1 3
Tainui Group Holdings
Annual Report
2012
The net proft for TGH andWTF was $40 million, up
73% from $23 million last year. This largely refects
the improved operating proft.
TGH’s andWTF’s combined dividend to its
Shareholder of $11 million was up $0.5 million from
2011, and the return on Shareholder funds improved
from 6.7% to 10.3%.
There was little movement in our balance sheet this
year. Total assets at 31 March were up $36 million to
$694 million.
On the plus side, re-valuations recognised Ruakura
advancing as a development proposition over the past
12 months.
also rose in value, now that
is completed and additional resource consents
have been granted. The sale of our
shares for
$57 million gave a capital uplift, though this is now
represented by an increased value of the property in
which we invested the proceeds.
The value of our swap book has fallen into negative
territory, not an unexpected result given the fact that
interest rates remained near historical lows. The value is
of course unrealised, and when interest rates eventually
rise, the book will come back into positive territory.
Borrowings have fallen slightly to $180 million. During
the year TGH took the opportunity to renegotiate its
existing debt facilities. These were increased $50 million
to $250 million in anticipation of upcoming projects.
TGH’s debt is currently budgeted to grow to around
$200 million by the end of the 2013 fnancial year and
$235 million by 2014. This however has to be seen
in the context of expected growth in the value of the
company’s assets. TGH has a stated policy that debt
cannot represent more than 30% of total assets. It is
currently sitting at 26%.
I’d also reiterate the points I made in last year’s report,
that apart from retained earnings, debt is currently
the only source of capital for the company. We are
also in the fortunate position to have been funding
developments over the past three years during a
period of low borrowing costs.
Portfoliovalue by sector
TGH +WTF
Investment properties
81
%
Fishing
5
%
Hotels
11
%
Development
3
%
34
18
15
12
Trading Non-Trading
-60
-45
-30
-15
0
15
30
45
60
19
21
8
(40)
2008 2009 2010 2011 2012
$M
18
16
Net profit after minority
interest
TGH +WTF
Net operating profit after
minority interest
TGH +WTF
0
2
4
6
8
10
12
14
16
18
20
2008 2009 2010 2011 2012
$M
22
21
15
16
12
18
Net profit after minority
interest
TGH +WTF
-30
-15
0
15
30
45
60
0.5
39
0.4
23
(1)
(27)
14
38
34
TGH WTF
2008 2009 2010 2011 2012
$M
Total Assets
TGH +WTF
0
175
350
525
700
13
14
484
522
TGH WTF
2008 2009 2010 2011 2012
$M
13
516
14
13
680
645