Originally Posted by
SparkyTheClown
No - Ryman make it clear that there are unrealised earnings and underlying earnings. This is not odd, rather it reflects Ryman's business model which is a mixture of property and healthcare.
Unrealised earnings reported at $69m. This includes valuation gains in the value of their retirement village units. However, this is not actually cash, and therefore can be subjective, since is it, of course, unrealised.
Then, there are the underlying earnings, which we should focus on. This is the lesser figure of $48 million, which reflects all parts of the their business in healthcare, new unit sales and resales of existing units (at higher prices). However, it doesn't include any of the valuation increases for units currently tenanted by Ryman residents.
The underlying earnings are key for Ryman. The higher unrealised gains are useful to see, because they show what Ryman COULD earn in the future over time from property sales/re-sales, and of course enable Ryman to borrow more money (they don't need to), but investors should concentrate on the underlying earnings which indicate how the business is doing, rather than macro-economic property movements.