Ryman Healthcare (ASX:RYM), the trans-Tasman leader in retirement living, announced a sweeping strategic overhaul and a new capital management framework aimed at unlocking value from its $12 billion portfolio.
Speaking at an Investor Day in Christchurch, CEO Naomi James outlined a roadmap to deliver $150 million in sustainable cash flow improvement by FY29, signaling a definitive shift from a period of financial reset to disciplined value creation.
The refreshed strategy centers on a "continuum-of-care" model, positioning the firm to capitalise on a doubling of the 80+ population by 2050.
Key to this financial turnaround is a projected $500 million cash release by FY29, fueled by aggressive land divestments—already totaling $110 million in contracted sales—and a reset of pricing structures.
James noted that as the contract book turns, nearly half the portfolio will shift to more lucrative deferred management fee terms, while aged care earnings are targeted to jump from $15,000 to nearly $30,000 per bed.
Chair Dean Hamilton confirmed the completion of the company's balance sheet reset, paving the way for a return to sustainable dividends in FY28.
At the time of reporting, Ryman Healthcare's share price was $2.41.