Retirement village operator Ryman Healthcare says its first-half underlying earnings have risen 22 per cent to a record $58.5 million.
The profit, for the six months to the end of September and which excludes deferred tax and unrealised gains on investment properties, rose from $48.1m a year earlier.
Sales rose 13 per cent to $99.6m.
Christchurch-based Ryman's shares are trading at more than five times their value of five years ago and the company has a 12-year record of double-digit earnings growth, expanding its footprint of retirement villages at a current rate of 700 units a year.
Ryman has jumped across the Tasman with its first Melbourne village under construction and on Thursday said it had sold 48 apartments, beating its own presales target.
The Victorian market is bigger than New Zealand and a potentially a bigger opportunity, managing director Simon Challies told BusinessDesk.
"We're committed to searching for a second site in Melbourne. We're still learning about the regulatory environment and how that defines how people operate."
The company affirmed it is on track for full-year underlying earnings growth of 15 per cent.
It will pay a first-half dividend of 5.6 cents a share, up from last year's interim payment.
The shares last traded at $7.84 and touched a record $8.12 last week.
Sales of occupation right agreements rose to 174.5 in the latest six months, from 157.2 a year earlier. Sales of existing units rose to 261 from 235, while sales of new units were little changed at 211 from 212.
The total of units and residential care beds rose to 6464 from 5882, with most of the growth coming from village units.
Mr Challies said Ryman is funding its growth from bank debt and "that's our intention for the foreseeable future".
Its debt to equity ratio currently stands at 29 per cent and it is about 50 per cent drawn on a $500m debt facility.
NZN
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