RYM - Ryman Healthcare

[couta1]

Can anyone confirm whether the minimum age for entering a Ryman Retirement village is now 75.

No it is still 70.

[couta1]

Just reading through the latest edition of Ryman Times and I see Ryman are top of the class with auditors. Ryman topped every other company in the sector with over 50% of audits with no partial attainments, compare that with Sum which had around 17%, furthermore 13 Ryman villages currently hold the gold standard of a four year certification, eight of them obtained in 2016. Still the pack leader in the sector when it's comes to setting the standards.

[percy]

Loved the article on the Wiri plant.You would have enjoyed mentioning it at the SUM agm!!,lol.
"With four Auckland villages in various stages of planning and being built,plus a housing boom stretching suppliers to their limits,it made sense for Ryman to set up its own yard to produce the pre-cast concrete"

[sonny n share]

Ryman is currently not paying tax at a company level because of its growing investment in healthcare infrastructure for the elderly.

http://www.stuff.co.nz/business/9195...panies-pay-tax

[macduffy]

NZ Herald article reports start of building at Brandon Park Village.

http://www.nzherald.co.nz/business/n...ectid=11847992

A small inaccuracy there. Brandon Park is south of Wheelers Hill - where Ryman's first Melbourne village is located. Reporter seems to have confused the two areas.

Meanwhile, demolition of the damaged wing at the Malvina Major village appears to be complete. Just a small pile of rubble left when I drove past at the weekend.

[Lewylewylewy]

Wouldn't be news if it wasn't inaccurate.

[artemis]

Nimby wars! What a planned retirement village in Devonport means for all of Auckland
Is it good enough to settle for developments that are merely 'good enough'?

https://thespinoff.co.nz/auckland/08...l-of-auckland/

[Bjauck]

Nimby wars! What a planned retirement village in Devonport means for all of Auckland
Is it good enough to settle for developments that are merely 'good enough'?

https://thespinoff.co.nz/auckland/08...l-of-auckland/

The writer seemed to go out of his way to find fault with Ryman. For example, he complained about the Ryman facility where his parents lived: "There was one flourish: an atrium featuring a large fish pond and tropical plants, but it was so clammily overheated the air clung to you like something faintly fetid." Perhaps not being in the target demographic for Ryman at that time and younger than the residents, he did not need a warm atmosphere? Perhaps he would also have found a complaint if there were no plants and his parents complained of the cold at the facility? He was also keen on finding symbols of death in paintings of sunsets and pre-Raphaelite women and cherubs. To me, it seems he was scratching around to find criticism.

There may be valid points in his article. Is the proposed development good enough - probably. Could there be a better development for the site - probably, but then you can say that for many developments. As for the Nimby criticisms, if you do not want intensification, you need to reduce population growth i.e. vote for whoever wants to reduce immigration.

[macduffy]

Yes, of course the development could be 'better'. They all can - but at a price - and that would send the facility out of reach of a good chunk of the target market - at a time when the availability and affordability of housing is one of New Zealand's most pressing problems.

[Beagle]

+ 1 I agree with your synopsis. Fact is the SP is up circa 300% in recent years and the EPS growth has been nothing like that. PE expansion cannot go on forever, in fact I think in the medium term with interest rates rising all the risk lies with PE contraction meaning we could see years of little, no or negative SP movement. The other point to consider is its not like you're being paid to wait with a decent dividend return is it !
A brilliant company, with fantastic management that's priced for absolute perfection.

Congrats mate, nice trade and great sale price. PE is FAR too high at the current price so definitly a good sale in my opinion.
Thanks again for the lift the airport the other day

Reasonable but not outstanding result in my opinion and I agree that it will be interesting to see the market reaction after a huge ramp up in the SP over the last three years. Increase in build rate to 850 units a year but not till 2017....
Lower build rate in 2014 and lower new unit sales compared to pcp.
Much lower growth in cash flow this year compared to last.
Core EPS excluding revaluations of 27.3 c.p.s. puts them on a PE of 32.2 on a growth rate in EPS of 18%.

My policy is not too pay for growth that isn't there. Using a fair value long term PE of 8.5 for a zero growth company and adding in consistent growth at 18% per annum my simple model gives me a long term fair value PE of 26.5 times for Ryman.
26.5 times core EPS of 27.3 c.p.s. = $7.23 fair value. I wouldn't buy or own the stock above this level.
EPS growth is not 43%, this includes revaluations.

As an accountant I can tell you there's a lot of confusion surrounding EPS for these sort of companies.
In brief IFRS, (International Financial Reporting Standards), require inclusion of unrealised revaluations in the financial statements.
Here's the result release, I have highlighted the pertinent part.


But I must confess at this early stage I am still a bit confused as the company made it clear underlying profit is $118m and according to the Direct Broking website there's exactly 500m shares on issue so this gives underlying EPS of only 23.6 c.p.s. ? If I had some shares in this company I'd spend the time necessary to fully investigate this but I don't and even on the higher EPS diluted number disclosed by the company it's a stock that's too "fashionable" for my value tastes...but good luck to all holders

There's some of them Joshuatree. I made it crystal clear I though the SP had run far ahead of itself as did Winner69.
I won't comment on the current SP in terms of whether there's value there or not after 3 years of ostensibly going sideways until I've reviewed their result due shortly.