Highlights

  • Ryman targets NZD 150 million in sustainable cash flow improvement by FY29.
  • The company expects NZD 500 million in cash release by FY29, including land divestments.
  • A return to dividends is targeted in FY28 under a new capital management framework.

Ryman Healthcare Ltd (NZX:RYM) on Tuesday released its refreshed strategy, new capital management framework, and updated dividend policy at its Investor Day for investors and analysts. The announcement outlines the company’s priorities across cash flow generation, portfolio optimisation, and disciplined future growth, while maintaining existing FY26 guidance. Shares of Ryman Healthcare were trading at NZD 2.77, down 0.72%, during the afternoon session on February 3.

Strategy Refresh and Demand Outlook

Ryman’s refreshed strategy is centred on increasing recurring earnings from its existing NZD 12 billion portfolio while positioning the business for future value-focused expansion. The company highlighted its continuum-of-care operating model, which allows residents to transition across care levels within the same village as needs change.

Demographic trends underpin demand expectations, with the population aged 80 years and over projected to double by 2050, increasing demand for care and assisted living. Ryman also noted flexibility in its operating model to align with government reforms, including a greater emphasis on home-based care alongside specialised residential services.

Cash Flow Targets and Operating Levers

The company is targeting NZD 150 million in sustainable cash flow improvement by FY29, driven by higher occupancy, pricing resets, and cost efficiencies. Around half of the portfolio is expected to transition to new Deferred Management Fee (DMF) terms by FY29, contributing to higher recurring revenue.

Ryman also outlined plans to lift aged care EBITDAF per bed from approximately NZD 15,000 currently to NZD 25,000–NZD 30,000 by FY29, supported by occupancy improvements and accommodation price resets. Additional savings are expected from procurement initiatives and non-village cost reductions.

Cash Release and Portfolio Optionality

Ryman expects to generate NZD 500 million in cash release by FY29, supported by resale initiatives aimed at reducing vacant stock and monetising NZD 800 million of new and paid-out resale units. The company also plans to release at least NZD 200 million from land sales, with NZD 110 million already contracted, following completion of its landbank review.

Growth optionality includes 2,500 identified units and beds across uncommitted developments, as well as brownfield expansion opportunities in more than half of existing villages. Australia has been identified as a preferred market for greenfield development, while New Zealand offers greater scope for brownfield expansion.

Capital Management and Dividend Policy

The new capital management framework prioritises disciplined capital allocation, near-term capital release, and recurring earnings growth. Ryman is targeting a return to sustainable dividends in FY28, with a payout range of 20–50% of cash flow from existing operations per share.

The company confirmed that its FY26 guidance remains unchanged, and management will present further details through an accompanying Investor Day presentation.

Ryman Healthcare’s Investor Day outlined a roadmap focused on cash generation, portfolio optimisation, and a measured approach to future development. With defined targets for cash flow, capital release, and dividends, the refreshed strategy sets milestones extending through FY29 while maintaining current-year guidance.