Highlights
- Ryman Healthcare recorded 325 retirement living occupation right agreement sales during the first quarter of FY27, comprising 265 resales and 60 new sales.
- Net resale contract volumes increased 7% compared with the same period last year, supported by demand for serviced apartments from external customers.
- New sales stock declined by 65 units during the quarter to 414 units.
- Occupancy across mature aged care centres remained at 96.1%, unchanged from the fourth quarter of FY26.
- Ryman maintained its FY27 build guidance of 157 to 168 retirement living units and aged care beds, with all planned deliveries expected in the second half.
Ryman Healthcare Ltd (ASX:RYM) shares traded 0.28% higher at AUD 1.78 during the afternoon session on 14 July 2026 after the company released its trading update for the quarter ended 30 June 2026. Despite the modest daily increase, the stock remained down 21.71% over the past year at the time of writing. The update showed stable resale activity, improved net resale contract volumes, reduced new sales stock and continued high occupancy across Ryman’s mature aged care centres.
The trading report presents a mixed but generally favourable operational picture. Demand for serviced apartments and aged care remained supportive, while independent living sales continued to be affected by subdued housing market conditions. Ryman also reaffirmed its FY27 development guidance and expects further progress toward its FY29 cash release objective during the current financial year.
Ryman Reports 325 Retirement Living Sales in Q1 FY27
Ryman Healthcare recorded a total of 325 sales of retirement living occupation right agreements, or ORAs, during the first quarter of FY27.
The total comprised 265 resales and 60 new sales.
For comparison, Ryman completed 337 total ORA sales in the first quarter of FY26, consisting of 264 resales and 73 new sales. This means total sales declined by 12 units year on year, with the reduction driven by lower new sales, while resale volumes remained broadly unchanged.
Of the 325 sales completed in Q1 FY27, 148 related to independent living units and 177 involved serviced apartments.
The independent living total included 35 new sales and 113 resales. Serviced apartment transactions comprised 25 new sales and 152 resales.
The result indicates that serviced apartments represented the larger share of quarterly activity, accounting for more than half of total ORA sales.
Ryman recognises retirement living sales when a resident takes occupation of a unit, which typically occurs around settlement. The reported figures exclude ORAs and refundable accommodation deposits associated with aged care accommodation.
Resale Volumes Remain Consistent With Prior-Year Levels
Ryman reported 265 resales during Q1 FY27, compared with 264 in the same quarter of FY26.
Management said all operating regions contributed to the result, while serviced apartments accounted for a larger proportion of the sales mix.
Independent living resales declined to 113 from 133 a year earlier. By contrast, serviced apartment resales increased to 152 from 131.
This shift resulted in a higher contribution from assisted living-related accommodation, with serviced apartment resales representing approximately 57% of the quarter’s total resale volume.
Although settled resale volumes were almost unchanged year on year, Ryman said net resale contract volumes increased by 7% compared with the prior corresponding period.
The increase in net contracts was attributed to demand for serviced apartments from external customers.
Chief Executive Officer Naomi James said resales had remained stable despite the effect of global events on housing market conditions. She added that serviced apartments continued to perform favourably, supported by targeted sales initiatives and increasing demand for assisted living.
Serviced Apartments Provide the Main Source of Sales Support
The sales mix showed that serviced apartments continued to attract demand across both new sales and resales.
Ryman completed 177 serviced apartment ORA sales during the quarter, up from 148 in Q1 FY26.
This included 152 serviced apartment resales, an increase of 21 units from the same quarter last year, and 25 new serviced apartment sales, up from 17.
By comparison, independent living sales totalled 148, down from 189 in the prior corresponding quarter.
The reduction in independent living activity included 35 new sales, compared with 56 a year earlier, and 113 resales, compared with 133.
Management linked the relative performance of serviced apartments to demand for assisted living. This category sits between fully independent retirement living and aged care, providing residents with additional assistance while allowing them to remain within a retirement village setting.
Ryman said demand for aged care and assisted living remained favourable, while independent living continued to face pressure from subdued housing market conditions.
New Sales Stock Falls by 65 Units
Ryman reduced its new sales stock by 65 units during Q1 FY27, taking the balance to 414 units at the end of the quarter.
The 65-unit reduction included 60 completed new sales and five retirement living units reclassified as aged care accommodation.
Management expects further stock reduction during FY27 as the company progresses toward its FY29 objective of releasing NZD 500 million in cash.
Reducing completed but unsold inventory is an important part of that objective because each settlement converts existing stock into cash and lowers the capital tied up in completed developments.
The company did not disclose the cash proceeds generated from Q1 settlements or quantify how much of the NZD 500 million target had been achieved to date.
However, Ryman said further progress toward the target was expected over the remainder of FY27.
New sales of serviced apartments continued to contribute to the reduction in available stock. The company highlighted Bert Newton Village in Melbourne and Kevin Hickman Village in Christchurch as favourable performers during the quarter.
Independent Living Demand Remains Exposed to Housing Conditions
Ryman acknowledged that subdued housing market conditions continued to affect independent living sales.
Residents entering a retirement village often rely on the sale of an existing home to fund their move. Softer residential property activity can therefore lengthen decision-making and settlement periods, particularly for independent living units.
The company reported 35 new independent living sales in Q1 FY27, down from 56 in the same quarter last year.
Independent living resales also declined to 113 from 133.
Management said it continued to generate sales by providing a wider range of products and pricing options across independent living, assisted living and aged care.
Ryman’s objective is to lift retirement living resale volumes to match unit turnover by the end of FY27.
Reaching that level would mean the company is reselling units at a pace sufficient to offset units becoming available through resident departures or transitions into higher levels of care.
FY27 Development Guidance Reaffirmed
Ryman maintained its FY27 build guidance of between 157 and 168 retirement living units and aged care beds.
All planned deliveries are expected in the second half of the financial year.
The development program includes 60 aged care beds, 71 serviced apartments and between 26 and 37 independent living units.
These units are being delivered at Patrick Hogan Village in Cambridge and Richard Hadlee Village in Christchurch.
The guidance indicates that the majority of planned development is concentrated in aged care and serviced apartment accommodation, which aligns with the areas currently experiencing higher demand.
Ryman did not announce any change to the cost, timing or scope of these projects in the Q1 update.
The company’s decision to maintain its guidance suggests the developments remained on schedule as of 30 June 2026.
Patrick Hogan Pre-Sales Show Early Interest
During the quarter, Ryman released 15 townhouses at Patrick Hogan Village for pre-sale.
Approximately two-thirds of the homes were contracted within the first week.
This implies that around 10 of the 15 townhouses secured contracts during the initial sales period.
The early contracting outcome provides an indicator of customer interest at the Cambridge development, although the company did not disclose prices, settlement timing or the value of the contracts.
Patrick Hogan Village will contribute to Ryman’s FY27 development deliveries across retirement living and aged care.
As the units are currently being marketed on a pre-sale basis, revenue recognition and cash settlement will depend on construction completion and residents taking occupation.
Aged Care Occupancy Holds at 96.1%
Ryman’s mature aged care centres recorded occupancy of 96.1% during Q1 FY27.
This was unchanged from the fourth quarter of FY26.
The company operates approximately 4,700 aged care beds across its portfolio and said demand remained favourable.
High occupancy supports care revenue by keeping a large proportion of available beds in use. It can also indicate ongoing demand for the company’s integrated model, under which independent living, assisted living and aged care services are provided within the same village.
Ryman did not provide a year-on-year occupancy comparison in the trading update. However, maintaining occupancy at 96.1% quarter on quarter indicates that mature care centres continued to operate close to full capacity.
Demand across aged care is an important part of the group’s operating model, particularly as it seeks to grow the contribution from premium rooms and accommodation products.
Premium-Paying Resident Penetration Continues to Rise
Ryman reported further growth in the proportion of New Zealand aged care residents paying for room premiums or capital products.
Combined penetration across the two categories reached 87.1% at June 2026, compared with 85.9% at March 2026.
This represents an increase of 1.2 percentage points over the quarter.
Room premiums are generally paid by residents for additional room features, while capital products may involve accommodation structures that generate upfront or deferred value for the operator.
The increase in penetration indicates that a higher proportion of Ryman’s New Zealand aged care residents were using these premium accommodation options at quarter-end.
The company did not disclose the amount of revenue or cash generated from the increase.
However, higher adoption can support the financial contribution from Ryman’s care operations in addition to standard aged care fees.
Australian RAD Values Exceed AUD 750,000
Ryman also reported growth in refundable accommodation deposit, or RAD, values across its Australian aged care operations.
The average incoming RAD exceeded AUD 750,000 during Q1 FY27.
A RAD is an upfront payment made by a resident for aged care accommodation. It remains refundable under the applicable terms but can provide the operator with a source of capital while the resident occupies the room.
The company did not provide the prior-year or previous-quarter average, so the rate of increase cannot be calculated from the update.
Ryman said it continued to see growth in RAD values in Australia, indicating that newly received deposits were being secured at higher average levels.
The growth supports Ryman’s broader focus on generating cash from its aged care and retirement living portfolio.
Integrated Care Model Supports Product Choice
Ryman Healthcare owns and operates 47 integrated retirement villages across New Zealand and Australia.
The group provides accommodation and care to more than 15,500 residents and employs approximately 7,800 people.
Its villages combine independent living, assisted living and aged care within the same communities.
This structure allows residents to move between different levels of support as their needs change, without necessarily leaving the village in which they live.
The integrated approach also gives Ryman several accommodation categories to offer customers under different housing and financial conditions.
Management said the ability to provide broader product choice and pricing options was helping the company generate sales despite softer conditions in parts of the housing market.
Serviced apartments and aged care have become particularly important within this mix because demand for assistance and care is less directly linked to discretionary housing decisions than independent living.
Demographic Demand Contrasts With Near-Term Housing Pressure
Ryman said demand for aged care and assisted living was supported by demographic trends and increasing scarcity of suitable accommodation.
An ageing population increases the number of people requiring retirement living, assistance with daily activities and aged care services.
At the same time, housing-market conditions can affect how quickly prospective residents can sell their homes and complete a move into a village.
This creates different operating trends across Ryman’s portfolio.
The company’s care centres and serviced apartments are currently recording favourable demand, while independent living sales remain more affected by the external property market.
Ryman’s near-term objective is to improve resale activity while continuing to reduce new sales stock and deliver development units in categories where demand is more evident.
What This Means for Investors
Ryman Healthcare’s Q1 FY27 update showed that resale volumes remained stable, with 265 transactions compared with 264 a year earlier, while net resale contracts increased 7%. Serviced apartments were the main contributor, with total sales rising to 177 from 148, helping offset weaker independent living activity.
The company also reduced new sales stock by 65 units to 414 and maintained its FY27 build guidance of 157 to 168 units and care beds. Mature aged care occupancy held at 96.1%, premium-product penetration increased to 87.1% in New Zealand, and average incoming Australian RAD values exceeded AUD 750,000. However, subdued housing conditions continued to weigh on independent living sales. Investors are likely to monitor whether resale volumes move closer to matching turnover by year-end and whether further inventory reductions support progress toward the FY29 NZD 500 million cash release target.