RYM - Ryman Healthcare

[Beagle]

Yes, the salient lesson here for you newbies is to make sure you read the full annual report of companies you're investing in. Crazy if you don't...just saying...
RYM's latest annual report is a very good read and available on their website for those that don't have a printed copy..see www.ryman.co.nz Click on investor centre and fill ya boots with info !!

[LAC]

Thanks guys,
I have had a read now after Winner69 posted. I was kind of asking the NTA question in general for all businesses such as RYM but now understand each business will value their assets differently and just have to do research individually. Thanks again

[macduffy]

Ryman's AGM as reported in today's DomPost ( and on Stuff ).

http://www.stuff.co.nz/the-press/bus...more-residents

Construction at Bob Scott certainly continues apace. I counted over 40 working on site a few weeks ago.

[LAC]

http://www.nzherald.co.nz/business/n...ectid=11494726

[trader_jackson]

(as mentioned on the Summerset forum - applies here as well...)

The ugly side of retirement villages...(at least in the long[er] term)
There was disputes over fee rises each year (from what I heard), now it is common to have a 'fixed fee for life' scheme...
Eventually there will be more disputes about why they get 30% of their house's/apartments capital value over x period, depreciated (ie taken away from them), when there house/apartment has actually increased say 30% over the same period... as supply is (only recently) starting to exceed demand, residents will have 'more power', and the days of "easy money" are most likely numbered... Summerset being one of the most aggressive in expansion in this country could be exposed to this the most should things change. (edit: saw that the top issue was in fact related to "Disposal matters including marketing, valuation, length of sale, refurbishment, ongoing charges and exit payments")

This is however a longer term issue, probably wont have an effect for a couple of years... those villages with a strong care focus shouldn't be impacted as much (Ryman, Arvida)

On another note, Forsyth bar noted that, over the long term, as people get older, care beds will become more relevant and important than "lifestyle villages" (ie apartment building)... Ryman and Arvida are to benefit from this, Summerset not so much

[LAC]

(as mentioned on the Summerset forum - applies here as well...)


Eventually there will be more disputes about why they get 30% of their house's/apartments capital value over x period, depreciated (ie taken away from them), when there house/apartment has actually increased say 30% over the same period...

Yeah I think this bit is going to be an issue with any village. Ryman buy in prime locations and I would think these area the property values are going to soar, residents are not going to like this...

[trader_jackson]

Yes true, but Ryman also have a care focus so are not as exposed as more lifestyle villages like Summerset... but yes will still be something for them to watch out for

[couta1]

TJ disputes have and always will be a routine part of retirement village life, just like this forum you get all sorts of people with all sorts of motivations converging, some genuine and some not then added to that you have the influence of the residents families which can expose a down right ugly side of human nature, I've seen it all over the last 25 years yet none of it will have an effect on the massive tailwinds and demographic explosion continuing to drive this sector long term. As an aside Ryman have always had a fixed fees for life guarantee.

[couta1]

Yes true, but Ryman also have a care focus so are not as exposed as more lifestyle villages like Summerset... but yes will still be something for them to watch out for

Sum also have reasonably sized care facilities, its their lack of dementia care which sets them apart in a negative way at this point in time IMHO which backs up what you were saying about re increasing care bed needs and dementia is a fast growing area of care need.

[Harvey Specter]

Eventually there will be more disputes about why they get 30% of their house's/apartments capital value over x period, depreciated (ie taken away from them), when there house/apartment has actually increased say 30% over the same period...

The response is quite simple. Your 'fixed fee for life' does not actually cover our full costs. We take the risk on capital appreciation to give you a lower fixed cost and certainty. Further to this, we also incur all property holding costs and also maintain your accommodation and also pay for a complete renovation when you exit to remove the smell of death for the next occupant. I think most operators have also removed the downside risk so if they dont sell for the original cost, the exiting resident doesn't have to pay.

The key words in there are lower fixed costs and certainty, something that a retired person wants to hear - its just the children who are concerned about the forgone capital appreciation.