This stock is a stand out for dividend growth long term, around 20% historically per annum. It is a business and property play. My number one in a portfolio.
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This stock is a stand out for dividend growth long term, around 20% historically per annum. It is a business and property play. My number one in a portfolio.
Paper tiger, kingfish top 2 holdings are mainfreight and RYM
Hi Roger!
Sorry I have just got back from holiday
This is the first of their peace of mind guarentees that provide residents:
1. Weekly fee guarentee
We know how important it is to you to have certainty regarding your living costs.
“We guarantee that, in the event that we do increase our weekly fees, that the increase will be limited to the increase in the Consumer Price Index” This gives you assurance that if any increase occurs that it will only be made in line with inflation.
Did you know that in over twenty years a Ryman townhouse or apartment resident has never experienced an increase in their base weekly fee?
However there really is no need to increase existing fees when the average stay is only 5 years, as it doesnt take long for a fee increase to filter down through all the units as they turn over. Plus the weekly fee is seperate from and very small in comparison to the care fees which can get up to $800 or $900 a week, variable depending on how much care someone needs I believe, and which can increase at any time.
Regarding GST: This is a tax collected on behalf of the government. So I would have thought an increase in GST is not an increase in the weekly fee.
Regarding economies of scale: Gordon said their economies of scale were now a big part of their ability to make their units affordable and therefore was an important competitive advantage. The deals they get from suppliers are on very good terms and prices.
I hope this helps.
Cheers
Also, considering the weekly fee is only like 120 bucks a week or something, the benefit of being able to give residents the peace of mind guarantee that the prices will never rise on them, FAR outways any small financial benefit they would get from increasing the fees on existing units with say only 2-3 years to go.
This is from a sales perspective.
Anyone have any idea on the damage to Ryman's 6 blocks in Chch?
Figured there must be some pretty hefty damage, and the SP could have retreated a tad.. Seems not.
Hi Buns
RYM announced all was OK (as per announcement copied below). In the short term the situation is probably not going to be good for turnover in the CHCH villages though. RYM have 20% of their villages in CHCH. And it would be safe to say potential occupants will struggle to get out of their existing homes at realistic prices due to earthquake carnage.
Of course most importantly it was great that no one was killed or injured.
With regards,
Sauce
GENERAL: RYM: Christchurch Earthquake Update
RYM
25/02/2011 11:14
GENERAL
REL: 1114 HRS Ryman Healthcare Limited
GENERAL: RYM: Christchurch Earthquake Update
Media Release - 25 March 2011
Christchurch Earthquake Update
The Ryman team wish to extend their sympathies to all the people who have
lost family, friends and colleagues in the earthquake.
We are very grateful and relieved that our staff and residents in
Christchurch are all safe and well.
"We have received an amazing response from our staff, suppliers and
contractors, both in Christchurch and from further afield," said Chairman Dr
David Kerr. "This has allowed us to continue to care for our residents in
Christchurch."
"Our villages are all sound, and did not sustain any structural damage."
Ryman head office has been relocated from the Christchurch CBD to back up
premises in Sockburn and is operational.
Ends
Media Advisory: For further information or comments please contact Chairman
Dr David Kerr on 021 362 403
End CA:00206105 For:RYM Type:GENERAL Time:2011-02-25 11:14:12
Sauce,
off the top of my head.There must be a lot of elderly having to move out of damaged homes,who will not want to go back to their old homes,and whose families will be keen for them to move into the safety of a RYM village.?
I was out at their Aidanfield place in the weekend and there didn't appear to be any damage. I also heard through a friend that they already had a backup office sorted out prior to the earthquake, that seems like a pretty thorough backup plan!
Hi Percy,
Sounds reasonable. But don't forget entry into the villages has to be paid up front. Most families can't stump the 300 - 400k required without realising the equity from the existing home of the resident-to-be.
I don't believe the earthquake will have a material effect on RYMs prospects as a whole. But I would be suprised if there wasn't some short term negative effects for the CHCH villages.
And as you say; demand could even increase in CHCH once the dust settles so to speak (is it ok to say that?!).
Regards,
Sauce