ASX welcomes $2.2 billion retirement housing provider to the bourse

This New Zealand firm is looking to grow its Australian retirement living portfolio substantially.

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Key points
  • Ryman Healthcare is the leading retirement living provider in New Zealand.
  • The company aims to expand in Australia from its Victorian base.
  • Its ASX listing will give it access to more investors and liquidity.

Ryman Healthcare Ltd (ASX: RYM), New Zealand's largest retirement living provider, is looking to substantially grow its Australian business after listing on the ASX on Wednesday.

The $2.2 billion company currently operates nine retirement villages in Victoria, in addition to its large portfolio in New Zealand, and employs more than 1500 people locally, supporting 2000 residents.

Two retirees sitting on a bench together.

Image source: Getty Images

Ageing population to drive growth

Ryman Chief Executive Officer Naomi James said the number of Australians aged over 80 was set to triple over the next 40 years, reaching 3.5 million by the early 2060s, underscoring the scale of the demand.

Australia represents a significant long-term growth market for aged care and retirement living. With property markets stabilising, aged care reforms complete and supply lagging demand, we see great opportunity in Australia. Listing on the ASX is a key milestone on this journey.

Ms James said listing on the ASX gave the company access to Australian and international investors and would provide extra liquidity for shareholders.

Ryman's statement to the ASX on Wednesday said Ms James had taken "decisive action" to heal the company's balance sheet, with a NZ$1 billion ($878 million) capital raise concluded earlier this year, as well as the launch of a 3-5 year strategic plan setting out the goals of the business.

Ms James said she believed the Ryman model was unique and would be a growth platform for the business.

We believe our continuum of care model sets us apart in Australia. It provides residents with certainty and choice as their needs change, and it positions us to capture growing demand in a recovering property market.

Room for improvement on profits

Ryman's financial year ends on March 31. In May this year, the company reported a net loss of NZ$436.8 million ($383.8 million), which was impacted by several one-off items.

The company's operating EBITDA increased from NZ$14.4 million ($12.6 million) to NZ$45.5 million ($39.9 million), "reflecting improvements in both village and non-village performance", the company said.

Ryman currently has its dividend payments suspended and said in its results report that it would undertake a review of its capital management policy, including the dividend policy in FY26.

Ms James has said previously that legislative changes in Australia had made the country more investable.

We strongly support the reform in Australia that enables flexible funding models and the means-tested co-contribution model for both residential aged care and the Support at Home Programme. We believe these changes demonstrate how reform can improve the delivery of aged care, making it more equitable for ageing citizens and more sustainable for providers.

Ryman's Australian shares were changing hands for $2.28 on Wednesday, with a modest 30,000 or so shares traded by mid-afternoon.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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