Ryman Healthcare. Full year result - 31 March 2018

Transcription

1 Ryman Healthcare Full year result - 31 March 2018

2 Full year highlights Underlying profit up 14.2% to $203.5 million Reported profit up 8.8% to $388.2 million Full year dividend 20.4 cents per share; up 14.6% $5.8 billion of total assets 16 new villages in the pipeline

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4 Kevin Hickman

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10 myryman

11 Four year certification 70% 60% 60% 50% 40% 30% 32% 27% 33% 39% 35% 20% 10% 0% 13% 15% Note: Percent of villages with 4 year certification. Includes aged care providers with 15 or more villages. Data as at 23 April 2018

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13 Aberfeldie Melbourne

14 Nellie Melba Wheelers Hill, Melbourne

15 Coburg Melbourne

16 Burwood East Melbourne

17 Geelong Victoria

18 Mount Eliza Mornington Peninsula, Melbourne

19 Mount Martha Mornington Peninsula, Melbourne

20 Victoria

21 Logan Campbell Greenlane, Auckland

22 Devonport Auckland Lynfield Auckland

23 Karori Wellington, New Zealand Havelock North Hawkes Bay, New Zealand

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25 16 years of underlying profit growth $250m $200m $150m $100m $50m $0m

26 Reported profit growth $500m $400m $300m $200m $100m $0m

27 FY18 investing cash flows $600m $500m $400m $44 $35 $45 $27 $300m $350 $296 $200m $100m $0m $97 $111 Mar-17 Mar-18 Purchase of land New villages Projects Village upgrades

28 Total assets $7bn $6bn $5bn $4bn $3bn $2bn $1bn $0bn

29 Bank facilities $700m $600m $500m $400m $300m $200m $100m $0m 1 Year 2 years 3 years 4 years 5 years * Gearing ratio calculated as net debt / net debt plus equity Gearing Mar-18 Mar-17 (millions) (millions) Net debt $1,060 $838 Net assets $1,941 $1,652 Gearing ratio * 35% 34%

30 Development margin 30% 20% Target range 10% 0% Group development margin Margin excluding Bob Scott Note: 2018 margin restated to exclude Bob Scott.

31 $815 million resales bank $1,000m $800m $600m $400m $200m $0m New Zealand Melbourne Note: The resale bank represents the extent that the current price exceeds the price paid by the current resident for the unit's occupancy rights.

32 Sales price vs median house price $1.6m $1.4m $1.2m $1.0m $0.8m $0.6m $0.4m $0.2m $0.0m Melbourne Auckland Median house price - area Ryman - Independent Ryman - Serviced

33 Long term capital efficiency $25 million raised at IPO in 1999 Invested $3.1 billion in portfolio since 1999 with no fresh capital Dividends of $690 million paid since float* Self-funded growth Strong balance sheet * Includes 2H18 dividend of 10.9 cents per share that has been declared and is payable on 22 June 2018.

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35 Appendices

36 Appendix 1: Reported profit Underlying profit Unrealised revaluations of retirement village units Deferred tax expense Reported net profit $203.5m +$185.3m -$0.6m $388.2m

37 Appendix 2: Sale of occupation rights Mar-18 Mar-17 Existing units Independent Serviced New units Independent Serviced

38 Appendix 3: Development Mar-18 Mar-17 Units and beds built Retirement village units built Aged care beds built Mar-18 Mar-17 Total retirement village units Independent 4,513 4,131 Serviced 1,901 1,837 6,414 5,968 Total aged care beds 3,367 3,281 Total retirement village units and beds 9,781 9,249

39 Appendix 4: Margins Reference Mar-18 Mar-17 New sales $000s $000s Realised fair value movement (Note 7) 58,955 62,959 Sale of occupation rights (Key statistics) 307, ,282 Gross development margin 19.2% 23.9% Resales Realised fair value movement (Note 7) 107,233 77,286 Sale of occupation rights (Key statistics) 414, ,348 Gross resales margin 25.9% 24.8%

40 Appendix 5: Asset base New Zealand (ex Auckland) Village Location Hospital Dementia Resthome Serviced Independent Total Anthony Wilding Christchurch Bob Owens Tauranga Bob Scott Petone Charles Fleming Waikanae Charles Upham Rangiora Diana Isaac Christchurch Ernest Rutherford Nelson Essie Summers Christchurch Evelyn Page Orewa Frances Hodgkins Dunedin Hilda Ross Hamilton Jane Mander Whangarei Jane Winstone Wanganui Jean Sandel New Plymouth Julia Wallace Palmerston North Kiri Te Kanawa Gisborne Malvina Major Wellington Margaret Stoddart Christchurch Ngaio Marsh Christchurch Princess Alexandra Napier Rita Angus Wellington Rowena Jackson Invercargill Shona McFarlane Lower Hutt Woodcote Christchurch Yvette Williams Dunedin Total units & beds New Zealand (ex Auckland) 1, ,389 3,104 7,038

41 Appendix 5: Asset base Auckland Village Location Hospital Dementia Resthome Serviced Independent Total Bert Sutcliffe Birkenhead Bruce McLaren Howick Edmund Hillary Remuera Grace Joel St Helliers Logan Campbell Greenlane Possum Bourne Pukekohe Total units & beds Auckland ,167 2,368 Total units & beds New Zealand 1, ,048 1,850 4,271 9,406 Victoria Village Location Hospital Dementia Resthome Serviced Independent Total Weary Dunlop Melbourne Nellie Melba Melbourne Total units & beds Victoria New Zealand and Victoria Total units & beds 1, ,080 1,901 4,513 9,781

42 Appendix 6: Land bank (New Zealand) Existing villages Location Hospital Dementia Resthome Serviced Independent Total Jean Sandel New Plymouth Kiri Te Kanawa Gisborne Bob Scott Lower Hutt Bert Sutcliffe Auckland Logan Campbell Auckland Charles Upham Rangiora Total existing villages New sites Location Hospital Dementia Resthome Serviced Independent Total Devonport Auckland Lynfield Auckland River Road Hamilton Lincoln Road Auckland Hobsonville Auckland Karori Wellington Park Terrace Christchurch Newtown Wellington Diana Isaac Christchurch Havelock North Hawkes Bay Total new sites ,691 3,311 Total landbank New Zealand ,948 3,598 The land bank is subject to resource and building consent.

43 Appendix 6: Land bank (Australia) Existing villages Location Hospital Dementia Resthome Serviced Independent Total Nellie Melba Melbourne Total existing villages New sites Location Hospital Dementia Resthome Serviced Independent Total Coburg Melbourne Burwood East Melbourne Mount Eliza Melbourne Geelong Victoria Mount Martha Melbourne Aberfeldie* Melbourne Total new sites ,975 Total landbank Australia ,251 2,554 Total land bank New Zealand & Australia ,153 3,199 6,152 The land bank is subject to resource and building consent. * In May 2018 Ryman entered into an unconditional sale and purchase agreement for the acquisition of land at Aberfeldie.

44 Appendix 7: Cash management fees Reference Mar-18 Mar-17 $000s $000s Accrued management fees opening (Note 12) 270, ,154 Less: Accrued management fees closing (Note 12) (321,631) (270,370) Movement in accrued management fees (51,261) (43,216) Plus: DMF income Income statement 70,087 60,988 Plus: Revenue in advance movement (Note 21) 7,253 7,670 Plus: GST / accommodation credit adjustment Not disclosed (310) (1,751) Plus: Movement in resident loan Not disclosed 8,999 5,017 Cash management fees 34,768 28,708

45 Appendix 8: Investment property summary CBRE unit price inflation assumption Discount As at 31 March 2018 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5+ rate Auckland 0.9% 1.9% 2.4% 3.0% 3.5% 12.51% Rest of New Zealand 0.9% 1.5% 2.0% 2.8% 3.3% 13.42% Melbourne 3.6% 3.6% 3.6% 3.8% 3.9% 14.00%

46 Appendix 9: Operating cash flows Mar-18 Mar-17 $000 s $000 s Resident receipts 268, ,665 Refundable accommodation deposits (net) 3, Development sales 238, ,116 Resales 364, ,476 Total receipts from residents 875, ,829 Interest received Payments to suppliers and employees (270,231) (214,028) Payments to residents (241,676) (212,548) Interest paid (14,491) (10,930) Net operating cash per the cash flow statement 349, ,799

47 Appendix 10: Available resale stock Mar-18 Mar % Independent Living Units 26 4 Serviced Apartments Total Resales stock % Total retirement portfolio 6,414 5,968 Uncontracted stock percentage * 0.8% 0.5% 1.5% 1.4% 1.3% 1.0% 1.0% 1.2% 0.8% 0.5% 0.5% 0.0% * Uncontracted resales stock as a percentage of total retirement unit portfolio at balance date

48 Appendix 11: Capital management Use of debt Gearing Mar-18 Mar-17 (millions) (millions) Net debt $1,060 $838 Net assets $1,941 $1,652 $1,200m $1,000m $ 10 m $ 45 m $ 82 m $ 30 m Projects Generators Gearing ratio * 35% 34% $7bn 70% $800m $ 178 m Other village capex $6bn $5bn $4bn $3bn $2bn 60% 50% 40% 30% 20% $600m $400m $ 428 m Village upgrades New Sale debtors $1bn $0bn 10% 0% $200m $ 287 m Development WIP Net debt Total assets Gearing ratio* (RHS) $0m Undeveloped Land * Gearing ratio calculated as net debt / net debt plus equity

49 Appendix 12: Value of contracts not booked $150m $100m $50m $0m

50 Appendix 13: Resident average age and tenure (years) Average age Mar-18 Mar-17 Independent Serviced Care centre Average tenure - vacated residents Mar-18 Mar-17 Independent Serviced Independent Serviced Care centre

51 Petone - NZ Rangiora - NZ Birkenhead - NZ Greenlane - NZ Brandon Park - Victoria Lynfield - NZ Devonport - NZ River Road - NZ Coburg - Victoria Burwood East - Victoria Geelong - Victoria Pipeline of 16 villages Hobsonville - NZ Newtown - NZ Mount Eliza - Victoria Village Design Consenting Construction Village Open Final Stages Lincoln Road - NZ Park Terrace - NZ Mount Martha - Victoria Karori - NZ Aberfeldie - Victoria Havelock North - NZ Appendix 14: 16 villages in the pipeline nine in NZ, seven in Victoria

52 Appendix 15: Population growth 40, m 30, m 20, m 10, m m NZ avg annual increase in population aged 75+ Victoria avg annual increase in population aged 75+ NZ total population aged 75+ (RHS) Victoria total population aged 75+ (RHS) Source: Statistics NZ, Australian Bureau of Statistics

53 Appendix 16: Number of births in New Zealand and Victoria 80,000 60,000 40,000 20, New Zealand Victoria Source: Statistics NZ, ABS. Number of births in New Zealand and Victoria