3 NZX Retirement Village stocks to explore in July

New Zealand has well-run and well-equipped retirement homes. They offer a sense of community, safety and quality activities.

However, for an investor, investing in retirement homes may not be the best investment option. They can have some downsides, like having no resale value and very high service fees.

In this context, let’s discuss three popular NZX-listed retirement village stocks.

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Ryman Healthcare Limited (NZX: RYM)

RYM is a popular retirement village operator in New Zealand. In its FY22 annual result announced in May, it reported underlying profit of NZ225 million, a jump of 13.6%. She also announced that she was developing 4 new sites. More recently, he said he was creating a new retirement village in Taupo at a cost of NZ$220 million. He plans to build an integrated village with all the healthcare structures. The new village is likely to create new jobs as it will employ 200 construction workers.

On July 5, RYM was down 0.67% at NZ$8.90, at the time of writing.

Oceania Healthcare Limited (NZX:OCA; ASX: OCA)

OCA is one of the main operators in Oceania. It has 44 villages. At its annual meeting on June 23, several resolutions were adopted by shareholders such as Rob Hamilton and Peter Dufaur elected directors of the company. Shareholders also approved the resolution regarding the directors’ token pool, which was increased from NZ$762,500 to NZ$896.00 with effect from April 1, 2022. This meeting also took the nod from shareholders on the right of the directors to fix the remuneration of the auditor of the company.

On July 5, the stock was trading at NZ$0.910.

Radius Residential Care Limited (NZX:RAD)

RAD is also a New Zealand-based aged care provider. It announced its annual results in May, during which it said its total revenue was up 7.8% to NZ$135.9 million, with NPAT up 56.8%, to 2 NZ$.7 million and underlying EBITDA of NZ$10.7 million, up 2.3%. The Company also rewarded its shareholders with a final cash dividend of 0.55 cps, bringing the total cash dividend to 1.05 cps. RAD said it has expansion plans with Brownfield developments at four sites.

On July 5, the stock was trading at 0.390, at the time of writing.

At the end of the line

The retirement village industry is a booming sector. It is expected to increase in the coming years as the elderly population grows. New Zealand’s aging population and rising levels of dependency will be key drivers for the growth of nursing homes and nursing homes.

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