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Highlights
- Demand for retirement villages is likely to grow with an increased ageing population.
- Arvida Group reported a 30% increase in its underlying profit to $26.6 million in H1FY22.
- Ryman’s demand for retirement living and aged care stayed strong despite COVID-19 challenges.
The retirement village and aged care industry has been driven by an ageing population and shifting choices in retirement living. Demand for retirement villages is set to grow as the baby boom population of NZ reaches the retirement age.
As per a report by a property services firm, retirement village numbers have risen from 343 to 422, up 23% since 2012. Demand for retirement villages rose after COVID-19 struck as people wanted someone to look after them while interaction is maintained.
Let’s go through how these 5 retirement village stocks are doing.
Image source: © 2021 Kalkine Media, Data source- EODHD/Others
Radius Residential Care Limited (NZX:RAD)
Specialist health and aged care provider, Radius Residential, settled the purchase of an integrated aged care retirement village, Clare House in Waikiwi this month for $14.5 million.
The purchase was financed from a new ASB debt facility of $62 million. The new property will add 69 care beds, 18 serviced apartments and 7 villas to Radius’s portfolio.
ALSO READ: Which 5 healthcare stocks are making waves on NZX?
RAD will release its results on 29 November for the half year ended 30 September.
RAD ended the day 1.01% in green to close at $0.5.
Summerset Group Holdings Limited (NZX:SUM; ASX:SNZ)
Retirement village operator and designer, Summerset Group, announced the sale of occupation rights for the third quarter of 2021. The Group informed that 199 sales have been done in the quarter, comprising 117 new sales and 82 resales.
RELATED READ: Would 5 NZX retirement village stocks continue their momentum in 2022?
Sales numbers to date equalled 95% of the full-year sales in 2020.
SUM ended the day 2.74% in green to close at $13.5.
Arvida Group Limited (NZX:ARV)
Arvida announced its results for 1H FY22 on 23 November. The Group reported a 30% increase in its underlying profit of $26.6 million for the first half of FY22 as compared to 1H21. The Group expects that high employee costs will be a challenge for the sector in the second half of FY22.
RELATED READ: Arvida (NZX:ARV) Did the Company report solid 1H22?
Arvida declared an increased interim dividend of 2.5cps and will be paid on 15 December.
ARV ended the day 1.04% in green to close at $1.94.
Oceania Healthcare Limited (NZX:OCA; ASX:OCA)
Aged care facility and retirement village operator Oceania Healthcare notified the market of an upcoming announcement on its H1 results.
The Group will declare its half-year results on 29 November 2021 for the 6 months ended 30 September 2021. The webcast will be hosted by Oceania’s CEO Brent Pattison and CFO Kathryn Waugh.
OCA ended the day 0.78% in green to close at $1.3.
Ryman Healthcare Limited (NZX:RYM)
NZ’s leading retirement village and rest home operator, Ryman Healthcare, released results for the first half of FY22. The Group delivered an 8.5% rise in underlying profit to $95.9 million and a 48% increase in total transacted sales to $510 million in the period.
RELATED READ: Ryman (NZX:RYM) unaudited first half robust results defies COVID-19 challenges
Demand for retirement village and aged care stayed strong despite COVID-19 challenges leading to lockdowns. RYM will pay an interim dividend of 8.8cps on 17 December 2021.
RYM ended the day 0.16% in red to close at $12.48.
Bottom Line
The retirement village industry is likely to pick up further growth as the increasing age of the NZ population is leading to more people living in retirement villages.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)