18 / 96
14
Towards a diversified
range of investments
The 2016 financial year saw significant
steps towards our diversification strategy
with the purchase of a key dairy farm
at Tauhei adding to the tribal whenua,
and a 50 percent sale of The Base
to Kiwi Property confirmed by year’s
end. Resource consents were gained
to operate an inland port at Ruakura
and 2016 was a year of renewal for the
governance and leadership of TGH.
For several years now TGH has recognised the need
to diversify the tribe’s investments.
TGH will be able to secure more puutea, more jobs
and more whenua for Waikato-Tainui by holding a
wider spread of investments. 2016 saw us take the next
carefully considered step on this journey, following a
year of discussion within the tribe and a competitive
nine months sale process. Part of the $192.5 million
from the The Base has since been used to reduce debt
($100.5 million) and pay the tribe up front for the long-
term lease of the land ($46 million).
Taunga Tahua
Financial Performance
Tainui Group Holdings (TGH) and Waikato-Tainui
Fisheries (WTF) increased returns in 2016, compared
to the year before.
The net profit for TGH and WTF was $56.8 million, up
66 percent from 2015. Net profit is a combination of
net operating profit plus unrealised gains or losses,
including revaluations of assets. Over the past year
a number of our commercial properties and land
holdings went up in value amid a strong commercial
and residential property market fuelled by lower
interest rates.
TGH and WTF paid a combined dividend of $13.5
million this year. This was 8 percent more than the
2015 dividend. TGH has paid total dividends of $130
million since it was set up in 2002 to support the tribal
objectives for Waikato-Tainui.
The value of total assets as at 31 March 2016 was
$921.4 million, up $45.9 million from the same time
last year.
The return on equity for FY2016 was 9.8 percent.
This was well above last year’s figure of 6.4 percent.
TE PUURONGO AA
TAINUI GROUP
HOLDINGS
SIR HENRY VAN DER HEYDEN AND CHRIS JOBLIN
Some of the TGH team, pictured at Hangawera Station