Ryman resale momentum builds as occupancy strengthens

Resales reach their strongest level in eight quarters

Ryman Healthcare (ASX:RYM) sold 379 retirement living occupation right agreements in the three months to 30 September, with resales doing most of the work. The 312 resale agreements were up 14% on the same period last year and represented the company’s strongest resale quarter in eight quarters, while new sales contributed 67 agreements.

The momentum was not limited to completed sales. Net resale contract volumes, which Ryman describes as a lead indicator of future sales, rose 11% year on year in Q2 FY27 after increasing 7% in the first quarter. The company said activity was broad-based across independent and serviced retirement units, including in Auckland and Victoria.

That progress provides an operating read-through to Ryman’s refreshed earnings strategy, which set targets for recurring earnings growth and cash release by FY29. Chief executive Naomi James said the company was making progress towards matching resales with turnover by the end of FY27, although housing market conditions remained soft.

New-sales inventory continues to shrink

Ryman reduced its new retirement living stock by 67 units during the quarter, leaving 347 units available. The company said the reduction reflected 127 new sales and the reclassification of five retirement living units to aged care; total stock has fallen by 132 units since 31 March 2026.

The inventory decline has occurred without new stock deliveries in the first half, as planned. The new main building at Christchurch’s Richard Hadlee Village opened in October, adding 77 retirement living units and 65 care beds. Ryman said the 142 delivered units and beds leave it on track for FY27 build guidance of 157 to 168 retirement living units and aged care beds.

Aged care occupancy rises across New Zealand and Australia

Total aged care occupancy reached 94.0%, 3.3 percentage points above the same quarter last year. Recently developed care centres drove the increase, with Kevin Hickman Village in Christchurch now full 15 months after opening.

Mature aged care occupancy was slightly lower at 95.4%, compared with 95.7% a year earlier, which Ryman attributed to a more acute period of winter illness in some New Zealand villages. Its five mature Victorian aged care centres moved the other way, reaching 97.9% occupancy from 96.1% a year earlier.

Product changes target flexibility and affordability

Ryman said around one-third of new serviced apartment applications at villages where Ryman Select has been rolled out chose the product, which gives residents more choice and flexibility in services. From 1 September, the expanded Resident Fund in New Zealand also allows residents to use capital from their former retirement living unit towards care accommodation charges and base care fees when required.

The figures remain operating indicators rather than a financial result: the update does not include revenue, earnings, cash flow or balance sheet figures. The next test is whether the stronger resale contract book converts into settlements while Ryman continues to reduce inventory and deliver its FY27 development program.