AUS
NZ
UK
CA
USA
IND
Highlights
- The retirement village sector has stayed resilient and has been performing well in the COVID-19 pandemic.
- Summerset will release its full-year results on 24 February 2022.
- Ryman expects pent-up demand to emerge in the market as COVID-19-related restrictions get lifted.
The aged care and retirement village industry of NZ caters to its ageing population and adds to the economic growth of the country. The sector has stayed resilient and has been performing well in the COVID-19 pandemic.
Retirement villages (RVs) target the population aged 75+. There were about 332K people in this bracket in 2020 and are projected to increase by 501K to reach 833K by 2048. This will majorly propel the demand for RVs in the country.
Let’s skim through how these 5 NZX retirement villages are doing.
Image source: © 2022 Kalkine Media®, Data source- EODHD/Others
Summerset Group Holdings Limited (NZX:SUM; ASX:SNZ)
Summerset confirmed this month that it would release its full-year results on 24 February 2022.
DO READ: Which 3 NZX healthcare stocks can be considered in 2022?
It should be noted that the Company also disclosed its 4Q21 stats, revealing that sales in the quarter stayed high despite lockdown and limitations in the Auckland and Waikato regions. This year, it will begin development on its four additional locations.
SUM ended the day 2.43% in green to close at $12.2.
Arvida Group Limited (NZX:ARV)
Arvida, the retirement village operator had confirmed the divestiture of three retirement communities in Rangiora, including Bainswood House and Bainlea House.
Also Read: Look at these 5 NZX-listed penny stocks for 2022
Fourteen serviced apartments and four villas have been removed from ARV's portfolio.
ARV ended the day 0.59% in green to close at $1.7.
Oceania Healthcare Limited (NZX:OCA)
Oceania Healthcare advised this month that Patrick McCawe would be resigning as Director of OCA effective 16 February 2022. McCawe has been Director of OCA since 16 February 2017 and has been involved with its corporate transactions throughout the period.
Must Read: How are 3 NZX retirement villages faring amid Omicron outbreak?
RYM ended the day 3.51% in green to close at $1.18.
Ryman Healthcare Limited (NZX:RYM)
Ryman reported a great performance in 1HFY22, with earnings rising due to increased demand from the elderly and retired population. In the first half of the year, the Group's underlying profit climbed by 8.5% to NZ$96 million.
ALSO READ: Which 3 NZX dividend stocks to consider in 2022?
As restrictions are lifted, the Group expects pent-up demand to emerge in the market, and it is cautiously hopeful about the months ahead.
RYM ended the day 0.51% in green to close at $9.9.
Promisia Healthcare Limited (NZX:PHL)
Promisia made a contract last month to buy Aldwins House in Christchurch. PHL leases this property through its subsidiary Aldwins House Limited (AHL).
Aldwins House have room for up to 145 residents and has a land area of 8,241 meter square. AHL has made a contract to buy the property for $13 million and the deal is likely to settle in late March.
The Group also hired Andrew Mitchell as its director. PHL ended the day 100% in green to close at $0.002.
Bottom Line
A change in the structure of the population will propel the demand for retirement villages in the coming years.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)