Shortfall in resales? They were up 23%!
I think you're getting way too hung up on the dementia stuff tbh. They say that their business model is centred on a "continuum of care", which I think is what the market mostly wants. Provided the new villages are consistent with this, I don't see a problem. Also, I'm not so sure that dementia is as profitable as you say. In fact, you might want to have a look at this when you get a chance (
http://www.grantthornton.co.nz/asset...ice-review.pdf). IIRC, it clearly shows that the care side of the industry is failing to cover costs, while the independent living/retirement village side is booming.
in addition, I'm not sure that you should be holding RYM's profit on village operations in such high esteem. Perhaps that's why they failed to oust SUM as the best operator for the last 5 years running and have had far more bad press about wages and poor operating conditions for staff? perhaps that part of their business model is ultimately unsustainable?
Don't get me wrong. RYM is definitely an incredibly successful company, but I think that SUM has every chance of being just as good in 5 to 10 years's time, and I can't wait for the SP to eventually show it! :)