** Shares of New Zealand's Ryman Healthcare RYM.NZ fall 1% to NZ$2.89, down 33.9% YTD

** Macquarie lowers FY26, FY27, and FY28 underlying EPS for the hospital and retirement facilities owner by 25%, 7% and 5%, respectively, on removing development profits from its estimates given no disclosure from co

** But notes improvement in H1 cash flows due to cost outs, and upgrades PT to NZ$3.01 from NZ$2.82 based on this

** Flags pressured margins in H1 due to a flat house price environment and price adjustment to improve sales rate, and sees the trend continuing in H2, saying co is still finding a balance between pricing and sales rates

** Says although contracting rates have lifted, Macquarie's outlook uncertain around when stock can be released and co's medium- to long-term growth

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))