WELLINGTON, New Zealand--Retirement village developer and operator Ryman Healthcare Ltd.(RYM.NZ) said Friday its net profit for the year ended March 31 rose 17% on year after strong gains from the resale of occupancy rights.
The company said its reported profit after tax for the year was 357 million New Zealand dollars (US$246 million). Its underlying profit was up 13% to NZ$178 million.
Operating cash flows grew to NZ$322.8 million from NZ$312.5 in the 2016 financial year.
Chairman David Kerr said in a statement that strong gains from the resale of occupancy rights had driven the result, and Ryman had invested a record NZ$525 million to meet the demands of an aging population.
"We've made good progress thanks to growing resident demand for our unique Ryman-style villages and a strong real estate market," he said.
Ryman has two new retirement villages under construction, and nine new villages in the design or consent phase.
The company said it would pay a final dividend of NZ9.3 cents a share on June 9, taking the total pay-out for the year to NZ17.8 cents, up 13% in line with the increase in underlying profit.
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WELLINGTON, New Zealand--Ryman Healthcare Managing Director and Chief Executive Simon Challies said Friday he would step down on June 30, citing health reasons.
Mr Challies has worked at the retirement-village developer and operator since 1999, when he joined as its chief financial officer, before taking over as chief executive in 2006.
Chief Financial Officer Gordon MacLeod will take over the CEO role, the company said.
In 2011, Mr. Challies was diagnosed with Parkinson's disease. "I first noticed the symptoms about a decade ago, but it was still a huge shock to get my diagnosis in 2011," Mr. Challies said in a statement. "I've been determined not to let it beat me."
"This is a demanding job, and I've realised this year that my health was deteriorating and it was taking too great a toll on me personally, and on my family," he said.
During his tenure, Ryman Healthcare's portfolio of villages has grown from 12 to 31.
Earlier Friday, the company reported its after-tax profit for the 2017 financial year was 357 million New Zealand dollars (US$246 million), while underlying profit was up 13% at NZ$178 million.
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(END) Dow Jones Newswires
May 18, 2017 18:26 ET (22:26 GMT)