RYM - Ryman Healthcare

[winner69]

Correction folks MET has outperformed RYM and SUM over 1 YEAR not YTD. Even more impressive

Wasn't newguys question who has performed the best financially over the last year

[Mothman]

So Ryman paid $47.5m for the new development site in Melbourne. Victorian government thought it was worth at least $25m. They must have some confidence in the Australian market if they are purchasing another site for quite a high price, maybe sales at the Weary Dunlop village are going well? Source is The Age, story entitled "Land sales to net $250m windfall"

[Beagle]

Seems bloody expensive ? Seen the article and its as posted above, sorry havn't got time for posting a link. That's N.Z$51.6m I guess its related to how many untis they can build on the 5.5 ha site, (400 is quite a lot), I'm not sure i'd like to live in one of these high intensity retirement villages that Ryman are now building, (have at look at the Orewa one...I'd take a pass on that.

Interesting contrast, SUM added 5 sites in the 2013 year for a total cost of $97m Kiwi, (source 2013 Annual Report).

[Vaygor1]

So Ryman paid $47.5m for the new development site in Melbourne. Victorian government thought it was worth at least $25m. They must have some confidence in the Australian market if they are purchasing another site for quite a high price, maybe sales at the Weary Dunlop village are going well? Source is The Age, story entitled "Land sales to net $250m windfall"

Here's the link:
http://www.theage.com.au/victoria/la...524-38vrs.html

Looking at Google Earth, Google Maps, or Paper Tiger's post at http://www.sharetrader.co.nz/showthr...l=1#post481602 it seems to be a very big site (3 to 4 times bigger) compared to their Weary Dunlop site 2.5kms down the road now in the final stages of completion.

Where did you get the $25m figure you refer to above Mothman? I can't see it in the article.

[Mothman]

Found it here

http://www.theage.com.au/victoria/na...426-37b3u.html

[Mothman]

Found it here

http://www.theage.com.au/victoria/na...426-37b3u.html

[Vaygor1]

Found it here

http://www.theage.com.au/victoria/na...426-37b3u.html

Thanks very much Mothman.

Regarding the value of the school property, either the government at $25m or Ryman at $47.5m (or both) have their figures wrong or there is a long-term deferred payment scheme as part of deal.

On the assumption that RYM paid a AUS$22.5m premium, at the current exchange rate that works out to be NZ$4.9c/share which didn't sound a lot to me until I viewed it at over 1/3 of their dividend payout last year.

I can only trust that RYM did their due diligence prior to submitting their tender for the school, or strategically the site was just too important not to secure given for instance its zoning rules maybe, and/or the sites proximity to their current village.

[Vaygor1]

A somewhat interesting recent article here on retirement village supply and demand in NZ. Was going to post this on the SUM thread too but just saw that Winner beat me to it.

http://www.nzherald.co.nz/business/n...ectid=11264161

[Vaygor1]

Here is a news article published 12 days ago from the business section of The Australian regarding Ryman's new purchase in Wheeler's Hill.

http://www.theaustralian.com.au/busi...1226924583842#

Interesting to note that the zoning is approved for building up to 5 stories and that there were 19 tenders submitted for the site.

[Toulouse - Luzern]

Hi all,

Fisher Funds Management Newsletter for May advises (E&OE) that they have taken profits and reduced their stake in RYM.

I have had a look and mid March FFM advice via NZX for NTA valuations showed RYM holdings at 14% ( of FFM NZ Growth Fund portfolio).

Now they are 12% ( of FFM NZ Growth fund portfolio).

( As a reasonably large seller FFM sales may be part of the share price pull back from 4 week high of 889 to 1 week high around 840 to 850 ish, E&OE)

It seems to me as a major holder you have a challenge, reduce your holdings without reducing the SP and hence the value of your remaining shares.