Ryman Healthcare (ASX:RYM), New Zealand’s largest provider of retirement living and aged care with an established platform and scale in Australia, has announced a refreshed strategy and new capital management framework. The announcement was made at the company’s Investor Day, outlining key financial targets and strategic priorities for investors and analysts.
The company is targeting a $150 million improvement in sustainable cash flow by FY29, driven by increased occupancy, pricing adjustments, and cost efficiencies. Ryman anticipates a strong cash release of $500 million by FY29, stemming from new and resale stock, and at least $200 million from land divestments following a landbank review. The company’s refreshed strategy focuses on growing recurring earnings from its existing $12 billion portfolio, while positioning the business for future growth. This includes 2,500 identified units and beds across uncommitted developments and potential expansion within existing villages, supported by existing aged care capacity.
Ryman’s Chair, Dean Hamilton, stated the board is focused on long-term value creation, prioritising a sustainable return on its existing asset base. With the balance sheet reset complete, the company will pursue disciplined growth over time. The new capital management framework aims for a return to sustainable dividends in FY28, with a payout policy of 20-50% of cash flow from existing operations (CFEO) per share.
CEO Naomi James highlighted the company’s unique position to meet growing demand in care and assisted living. Ryman’s continuum-of-care model aims to provide residents a ‘home for life,’ helping them stay connected and supported. The company’s existing FY26 guidance remains unchanged.
