Highlights

  • Ryman Healthcare reports 331 ORA sales in Q4 FY26, up 10% YoY
  • FY26 total sales reach 1,410, in line with guidance despite fewer new unit completions
  • Care occupancy remains strong at ~96%, with new centres filling ahead of expectations

Ryman Healthcare Limited (NZX:RYM) delivered a solid fourth quarter trading performance for FY26, underpinned by steady demand across its retirement living and aged care segments. The company recorded 331 occupation right agreement (ORA) sales during the quarter, including 81 new sales and 250 resales, representing a 10% increase compared to the same period last year. While quarterly sales were lower than the previous quarter due to reduced internal transfers, overall performance remained resilient.

For the full year, total ORA sales reached 1,410, broadly aligning with market guidance. Encouragingly, key lead indicators improved, with net sales applications exceeding turnover levels following changes to contract terms. Strong demand for aged care services continued, with occupancy levels remaining high. Supported by disciplined capital management and solid cash flow generation, Ryman remains well positioned despite broader macroeconomic uncertainties.

What Is Driving Sales Performance and Demand Trends?

Sales momentum at Ryman Healthcare was supported by improving customer demand and effective sales strategies. While new sales of independent units moderated due to fewer project completions, serviced apartments performed strongly, with several villages contributing significantly to results. The adoption of revised contract terms, including a 30% deferred management fee (DMF), has been well received, helping drive increased move-ins from external customers.

Resale activity remained a key contributor, although total volumes declined slightly from the previous quarter due to lower internal transfers. Encouragingly, external resale volumes improved, reflecting sustained demand across both independent living units and serviced apartments. Overall, the company is seeing positive momentum in underlying demand indicators, supporting stable sales performance.

How Are Occupancy and Financials Supporting Stability?

Occupancy levels across Ryman Healthcare’s care centres remained strong, with mature facilities operating at around 96% occupancy during the quarter. Newly developed care centres are also filling ahead of expectations, highlighting continued demand for aged care services.

From a financial perspective, the company expects free cash flow of approximately $180 million for FY26, driven by strong second-half performance. Net interest-bearing debt stood at $1.57 billion at the end of March, with a significant portion on fixed rates, providing some protection against interest rate volatility. Ryman has also scaled back development activity, reducing exposure to construction cost inflation and reinforcing a disciplined capital management approach.