questions.
Alan McNaughton: (Shareholder) [Alan McNaughton]. You mentioned cost overruns and
I've got two questions, one about difficult sites and I thought if you was buying a site, you
would look at what was wrong with it, what was needed to be done to that site before
you've actually made an offer to buy it.
The second question is you talked about making changes to the buildings. With the amount
of buildings Ryman has done, I find it strange how you have to go back and make major
changes to the buildings you're actually going to complete when you've had a lot of
experience in doing others.
Dean Hamilton: Sure, two good questions and certainly ones the Board’s asked as well. So
in terms of the complex sites, some of those have been we’ve known those, for example,
something like Murray Halberg, that’s quite a steep site and they were aware of it, clearly
you walk to it and it was a steep site, so it was always going to be a steep site. That
probably proved more challenging to build on than what we thought.
We, for example, in the land bank at Takapuna, we did due diligence on that. It ended up
that it had more poor ground conditions than what we thought, even despite our due
diligence. So that was disappointing, so we’ve had to remediate chemicals that were found
in the ground there and we’re largely done with that. So that’s in a couple of situations
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where the ground has been more challenging than what we had originally hoped.
In terms of changes to building, it’s not really a cookie cutter approach, so every village is
slightly different in terms of scale and mix and location and sometimes we’ve decided to
change from potentially [unclear] these things, we buy a piece of land, get it consented,
start building, the competitive dynamic can sometimes change, the market dynamic can
sometimes change and sometimes it makes sense to change what we’re building
[inaudible] at the time, but that’s an expense and we consider that at the time. So most of
those things are in response to something that we’re seeing either around. When you
make those changes in flight, they’re not cheap options.
Plenty of [inaudible] lessons learnt on the last 16. Next question please.
Unidentified Participant: (Shareholder) I’m shaken as well as stirred. Around 2018 the
shares were $16, now they’re [unclear] have you got a target at all for share price
recovery?
Dean Hamilton: Sure, it’s a very dangerous place for a Board to go. I think ultimately what
we can be accountable for is the financial performance of the organisation and that’s what
we have to be very focused on and ultimately the share, people will value the shares as
they value them. I think in my experience over time, very dangerous when boards start
having share price targets or share price expectation or this is how you should value it.
Ultimately that’s up to investors and analysts. So we need to be very focused on improving
our financial performance.
Over time that’s highly corelated with improved share price, so we expect if we’re getting
that direction right, ultimately the share price should follow it. Where it ends up will be
your decision, not mine at the end of the day.
Unidentified Participant: (Shareholder) Sure. Second question, you mentioned one of the
key things was to increase the cash flow of existing buildings. Have you got any specific
details on that or is that still being reviewed?
Dean Hamilton: That’s under review and it’s going to be an opportunity to look at – we’ve
got a lot of assets sitting there, they’re valued at $10 billion in our balance sheet and we
need to improve the financial returns on that. Partly the fixed fee has hurt us, as we’ve
honoured that over time and we’ll continue to honour it, I think no one expected to see
rates going up by 15% per annum and my sense is they’re going to continue to go up. My
house bill insurance the other day went up 15%. That’s the second year in a row they’ve
done that.
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So I think they were hard to predict four to five years ago when you set those and that’s
gone past it. So we need to make sure we don’t do that to ourselves again, because that
would be not very clever. So I think we need to look at that weekly structure, we need to
look at the services that we offer and are we being paid for those things, but we’re very
conscious as well that we’re not going to lean in and take a whole lot of services out, we’re
not going to reduce our quality of care, so it’s a gentle way through that ultimately, we’re
very conscious that we need to continue to deliver great care.
Unidentified Participant: (Shareholder) So nothing specific then?
Dean Hamilton: Correct, yes, but as I said, we are looking at the DMF for new residents,
we are looking at the weekly fee for new residents. They will be quite specific and we
expect to come out with a new version of those in coming months. So we’ll be very specific
in a couple of months.
Unidentified Participant: (Shareholder) Just a final quick question, do any of the Directors
have put their names down for a Ryman village?
Dean Hamilton: Geoff?
Geoffrey Cumming: A few years, a few years.
Dean Hamilton: Next question.
Frank Stewart: (Shareholder, New Zealand Shareholders Association) Thanks, my name is
Frank Stewart, I’m a shareholder and I also represent the New Zealand Shareholders
Association. We do a report card on your annual report each year and it’s reasonably good
in terms of how you meet our requirements. Just a quick question. I estimate there’s about
90 people in this room, how many people are online?
Dean Hamilton: That’s a good question, do we know that?
[Unidentified Company Representative]: There’s 281 attendees online.
Dean Hamilton: Which is interesting, isn’t it, I was talking to the person who was
facilitating this, they’re saying a few years ago it used to be two-to-one the other way,
twice as many people here as there were online and that’s three to one, incredible isn’t it?
But I think the hybrid kind of works quite well. I think the Shareholders Association, Oliver,
when we’ve spoken to him, supports that, so I think ultimately it’s something for
everybody, isn’t it? We have no intention of removing our physical meeting, I think it’s nice
to be able to physically meet our shareholders and at the same time, some people who
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can’t attend, they’re not all living in Christchurch, I think it’s a good combination actually.
Next question? Joanna.
Joanna Hickman: (Shareholder) [Joanna Hickman], shareholder, just wonder if you can
give an indication of how trading has been for the first four months of this financial year.
Dean Hamilton: Sure. It’s been quite challenging. I think 2024 was expected to be the
great year. When I joined the Board in May last year, New Zealand was in a challenging
time, interest rates were high, but most forecasters were expecting 2024 to be a good
year. I think 2024 for the New Zealand economy, not just Ryman, has proved to be more
challenging than 2023. I think we’re seeing unemployment rise, just go to Wellington
recently, 2,000 public servants have been laid off in that town, so that’s certainly – if you
talk ed to restaurant owners, I talked to a cab driver, it’s quite challenging.
So I think 2024 has proved more challenging. You see the external commentators on
residential markets, I think there was one this morning that’s saying the fifth month in a
row that Auckland residential prices have been down. So I think the external settings,
Joanna, have been quite challenging. We’re no different to those things. We have got stock
that we are looking to bring new residents into at the same time as other people have got
stock to bring new residents into.
We’re still occupying, people are still coming in, we’re still doing that, close to 100 a
month. So we’re still continuing, business hasn’t stopped. But it’s certainly proving harder
to get every new resident. People are doing incentive offers, et cetera. So I think year on
year we’ll be broadly similar to the first quarter of last year. But we’re hopeful of interest
rate reductions, we’re hopeful of a buoyant return to residential markets, but that can’t
come soon enough, but we don’t control that somehow. It’s competitive.
Any online question please?
[Unidentified Company Representative]: The first online question is from [Bruce Rivers].
The shares have devalued considerably and returns have been zilch. Are management and
team taking measures to rectify the situation?
Dean Hamilton: Returns have been zilch. Look Bruce, as a Board and management, we
couldn’t agree more. We do feel for shareholders, it’s totally unacceptable to have a share
price that’s done that. You’ve seen that we’ve leaned in and made substantial changes not
only to Board and management, but also in the way in which we do things and hopefully
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we’ll be announcing some changes to those things at the interim result in November. We
do need to make progress, so yes, I fully concur, it’s been disappointing and we need to
look forward and do our best to improve financial performance and hopefully the share
price follows.
But we’re here for the long term. We’re building 50-year assets. Ryman’s a fabulous
business. It’s having a tough period but I’m very energised as a Chair that we have a
positive path through and we’ll return to very good performance.
[Unidentified Company Representative]: The next question online is from [Lyn and Brent
Goldsworthy]. How do you balance the many stakeholders across the business whilst also
investing in marketing and sponsorship to attract future residents?
Dean Hamilton: I think that’s a good question. I think the first point is we’re 100% focused
on our existing residents. Now they’ve got to be at the heart of everything that we do. I
probably, since being chair, would have visited nearly 20 of our villages and it’s just every
day you go in there, you see, they’re just the criticality of that experience and they’re key
that is the Ryman way. So first up, whole focus on the current resident.
But we also have to an eye on the next resident, because ultimately we do have people
leaving our facilities, even just moving through our continuum of care and the whole
economic model works better when the place is full because we’re sharing the costs of
running the business over more residents. So there is a return for both existing residents
and the organisation to have that full.
So we have to have an eye on the next person and the next person and so how do we do
that? We need to be top of mind, so when everyone’s thinking about retirement, they think
about Ryman. How do we do that? Ideally that’s – I think our strongest support is through
word of mouth. People have had a great experience or they know someone’s who had a
great experience, that’s our first and foremost, but also we have to have visibility, so that
might be on television, that might be at sport, that might be in theatre, thinking about
when people think retirement, we want them to think Ryman.
So it’s competitive out there, way more competitive than it was 20 years ago and so we
are balancing the existing residents, but also having an eye on the future and that’s
something the Board and management have to balance.
[Unidentified Company Representative]: The next question is from [Valerie Carter]. Have
you sold the Karori site?
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Dean Hamilton: No. Signs are going up in the next month and we’re going to run an
expressions of interest program, which is disappointing to not be building another site in
Wellington. Wellington is short of care beds. We thought we had a site in Karori that would
do that. By the time we got through consenting, we had a number of challenges both in
terms of preserving what became a historical building overlay, which we didn’t anticipate,
the council gave us less density, which is some irony, given the lack of care beds in
Wellington and earthquake standards have just continued to increase in Wellington, so the
cost to build way, way more than what it was when we built the site.
So we can’t see a way through that, so we’re better to take our money off the table, which
is a pity. I was at our four Wellington villages the other day, they’re all full. So we’d love to
be able to build another one, but I think Wellington is making it quite hard to do that.
[Unidentified Company Representative]: The next online question is from [Andrew
McKenzie]. Has there been any progress around government funding for care beds? If so,
what progress?
Dean Hamilton: Sure. I think there’s two elements to that. There’s an annual funding
round in New Zealand where Te Whatu Ora provide funding to the aged care providers,
including ourselves, some 37,000 beds and they have a rate per day depending on how
sick you are, that they provide the aged care providers, to deliver those services. They do
that annually and the ACA, which is the association of aged care providers, so we’re on
that, all the operators are on that, I’m on the Board of that, we told them that we believed
the industry had cost increases of 11%. They’ve gone and given the industry 3%.
Now clearly there’s a long line of people at Te Whatu Ora looking for money and the
government’s leaned in there in the last week and removed the whole board, put in a
commissioner, so there are obviously a lot of internal watching as well at the moment.
We’re disappointed at 3%. We think the industry deserves more than that. That level of
funding struggles to support new builds of care, so the industry is leaning into that, despite
the wave of ageing that’s happening in the population. If the government continues to
fund it like that, people just won’t build new care beds.
So we think there’s the three point – the annual funding round is obviously one element
and the bigger element is the industry is lobbying for a change in the way in which the
industry is funded to allow for more co-contribution for people who can pay and can afford
to pay, should be allowed to pay, whereas at the moment that’s capped within the
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government’s scheme. So we think there’s an answer there. It’s a very similar answer to
where the Australian Government is going. We think there’s a blueprint right in front of
them, so we’re hopeful that in the next 12 months we might see some legislative change.
But the near-term news on the funding round has been frustrating.
[Unidentified Company Representative]: The next question is from Andrew McKenzie.
Arvida is in the process of being sold. Has Ryman had any unsolicited buy out discussions
or offers?
Dean Hamilton: No. That was easy.
[Unidentified Company Representative]: The next question is from Andrew McKenzie. The
cash flow estimates have not been updated since year end. Since then rates are up close
to 20% across the country. Has this increase been assumed in budget?
Dean Hamilton: The rates, so we have offered guidance on free cash flow, which is
essentially every bit of cash that comes into the business and everything that goes out of
the business, so it’s quite a simple metric. That will be shown on what was our opening
debt and what’s our closing debt. We’re forecasting that our closing debt will be lower than
our starting debt and we still continue to do so despite the challenging conditions.
Any more questions online?
[Unidentified Company Representative]: The next question online is from [John Haylock].
I’ve worked in the construction industry all of my working life and I’m only too aware of
the impact the building has on waste. I know at the rest home my mum is at that they are
recycling batteries from hearing aids. Does the food waste likely go to a piggery? It seems
that everything from when the unit is renovated is dumped in skips. Can Ryman look at
possibly doing their bit to enable recycling some of what is going to landfill?
Dean Hamilton: Yes, we’re certainly looking at that as part of our sustainability efforts,
both the construction intensity in terms of the amount of materials that we use and the
type of materials that we use and then obviously what happens to material waste,
particularly when we do our refurbishments, et cetera. So that is definitely on Board and
management’s agenda as part of our sustainability effort.
Any more questions?
[Unidentified Company Representative]: The next question is from shareholder named
Sam. What preference would Ryman take on building its own ICT systems or utilising off-
the-shelf products for upcoming operations and plans?
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Dean Hamilton: Sure. I think ultimately we have invested a lot in our own internal ICT
systems, particularly the My Ryman. That’s proven to be a relatively expensive route to
go, but I think we will always look at the option of buying off the shelf or building our own
best of breed. I think the bias we’re heading towards, though, is more off the shelf if we
can.
Any more questions?
[Unidentified Company Representative]: The next question is from shareholder named
Sam. Will there be more or less investment into the Australian market by Ryman given the
financial prudency of the Company and will the relatively high interest rates in the
foreseeable future impact the strategy?
Dean Hamilton: I think we, as a Board, barring unforeseen incidences in demand, fully
expect to finish our 10 land banks that are currently underway. We think that should be
the priority for our capital. Where we allocate our next piece of capital is that in New
Zealand and Australia, we have 10 bits of land that are not built on. Five of those are in
Australia, five of those are in New Zealand, so we do have choice, which is a great position
to be in and we do have those in various places around the country, in New Zealand as
well, so again we have choice.
So I think what we’ll be doing, when we do get back into building new villages, rather than
the 10 that we’re currently finishing, we will look at what’s our total care return, what’s the
demand in these environments, what’s our cost of debt in those environments. So yes,
we’ll be putting all those factors into where we believe is the best use of capital. I think it’s
going to be a critical part of us going forward, that whole capital discipline piece.
We need to be very sure when we start a village we can complete it and we need to be
very sure when we start a village that we can recycle our capital back out of it and not
continue to build bank debt. That just puts a lot of financial strain on the organisation,
which is not good. So we will be very considered when we build the next village. But we
will build future villages. I don’t see a future of Ryman not growing, it’s an element of
where and when, because we do have enough land bank now to see us through for at least
the next five years.
[Unidentified Company Representative]: There are no further questions online.
Dean Hamilton: Any more questions in the room? One more down here.
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Marlene Rowan: (Shareholder) My name’s [Marlene Rowan] and I’m an investor. This
doesn’t only apply to Rymans, it applies to all retirement villages and that’s in relation to
staffing. If it wasn’t for the Asian people especially who come to work in New Zealand and
work in the retirement industry, in my opinion the retirement industry couldn’t operate in
New Zealand. I’m sure the Board as well as the rest of us visit people in retirement villages
and the person in the village will talk about the staff and how lovely they are. If they come
from the Philippines, or China, or wherever they may come from. Has the Board
considered staffing in the future and this problem and are they afraid of the future in
relation to staffing? Thank you.
Dean Hamilton: Thank you. I think we’ve got great staff. When you see around these
villages - that’s what slightly frustrates me actually, versus the Government’s approach to
what they’re considering to fund the aged care. It’s jus t fabulous what our staff do and I’m
sure that the other villages are almost as good, probably not as good. They genuinely
care, these people, and [unclear]. We’ve got a great variety of people, great backgrounds,
great sets of experiences.
We had a challenge in COVID with - when people couldn’t move and there were nursing
shortages and caregiver shortages. We’ve noticed that - we’ve seen a noticeable change in
that, which is great. So we’re fully staffed in all of our villages which is good and [unclear]
may that continue.
So in our discussions with the Government [we’ve opened] a new care centre at Miriam
Corban in Auckland. We’ve opened a new care centre in James Wattie and Hastings, and
we’re about to open a new care centre in Keith Park and you’ll correct me if I’m wrong,
Shane, but we have been able to staff those up as we had hoped. So, yes, the current
conditions are good but we’re very conscious of that. They are critical. Okay. Thank you.
We’re nearing the end of today’s meeting. Looking ahead, 2024 is a significant year for
Ryman marking our 40th anniversary since opening our very first village in New Zealand.
Our 10-year anniversary since opening [unclear]. We have an exciting future ahead. Over
the next 30 years New Zealand’s population of seniors aged 65 plus will grow from
850,000 to 1.5 million people.
In Australia, it’s projected that older people will make up 23% of the total population. We
have an industry-leading reputation in retirement living and care. We have a scale with 48
operating villages across New Zealand and Victoria. We have over 14,500 residents and a
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high satisfaction rating of their experience living at a Ryman Village.
As importantly, we have a strong sense of purpose amongst our [unclear]. We need to
make the changes now so that when conditions improve we are much fitter and much
better placed to capitalise.
Before I close I would like to acknowledge and thank our people and our teams. You make
our culture unique and are an integral part [unclear] to say a very special thanks to you,
our shareholders. It’s been a tough couple of years. We’re grateful for your ongoing
support and your confidence in our capacity to deliver in the future. We’ll be doing our
very best.
I would like to thank my fellow directors who I know are all very [unclear]. We know we
need to improve profitability of our operations and the efficiency of our new villages. We’re
very focused on getting Ryman fit for the future.
Now I would like to invite you to join us for refreshments and an opportunity to catch up.
We have our senior leadership team here. So please [unclear] representatives on your way
out.
Thank you again very much for your attendance today and I look forward to catching up
over a cup of tea. Thank you.
End of Transcript
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