Orākei Trust asset growth sets new record for latest year

While we are pleased with the resilience and underlying strength in our asset portfolio, this growth reflects largely unrealised valuation gains. Trust statement

Tangata whenua of central Tāmaki Makaurau, Ngāti Whātua O¯ rākei Trust, has pushed up total group assets 6.4 per cent annually.

It says the growth from $1.55 billion to $1.65b in the latest year has set a new record.

“The financial result for the year ended June 30, 2022, is our largest on record and provides a strong platform to deliver the ambition set out by our whānau in the long-term plan,” the trust said in accounts just issued.

The business has large landholdings around Te Tōangaroa Quay Park in central Auckland and has enjoyed property revaluation rises.

Assets include leasehold land beneath the Spark Arena and the three Scene apartment buildings.

Accounts for the June 30, 2022 year showed Ngāti Whātua O¯rākei Trust property assets previously valued at $1.41b now valued at $1.44b.

“Our asset growth reflects the valuation of our investment properties, which have increased in value 54 per cent since 2017,” the report — out this month — said.

The collective affairs of Ngāti Whātua O¯ rākei are run by the trust and subsidiaries Whai Māia as the social arm and Whai Rawa as the commercial arm. Trust accounts were announced last week.

The commentary with the accounts said the largest strategic asset, Te Tōangaroa (Quay Park), underpinned property revaluation rises.

“While we are pleased with the resilience and underlying strength in our asset portfolio, this growth reflects largely unrealised valuation gains. We are focussed on ensuring our assets are positioned for growth over the long term — to realise this value for future generations,” commentary added.

The pandemic took a toll on North Shore housing developments.

“Due to Covid-19 related restrictions, the completion and settlement of the OneOneroa properties (North Shore development) were delayed,” the business said.

Total debt now stands at $238m, up on the $222m last year, “reflecting the investment in our development programme on the North Shore”, the business said.

Borrowings are conservative standing at just 16 per cent.

The Herald reported how last year’s bottom-line profits were boosted by nearly $250m asset growth in the powerhouse real estate¯ asset class, where Ngāti Whātua Orākei holds many of its assets.

Accounts for the year to June 30, 2021, showed a $243 million net gain from its investment property assets, up on the far more conservative $43m gain the previous year for the tangata whenua of central Tāmaki Makaurau.

Investment property assets are now valued at $1.4b, up from $1.1b previously and the iwi is conservatively geared against rising interest rates with only a 16 per cent loan-to-value ratio.

But pre-tax profit dropped from $254.5m last year to $91.2m this year. That was due to real estate revaluations rising $243.7b in value in 2021 but only $89.2m in the latest year.

Total revenue also fell from $73.4m to $64.8m.

A net pre-tax loss was declared of $4.5m, down on last year’s $5.4m net profit.

The trust said there were 6575 members, with 1293 living overseas.

It issued $1.2m in education grants and scholarships, $714,000 in te reo and cultural support, and $252,000 in kaumātua support.