Ryman Healthcare Ltd. · NZX:RYM
Ryman Healthcare — H1 FY2022 Earnings Presentation
39 slides from Ryman Healthcare's earnings presentation, Sep 30, 2021
Slide 1: Half year result 30 September 2021
R Y M A N H E A LT H C A R E Half year result 30 September 2021 1
Slide 2: First half highlights
First half highlights Underlying profit* of $95.9 million, an increase of 8.5% Reported (IFRS) profit of $281.5 million, up 32.5% Interim dividend of 8.8 cents per share, unchanged from the prior year Total assets of $9.85 billion, up 18.1% Net assets of $3.03 billion, up 23.6% Cash receipts of $680
Slide 3: >rotect our safe havens
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Slide 4: Solid result - demand strong despite COVID challenges
Solid result - demand strong despite COVID challenges First half underlying profit ▪ Reported IFRS profit increased 32.5% to $281.5 million due to investment property revaluations ▪ Underlying profit of $95.9 million, an increase of 8.5% on the same period last year ▪ Growth supported by strong dema
Slide 5: Margins
Margins *Margins at 30 September 2021. All other values at 31 March. 5
Slide 6: Strong cash receipts from residents
Strong cash receipts from residents 6
Slide 7: Investing cash flows $406.4 million
Investing cash flows $406.4 million ▪ $406.4 million invested in new villages with work commencing on 3 new sites during the half ▪ Now building across 15 sites with a further 11 sites in the land bank ▪ $35.3 million of land purchases net of the sale proceeds from Coburg 7
Slide 8: Total assets lift to $9.85 billion
Total assets lift to $9.85 billion Note: Interest bearing debt represents “interest-bearing loans and borrowings” in the balance sheet and includes secured bank loans, unsubordinated fixed-rate retail bonds, USPP notes and institutional term loan (ITL). As documented in the Group's facility agreemen
Slide 9: Net assets 15.7% CAGR last 5 years
Net assets 15.7% CAGR last 5 years 9
Slide 10: Growth in occupancy advances drives DMF
Growth in occupancy advances drives DMF ▪ $4.44 billion of gross occupancy advances, up 15.7% on a year ago ▪ CAGR of 15.0% over the past 5 years ▪ $1.67 billion resales bank ▪ Embedded value* $2.21 billion * Embedded value reflects the resale bank, accrued management fees and resident loans. 10
Slide 11: Ryman Pioneers
RYMAN PIONEERS
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Slide 13: Questions
Questions 13
Slide 14: Appendix 1: Reported (IFRS) profit
Appendix 1: Reported (IFRS) profit 6 months to 30 Sep 21 6 months to 30 Sep 20 12 months to 31 Mar 21 $m NZ Aust Group NZ Aust Group NZ Aust Group Underlying profit (non-GAAP) 92.8 3.0 95.9 88.7 (0.3) 88.4 192.3 32.2 224.4 Unrealised revaluations of investment properties 178.5 0.1 178.7 121.9 2.2 12
Slide 15: Appendix 2: Sale of occupation rights
Appendix 2: Sale of occupation rights 6 months to 30 Sep 21 6 months to 30 Sep 20 12 months to 31 Mar 21 NZ Aust Group NZ Aust Group NZ Aust Group Existing units Independent 236 15 251 193 3 196 415 18 433 Serviced 257 6 263 256 4 260 483 9 492 493 21 514 449 7 456 898 27 925 New units Independent 1
Slide 16: Appendix 3: Development
Appendix 3: Development Total units Independent Serviced Total units Care beds and beds New Zealand James Wattie 37 0 37 0 37 Linda Jones 14 0 14 0 14 Miriam Corban 22 0 22 0 22 William Sanders 12 0 12 0 12 Total build - New Zealand 85 0 85 0 85 Australia Charles Brownlow 3 29 32 20 52 Deborah Cheet
Slide 17: Appendix 4: Margins
Appendix 4: Margins 6 months to 6 months to 12 months to ($000s) Reference 30 Sep 21 30 Sep 20 31 Mar 21 New sales Realised fair value movement (Note 3) 28,493 26,143 108,377 Sale of occupation rights (Key statistics) 137,651 90,052 395,094 Gross development margin 21% 29% 27% Resales Realised fair
Slide 18: Appendix 5: Cash management fees
Appendix 5: Cash management fees $000s Reference Sep 21 Sep 20 Mar 21 Accrued management fees and resident loans – opening (Note 4) 502,890 439,636 439,636 Less: Accrued management fees and resident loans – closing (Note 4) (537,079) (469,507) (502,890) Movement in accrued management fees (34,189) (
Slide 19: Appendix 6: Investment property summary
Appendix 6: Investment property summary CBRE unit price inflation assumption Discount rate As at 30 September 2021 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5+ Auckland 1.7% 1.0% 2.1% 3.0% 3.5% 12.8% Rest of New Zealand 1.6% 1.0% 2.0% 2.7% 3.4% 13.4% Australia 2.2% 2.7% 3.0% 3.9% 3.8% 14.4% CBRE unit price inflation a
Slide 20: Appendix 7: Operating cash flows
Appendix 7: Operating cash flows 6 months to 6 months to 12 months to $000s Sep 21 Sep 20 Mar 21 Resident receipts 194,174 179,358 360,855 Refundable accommodation deposits (net) 33,862 12,710 27,884 New sale of occupation rights 212,954 70,983 330,503 Resales of occupation rights 239,481 220,019 45
Slide 21: Appendix 8: Available resales stock
Appendix 8: Available resales stock Sep 21 Sep 20 Mar 21 Independent living units 34 83 45 Serviced apartments 67 61 69 Total resales stock 101 144 114 Total retirement portfolio 8,195 7,689 7,983 Uncontracted stock percentage* 1.2% 1.9% 1.4% *Uncontracted resales stock as a percentage of total reti
Slide 22: Appendix 9: Capital management
Appendix 9: Capital management Gearing ($m) Sep 21 Sep 20 Mar 21 Interest bearing debt $2,435 $2,109 $2,254 Net assets $3,034 $2,454 $2,829 Total assets $9,849 $8,337 $9,172 Interest bearing debt / (interest 44.5% 46.2% 44.3% bearing debt + equity) Interest bearing debt / total assets 24.7% 25.3% 24
Slide 23: Appendix 10: Resident average age and tenure (years)
Appendix 10: Resident average age and tenure (years) Average age (current) Sep 21 Sep 20 Mar 21 Independent 82.2 82.3 82.3 Serviced 87.4 87.5 87.5 Care centre 86.8 86.6 86.7 Average age (on entry) Sep 21 Sep 20 Mar 21 Independent 78.8 79.6 79.0 Serviced 85.5 85.4 85.1 Average tenure (vacated units)
Slide 24: Appendix 11: Value of contracts not settled
Appendix 11: Value of contracts not settled Note: Contracts not settled are unconditional occupation-right agreements which have been entered into by residents but have not been settled as the resident has not yet occupied the unit. These are for new sales only. 24
Slide 25: Appendix 12: Value of contracts not booked
Appendix 12: Value of contracts not booked Note: Presales are unconditional occupation right agreements which have been entered into by residents but have not been booked as the unit is not yet near complete. 25
Slide 26: Appendix 13: Sales price versus median house price
Appendix 13: Sales price versus median house price Note: The median house price reflects the average median house price over the last 6 months in the areas surrounding our villages. 26
Slide 27: Appendix 14: Average new and resale price
Appendix 14: Average new and resale price *New sale and resale pricing as at 30 September 2021. All other values at 31 March. 27
Slide 28: Appendix 15: The 'gold' standard of care – 4 year certification
Appendix 15: The ‘gold’ standard of care – 4 year certification Source: Ministry of Health. Large operators reflects aged care providers with 15 or more care centres. Data at 16 November 2021. New Zealand only. 28
Slide 29: Appendix 16: World population growth 80+
Appendix 16: World population growth 80+ Source: United Nations World Population Prospects 2019, Australian Bureau of Statistics (Series A). Victoria data projections end 2060. 29
Slide 30: Appendix 17: Development pipeline – New Zealand
Appendix 17: Development pipeline – New Zealand Peak capital Median house Design Consenting Council Construction Village Final Expected village requirement price (NZ$) approval open stages completion Auckland 1 William Sanders High >$1.8m 2022 2 Murray Halberg High >$1.3m 2026 3 Miriam Corban Medium
Slide 31: Appendix 18: Development pipeline – Australia
Appendix 18: Development pipeline – Australia Peak capital Median house Design Consenting Council Construction Village Final Expected village requirement price (A$) approval open stages completion Australia 1 Charles Brownlow Low >$0.9m 2022 2 John Flynn High >$1.2m 2022 3 Nellie Melba Medium >$1.4m
Slide 32: Appendix 19: Main buildings under development
Appendix 19: Main buildings under development Main building Main building Entire village under construction open expected completion Auckland 1 William Sanders 2022 2 Murray Halberg 2026 3 Miriam Corban 2024 4 Keith Park 2025 Rest of New Zealand 1 Linda Jones 2023 2 James Wattie 2024 3 Kevin Hickman
Slide 33: Appendix 20: 12 sites in Australia
Appendix 20: 12 sites in Australia Ryman village Under construction Raelene Boyle Essendon Proposed village Ringwood East John Flynn Nellie Melba Weary Dunlop Mulgrave Highett Charles Brownlow Mount Eliza Mount Martha Deborah Cheetham Google © 2021 33
Slide 34: Appendix 21: 14 sites in Auckland
Appendix 21: 14 sites in Auckland Takapuna Keith Park Bert Sutcliffe William Sanders Miriam Corban Kohimarama Grace Joel Evelyn Page Edmund Hillary Logan Campbell Bruce McLaren Murray Halberg Karaka Ryman village Under construction Possum Bourne Google © 2021 Proposed village 34
Slide 35: Appendix 22: Asset base
Appendix 22: Asset base New Zealand (ex Auckland) Village Location Hospital Dementia Resthome Serviced Independent Total Anthony Wilding Christchurch 80 33 35 50 110 308 Bob Owens Tauranga 40 40 40 79 218 417 Bob Scott Petone 40 40 34 89 254 457 Charles Fleming Waikanae 40 40 40 79 201 400 Charles U
Slide 36: Appendix 22: Asset base
Appendix 22: Asset base Auckland Village Location Hospital Dementia Resthome Serviced Independent Total Bert Sutcliffe Birkenhead 40 40 40 81 225 426 Bruce McLaren Howick 41 40 42 74 192 389 Edmund Hillary Remuera 114 30 50 60 372 626 Evelyn Page Orewa 60 37 20 65 248 430 Grace Joel St Heliers 77 -
Slide 37: Appendix 23: Land bank (New Zealand)
Appendix 23: Land bank (New Zealand) Existing villages Location Hospital Dementia Resthome Serviced Independent Total Diana Isaac Christchurch - - - - 30 30 Grace Joel Auckland - - - - 96 96 James Wattie Havelock North 35 35 20 78 32 200 Jean Sandel New Plymouth - - - - 59 59 Keith Park Auckland 40
Slide 38: Appendix 23: Land bank (Australia)
Appendix 23: Land bank (Australia) Existing villages Location Hospital Dementia Resthome Serviced Independent Total Charles Brownlow Victoria - - - - 17 17 Deborah Cheetham Victoria 40 40 40 53 110 283 John Flynn Melbourne - - - - 104 104 Nellie Melba Melbourne - - - - 117 117 Raelene Boyle Melbourn
Slide 39: Disclaimer
Disclaimer This presentation sets out information relating to Ryman Healthcare Limited’s interim result for the period to 30 September 2021. It should be read in conjunction with all other material which we have released, or may release, to NZX from time to time. That material is also available on o