RYM - Ryman Healthcare

[allfromacell]

Is anyone else concerned about the recent slowdown in property sale volumes and what a major correction would mean for stocks in this sectors SP? It's summer and we're meant to be seeing an increase in sales volumes however in Auckland we're seeing the exact opposite.

http://www.interest.co.nz/property/8...atest-auctions

[Beagle]

Caught up with my well connected real estate client the week before last, (GM N.Z. of one of the big Aussie owned franchises) and also a leading Auckland auctioneer in his "spare" time.
Feedback - People are leaving Auckland in droves. Overpriced and then there's the traffic The market has been propped up by migration and any change in that policy would have quite an effect !
RYM CEO in the NBR the other day behind the paywall article saying the large increases in real estate prices experienced have been unusual and they don't expect them to repeat.
Auckland at 10 times national average household income...surely a record and undeniably one of the most expensive cities in the world on a per capita basis.

Good debate Vaygor 1 - you've made some good points. I think we're more or less on the same page but I like to make investments that are cheap, not fair value

[macduffy]

Earthquake damaged block at Malvina Major village to be demolished and rebuilt.

http://www.stuff.co.nz/dominion-post...-be-demolished

[couta1]

Earthquake damaged block at Malvina Major village to be demolished and rebuilt.

http://www.stuff.co.nz/dominion-post...-be-demolished

I wonder if insurance will cover the total cost of this rebuild or not? I'd be much happier to see another village built and all residents relocated and the current site sold, long term this would provide a better outcome IMO.

[LAC]

Shouldn't RYM have put out an announcement post earthquake on damages (if any), not good news for RYM and not good that we are reading it on Stuff before an official announcement. I am sure their insurance will cover this.

[Vaygor1]

I wonder if insurance will cover the total cost of this rebuild or not? I'd be much happier to see another village built and all residents relocated and the current site sold, long term this would provide a better outcome IMO.

Hi Couter.

From Ryman Healthcare 2016/17 interim Results Briefing on Friday 18 November, 2016:

Of all RYM villages (including 5 in Wellington) only the one apartment block at Malvina Major) was affected by the earthquake. All the rest have been given the all clear.

41 residents evacuated mostly to the Bob Scott village in Petone

Simon Challies - “I can assure you [the impact of the earthquake] is not significant to our financial position, but it is significant to our residence who have had to evacuate at short notice, so that’s been our top priority this week.”

Gorden MacLeod - “Obviously the most important impact has been the impact on residence . That’s been the most material impact for them, and we are working really hard as Simon said to make sure that we do everything we can to support them. It’s early days in assessing what’s next, the building is insured, and regardless our financial position, we have $4.4 billion dollars of assets, it’s 40 apartments, so it’s not going to be material to the financial position of Ryman.”

David Kerr - “40 apartments across about 9000 beds and units keeps [the impact on Ryman due to the earthquake] in proportion.”

[Vaygor1]

http://www.stuff.co.nz/dominion-post...-be-demolished

Shouldn't RYM have put out an announcement post earthquake on damages (if any), not good news for RYM and not good that we are reading it on Stuff before an official announcement. I am sure their insurance will cover this.

They officially announced on the earthquake damages 5 days before this demolition press release.

Ref: Ryman Healthcare 2016/17 interim Results Briefing on Friday 18 November, 2016
Link: http://edge.media-server.com/m/p/im67tar9
From 10:40 - 13:05
and again from 25:45 - 26:30

I would say Ryman elected to disseminate the news of demolition via the press rather than as an NZX announcement, but it could have gone either way. If there is no material impact on their finances and minimal overall impact to their customer base due to the earthquake, then I can see why they might not announce this via the NZX.

Yes, insurance covers it, refer my previous post.

[macduffy]

I wonder if insurance will cover the total cost of this rebuild or not? I'd be much happier to see another village built and all residents relocated and the current site sold, long term this would provide a better outcome IMO.

Many would agree with you on that, couta, but the biggest difficulty might be in finding a suitably large site in the northern suburbs. Malvina Major caters for a big chunk of Wellington and as we know, many older people prefer to remain in their area when they make that move.

[peat]

Most insurance post 2011 was written with a 10% excess for natural disasters. So if that's correct they will have to pay for 4.1 units themselves.

[winner69]

Obviously well built this village

http://www.stuff.co.nz/national/heal...-ryman-village