http://www.nzherald.co.nz/business/n...ectid=11590806
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So with things getting all equinoxial again it is time to pay homage to the sun god by the ritual of posting the table of annualised capital gains for Ryman:
http://i7.photobucket.com/albums/y26...20160319-1.png
However I have taken steps in order to break the tradition of the ShareTrader website throwing the attachment away after a while.
Best Wishes
Paper Tiger
Thanks of the update PT. Appreciated as always.
All my images from days gone by seem to have evaporated too. I take it that the problem has been fixed (at least a bit) for new posts from now on?
RYM looking like fair value at the moment to me with a potential RYM bull on the horizon.
I wonder if they will announce the 4 new villages opening (or at least 1 or 2) before 31 March? I still expect them to do so, but looking back at their November 2015 presentation, they said they would complete them "Six months from now", which could make the announcement(s) as late as May.
C'mon Roger.. time to dust the cobwebs off that wallet !! :eek2:
Please don't hate me mate but I've been busy buying up SUM. Growing faster and on a cheaper PE. Build rate expansion this year 33%. I expect continued gradual improvements in the efficiency and effectiveness of the manner in which they execute their development programme whereas Ryman's systems were perfected quite some time ago. To SUM it up, SUM IMO has the most potential to outperform in this sector and is on a slightly cheaper underlying PE than RYM whereas I expect steady as she goes from RYM. Might get a few as a diversification strategy which are much preferred over MET. MET the underlying PE is fairly cheap at about 16 but I think they have a VERY long road ahead of them to prove up the capabilities of their development team.
Drove past RYM's new village site at Rangiora today.
All go.
Another huge village in the making.
Some interesting comments about the ethics of Ryman's charging regime.
Chris Lee Taking Stock 7th April 2016
THE arrival of an overseas hedge fund (Blackstone) targeting our small rest home market is either a mistake that will prove expensive for the hedge fund, or on omen for a much lower level of price control at the country’s hundreds of rest homes.
Currently care of the aged is regulated and frequently subsidised by the Crown, at a maximum level that is well below the amount that enables operators to make a fair profit. Profits come from re-selling villas, not from providing care. Retirement villages make large profits. Rest homes barely break even.
But about a year or two ago, the Crown authorities allowed private care operators to increase substantially their revenues by charging extra for what the care operators, with a straight face, could call ‘’premium’’ facilities.
A room with a window became a ‘’premium’’ room, as did a room with an ensuite bathroom (or with a vase full of flowers?).
Toast served with marmalade may not have made the grade, though of that I am uncertain, but very clearly there is now an opportunity to increase the income of the providers without asking the Crown to pay.
The hedge fund has recently spent a decent sum buying a number of rest homes, whose owners for many years have had lousy returns for all their effort, their capital and their risk.
The Crown will always underpay in every social endeavour, whether in education, healthcare or housing, so the providers seek to find other ways of collecting money from their “clients”.
The recent Crown approval of “premium” charges has really let the providers go on a binge.
Some of the rest home or retirement village operators now charge, as an addition, hundreds of dollars every week for very basic extra facilities. These extra charges are paid by the client, not the Crown, so you can imagine that the rest home providers are differentiating between clients who have money of their own, and those who have not.
I have long thought it fair that those with money should be given the choice of “extra comforts” but have never believed that the charges should be more than a few dollars a day.
I have long wondered why the likes of Ryman Healthcare could charge an extra $15 per hour for shower assistance, similar sums for bed-making, and similar sums for acts of simple kindness, such as changing the dressings on a sore toe.
Now Rymans are charging an extra $350 per week for rest home care rooms with a view and an ensuite!
The new Crown approval for such premium charges may well be what attracted the money-obsessed hedge fund to buy a chain of rest homes.
It may also provide hope for Arvida and Oceania, both of which have shareholders who simply want to exit what has been a very lean business model.
I expect the hedge fund will be looking at Arvida and Oceania, using a model of charging based on putting a window and a toilet/shower into every room.
Such improvements might cost $10,000 but at $350 per week the payback would not take long.
Does anyone believe that any hedge fund’s principal aspiration is to provide kindness and care to the elderly?
Disclosure:- The writer chairs New Zealand’s first and largest retirement village, owned and run by a charitable trust. The difference between its most expensive and cheapest care units is $56 per week.
No charges are made for call-out, care or for kindness!