Sharechat Logo

Ryman aims for share price boost

By Chris Hutching

Thursday 24th April 2003

Text too small?
Ryman Healthcare is hoping its two new multi-million-dollar retirement developments will boost its share price.

Ryman recently announced a $100 million development in Remuera and a $20 million complex for Napier.

While Ryman's performance stands out among the listed retirement care operators its share price tends to be marked down with the sector generally, much to the frustration of managing director Kevin Hickman.

The Christchurch-based company has consistently outperformed the NZSE40 since listing four years ago.

It has developed 13 villages and five hospitals in Invercargill, Dunedin, Christchurch, Wellington, Lower Hutt, Hamilton and Auckland including the Grace Joel retirement village opened in St Heliers last year.

The latest Remuera development, in Abbotts Way, will begin later this year.

The government's recent change to drop asset testing of senior citizens entering retirement care institutions is unlikely to affect Ryman's performance. About half of most Ryman clientele pay their own way already.

More significant to the healthcare developer is the general investment climate.

According to Mr Hickman, older investors are looking for capital-gain-type assets rather than income (which remains subject to certain thresholds for people in retirement care). The same is probably true of investors generally in the face of weak equity markets.

Ryman not only makes a margin from developing its retirement villages and resthome facilities (it owns a construction company), it also makes a margin from re-sales of apartment units, which revert back to the company when residents move on or die.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar eases as market eyes pending GDP data
Evolve shareholders demand answers
Strong tourism, low rates keep lid on NZ current account deficit
Refining NZ margins jump to 18-month high
Goodman opts for underwritten $150m placement to raise capital
Kathmandu shares rise 9.3% on strong FY result, solid US performance
FMA seeks greater powers from the government
Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake

IRG See IRG research reports