Page 55 - PNMRT AnnRpt 2020

FINANCIAL REPORT
Aaron Titter presented the financial report for the year ended 31 March 2019.
Total Assets
The total assets for the Trust is now $103 million as is a huge achievement. In 2012 it was $78m. The Trusts investment properties make up $85.6 million of this amount and Metlifecare $10.4 million. The balance is other assets such as cash and loans to related entities.
Debt to Equity Ratio
The percentage of debt to total assets is continuing to decrease year on year. While bank debt has increased, the overall asset base of the Trust has increased more which means the percentage of debt to total assets has decreased.
Statement of Financial Position
A summary of the statement of profit and loss is shown on page 20 of the annual report. The total revenue from the Trusts properties increased by approximately $360,000. This is attributable to buying Thorndon Quay rental income and an increase in hostel income. This detail can be seen on page 32 of the annual report. At the same time the direct property expenses increased by approximately $415,000 across all rental properties. As a result, the net income from properties decreased by approximately $55,000.
Administration expenses increased from 2018 to 2019. The detail of what comprises the administration expenses is shown in note 6 on page 33 of the annual report, but the main two attributing expenses were owners meetings as a result of having both an annual general meeting and a special general meeting in February, and legal fees due to increased investment activity.
Net financing costs of the Trust continue to decrease as result of higher interest income from the Wharewaka loan. We have lent the Wharewaka money and it is paying interest on the loan. This leaves the Trust with an operating profit of nearly $2.49 million for 2019 versus $2.62 million for 2018.
After deducting income tax on the profits the net surplus after tax of $7.51 million versus $6.67 million for 2018. This is a really good result for which Trustees and management should be congratulated.
The statement of financial position is basically what the Trust owns less what it owes. Total current assets is $3.56 million for 2019. This included approximately $900k of cash reserves. Money receivable from the Ward Street properties sold that were received after balance date.
Palmerston North Ma¯ori Reserve Trust
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ANNUAL REPORT 2020