New Zealand’s largest listed retirement company cited the “challenging” housing market in declaring net profit down 4 per cent and downgrading its profit outlook.

Ryman Healthcare’s reported net profit after tax fell 4 per cent from $193 million a year ago to $186.7m for the six months to September 30.

The company reported $139m underlying profit, up slightly on the $138m it made at this time a year ago.

Total revenue rose from $274m to $322m.

But when house prices drop, people are more reluctant to sell and buy into a retirement village, so Ryman felt the pinch during the last half-year.

It sold fewer places.

“The real estate market has been through a challenging period and the retirement sector has not been immune from this. This was relative to a buoyant first half last year and has resulted in booked sales of occupational rights agreements of 699, down 9.5 per cent on the prior corresponding period,” the company said.

Chief executive Richard Umbers said the result was delivered during tough market conditions, including a subdued housing market for the majority of the period.

“While our financial results are steady on the prior year, we continue to make progress on resetting the business and executing the strategy which was communicated at the time of the equity raise,” he said, referring to the $902m capital raise.

Village occupancy is up 2 per cent to 96 per cent and is back to pre-Covid levels.

Net interest-bearing debt stands at $2.47b, up from $2.3b in March. Gearing of 33.6 per cent sits within the company’s medium-term target of 30-35 per cent.

On the outlook, the company said underlying profit for the full year was now expected to be in the range of $300m-$330m, when it was previously forecast to be $310m-$330m.

“This wider range reflects the ongoing levels of market uncertainty and dependency on sales in the new year,” the company said.

Shareholders will get no interim dividend for the first half of the 2024 financial year.

Shares are trading down 16 per cent annually near $5.30, giving a market capitalisation of $3.6b.

Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.