# Source Brief: Ryman Healthcare FY26 Annual Report

**Original PDF:** `public/pdfs/2026 - Ryman Healthcare - FY26 Annual Report.pdf`

**Report Period:** 1 April 2025 – 31 March 2026

**Pages:** 130

**Source:** Ryman Healthcare Limited (NZX: RYM, ASX: RYM)

**Annual report publication:** 5 June 2026 (not an independently established authorship date for this brief)

**Historic capture:** June 2026; the old brief recorded an extraction of approximately 283,000 characters. Original text preserved in the scoped audit fixture.
**Primary-report reconciliation:** 10 October 2026; all 130 physical pages read and rendered.
**Primary source:** [NZX annual report release 473909](https://www.nzx.com/announcements/473909) and [issuer report](https://www.rymanhealthcare.co.nz/hubfs/Investor%20Centre/Annual%20and%20interim%20reports/Ryman%20Healthcare%20Limited%20-%20FY26%20Annual%20Report.pdf). NZX 473748 below is the separate historical bond proposal, not the annual-report release.

This authored brief summarises company-reported FY26 measures. It is not independently verified care-quality, live vacancy, staffing or individual contract evidence. Company strategy, marketing/legal-alignment claims and role listings remain historical report statements. Section 9’s June news/analyst additions were not independently re-audited; do not treat them as current, confirmed outcomes or investment advice.

---

## 1. Company Overview

- **Founded:** 1984 in Christchurch, New Zealand

- **Position:** NZ's largest retirement living and aged care provider; leading integrated operator in Victoria, Australia

- **Dual listed:** NZX and ASX (listed Oct 2025)

- **47 retirement villages** (38 NZ, 9 AU) — includes 2 under construction

- **9,959 retirement village units** (8,379 NZ, 1,580 AU)

- **4,686 aged care beds** (3,927 NZ, 759 AU)

- **15,547 residents** (13,069 NZ, 2,478 AU)

- **7,778 team members** (6,072 NZ, 1,706 AU)

- **Integrated continuum of care:** independent living, assisted living, aged care within single communities

---

## 2. Financial Performance (FY26 vs FY25)

| Metric | FY26 | FY25 (restated) | Change |

| ------------------------------ | ------------- | --------------- | ------------------------ |

| **Total Revenue** | $855.6M | $760.7M | **+12.5%** |

| Care & village fees | $639.9M | $570.9M | +12.1% |

| Deferred management fees (DMF) | $158.6M | $142.9M | +11.0% |

| Imputed interest income | $35.6M | $32.5M | +9.6% |

| Other income | $20.4M | $12.9M | +58.1% |

| **Operating EBITDAF** | **$88.3M** | **$45.5M** | **+94%** |

| **PBTF (Loss)** | **($73.3M)** | **($384.6M)** | **+$311.3M improvement** |

| Fair value movement | ($104.3M) | $92.3M | — |

| **NPAT (Loss)** | **($171.3M)** | **($513.7M)** | **+$342.4M improvement** |

| Basic EPS | (16.9¢) | (72.3¢) | +55.4¢ |

| **Free cash flow** | **$188.3M** | **($94.2M)** | **+$282.5M** |

| Operating expenses | ($773.7M) | ($751.1M) | +3.0% |

| Finance costs | ($80.8M) | ($140.3M) | −42.4% |

| Impairment credit/(loss) | $3.8M | ($172.9M) | +$176.7M |

### Key Observations

- **Revenue growth** driven by care and village fees (+12.1%) and DMF (+11%)

- **Operating EBITDAF nearly doubled** (+94%) — driven by cost discipline, improved care margins, and revenue resets

- **PBTF loss narrowed significantly** ($73.3M vs $384.6M) — a net impairment credit is not absence of impairments: note 5.2 reports NZ$37.362M care-centre charges and NZ$1.343M right-of-use charges offset by NZ$42.516M reversals (printed p. 66)

- **NPAT loss improved by $342M** — despite $104M negative fair value movement on investment properties

- **Company-reported first positive free cash flow in over a decade** — NZ$188.3M vs negative NZ$94.2M FY25. This non-GAAP aggregate combines CFEO negative NZ$33.9M and CFDA positive NZ$222.2M; it is not recurring operating cash alone (printed pp. 6,110).

- **Finance costs fell 42.4%**, from NZ$140.263M to NZ$80.839M, rather than halving (printed p. 42)

---

## 3. Operating & Cash Flow Highlights

| Metric | FY26 | FY25 | Change |

| ------------------------------------- | ------- | ---------------- | --------- |

| Operating EBITDAF | $88.3M | $45.5M | +94% |

| Free cash flow | $188.3M | ($94.2M) | +$282.5M |

| Capex | $221.8M | $535.9M | **−59%** |

| Aged care occupancy (mature villages) | 96.0% | 96.3% | −0.3ppts |

| Retirement living ORA sales | 1,410 | 1,523 | −7% |

| New sales | 348 | — | — |

| Resales | 1,062 | — | — |

| Unoccupied unit stock | 1,253 | 1,239 | +14 units |

| Contracted | 383 | — | — |

| Uncontracted | 870 | — | — |

| Avg contracted DMF (new residents) | 30% | 22% | +8ppts |

| Aged care EBITDAF per bed (non-GAAP) | $17.7k | FY25 comparator not stated in headline | 2H26 $20.1k vs 1H26 $15.3k: +31% HoH |

| Net cash flow from RADs/care capital | $81.4M | $83.7M | −3% |

---

Occupancy is the FY26 average for mature care facilities across NZ and Australia; the report does not specify that subset’s beds/sites, weighting or maturity cutoff. It does not establish national or current vacancy levels. Portfolio beds/units are not certified or staffed capacity. Team-member headcount covers the organisation, not care FTE. Average 30% DMF applies to new-resident contracts in this headline, not every resident. Per-bed EBITDAF is non-GAAP; half-year comparison is 2H26 against 1H26, not FY25.

## 4. Strategy & Transformation (Refreshed)

### Strategic Shift

- **From:** Rapid, development-led growth

- **To:** Sustainable value creation, maximising returns from existing $12B+ portfolio

- **Focus areas:**
  1. Driving occupancy in recently opened villages

  2. Refining serviced apartment offering

  3. Reducing operating cost base to offset inflation

  4. Disciplined capital allocation

### Key Strategic Initiatives

- **Resident Fund:** Enables capital transfer from retirement living to care — rolled out across all NZ villages after successful pilot

- **Serviced Apartments:** Significant near-term opportunity; improving occupancy and sell-down rates

- **Capital Management Framework:** New framework established Feb 2026 with prudent parameters

- **Cost-out programme:** $57M annualised cost savings over 2 years

- **$47M** sustainable improvement in cash flow from existing operations in FY26

### Development Pipeline

- **Portfolio review:** Identified 2,000+ units/beds in uncommitted development in high-demand regions

- **Land divestments:** 7 land bank sites identified for divestment; $72M proceeds settled in FY26

- **Construction activity reduced:** Village sites under construction reduced from 7 to 2

- **FY29 cash release target:** $500M (net cash flow from developments + land sales)

- **Increased land sale target:** ~$250M

### Capital Management

- **Balance sheet reset completed** in FY26

- **New capital management framework** with clear parameters

- **$600M+ available debt headroom**

- **Bank facility earliest maturity:** 31 May 2030 (FY31), while the then-outstanding NZ$150M retail bond separately matures 18 December 2026 in the report’s historical snapshot; this is not no debt maturity until FY31 (printed p. 78)

- **FY28 dividend-return pathway** — future company target, subject to operating performance and Board approval per the 26 May results release

- **Dividend payout framework:** target 20–50% of cash flow from existing operations per share, not a promised payment

- **ASX dual listing** completed October 2025 — expanded funding access and investor base

---

## 5. Care Operations

- **Aged care occupancy (mature villages):** 96.0% (FY25: 96.3%)

- **Aged care EBITDAF per bed:** $17.7k (1H26: $15.3k → 2H26: $20.1k, +31% HoH)

- **Room premiums** continuing to grow in NZ; strong RAD growth in Australia

- **Care margin improved** through occupancy gains, increased revenue per bed, cost control

- **Care-centre closure announcements:** Woodcote and Margaret Stoddart announced in August 2025; note 5.2 values those care centres on a vacant-possession basis. This does not establish whole villages closed (printed p. 66).

- **Positioning for anticipated NZ govt funding changes in 2027**

### Regulatory & Policy Environment

- **Australia:** New Aged Care Act, strengthened Aged Care Quality Standards, retirement village reform

- **New Zealand:** Retirement Villages Act reform; Ryman's contract terms already aligned with proposed changes

- **Funding reform, as stated in June:** recommendations expected within weeks, government response anticipated before the election. Subsequent primary publication: [Ministry released A Place to Grow Old on 17 August 2026](https://www.health.govt.nz/publications/a-place-to-grow-old-securing-the-future-of-aged-care). Its recommendations inform future decisions; release does not prove implementation of expected 2027 funding changes (printed pp. 7–8).

- **Ryman's position:** Scale, integrated model, and trans-Tasman operations provide valuable insight into reform impacts

- **Aged care is healthcare:** Ryman advocates that funding models must support sustainable, high-quality care delivery

- _Company demographic assertion:_ 80+ population expected to double by 2050. This report paragraph does not identify a Stats NZ series, scenario or base; not independently validated as a demographic projection here (printed p. 9).

---

## 6. Board & Management Changes

- **CEO:** Naomi James (appointed Nov 2024, previously CEO Channel Infrastructure)

- **CFO:** Matt Prior (joined Jul 2025)

- **COO:** Marsha Cadman (appointed Sep 2024)

- **Chief Development & Property Officer:** Richard Stephenson (joined Feb 2026, 23 years in sector)

- **Chief Transformation & Corporate Development:** Marie Bonnemaison (joined Jan 2025)

- **Board refresh continued:** Hamish Rumbold appointed 2026

- **Director retirement:** Paula Jeffs retiring at 2026 AGM after 6 years

---

## 7. FY29 Targets Summary

| Target | Detail |

| --------------------------------- | ---------------------------------------------------------------------------- |

| Recurring earnings growth | Steady improvement via pricing resets, cost efficiencies, rising occupancy |

| Cash release | **$500M+** (incl. ~$250M land divestments) |

| Sustainable cash flow improvement | **$150M** by FY29 |

| Dividend | Return to dividends in **FY28** (20–50% payout of CFEO/share) |

| Cost savings | $57M annualised savings achieved (over 2 years); further reductions targeted |

---

## 8. Comparison to FY25 Annual Report

| Aspect | FY25 | FY26 | Direction |

| -------------------- | ------------------------ | --------------------------- | --------------------------- |

| NPAT | ($513.7M) loss | ($171.3M) loss | **Significant improvement** |

| Operating EBITDAF (non-GAAP) | $45.5M | $88.3M | **+94%, nearly doubled** |

| Free cash flow | ($94.2M) | $188.3M | **Turned positive** |

| Revenue | $760.7M | $855.6M | **+12.5%** |

| Impairments | ($172.9M) loss | $3.8M credit | **Dramatic improvement** |

| Development approach | Moderate growth | Sharply reduced; 7→2 sites | **Tighter** |

| Gearing | High (post-equity raise) | Lower, reset balance sheet | **Strengthened** |

| Dividends | None in FY26 | FY28 return pathway | **Conditional future target** |

| ASX listing | No | Yes (Oct 2025) | **Expanded** |

| Board | Prior composition | Further refreshed (Rumbold) | **Renewed** |

| Strategy | Early transformation | Clear refreshed strategy | **Matured** |

---

Brief prepared from the FY26 annual report. The original brief referenced an adjacent `.txt` extraction; that file is not established here. The scoped audit now preserves all 130 physical-page texts and PNG proofs. Financial FY25 comparisons are restated for a NZ$76.916M investment-property gross-up correction (printed pp. 49–50). Statutory revenue NZ$855.590M differs from adjusted operating revenue NZ$849.064M, and statutory net operating cash NZ$333.968M differs from non-GAAP FCF (printed pp. 42,46,53–54). Resident-and-family NPS 47 is a score, not 47% satisfaction; sample size, mix, response rate and timing are not stated in the scorecard. Team survey 78% refers to participation, not engagement (printed pp. 23,110). PwC’s financial audit does not provide assurance on other annual-report narrative (printed p. 98).

---

## 9. Historical June capture — not independently re-verified in this scoped review

The following material retains the old brief’s 8 June 2026 context. Roles, dates, bond plans, ratings/prices and promised publication are historical capture assertions, not a current status check. This review does not establish completion, current directorships, market prices or investment suitability.

### 9.1 Retail Bond Offer Considered (3 June 2026)

Ryman announced it is considering a **6-year fixed rate secured bond offer** to replace its $150M RYM010 retail bond maturing December 2026. Offer to institutional and NZ retail investors. Full details expected week beginning 8 June 2026. Bonds expected to be quoted on NZX Debt Market. RYM010 trading to be suspended during transition.

- **Arranger:** ANZ Bank New Zealand

- **Joint Lead Managers:** Craigs Investment Partners, Forsyth Barr, Westpac

- **Source:** [NZX Announcement 473748](https://www.nzx.com/announcements/473748)

### 9.2 Board Refresh Complete — Hamish Rumbold Appointed (24 April 2026)

**Hamish Rumbold** appointed as independent non-executive director from 1 May 2026. Currently director of House of Travel, Orbit Remit, LIC, and The Warehouse Group. Former Chief Digital and Technology Officer at Kiwibank. Chair Dean Hamilton confirmed this **completes the Board refresh**.

### 9.3 2026 Annual Shareholders Meeting

Set for **Tuesday 28 July 2026**. Director nominations closing date announced 4 June 2026.

### 9.4 Analyst Reaction

Macquarie reaffirmed **Outperform** rating. Care division described as a "standout performer"; cash release potential noted as exceeding $500M target for FY29. RYM.NZ share price traded NZ$2.17–$2.27 on results day (26 May 2026).

### 9.5 Climate-Related Disclosures

Ryman's climate-related disclosures will be published by **31 July 2026** on the company website.

**Sources:** NZX announcements (nzx.com/companies/RYM/announcements) accessed 8 Jun 2026; Investing.com analyst note 26 May 2026.