We are pleased to share the Group’s financial year-end, marked by change and a clear vision for the future. As we continue to build on our strong base for high performance and increase the resilience of our portfolio, our commitment to excellence has never been more apparent.

In line with our goals, work continues to bring the concept of an Intergenerational Perpetual Fund to life. This year, Quayside achieved a normalised NPAT of $57.8 million. Our non-portfolio, a diversified fund of traditional financial and alternative asset classes registered a positive unrealized result of $5.4 million on a normalized basis ($16.3m including one-off items), alongside the strong performance of our listed assets, managed private equity funds, and property portfolio. It’s important to note that this performance reflects only the investment portfolio and excludes any dividend distributions or retained earnings from the Port, as well as direct fees and Quayside’s internal costs. The Non-Port Portfolio has exceeded expectations, performing above our benchmark and return hurdle of 7% on a 5-year rolling basis. Results this year also included impairments related to the direct private equity portfolio and the Rangiuru Business Park overhang, while excluding one-off impairments and the receipt of Provincial Growth Fund (PGF) money.

The Port of Tauranga continues to be a key driver within our investment activities, contributing to 77% of our overall results. The Port of Tauranga FY24 group profit was $90.8 million, down from $117.1 million in the previous year, with operating costs increasing by 3.8%. The total ordinary dividend declared was $14.7 cents/share, slightly lower than last year’s $15.6 cents. Notably, total trade through the port was 23.6 million tonnes, a 4.2% decrease from the prior year, with imports decreasing by 13.4% and exports experiencing a modest 0.9% increase. However, the second half of the year showed significantly higher volumes.

As we reflect on the successes of the past year, it’s clear that collaboration and strategic foresight will be key as we optimise our position for the region. We are proud of our achievements and are excited about the future as we work towards our vision of becoming a high-performing, intergenerational fund. Together, we will navigate the challenges ahead, ensuring that Quayside remains a vital asset for our community.

Glossary:

• FINCO: Short for ‘Financial Contributions’. If a growing town needs additional infrastructure, or an upgrade of existing infrastructure to accommodate the growth, and this infrastructure needs to be funded. The Resource Management Act provides for a local authority to impose a FINCO on a new development to pay for its share of Council infrastructure that is already available or will become available as development occurs.
• Overhang: amount of FINCO allocated to third-party landowners the recoverability of which does not fully depend on Quayside’s decisions. Refer to section 11 of the Western Bay of Plenty Operative Plan for further detail.
• Normalised: non-GAAP measure that involves adjusting non-recurring expenses or revenue so that they reflect the usual transaction of a company.
• Unrealised results: changes (gain or losses) occurred to the value of an investment not sold at reporting date in the financial year.