Page 34 - PNMRT AnnRpt 2020

PALMERSTON NORTH MA¯ ORI RESERVE TRUST
NOTES TO AND FORMING PART OF THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2020
13. RENTAL INCOME
Rental income from investment property is recognised in profit or loss on a straight-line basis over the term of the lease.
Leases are operating leases and are classified as an operating lease when the Group substantially maintains all the risks and rewards incidental to ownership of the investment property.
2020
Direct
Gross Rental Property Net Rental
Income Expenses Income $$$
Tikei Mall
Nash Street Development Countdown Supermarket
Hostel Accomodation
Thorndon Quay – Haukawakawa LP Other
1,197,657 1,727,497 1,245,500 1,108,842
204,948 1,384,547
$6,868,991
Gross Rental Income
(290,345) (315,047) (97,355) (671,977) (150,348) (837,202)
$(2,362,274)
2019
Direct Property Expenses
907,312 1,412,450 1,148,145
436,865 54,600 547,345
$4,506,717
1,259,981 1,422,559 1,245,500
981,604 145,004
Net Rental Income $$$
Tikei Mall
Nash Street Development
Countdown Supermarket
Hostel Accomodation
Thorndon Quay – Haukawakawa LP
Other 1,592,013
$6,646,661
(339,947) (352,580) (96,608) (613,371) (60,941) (712,767)
$(2,176,214)
920,034 1,069,979 1,148,892
368,233 84,063 879,246
$4,470,447
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The Group has a number of operating leases for both commercial and residential property related to its investment properties. Where possible the Group always endeavours to sublease vacant spaces on short-term lets. Rental income recognised under non-cancellable operating leases during the year was $6,868,991 (2019: $6,646,661).
Palmerston North Ma¯ori Reserve Trust
ANNUAL REPORT 2020