NZX Retirement Village stocks to explore in July

New Zealand has many popular retirement villages, which provide top-notch amenities for the elderly population. The sector also contributes to the economic development of the nation as it presents investment prospects and employs dozens of people.

Recently, South Waikato District Council announced that property developer Tim Bartells, who was born and raised in Putāruru, intends to build 254 retirement village villas worth $200 million neo- Zealanders by October 2022.

Such a massive project would also encourage economic gains in the region. There would be job opportunities from construction to earthmoving for many people.

Let’s take a look at 3 retirement village stocks listed on the NZX – RYM, ARV and SUM.

Ryman Healthcare Limited (NZX: RYM)

Established in 1984, Ryman Healthcare Limited gave notice in June 2022 of holding its annual meeting of stakeholders on July 28. Due to the COVID-19 pandemic, ASM would also be accessible online and offline.

Earlier, Ryman Healthcare told the market of plans to build a NZ$220 million retirement village in Tāupo. The village would have a care center providing hospital care and dementia care in addition to serviced apartments and townhouses.

By the end of the market session, Ryman Healthcare was up 2.73% at NZ$9.04.

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Arvida Group Limited (NZX: ARVs)

With 35 retirement villages in the New Zealand region, Arvida Group Limited notified the first week of July that its long-term incentive plan for the 2019 tranche was vested. This tranche extended over a period of three years, from April 1, 2019 to June 13 of this year.

Approximately 375,608 ordinary participations were issued on July 5, 2022.

These LTIs are performance share rights issued after each exercise report to reward executive members, with improved stakeholder value over three years. When acquired, it allows its holder to obtain a stake in the Arvida Group at zero price.

After the close of the trading session, Arvida Group was flat at NZ$1.43.

Summerset Group Holdings Limited (NZX: SUM; ASX: SNZ)

Operating since 1997 with 33 retirement villages under its umbrella, Summerset Group Holdings Limited reported Q2 2022 metrics a few days ago, namely occupancy rights sales.

For the second quarter ended June 30, 2022, Summerset Group reported 232 sales (new sales – 122; old resales – 110). As a result, total sales for the first quarter of 2022 are 511, which is the second-best first half in the company’s history.

Demand and sales for Summerset Group villas increased during the first half. Summerset Group is on track to deliver homes around FY22.

On July 14, Summerset Group closed the trading session unchanged at NZ$10.25.

At the end of the line

Since the start of the COVID-19 pandemic in 2020, retirement villages have seen huge demand from the vulnerable elderly population. However, there is still a shortage of these senior home care facilities. Although a work in progress, it is estimated that by 2033, 26,000 fresh village units would be added to New Zealand, according to market reports.

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