Big tax write-off, impairment sees Ryman slump to $437m loss

29th May 2025 By Staff Reporter | news@propertyticker.co.nz | @propertyticker

Ryman Healthcare has reported a net loss of $436.83m for the year to March 2024, moving deeper into the red from the prior year’s $169.7m loss.

The NZX-listed retirement village and rest home operator booked impairment losses of $172.9m, up from $96.5m in FY24, following changes to the valuation of its aged care facilities and land.

It also reported a one-off $221m income tax expense after reversing a previously recognised deferred tax asset – a major contributor to its net loss. Its finance costs also rose sharply to $140.3m from FY24’s $53.8m.

However, the company reported a $169m fair-value gain on its investment properties, which partially offset the loss, compared to a loss of $39.1m the previous year.

Its revenue also increased, up by 10.26% to $760.70m, and its operating earnings jumped 207% to $45.5m, driven by higher care and village fees. The company also completed 950 units and beds, marking a 29% year-on-year increase in development activity.

No dividend is to be paid for FY25.

“FY25 has been a year of significant reset,” Ryman chief executive Naomi James said.

“We are pleased to have made a step change in the value of new contracts and removed $23m of annualised costs in the second half of FY25.

“While there is still work to be done, we start the year with a strong balance sheet, reset in revenue and cost performance well underway and a portfolio positioned to deliver cash and returns as the housing and economic cycle improves.”

The company’s sales of occupation rights totalled 1,523 units for the year, slightly down from 1,574 in FY24. Its portfolio, valued at $10.81bn, comprised of 9,777 retirement units across 49 villages in New Zealand and Australia, housing 15,156 residents.

The company said it had made significant changes through a business transformation programme, including streamlining its services and support structure, a new revenue model for its retirement units, and transitioning to an outsourced design, development and construction delivery model.

That work achieved $23m in savings over FY5 and Ryman was aiming for a similar saving for FY26.

The company raised $1bn in equity in March, helping to reduce its debt from $2.5bn to $1.7bn, lowering its gearing to 28.1%.

For FY26, Ryman said it was aiming for sales of occupation rights between 1,100 and 1,300 and capital expenditure of up to $320m, including up to $230m on development and $90m on existing operations.