Ryman Healthcare has lowered its underlying profit guidance for the 2024 financial year to be in the range of $265 million to $285m.
This is a significant decrease from the previous guidance of $300m to $330m.
The change in guidance is primarily attributed to lower volumes on new sales of occupation right agreements (ORAs).
Ryman now expects to sell around 218 ORAs, compared to the previous assumption of 273 ORAs. The company also cited lower average margins on the resale of ORAs. Ryman's chief executive, Richard Umbers, expressed disappointment with the projection and explained that sales would be deferred into the 2025 financial year due to market conditions and the expected phasing of main buildings.
The retirement village operator anticipates portfolio growth and net debt levels to be at the lower end of its guidance.
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