Ryman Healthcare Limited Analysis

Overview

Ryman Healthcare limited (RYM) is the largest provider of retirement living options for New Zealanders over the age of 70. The company provides a range of retirement living and care options, including independent townhouses and apartments, serviced apartments and care centres providing resthome, dementia and hospital-level care.

RYM was established in Christchurch in 1984. It was listed in June 1999 followed a public offering of 30 million shares at a price of $1.35. In January 2007 the company implemented a 5:1 share split. In 2014 RYM opened its first village in Melbourne and plans to build four more in Victoria by 2020.

As at July 2016, RYMs 30 retirement villages in New Zealand and Australia provided homes for over 10,000 residents and employed more than 4,000 staff.

Performance

The following information was extracted from Ryman Healthcare Limited's full year results, released on 26 May 2026:

Ryman Healthcare today announced its FY26 results for the year ended 31 March 2026, marking a significant year of progress towards its strategic priorities and targets.

The reset of the business over the last two years is translating into improved performance, reflected in an almost doubling of operating profitability and the company’s first positive free cash flow result in over a decade.

Chief Executive Naomi James said, “The reset of our operating model is delivering materially improved financial performance despite mixed market conditions and creating a more sustainable business. With our refreshed strategy and new capital management framework, Ryman is firmly focused on unlocking value for shareholders, while delivering a high-quality experience for residents.”

FY26 financial highlights

• First positive free cash flow result in a decade of $188 million, underpinned by strong cash release from developments

• FY26 results in-line with market guidance across retirement living sales, cost out initiatives and build targets, with capex under guidance

• Operating revenue up 10% to $849 million driven by new aged care capacity filling, growth in aged care premiums, and growing numbers of retirement living residents on new pricing terms

• Operating earnings before interest, tax, depreciation, amortisation and fair value movements (EBITDAF) up 94% to $88 million and loss before tax and fair value movements (PBTF) per share reduced to -$73 million (-7.2cps) from -$385 million in FY25 (-54.1cps)

• On track to deliver $150 million sustainable improvement in cash flow from existing operations by FY29, with $47 million delivered in FY26

• Significant progress towards $500m cash release target by FY29, with $169m delivered in FY26 and land divestment target lifted from $200 million to ~$250 million

• Strategy refresh delivered with clear focus on being the provider of choice in care-centric living and rebuilding shareholder value through growing recurring earnings, portfolio optimisation and disciplined growth

• Balance sheet reset complete with lowest-in-sector gearing of 27.8%, no bank maturities until FY31 and a high proportion of drawn debt on fixed rates