OCA, RYM, RAD: NZX retirement village stocks to watch amid Omicron surge

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OCA, RYM, RAD: NZX retirement village stocks to watch amid Omicron surge

 OCA, RYM, RAD: NZX retirement village stocks to watch amid Omicron surge
Image source: Shutterstock.com

Highlights 

  • New Zealand has a well-established retirement industry.
  • Retirement villages have devised their own strategies to combat the Omicron surge.
  • Ryman, OCA and RAD have steered clear of the virus due to early vaccination programmes.

NZ has well-managed and well-equipped retirement villages. These retirement communities were the first to complete 100%  vaccination programmes.

                                                  Image Source: © 2022 Kalkine Media

It completed all its vaccination formalities on time and is on course to make retirement villages secure from the Omicron surge.

Against this backdrop, let’s examine these three retirement village stocks.

Ryman Healthcare Limited (NZX:RYM)

RYM is a provider of well-equipped retirement villages throughout NZ. It houses more than 12,800 residents in Australia and NZ. It announced its expansion plans in Australia recently where it plans to build an AU$155-million integrated village. In its 1HFY22 results announced recently, RYM revealed a strong performance and enahnced profitability. It reported increased demand for the aged-care facility. RYM’s half-year results reflected an underlying profit of NZ$96 million, up by more than 8%.

Read Also: How is Ryman (NZX:RYM) progressing with retirement village expansion?

On 15 March, the stock was down by 1.36% at NZ$9.430, at the time of writing.

Also Read: Which are 5 NZX healthcare stocks to look at ahead of 2022?

Radius Residential Care Limited (NZX:RAD)

RAD provides healthcare facilities for aged people. In its 1HFY22, it announced that it had acquired four facilities with a capital raise of NZ$48 million. Recently, it acquired a 69-bed facility in Ivercargill. The occupancy rate has been higher than the industry average in its facilities. Soon, the Company plans to start its Brownfield development at its new sites. It will be starting its Brownfield development at four sites.

Also Read: How are NZX retirement villages stocks doing in December 2021?

On 15 March, the stock was trading flat at 0.395, at the time of writing.

Oceania Healthcare Limited (NZX:OCA)

Oceania healthcare delivered robust results for the six months ended 30 September compared to pcp. It clocked a 19.7% rise in EBITDA to NZ36.5 million and 22% growth in NPAT at NZ$27.5 million versus pcp.

OCA declared an interim dividend of 2.1cps in December 2021.

On 15 March, the stock was trading down by 1.89% at NZ$ 1.040, at the time of writing.

Bottom line

NZ has a well-developed retirement village industry. In the last 2 years, the villages have kept their residents secure from COVID-19 waves. The villages were the first to achieve a 100% vaccination for their senior residents.

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