Upload
others
View
3
Download
0
Embed Size (px)
Citation preview
Wellington Tenths Trust Annual Report 2011-2012
Annual Report Year Ended March 31, 2012
2
Wellington Tenths Trust Annual Report 2011-2012
Front Cover Photo: view over Wellington from Te Ahumairangi Lookout
Wellington Tenths Trust Annual Report 2011-2012
Contents
Page
Contents 3
Notice of Annual General Meeting 5
(Notice of meeting was sent previously)
Minutes of 2011 Annual General Meeting 7
Trustee Report 13
Total Assets 19
Statistical Information 20
Financial Statements for the Year Ended March 31, 2012 21
1. Statement of Financial Performance 21
2. Statement of Movements in Trust Capital 22
3. Statement of Financial Position 23
4. Statement of Cash Flows 25
5. Notes to the Financial Statement 27
Audit Opinion 39
Proxy Form 41
Contact Details (inside back cover) 43
4
Wellington Tenths Trust Annual Report 2011-2012
5
Wellington Tenths Trust Annual Report 2011-2012
Notice of Annual General Meeting
Notice is hereby given that the Annual General Meeting of the beneficial owners of the Wellington
Tenths Trust will be held at Pipitea Marae, Thorndon Quay, Wellington on Saturday, September 22,
2012. The meeting will commence at 10am. Registration desks will be open from 8.30am with lunch
being available at the conclusion of the meeting.
Preliminary Agenda
1. Apologies
2. Minutes of 2011 Annual General Meeting
3. Chairman’s Report
Resolution—Dividend Payment (if any)
4. Property Report
Property sales—128 Rintoul Street
5. Financial Report
Resolution—Financial Statements
Resolution—Appointment of Auditor
6. Election of Managing Trustees
7. General Business
Minutes of the Previous AGM Meeting The Minutes of the 2011 Annual General Meeting held on Saturday, September 17, 2011 are produced
on pages 7 to 12 of this Annual Report.
Proxy Form
A proxy form can be found at page 41 (this can be cut out and returned).
Transportation If you require transportation from Taranaki you should contact the Executive Office on
(04) 473-2502 in the first instance. They will coordinate all transport requirements. Last
requests for seats will be taken on Friday, September 14, 2012. Limited car parking is available in front
of the marae.
Notice Regarding Election of Managing Trustees The terms of Wellington Tenths Trust Trustees Jeanie Hughes, Ngatata Love and Mark Te One expire at
the Annual General Meeting. These Trustees are eligible for re-election. Two vacancies exist due to the
resignations of Dr Tony Ruakere and Wayne Mulligan.
Other nominations for Trustee positions must be lodged with the Executive Office in writing by 4pm,
Friday, September 14, 2012. Nominations must include the name, address and shareholder number of the
proposer and seconder (each of whom shall be a beneficial owner or a descendant of a beneficial owner)
and be signed by the nominee as willing to stand. The nominee must be a beneficial owner or a
descendant of a beneficial owner.
Managing Trustees
30 August, 2012
6
Wellington Tenths Trust Annual Report 2011-2012
7
Wellington Tenths Trust Annual Report 2011-2012
Minutes of 2011 AGM Saturday, September 17, 2011
Pipitea Marae, Wellington, 10am
Trustees Present
Sir Ngatata Love (Chairman), Neville Baker, Piki Car-
roll, Jeanie Hughes, Grant Knuckey, Peter Love, Wayne
Mulligan, Liana Poutu, Mark Te One
Advisers Present
Bruce Farquhar, Keith Hindle, Liz Mellish, Nigel
Moody, Euan Playle, Kathleen Thompson, Aroha
Thorpe, Ben Westerman, Yvonne Westerman
Support Staff Present
Ritihia Hailwood, Shamia Shariff, Erini Shepherd
Members Present
Hariata Baker, Dawn Bennett, Erueti Brown, Zubin
Brown, Dr Leo Buchanan, Eddie C, Richard Carroll,
Marama Cock, Melvyn Cock, Josephine Coffey,
Heather Coleman, Marlene Dawson-Love, Allan E,
Jacqueline Ede, Michael Ede, Vennessa Ede, Karena
Efaraimo, P Enoka, Judy Erb, Stewart Erb, Ria Erskine,
Malcolm Gaylard, Robert Gaylard, Wiki Gear, Martha
Gilbert, Mike Gilbert, Hera Hailwood, Ripeka Healey,
Hannah Heka, Carolyn Higgs, Lee Hunter, R Huntley,
Mana Huntly, Ebony Jenkins, Ngaire Jenkins, Mana
Jenkins, June Jackson, Sam Jackson, Diane King,
Ngawai King, Wayne Kingi, Frances Kingi-Katene,
Alice Love, Catherine Love, Honiana Love, Karine
Love, Lennox Love, Maria Love, Morrie Love, Tolly
Love, John Lynch, Siobhan Lynch, James M, Kathleen
Maaka, Raymond Marshall, Marina Mason, Lois
McNaught, Rosemary Mcnaught, Paul Michalanney,
Wikitoria Michalanney, A Montgomery, Kamiria
Mullen, Bill Nathan, Donas Nathan, Miles Nathan,
Morgan Nathan, William Owen, Hemi P, Ani Parata,
Donna Philips, Mataria Priest, Pauline Purdue, Ina
Rangiwhetu, Ann Reweti, Sydney Rewiti, Queenie
Rikihana, Alice Riwaka, Jean Ruakere, Graham S,
Austin Silbery, Warren Skerrett, Raymond Smith, Tey
T, W Taiaki, Piri TePaki, C Thomas, Ake Tiaki, Riria
Utiku, Tim Wagner, Rewa Walker, Tamsin Ward-
Smith, John Warren
Member Apologies
Brendon Baker, Melanie Baker, Tracey Baker, Sandra
Bishop, Gabrielle Brown, Mark Butler, Shona Coffey,
Lois Coleman, Takiri Cotterill, Karene Eketone, Judith
Evans, Sally Fenwick, Kevan Gooch-Te Paki, Vaughan
Gooch-Te Paki, Reeni Graham, Marae Hargreaves,
Vicki Hollywell, Pikiraukura Hunia, Michael Jenkins,
Mike Jenkins, Dinah King, Paula King, Kereana Leith-
Te Paki, Amohia Love, Ben Love, Charmaine Love,
Dan Love, Hami Love, Marama Love, Tenakee Love,
Tui Love, Matthew Love-Parata, Hine Love-Thompson,
Huia Maeke, Cecilia Mana, Steven Manuera, Julia
Marino, Emily Maru, Miriama May, Nora McAuley,
Petal McNaught, Michelle McNaught, Warrick
McNaught, Mary Nicholson, Marie-Nui Biss, David
Rangiwhetu, Karen Ramsbottom, Neti Reiri, Maraea
Ropata, Rangi Ross, Julie Shaffer, Mereana Smith-Te
Paki, Georgina Taiaki, Wi Tako Love, Maikara Tapuke,
Amie Te One Atamira Te Paki, Lester Te Paki, Fran Te
Whiwhia Kingi Whanau Trust, Tracey Wairau, Aroha
Wallace, Rangi Wallace, Aroha Waller, Christina
Wanoa, Tuti Wetere
Sir Ngatata Love welcomed everyone to the Annual
General Meeting and extended an invitation for
members to go to the Fanzone and enjoy the
atmosphere of Rugby World Cup 2011. Sir Ngatata
advised that representatives from the Maori Land Court
are in attendance to assist owners with any queries they
may have. He also advised that following the
conclusion of the formal business of the meeting a brief
presentation will be given which is a little different.
Sir Ngatata spoke about the passing of Ta Paora Reeves
and acknowledged the outstanding contribution Ta
Paora made across the nation. He had resigned from the
Trust in April as he felt all his activities were having an
impact on his health. He did not however know at the
time the seriousness of his illness.
Sir Ngatata then briefly introduced the Trustees and
support personnel present before giving an overview of
the agenda for the meeting. He advised that beneficial
owners are required to approve three sets of minutes
Last year’s Annual General Meeting
Trust General Meeting held in March 2011 – where
approval was given for the sale of 18 Russell
Terrace
Joint General Meeting held in March 2011 – where
approval was given for the establishment of a
tangihanga fund
Minutes of the 2010 Annual General Meeting The Minutes of the 2010 Annual General Meeting had
been distributed in the Annual Report. The Chair called
for any further alterations and none were received.
Resolution
It is hereby resolved that owners accept the
Minutes of the Annual General Meeting held on
September 11, 2010 as a correct record of
proceedings.
Moved Jean Ruakere
Seconded Wikitoria Michalanney
Carried unanimously
8
Wellington Tenths Trust Annual Report 2011-2012
Minutes of General Meeting, March 12, 2011
The Minutes of the General Meeting held on March 12,
2011 had been distributed in the Annual Report. The
Chair called for any further alterations and none were
received.
Resolution
It is hereby resolved that owners accept the
Minutes of the General Meeting held on March
12, 2011 as a correct record of
proceedings.
Moved Frances Kingi-Katene
Seconded Dr Catherine Love
Carried unanimously
A query was raised over the start time of the meeting
and Sir Ngatata advised that the meetings had been
conducted back-to-back with no interval between,
therefore the start time was correct.
Ina Rangiwhetu asked if a review of the tangihanga
fund operation would be provided to the meeting and
Sir Ngatata advised that a brief report will be given, but
as it has only been in operation for such a short time
there is not a lot to report.
Minutes of the Joint General Meeting, March 12,
2011
The Minutes of the Joint General Meeting held on
March 12, 2011 had been distributed in the Annual
Report. The Chair called for any further alterations and
none were received.
Resolution
It is hereby resolved that owners accept the
Minutes of the Joint General Meeting held on
March 12, 2011 as a correct record of
proceedings.
Moved Billie Owen
Seconded Jean Ruakere
Carried unanimously
Year in Review – Chairman and Trustees’ Report
In reviewing the year Sir Ngatata Love told beneficial
owners that it had been a positive one for the Trust
despite the uncertainties in New Zealand and
internationally, the removal of depreciation on
investment properties has impacted the Trust’s results.
Highlights for the year have been:
Opening of Pipitea House on Pipitea – the Trust’s
largest asset
Positive working relationships between the Trust,
the Settlement Trust and the Palmerston North
Maori Reserve
Positive relationships with central and local
government
Opening of Te Raukura on Waitangi Day 2011
Sir Ngatata then noted the following:
the reduction in property values has matched the
general and regional trends across the entire
property market in Wellington. The reduction has
meant that the Trust has experienced an overall
deficit of $752,412
owners equity remains strong at 75%
total assets now stand at $52,410,852
Hikoikoi – Executive Office
Keith Hindle spoke briefly to this slide noting that the
staff are now very comfortable at Hikoikoi, which is a
very different story to when the idea was mooted and
they did not want to leave Pipitea Street. The
development of the facilities at Hikoikoi, particularly
Manaia has meant a wide array of people use the
facilities. An increased demand for educational
initiatives means consideration is being given to
extending the facilities even further. Keith also noted
that changes within the Executive Office have occurred
and have had a positive impact.
Village at the Park
Developments at Village at the Park are continuing as
per the medium and long term plans of the joint venture
partners. Sir Ngatata Love noted that the Trust’s
investment in Village at the Park is $9,730,537.
Operations of the village are in two categories:
1. Village at the Park Care Limited which manages the
hospital, dementia unit and rest home; and
2. Village at the Park Lifecare Limited which is
responsible for the villas, apartments and
community centres. The demand for services across
the village is high. It was noted that there is a
shortage of dementia care facilities both locally and
nationally. Care facilities at the village are broken
down as:
9 rest home beds
33 dementia beds
39 hospital beds
Currently of 36 villas, three are available, of 33
apartments, 12 are for sale with 8 of those having
conditional offers in place. There is 16,000m2 of vacant
land which has been tidied up and grassed for a nicer
appearance. Plans are being finalised for the new large
community centre which is expected to get underway in
early 2012. The centre will include a swimming pool,
spa, gym, bowls, TV room, chapel, pool/games room,
library, computer area, reading room and offices.
Residents of the Village have recently held their Annual
General Meeting and it is pleasing that residents are
happy.
Little Wonders Child Care
The Hurst Group, the joint venture partner with the
9
Wellington Tenths Trust Annual Report 2011-2012
Trust at Village at the Park have developed a number of
high quality child care centres called Little Wonders.
One of these is now under construction on surplus land
at Village at the Park (Rintoul Street) and is due to open
in mid-January 2012. The centre will be able to cater
for up to 100 children. The facility will provide a
separate income stream for the joint venture and will
add to the economic well-being of Village at the Park.
Taranaki 217
Mark Te One spoke briefly to this matter advising that
the directors of the company are Sir Ngatata Love, Peter
Love and himself. This accommodation facility
continues to be a profitable operation for the Trust with
very good occupancy levels. Maintenance matters are
undertaken as a matter of course. The facility was used
to accommodate people who travelled for the opening
of Te Raukura in February.
Capital Hill – Massey University
Keith Hindle spoke to this matter and advised that the
valuation for the property is $6,565,000 a slight
increase on 2010 of $100,000. The valuation is based
on historical lease rental and negotiations are
continuing with Massey University over a new lease
agreement. Massey University have advised that they
have the historic documents and these will be provided
to the Trust so a full analysis can take place. Currently
the Trust’s share of the rent is $365,000 per annum.
Pipitea House
This iconic development for the Trust was granted
resource consent in December 2008 with work starting
in early 2008. The building was blessed in December
2010 and the tenant took up occupation in March 2011.
This development was undertaken with a joint venture
partner, Redwood Group and the Trust’s share in the
joint venture is 25%. The Trust’s initial investment was
the land valued at $9,000,000 at the time. The Trust’s
investment has risen to $9,726,799 as at March 31,
2011. Some details of the building are:
Nine levels
Gross floor area of 16,009m2
Trust’s expected cash flow in first year is $540,000
5-star Green rating
Designed in accordance with appropriate codes
Recognised locally and nationally as an important
contribution to design, functionalist and “green”
status
Finalist in New Zealand Property Council awards
2011 in the commercial building category and the
green building category
Lambton Quay Development
The resource consent has been declined due to height,
bulk and mass being higher and larger than considered
reasonable. This is disappointing as the project had
strong support from Wellington City Council.
Consideration is being given as to whether an appeal
will be lodged or not. The proposed development is
likely to have to secure new tenants but there is strong
interest from both government and corporate entities for
new premises.
Questions from the floor
Eddie Churton commented that there is a ‘glut’ of office
space in Wellington so will the Trust wait until they
have secured a tenant before undertaking a development
on the site?
Sir Ngatata Love responded that while there is a lot
of space available in Wellington it is not of good
standard and tenants are wanting new space of a
high standard as a consequence of concerns
relating to earthquake risks
Wayne King asked what value do the refurbishment
costs at Massey University have?
Euan Playle responded that Massey University as
the tenant had undertaken the refurbishment and
the cost of this has not yet been confirmed. When
information is provided the Trust will need to
analyse it.
Resolution
It is hereby resolved that owners receive the
Chairman and Trustees’ Report as presented
Moved Vennessa Ede
Seconded Wikitoria Michalanney
Carried unanimously
Financial Statements for Year Ended March 31,
2011
Euan Playle advised that he was pleased to present the
Financial Statements for the year ended March 31, 2011
on behalf of the Trustees. He stated that WHK
Wellington, the Trust’s auditor has issued their audit
opinion that the financial statements represent fairly all
material matters and the financial position of the Trust
and Group. He went on to note the following:
Net surplus for the year after taxation of $497,546
Other income was $169,441 compared to a deficit of
$189,704 last year. This is a significant change
given the general market changes
Total income of $1,298,588 compared with
$1,058,730 last year
Operating expenditure has again been reduced this
year
The property revaluation write down is $1,249,958
compared with a decrease last year of $1,073,525
This has resulted in a net deficit of $752,412
Total assets of the Trust are $52,410,852, slightly
10
Wellington Tenths Trust Annual Report 2011-2012
down on last year ($52,860,237)
Total liabilities are $13,069,451 compared with
$12,309,125 last year
Giving net assets for the Trust of $39,341,401 for
the year
Questions from the floor
Warren Skerrett asked what the projections for the out
years might be given
Mr Playle responded that Trustees are positive
going forward. The increased rental income from
Pipitea House on Pipitea ($45,000 cash per month
from May 2011) will have a particularly positive
impact for the Trust. This has been an asset that
has not been returning cash flow and is a
significant item on the balance sheet. Mr Playle
added that while he can’t predict what will happen
in the property market, he anticipates good things.
Lee Hunter asked if the write down in property
revaluations will be as large next year.
Mr Playle responded that he simply does not know.
Because of the nature of the Trust, we are reliant
on the wider property market conditions. He did
note that it is likely insurance will have an impact
on the Trust in the coming year given the
Christchurch situation.
Mr Playle went on to explain that the item ‘Other
Investments’ ($2,653,933) includes the Trust’s
investment in 2-8 Lambton Quay of $1,055,000. He
also stated that the $850,000 invested in the Wharewaka
project is an investment that is returning a good interest
rate (10.45%). Interest is being received on a monthly
basis.
He also noted that ‘Pipitea Management’ is not related
to Pipitea Marae, but is the name of the Trust’s wholly
owned company that operates the Executive Office.
The Trust has negotiated some good interest rates from
both Westpac and BNZ funding lines that are in place.
The unclaimed dividends of $1.4 million are a
contingent liability for the Trust and are carried under
the ‘Current Liabilities’ line item.
Resolution
It is hereby resolved that owners accept the
audited Financial Statements for the Wellington
Tenths Trust as at March 31, 2011 as a true
reflection of the Trust’s financial position.
Moved Lee Hunter
Seconded Warren Skerrett
Carried unanimously
Appointment of Auditor
The beneficial owners are required to annually appoint
an auditor and the Trustees recommend that WHK
Wellington be appointed for this purpose.
Resolution
It is hereby resolved that owners appoint WHK
Wellington to act as the Trust auditors for the
financial year ending March 31, 2012
Moved Wikitoria Michalanney
Seconded Warren Skerrett
Carried unanimously
Share Value
Mr Playle noted that based on the audited Financial
Statements the per share value of the Trust is currently
$215.07 as at March 31, 2011. He also commented that
of course these can’t be traded or sold on the open
market. This represents a 2.99% reduction in value.
Distribution
Sir Ngatata Love spoke to the matter of a distribution
payment. Trustees and management have reviewed the
cash flow projections of the Trust and are
recommending a maximum dividend is paid of $2.80
per share. This compares with $2.50 per share paid last
year. The payment will again be a capital distribution
(non-taxable in the hands of owners).
Ina Rangiwhetu commented on the special meeting and
the discussion around the forfeiture of dividend to assist
with education initiatives.
Sir Ngatata advised that the matter does not reflect
on this item of business today.
Resolution
It is hereby resolved that owners approve a
capital distribution payment of $2.80 per share,
being a total commitment of $512,173
Moved Kamiria Mullen
Seconded Frances Kingi-Katene
Carried unanimously
Trustee Remuneration
Euan Playle presented the slide on Trustee
remuneration on behalf of the Trustees and in so doing
stated that in his opinion on the role of Trustees in that
it is more than turning up to a meeting. Trustees need to
be prepared by having researched and analysed relevant
information. In considering the current level paid to
Wellington Tenths Trustees comparison have been
made with similar entities such as PKW, Wakatu, etc
and it is fair to say that the Wellington Tenths Trustees
are remunerated at much lower levels that these other
entities. Current remuneration is $12,000 gross per
annum for the Chairman and $6,000 gross per annum
for each Trustee.
11
Wellington Tenths Trust Annual Report 2011-2012
Several comments came from the floor:
Ina Rangiwhetu asked how the levels are set and
Mr Playle advised that is not a science, but is an
opinion informed by the level of commitment that is
required. Mr Playle advised that Trustee
contributions are significant and need to be
recognised. He then stated that he is comfortable
with the proposed level of the recommendation.
Mana Jenkins stated that she admires the work the
Trustees do for such little reward. She believes the
proposal remuneration is still minimal based on the
Trust performance as reported in the financial
statements
Morrie Love asked that directors and trustees be
well trained to ensure that they can deal with all
the requirements of the role including financial
reporting, understanding difference between
governance and management, strategy
development, etc. Perhaps Trustees should consider
investing in Institute of Directors programmes for
all Trustees to ensure new Trustees are aware of
their responsibilities and to refresh existing
Trustees who may not be up to speed. Mr Playle
advised that the Trustees discussion at the meeting
yesterday had in fact covered many of the items
raised so Trustees are conscious of these matters.
Martha Gilbert and Frances Kingi-Katene also
supported the recommendation recognising the
contribution made by Trustees.
Resolution
It is hereby resolved that owners approve
Trustee remuneration as:
Chairman: $19,800 gross per annum
Trustees: $9,900 gross per annum
Moved Wairingiringi Taiaki
Seconded Mana Jenkins
Carried unanimously
The Chairman acknowledged the support of beneficial
owners and stated that Trustees do need to be updated
on governance roles. A lot of changes have occurred
since the Trusts were ‘taken over’ from previous
administrations.
Election of Managing Trustees
Bruce Farquhar was asked to manage the process of the
Trustee election. Each candidate was given two minutes
to address those present. In order of presentation they
were Neville Baker, Richard Carroll, Vennessa Ede,
Grant Knuckey, Lennox Love, Ann Reweti for Peter
Reweti and Timothy Wagner.
A brief period of time was provided for beneficial
owners to submit their voting papers to the scrutineers
to enable the vote count to be undertaken. Scrutineers
were Euan Playle and Bruce Farquhar.
General Business Wellington Tenths Development Trust
A new contract has been signed with Capital Coast and
Hutt Valley District Health Boards for the continuation
of the Nga Tekau Alcohol & Drug Counselling Service
which is pleasing. This service is offered both from
Hikoikoi and Wellington.
Port Nicholson Block Settlement Trust
The Annual General Meeting of the Settlement Trust
was held last weekend and was a good meeting. There
are a lot of decisions and activity within the Settlement
Trust based around economic and social initiatives.
These are all based on rights and provisions within the
Deed of Settlement.
Collective Responsibility
Liz Mellish spoke briefly to these slides which gives an
update on activities based at the Settlement Trust but
which are undertaken on behalf of the mana whenua
and include:
Establishment of a Taranaki Whanui urupa at
Makara in conjunction with the Office of Treaty
Settlements, Meridian and Wellington City Council
Brief report on the Harbour Islands Kaitiaki Board
and development of a land management plan with
consultation having commenced and hui to be held
later in September. Information on this is available
at the front desks or speak with Morrie Love who
has been contracted with Kim Skelton to undertake
the process
Memorandum of Understanding is under
development in respect of the Parangarahu Lakes
and a joint management board is proposed for the
area
Working closely with local territorial authorities on
the reserves that transferred to the Settlement Trust
and how these will be jointly managed
Working with Ngati Kahungunu on the placement of
a pouwhenua at the top of the Rimutaka range. This
is being done in conjunction with NZ Transport
Authority and Greater Wellington Regional Council
Having worked with Wellington City Council on the
creation of a waharoa for the Council taurahere
urupa at Makara
Maintaining and enhancing the relationships with all
local territorial authorities (Wellington, Hutt, Upper
Hutt and Greater Wellington)
Te Raukura
Sir Ngatata spoke briefly of the long-awaited
wharewaka development and what a positive impact it
12
Wellington Tenths Trust Annual Report 2011-2012
has for the entire community in Wellington. The
opening ceremony in February was excellent and
attended by several hundred people. The building has
been named Te Raukura. In this area of the waterfront
the official ‘Fanzone’ for RWC 2011 will be created. Te
Raukura was used for the powhiri to the Springboks on
Monday, September 5, 2011 and worked really well.
Te Hononga and Te Rerenga Kotare
Morrie Love spoke briefly of the two waka now in
place at Te Raukura. Te Hononga, a waka tetekura and
Te Rerenga Kotare, a waka taua. Both were created by
Hekenukumai Busby and his team in Northland with
carvings being undertaken under the guidance of
Takirirangi Smith. It was noted that Te Rerenga Kotare
is owned by Wellington City Council with kaitiakitanga
having been passed to the Wharewaka o Poneke
Charitable Trust. Te Hononga was made possible by a
generous grant from the Wellington Community Trust.
Wai 2235
Sir Ngatata Love spoke briefly of the action the
Settlement Trust has taken against the Crown in respect
of their offer to Ngati Toa. The claim is for breaches
that will occur if the offer proceeds. Several meetings
with Crown representatives have not resulted in any
progress being made therefore the Settlement Trust has
no option but to return to the Waitangi Tribunal.
Te Aro Pa
Liz Mellish reported that the title to the space where the
whare ponga are located has not been issued and
ownership rests with the Trust and Palmerston North
Maori Reserve.
Conclusion In concluding the meeting Sir Ngatata Love thanked
beneficial owners, Trustees, management and advisers
for their support over the past 12 months. He said that
the Trust will continue to face challenges in the
continuing economic uncertainties but the risk adverse
approach of the Trust will hold it in good stead for the
future.
Trustee Election Result Mr Bruce Farquhar returned to the podium and advised
the result of the Trustee election. Members have elected
Richard Carroll, Vennessa Ede, Grant Knuckey and
Lennox Love. Congratulations to those elected and
commiseration to those who were unsuccessful
There being no further business the meeting was closed
at 1.30pm by Sam Jackson.
13
Wellington Tenths Trust Annual Report 2011-2012
Chairman’s Report Tihei Mauriora!
Piki mai, kake mai!
Haere mai te kaupapa o te wa e
tu ake nei. No reira e nga whanau
o Nga Tekau o Poneke. Tena
koutou.
Kua tae mai nei te wahi kia
purutia nga whakaaro kia tutuki
ai i a tatau nei mahi i mahia e to
koutou roopu whakahaere.
Kati ra, me mihi ki a ratou kua
wehe atu ki te po, haere oti atu
ra. Koutou ko nga hunga ora
Tena koutou, tena no tatou.
Introduction Welcome to the 2012 Annual
General Meeting. The year has
been a positive one for the Trust.
The economic uncertainties being
experienced internationally
(particularly in Europe) and the
challenges we continue to face in
New Zealand in the aftermath of
the Christchurch earthquakes has
again impacted the expectation of
New Zealand’s economic recovery
in the near future.
The Government’s objective of
reducing spending to ensure the
effects of any recession are
minimised while admirable, are
having ramifications throughout the
country.
The rebuild of Christchurch is
being seen as a way for New
Zealand to maintain some growth
in our economy.
Last year’s AGM was held in the
midst of Rugby World Cup, and
while the result boosted the “feel
good” emotion of the country, the
economic boost and lift in business
activity did not reach the levels
anticipated.
The general election in November
2011 delivered an expected result—
the return of the National Party to
government through alliances with
the Maori Party and United Future.
The elevation of the Green Party to
14 representatives in Parliament
was not a surprise because of the
growing support they enjoy. The
surprise for many was the return of
New Zealand First with eight seats
in Parliament. The Rt Hon Winston
Peters back in Parliament has added
another dimension to national
politics.
The return of National and their
coalition partners to Government
means that matters such as the sale
of state assets, reduced government
spending, reform of the social
sector are being pursued.
As predicted in our report last year
the Trust has been impacted by the
removal of depreciation. This year
a provision for income tax payable
of $181,913 has been made.
Overall Financial Position
The Trust has continued to perform
satisfactorily in a challenging
environment. The year’s result is
positive. While property valuations
were expected to decline, the Trust
has actually experienced an
“Moutere” - the Executive Office
Kahu Kuri
14
Wellington Tenths Trust Annual Report 2011-2012
overall increase. For the financial
year ended March 31, 2011 the
Trust recorded an unrealised
decrease of $1,249,958, however for
the financial year ended March 31,
2012 the Trust has an unrealised
increase of $641,181.
The net operating surplus after
taxation, but before revaluation
adjustments for the year is $495,573
compared to $497,546 last year.
The consolidated position of the
Trust shows an increase in net
property income to $1,460,000
compared to $1,129,147 in 2011.
This is due in large part to the Trust
now receiving rental from Pipitea
House on Pipitea.
Property values have resulted in a
revaluation gain of $641,181
compared to a loss of $1,249,958
the previous year. This means an
overall surplus of $1,136,754 for the
year compared to an overall deficit
of $752,412 the previous year.
Owners equity is $39,965,982,
having increased from $39,341,401
in 2011. This level of equity means
that future growth opportunities can
be considered by Trustees.
Total assets have increased to
$52,596,684 from $52,410,852 in
2011. This increase is due to the
increase in property revaluations.
In summary the Trust has again
performed well and can look to
future opportunities with
confidence.
Pipitea House on Pipitea The Trust continues to hold a 25%
share in this significant Wellington
development. The initial investment
the Trust made was $9,000,000
(being the land value at the time).
The overall improvement in the
Trust’s cash flow as stated in the
Statement of Cash Flows is partly
due to the cash flow generated from
this project. A total of $495,000 was
received during the year.
The Trust has the right to purchase
the remaining 75% shareholding
from Redwood Group Limited. This
is a matter Trustees have been
contemplating for some time and a
significant amount of work has been
undertaken in recent months to
assist Trustees in their consideration
of the possible purchase.
Taranaki 217 This facility with its 152 units
continues to perform well for the
Trust. We have however
experienced slightly reduced levels
of occupancy since the
Christchurch earthquakes. This is
due to the large number of overseas
students who have been called home
by concerned families.
Capital Hill
This is the joint venture company
between the Trust and Massey
University that owns the former
Dominion Museum site. Massey
University continue to tenant this
facility. Discussions are ongoing as
to historical fitout matters. At the
same time Massey continues to pay
rental as per a standing agreement.
Sports Academy students at “Raumati”
Capital Hill
15
Wellington Tenths Trust Annual Report 2011-2012
Hikoikoi – Executive Office The Executive Office is well and
truly embedded in the fabric of the
“seaside” at Hikoikoi. This unique
location means that a huge array of
activities can take place on site
without the imposition of the hustle
and bustle of the inner city. Every-
one enjoys the relaxed atmosphere
of the location and facilities.
The addition of the ‘Raumati’
facility has seen the office move to
a purpose built facility, freeing up
the former office space for use by
the Te Wananga o Aotearoa Sports
Academy in 2012.
Manaia continues to be a hive of
activity seven days per week. It is
widely used for waka ama
activities, by the Hikoikoi weavers
and the entire community has
embraced it as a place for meetings,
hui, whanau days, etc.
2-8 Lambton Quay The proposed development for this
site did not meet the requirements
of the District Plan for the area.
Therefore reconsideration has had
to be given to the bulk and mass of
the development to go on the site.
As has been the practice of the
Trust any development on the site
will not be undertaken until tenants
have been secured. Given the tight-
ening on spending by Government,
several agencies who are keen for
new space have had to pull back.
Village at the Park
The retirement village in Adelaide
Road continues to grow. The joint
venture with the Hurst Group is a
positive one for the Trust.
Operationally Village at the Park
stands on its own and works well.
There continues to be a high level
of demand for space in the
dementia unit. Interest is again
increasing in the independent living
facilities at the village. The
independent facilities include the
villas and apartments.
The village has undergone a full
Ministry of Health audit of services
process and received a good report. The first of the apartment blocks
has now been completed. While
this development took longer than
expected it was undertaken on a “as
sold” basis. This meant that at the
time of completion all debt for the
construction had been repaid.
A review of the landscaping at the
village has also been undertaken
and work is being done to ‘freshen’
the landscaping throughout the
village.
The second apartment block has
now commenced and again will be
undertaken on a demand basis.
The large two level community
centre construction is underway.
This centre will have space for a
gym, bowls, TV room, chapel,
pool/games room, library, computer
area and reading room along with
offices. The second storey will also
contain some additional apartment
units.
An alternative location for the spa
and swimming pool has been
designed closer to the existing
pavilion and villa area
Apartment block, Village at the Park
“Manaia” hui facility
Te Raukura, the wharewaka
16
Wellington Tenths Trust Annual Report 2011-2012
Another positive development on
the site in Rintoul Street has been
the leasing of surplus land to Little
Wonders Child Care Centre.
The construction of this facility was
undertaken after consultation with
residents of the Village who were
very positive about the facility.
Little Wonders opened for business
in January 2012. At the time of this
report going to print the roll at the
centre is averaging around 45
children per day and is growing at a
consistent rate.
This facility has provided an option
for those working in the Village and
the surrounding area.
Collective Responsibility
‘Collective Responsibility’ is the
term that has come to be used for
matters that relate to all Taranaki
Whanui interests in the Wellington
region (i.e. Port Nicholson Block
Settlement Trust, Wellington Tenths
Trust and Palmerston North Maori
Reserve).
The Settlement Trust now carries
the responsibility for ensuring that
the mana whenua rights of Taranaki
Whanui ki Te Upoko o Te Ika are
upheld and enhanced through
relationships with central and local
government and other corporates
throughout the wider Wellington
region. The Settlement Trust works
closely with the Wellington Tenths
Trust on these important matters.
A major focus for the Settlement
Trust over recent months has been
the pursuit of the contemporary
Waitangi Tribunal claim, Wai 2235.
The claim was originally lodged in
December 2009.
The claim relates to the actions of
the Crown in dealing with Taranaki
Whanui during negotiations with
specific focus on the Crown’s offer
to Ngati Toa. At the heart of the
matter is the mana whenua and ahi
kaa roa rights of Taranaki Whanui
which the Crown are attempting to
usurp.
The Waitangi Tribunal inquiry was
held on June 12-14, 2012 at the
Tribunal office.
Closing submissions and the right of
reply by the Settlement Trust have
now been lodged and we await the
outcome of the Tribunal panel’s
deliberations.
Some specific initiatives now being
led by the Settlement Trust are for
the benefit of all Taranaki Whanui.
These include the important
relationships with local territorial
authorities, establishment of the
Opau urupa at Makara, further
work at Te Aro Pa (mural),
management of the Harbour Islands
and Parangarahu Lakes area, etc.
Tangihanga Fund Following the resolution from the
Joint General Meeting of owners of
Wellington Tenths Trust and
Palmerston North Maori Reserve on
March 12, 2011 a tangihanga fund
is now operating. A payment of
$200 per tangi can be made on
verification that the grant is being
applied to a beneficial owner or
descendant of a beneficial owner.
Te Aro Pa mural
Kohatu outside Pipitea House
Te Aro Pa—whare ponga
17
Wellington Tenths Trust Annual Report 2011-2012
Beneficial owners asked that they
be provided with an annual report
on activity of the tangihanga fund.
For the financial year ended March
31, 2012 three grants had be made
to Wellington Tenths Trust
beneficial owners’ whanau. The
total paid was $100 per tangi (i.e.
$300).
Retiring Trustees
I would like to acknowledge the
contribution of two Trustees who
have decided to retire.
Firstly, Dr Tony Ruakere who
resigned due to ongoing health
challenges and secondly, Wayne
Mulligan who has decided to pur-
sue other business interests, inter-
national travel and spending more
time with his whanau.
Both resignations have already
taken effect.
Both Tony and Wayne made signif-
icant contributions in their role as
Trustee. We thank them for their
service.
Te Raukura Te Raukura is ‘owned’ by the
Wharewaka o Poneke Charitable
Trust with a perpetual lease from
Wellington Waterfront of the land.
The Trust has an investment of
$850,000 in the project. This
investment gives a 10.45% return to
the Trust with the payment of
interest on a monthly basis.
Te Raukura experiences a high
level of support from Maori
organisations and the wider
community for meetings,
conferences, cocktail parties,
weddings and many other
functions.
In total Te Raukura has been the
recipient of four awards since its
completion—something we should
all be proud of. The awards relate
to the design, architecture and
enhancement and protection of the
environment. The most recent
award was a New Zealand
Architecture Medal awarded in late
May 2012. Each year, a total of 20
medals are awarded by the New
Zealand Institute of Architects from
a huge number of projects
considered and the citation for Te
Raukura clearly articulates why the
wharewaka received the medal and
also acknowledged the return of
Taranaki Whanui to Wellington’s
waterfront after a 170 year absence.
Conclusion In concluding this report, I would
just like to reflect on the year’s
activities.
The Trust through a year of
challenging economic times and
major social changes has come
through in a positive frame.
Working with our sister trust,
Palmerston North Maori Reserve
and the Port Nicholson Block
Settlement Trust has provided
many opportunities for Trust own-
ers
particularly in the social, cultural
and educational arenas.
The cash flow from our property
portfolio and particularly from
Te Raukura, the wharewaka
18
Wellington Tenths Trust Annual Report 2011-2012
Pipitea House has seen an improved
financial position for the Trust. The
consideration of the buyout of the
Trust’s partner in Pipitea House on
Pipitea is the next key milestone in the
life of this project.
The continued growth of activities at
Hikoikoi sees the Trust well embedded
into the fabric of the Hutt Valley.
On behalf of the beneficial owners I
thank the Trustees for their continued
service.
To the beneficial owners, Trustees thank
you for your continuing support and
confidence in us.
My personal thanks go to the Trustees
for their wisdom, diligence and support
over the year. We do acknowledge that
the role of Trustees takes time, effort
and commitment which impinges on
their lives and ability to commit to other
activities. Your efforts are appreciated.
The Executive Office team and
professional advisers who support the
Trustees in the Trust’s business also
make a significant contribution to our
activities. Thank you to the Executive
Office (Keith Hindle, Erini Shepherd,
Ritihia Hailwood, Shamia Shariff,
Vicki Hollywell, Gilbert Douglas),
BDO Wellington (Euan Playle), Gibson
Sheat (Nigel Moody), Westerman
Property Solutions (Yvonne Westerman,
Ben Westerman, Kathleen and Francis
Thompson) and others who contribute
individually.
Particular thanks to Aroha Thorpe who
has been able to keep so much of the
work of the Trust on track despite her
other responsibilities.
At the end of May, the Trust lost a
valued adviser. Elaine Westerman of
Westerman Property Solutions fought a
determined, but brief battle with cancer.
This was a devastating blow for her
family. The Trust was represented at
Elaine’s funeral where the family gave
us the honour of being seated close to
them and Sam Jackson being asked to
perform karakia at the urupa. Haere,
haere, haere atu ra.
Finally a special thanks to Bruce
Farquhar who many of you will know
has been associated with the Wellington
Tenths Trust for about 20 years.
Bruce’s first association was through his
role at NZI and then Guardian Trust
when these entities were the custodial
trustee for the trust. A brief move into
the legal profession (in New Plymouth
and Wellington) was followed by a
move to the Port Nicholson Block
Settlement Trust in early 2008. Since
that time Bruce has continued to provide
this Trust with advice and support.
Bruce has taken a role at a legal firm in
Napier, a move which will see him and
his family return ‘home’ and nearer
wider whanau. On behalf of owners and
Trustees (past and present), I extend our
thanks to Bruce for the contribution he
has made, and wish him well for his
future in the Hawkes Bay.
Beneficial owners can rest assured that
the future of the Trust remains positive
and focused on growth.
19
Wellington Tenths Trust Annual Report 2011-2012
Debt/Equity Ratio The following bar graph shows the movement in the debt/equity ratio over the last four years. As at March 31, 2012 the debt to equity ratio is 25%. That is, the debt is 25% of the Trust’s equity which is considered a conservative ratio.
Total Assets—2012 The following pie-graph shows the breakdown
of the total assets of the Trust.
The graph shows in percentage terms the
holdings of the Trust for the year ended March
31, 2012. The diversified nature of the
portfolio means that risk is spread across a
range of holdings reducing the possibility of
significant losses in any one particular area.
$-
$10,000,000.00
$20,000,000.00
$30,000,000.00
$40,000,000.00
$50,000,000.00
$60,000,000.00
2012 2011 2010 2009
Liabilities
Assets
23%
Total Current Assets, $54,410
Fixed & Intangible Assets, $625,023.00
Village in the Park, $9,730,537.00
Taranaki 217 , $7,524,000.00
Capital Hill, $6,930,000.00
28-32 Russell Terrace, $4,900,000.00
557 Adelaide Road, $2,646,000.00
Other Investment Properties, $7,845,235.00
Wharewaka Loan, $894,039.00
Pipitea Street Development JV, $8,989,389.00
2-8 Lambton Quay JV, $1,338,985.00 Other Investments,
$1,119,066.00
24% 24% 25%
20
Wellington Tenths Trust Annual Report 2011-2012
2011
2010
2009
This Year 2012
Number of Owners 5,740 5,374 5,190 5,931
Total Number of Shares
182,919.681
182,919.681
182,919.681
182,919.681
Total Assets Total Liabilities Trust Capital
$ 52,410,852 $ 13,069,451 $ 39,341,401
$ 52,860,237 $ 12,309,125 $ 40,551,112
$ 54,862,855 $ 13,201,513 $ 41,661,338
$ 52,596,684 $ 12,630,702 $ 39,965,982
Total Income $ 1,298,588 $ 1,058,730 $ 384,694 $ 1,612,863
Net Rental income (Note 2) Leasehold Freehold
$ 838,542 $ 1,357,300
$ 801,922 $ 1,497,887
$ 818,723 $ 1,305,939
$ 856,598 $ 1,534,291
Number of Properties Leasehold Freehold
10 7
10 7
10 8
10 6
Average Net Rental Leasehold Freehold
$ 83,854
$ 193,900
$ 80,192
$ 213,984
$ 74,429 $ 81,621
$ 85,659
$ 255,715
Interest Received $ 26,505 $ 99,917 $ 36,622 $ 96,256
Net Operating Income/(Deficit) before Taxation
$ 497,546
$ 134,284
$ (600,232)
$ 677,486
Net Surplus/(Deficit) After Property Revaluations
$ (752,412)
$ (652,923)
$ (3,253,515)
$ 1,136,754
Income Tax Expense $ NIL $ 56,519 $ 3,434 $ 181,913
Distribution to Owners
$ 457,299
$ 457,302
$ 457,299
$ 512,173
Area of Land (Hectares)
81.2352
81.2352
81.2352
81.2141
Statistical Information
21
Wellington Tenths Trust Annual Report 2011-2012
Statement of Financial Performance for the year ended March 31, 2012
Group Wellington Tenths Trust
Note 2012 2011 2012 2011
Net Operating Income Freehold Property Leasehold Property
2 2
1,534,291
856,598
1,357,300
838,542
103,707 856,598
87,971
838,542
2,390,889 2,195,842 960,305 926,513
Less Property Expenses Interest Expense Other Property Expenses
3 4
559,176 371,713
637,667 429,028
419,790 100,911
465,342 146,371
930,889 1,066,695 520,701 611,713
Net Property Income 1,460,000 1,129,147 439,604 314,800
Other Income Resource Management/Local Government Interest Income Dividend Income Management Fees Share of Net Surplus/(Deficit) of Associates Lambton Quay Joint Venture Pipitea Joint Venture Net Gain/(Loss) on Sale of Properties Sundry Income
5 6 17 16
-
96,256 - -
(996) 283,183
(242,410) 7,574 9,256
7,865
26,505 - -
7,687 (681,896)
786,799 -
22,481
-
283,130 560,000 137,016
- 283,183
(242,410) 7,574 6,123
7,865
230,503 -
33,383 -
(681,896) 786,899
- 22,481
152,863 169,441 1,034,616 399,135
Total Income 1,612,863 1,298,588 1,474,220 713,935
Less Expenses Administration & Operating Expenses Depreciation Other Expenses
7 8 9
833,649 60,174 41,554
716,674 62,559 21,809
743,157 51,316 41,554
597,696 54,764 21,809
935,377 801,042 836,027 674,269
NET OPERATING SURPLUS/(DEFICIT) 677,486 497,546 638,193 39,666
NET SURPLUS BEFORE TAXATION 677,486 497,546 638,193 39,666
Less Tax Expense 10 181,913 - 2,574 -
NET SURPLUS AFTER TAXATION 495,573 497,546 635,619 39,666
Unrealised Increase/(Decrease) in Value of Investment Property
641,181
(1,249,958)
102,181
(1,054,153)
NET SURPLUS/(DEFICIT) AFTER UNREALISED GAINS/(LOSSES)
$1,136,754
$(752,412)
$737,800
$(1,014,487)
This statement should be read in conjunction with the Notes to the Financial Statements
22
Wellington Tenths Trust Annual Report 2011-2012
Statement of Movements in Trust Capital for the year ended March 31, 2012
Group Wellington Tenths Trust
Note 2012 2011 2012 2011
Trust Capital At Beginning of Year 39,341,401 40,551,112 31,089,674 32,561,460
Net Surplus/(Deficit) for the Year 1,136,754 (752,412) 737,800 (1,014,487)
Less Distributions to Owners (512,173) (457,299) (512,173) (457,299)
TRUST CAPITAL AT END OF YEAR $39,965,982 $39,341,401 $31,315,301 $31,089,674
This statement should be read in conjunction with the Notes to the Financial Statements
23
Wellington Tenths Trust Annual Report 2011-2012
Statement of Financial Position as at March 31, 2012
Group Wellington Tenths Trust
Note 2012 2011 2012 2011
TRUST CAPITAL 39,965,982 39,341,401 31,315,301 31,089,674
Represented By
CURRENT ASSETS Accounts Receivable Prepayments Rent Receivables Goods and Services Tax Refund/(Payable) Income Tax Refund/(Payable)
10
174,640
2,411 6,424
(15,195) (113,870)
197,686
2,697 22,795 14,302 46,889
107,917
2,411 6,424
(5,357) -
196,458
2,697 11,300 14,120 3,277
TOTAL CURRENT ASSETS 54,410 284,369 111,395 227,852
NON-CURRENT ASSETS
FIXED ASSETS 11 609,023 578,787 568,612 542,111
INVESTMENTS Wharewaka Loan Tenths Village Limited Village at the Park Limited Capital Hill Limited Pipitea Properties Limited Taranaki 10 Limited Investment Properties Pipitea Street Development JV 2-8 Lambton Quay JV Other Investments
12 13 13 14 14 14 15 16 17 18
894,039
9,096,805 633,732
- - -
29,845,235 8,989,389 1,338,985 1,119,066
850,000
9,096,805 633,732
- - -
29,412,427 9,726,799 1,055,802
748,131
894,039
9,096,805 -
1,515,895 (1,330,736)
2,682,391 15,391,235 8,989,389 1,338,985 1,111,373
850,000
9,096,805 -
1,089,907 (1,327,635)
2,831,035 15,497,427 9,726,799 1,055,802
752,540
TOTAL INVESTMENTS 51,917,251 51,523,696 39,689,376 39,572,680
INTANGIBLE ASSETS Westpac Stadium Seats
19
16,000
24,000
16,000
24,000
TOTAL NON-CURRENT ASSETS 16,000 24,000 16,000 24,000
TOTAL ASSETS $52,596,684 $52,410,852 $40,385,383 $40,366,643
This statement should be read in conjunction with the Notes to the Financial Statements
24
Wellington Tenths Trust Annual Report 2011-2012
Statement of Financial Position as at March 31, 2012
Group Wellington Tenths Trust
Note 2012 2011 2012 2011
Less CURRENT LIABILITIES Bank of New Zealand Limited Westpac Banking Corporation Accounts Payable Accrued Expenses Income Received in Advance Bond Account Unclaimed Distributions Provision for Loss on Associate Palmerston North Maori Reserve Current Portion of Term Liabilities
20 20
21 6 22 23
815 295,665 246,954 33,237
325,932 92,436
1,556,905 11,445
(143,420) 382,079
24,628 245,757 124,229
37,106 325,358
99,941 1,401,811
10,449 223,728 278,381
- 303,130 158,749 23,788
259,930 -
1,556,905 -
(143,420) 120,000
- 249,062 98,114 23,914
261,261 -
1,401,811 -
221,808 -
TOTAL CURRENT LIABILITIES 2,802,048 2,771,388 2,279,082 2,255,970
TERM LIABILITIES Term Loans Less Current Portion of Term Liabilities
23 23
10,210,733
(382,079)
10,576,444
(278,381)
6,911,000 (120,000)
7,021,000
-
TOTAL TERM LIABILITIES 9,826,654 10,298,063 6,791,000 7,021,000
TOTAL LIABILITIES 12,630,702 13,069,451 9,070,082 9,276,969
NET ASSETS $39,965,982 $39,341,401 $31,315,301 $31,089,674
For and on behalf of the Managing Trustees:
Interim Chairman Trustee
This statement should be read in conjunction with the Notes to the Financial Statements
25
Wellington Tenths Trust Annual Report 2011-2012
Statement of Cash Flows for the year ended March 31, 2012
Group Wellington Tenths Trust
2012 2011 2012 2011
Cash flows from Operating Activities Cash was provided from: Receipts from Tenants and Clients Interest Received Other Income Goods and Services Tax Refund (Net)
2,558,719 96,257
582,632 59,390
2,502,368 26,505 86,174
(13,734)
1,068,717 96,256
501,123 -
1,038,703 230,503
55,864 -
3,296,998 2,601,313 1,666,096 1,325,070
Cash was applied to: Payments to Suppliers & Employees Goods and Services Tax Refund (Net) Interest Paid Income Tax Paid (Net)
1,333,375
- 582,680
21,154
1,451,359
- 651,203
12,442
845,907 (49,740) 437,299
(703)
772,061
59,433 478,379
-
1,937,209 2,115,004 1,232,763 1,309,873
Net Cash flows from Operating Activities 1,359,789 486,309 433,333 (15,197)
Cash flows from Investing Activities Cash was provided from: Sale of Investment Properties
220,574
-
220,574
-
220,574 - 220,574 -
Cash was applied to: Purchase of Fixed Assets and Investment Properties
95,037
44,401
82,444
25,169
95,037 44,401 82,444 25,169
Net Cash flows from/(used in) Investing Activities
125,537
(44,401)
138,130
(25,169)
Cash flows from Financing Activities Cash was provided from: Advances Received/(Paid)
(788,631)
(1,200,356)
(158,454)
(1,013,219)
(788,631) (1,200,356) (158,454) (1,013,219)
Cash was applied to: Term Loans Repaid/(Received) Distributions to Owners
365,710 357,079
(733,536)
305,067
109,999 357,079
(999,841)
305,067
722,789 (428,469) 467,078 (694,774)
Net Cash flows from/(used in) Financing Activities (1,511,420) (771,887) (625,532) (318,445)
Net Increase/(Decrease) in Cash Held (26,095) (329,979) (54,068) (328,417)
Cash Brought Forward (270,385) 59,594 (249,062) 79,355
Ending Cash Carried Forward (296,480) (270,385) (303,130) (249,062)
Bank Consists of: Bank of New Zealand Limited Westpac Banking Corporation
(815)
(295,665)
(24,628)
(245,757)
-
(303,130)
-
(249,062)
$(296,480) $(270,385) $(303,130) $(249,062)
This statement should be read in conjunction with the Notes to the Financial Statements
26
Wellington Tenths Trust Annual Report 2011-2012
Group Wellington Tenths Trust
2012 2011 2012 2011
Reconciliation of Net Surplus After Tax with Net Cash Flows from Operating Activities
Net Surplus/(Deficit) After Tax 1,136,754 (752,412) 737,800 (1,014,487)
Add/(Deduct) Non Cash Items: Amortisation Expense Depreciation Change in Property Valuations Management Fees Interest and Dividends Lambton Quay Joint Venture Pipitea Street Development Joint Venture Loss on Disposal of Fixed Assets
8,000
60,174 (641,181)
- -
(283,183) 737,410 (7,574)
8,000
62,559 1,249,958
- -
681,896 (726,799)
-
8,000
51,316 (102,181) (137,016) (746,874) (283,183)
737,410 (7,574)
8,000
54,764 1,054,153
- -
681,896 (726,799)
-
(126,354) 1,275,614 (480,102) 1,072,013
Add/(Deduct) Movement in Working Capital Items Receivables and Rent Arrears Income Tax Income Received in Advance Payables Prepayments Goods and Services Tax
39,417 160,759
574 118,856
286 29,497
(2,451) (12,442)
7,766 (14,108)
4,971 (20,629)
93,417 3,277
(1,331) 60,509
286 19,477
(944) -
4,522 (20,714)
4,211 (29,405)
349,389 (36,893) 175,635 (42,330)
Net Cash flows from/(to) Operating Activities $1,359,789 $486,309 $433,333 $15,197
Statement of Cash Flows for the year ended March 31, 2012
This statement should be read in conjunction with the Notes to the Financial Statements
27
Wellington Tenths Trust Annual Report 2011-2012
Notes to the Financial Statements for the year ended March 31, 2012
NOTE 1 - STATEMENT OF ACCOUNTING POLICIES BASIS OF PREPARATION Wellington Tenths Trust is an Ahu Whenua Trust constituted by the Māori Land Court Order of December 16, 2003, pursuant to Sec 244 of the Te Ture Whenua Māori Act 1993 which varied the original Trust Deed of 1977, and the subsequent variation of Deed made on July 17, 1996. These Financial Statements have been prepared in accordance with the Financial Reporting Act 1993. GENERAL ACCOUNTING POLICIES The measurement base adopted is that of historical cost, except that investment properties are stated at valuation. All amounts are presented in New Zealand Dollars ($). PARTICULAR ACCOUNTING POLICIES Consolidation of Subsidiaries and Associates The Group Financial Statements incorporate the Financial Statements of the Trust and its subsidiaries and associates. Subsidiaries Subsidiaries are those entities controlled directly or indirectly by the Group. The Financial Statements of the subsidiaries are included in the consolidated Financial Statements using the purchase method of consolidation. Associates Associates are entities in which the Group has significant influence, but not control, over the operating and financial policies. The Group’s share of the net surplus of associates is recognised as a component in computing the operating surplus in the Statement of Financial Performance using the equity method of consolidation. The Group’s share of other gains and losses of associates is recognised as a component of net surplus for the year in the Statement of Movements in Trust Capital. The effects of the intra-group transactions are eliminated in preparing the consolidated Financial Statements. Accounts Receivable Accounts Receivable are valued at expected realisable value, after providing against debts where collection is doubtful. Bad debts are written off during the period in which they are identified.
Fixed Assets Fixed assets are recorded at cost less accumulated depreciation to date. Depreciation The Database and Hikoikoi are depreciated using straight line basis. All other business fixed assets, excluding investment properties are depreciated on a diminishing value basis using the maximum rates allowed by the Inland Revenue Department. The estimated useful lives of fixed assets are as follows: Leasehold Improvement 5 - 20 years Furniture & Fittings 5 - 20 years Office Equipment 3 -15.5 years Database 10 years Hikoikoi 12 years Investments Except where noted otherwise, investments are recorded at cost. Investment income, other than dividend income, is recognised on an accruals basis where appropriate. Imputation credits are not recognised except for tax purposes. Investment Properties Investment properties are recorded at open market value, less anticipated costs of disposal, as determined by independent registered valuers. No depreciation has been allowed in respect of the investment properties. Investment properties are revalued annually in compliance with SSAP 17: Accounting for Investment Properties. Unrealised gains or losses on the value of investment properties have been included in the Statement of Financial Performance. Investment properties held for resale are recorded at the lower of net realisable value and valuation. Goods and Services Tax Income which forms part of a GST activity is stated exclusive of GST. Expenditure is stated exclusive of GST to the extent that GST has been claimed back. Accounts receivable and accounts payable are stated inclusive of GST in the Statement of Financial Position. All other assets and liabilities are stated exclusive of GST to the extent the GST has been claimed back. Taxation The “taxes payable” method of accounting for taxation has been followed. Provision has been made for taxation after taking full advantage of all deductions and concessions permitted.
28
Wellington Tenths Trust Annual Report 2011-2012
Notes to the Financial Statements for the year ended March 31, 2012
NOTE 1. STATEMENT OF ACCOUNTING POLICIES (continued) No deferred tax liability is recognised in respect of tax depreciation, as it is intended that ownership of the investment property portfolio will be long term. Accordingly, timing differences are not expected to reverse in the foreseeable future. Statement of Cash Flows The following are definitions of the terms used in the Statement of Cash Flows:
Operating activities are those activities relating to
the trading and management of the Trust’s business and include all transactions and other events that are not investing or financing activities.
Investing activities are those activities relating to the
acquisition, holding and disposal of fixed assets, investments and investment properties.
Financing activities are those activities that result in
changes in the size and composition of the capital structure of the group.
Cash comprises cash held on deposit at banks and
bank overdraft balances. Differential Reporting This entity qualifies for differential reporting under the New Zealand Institute of Chartered Accountants reporting framework. The entity is not publicly
accountable and does not classify as being large as the entity does not exceed two of the three size criteria of total revenue of $20 million, total assets of $10 million or over 50 employees. The entity has taken advantage of all concessions available except that a cash flow has been prepared in accordance with FRS 10. Leasehold & Freehold Land Definitions Freehold properties as referred to in the Financial Statements are those properties the Trust owns all interests in both the land, and any buildings and improvements. Leasehold properties as referred to in the Financial Statements are those properties where the Trust owns the land but the land is subject to a lease in favour of another party. The Trust’s interest in any such properties excludes any interest in any buildings or improvements owned by the other party. CHANGES IN ACCOUNTING POLICIES There have been no changes in accounting policy. All accounting policies have been applied on a basis consistent with those used in previous years. Comparative figures have been reclassified to conform to current year classifications.
29
Wellington Tenths Trust Annual Report 2011-2012
Notes to the Financial Statements for the year ended March 31, 2012
Group Wellington Tenths Trust
2012 2011 2012 2011
NOTE 2. RENTAL ACCOUNTS
Freehold Properties Rent Received Hostel Non Rental Income
1,669,553
79,732
1,645,533
56,006
135,923
-
147,978
-
Less: Advertising Bad Debts Electricity Insurance Rates Repairs & Maintenance
5,240 2,291
74,813 54,036 21,563 56,691
5,070
81,637 49,218 75,981
132,333 -
-
1,300 -
5,641 20,348 4,927
- -
8,997 19,418 31,591
-
Property Expenses 214,634 344,239 32,216 60,007
Net Rental Income $1,534,291 $1,357,300 $103,707 $87,971
Leasehold Properties Rent Received
863,062
849,538
863,062
849,538
Less Insurance Rates Repairs & Maintenance
1,944 4,362
158
2,314 4,168 4,514
1,944 4,362
158
2,314 4,168 4,514
Property Expenses 6,464 10,996 6,464 10,996
Net Rental Income $856,598 $838,542 $856,598 $838,542
NOTE 3. INTEREST EXPENSE
Interest—The Public Trust Interest—NZ Guardian Trust Company Ltd Interest—Palmerston North Maori Reserve Interest—Westpac Interest—IRD Interest—BNZ
- - -
419,790 56
139,330
127,827 (415)
56,209 281,721
- 172,325
- - -
419,790 - -
127,827 (415)
56,209 281,721
- -
Total Interest Expenses $559,176 $637,667 $419,790 $465,342
NOTE 4. OTHER PROPERTY EXPENSES
Property Management Fees Property Valuation Fees Wages
182,588 31,433
157,692
193,982 65,546
169,500
69,478 31,433
-
80,825 65,546
-
Total Other Property Expenses $371,713 $429,028 $100,911 $146,371
30
Wellington Tenths Trust Annual Report 2011-2012
Notes to the Financial Statements for the year ended March 31, 2012
Group Wellington Tenths Trust
2012 2011 2012 2011
NOTE 5. RESOURCE MANAGEMENT / LOCAL GOVERNMENT
Services Memorandum of Understanding Income
-
7,865
-
7,865
Total Service Income - $7,865 - $7,865
Name of entity Principal Activities Interest Held by Group
2012 2011
Nicholson Fisheries Holdings Limited* Non-trading 50% 50%
Nicholson Group Limited Management Company 50% 50%
Pipitea Management Limited Management Company 50% 50%
All of the associates have a March 31, balance date and have been owned for the full financial year. * Formerly Atiawa Nui Tonu Fisheries Limited. Name changed March 22, 2006.
NOTE 6. INVESTMENT IN ASSOCIATES
Carrying Amount in Associates Carrying Amount at Beginning of Year Equity Accounted Earnings of Associates
(10,449)
(996)
(18,136)
7,687
Carrying Amount at End of Year $(11,445) $(10,449)
31
Wellington Tenths Trust Annual Report 2011-2012
Notes to the Financial Statements for the year ended March 31, 2012
Group Wellington Tenths Trust
2012 2011 2012 2011
NOTE 7. ADMINISTRATION AND OPERATING EXPENSES
Accident Insurance/Levies Accountancy Fees Audit Fees Bank Charges Cleaning Computer Expenses Consultancy Fees Courier Charges Electricity & Gas Executive Office & Administration Fees General Expenses Insurance Interest—Bank Overdraft Legal Fees Owners’ Meetings Printing & Stationery Rates Rent Secretarial Expenses Security Telephone & Tolls Travel & Accommodation Trustees’ Expenses
1,408 145,237 35,008 13,087 14,287 10,658 45,484
185 6,238
95,725 66,990 9,808
19,635 81,327 32,436 22,144 5,686
10,888 16,599 13,580 43,249 35,295
108,695
2,177 134,502 29,000 25,268 29,467 7,957
11,306 373
2,412 92,090 72,553 12,694 11,930 35,130 22,587 12,770
764 13,428 23,999 2,976
31,075 64,865 77,351
108 127,901 35,008 7,465 7,291
10,658 45,484
185 6,238
95,725 29,665 9,808
17,383 81,327 32,436 22,144 5,686
10,888 16,599 11,580 25,588 35,295
108,695
888 111,636 29,000 17,867 3,961 7,653
11,306 373
2,412 92,090 26,443 12,694 11,930 35,130 22,587 12,239
764 13,428 23,999 2,425
16,655 64,865 77,351
Total Administration & Operating Expenses $833,649 $716,674 $743,157 $597,696
NOTE 8. DEPRECIATION
Database Leasehold Improvements Furniture & Fittings Office Equipment Hikoikoi Reserve Website Development
20,657 -
9,500 9,992
18,758 1,267
20,657 7,523
988 10,769 19,455 3,167
20,657 -
768 9,866
18,758 1,267
20,657 -
988 10,497 19,455 3,167
Total Depreciation $60,174 $62,599 $51,316 $54,764
Depreciation rates used varied between 2% to 60%
32
Wellington Tenths Trust Annual Report 2011-2012
NOTE 9. OTHER EXPENSES
Sponsorship Amortisation of Westpac Stadium Seats Hikoikoi Reserve Expenses Koha Te Aro Pa Expenses Other Expenses
4,697 8,000 1,973
485 9,358
17,041
275 8,000
- 633
4,963 7,937
4,697 8,000 1,973
485 9,358
17,041
275 8,000
- 633
4,963 7,937
Total Other Expenses $41,554 $21,809 $41,554 $21,809
Notes to the Financial Statements for the year ended March 31, 2012
Group Wellington Tenths Trust
2012 2011 2012 2011
NOTE 10. TAXATION
Net Surplus/(Deficit) Before Tax 677,486 497,546 638,193 39,666
ADD/(LESS): Depreciation Adjustment for Accounting Dividend Received Imputation Credits Non-Deductible Other Expenses Amortisation Expense Gain on Sale of Property—Non-Taxable Pipitea Joint Venture Lambton Quay Joint Venture
9,603
560,000 240,000 23,334 8,000
(7,574) (44,598)
(439,507)
(114,184)
- -
8,131 8,000
- - -
16,924
- 240,000 22,789 8,000
(7,574) (44,598)
(439,507)
- - -
8,131 8,000
- - -
Taxable Income/(Loss) 1,026,745 $399,493 434,228 55,797
Losses from Previous Years Utilised Taxation Expense LESS Provisional Tax Paid RWT Paid Refund Received Terminal Tax Paid Prior Period Adjustment Prior Year Taxation Refund Due
(474,684) $552,060
181,913
(41,858)
(3) -
(21,760) (4,423)
-
(399,493) -
-
(39,562) - - - -
(7,327)
(434,228) -
2,574
- - - -
(2,574) -
- $55,797
-
- - - - -
(3,277)
Taxation (Refund Due) $113,869 $(46,889) - $(3,277)
The Distribution to Owners in the 2011and 2012 financial years were made from prior year capital profits. They are non-taxable and cannot be claimed as a deduction. Tax losses amounting to $7,644,391 are to be carried forward to be offset against future taxable income by the Trust. The Group has $7,830,796 of tax losses to be carried forward. These losses are subject to confirmation by the Inland Revenue Department.
33
Wellington Tenths Trust Annual Report 2011-2012
Notes to the Financial Statements for the year ended March 31, 2012
NOTE 13. ADVANCES TO TENTHS VILLAGE LIMITED AND VILLAGE AT THE PARK LIMITED
Group Wellington Tenths Trust
2012 2011 2012 2011
NOTE 11. FIXED ASSETS
Description Database Less Accumulated Depreciation
206,569
(132,392)
206,569
(111,735)
206,569
(132,392)
206,569
(111,735)
74,177 94,834 74,177 94,834
Furniture & Fittings Less Accumulated Depreciation
135,950 (91,828)
123,357 (82,238)
7,294 (3,428)
7,294 (2,660)
44,122 41,029 3,866 4,634
Office Equipment Less Accumulated Depreciation
136,413 (99,346)
111,866 (89,357)
124,284 (87,372)
99,737 (77,509)
37,067 22,509 36,912 22,228
Hikoikoi Reserve Less Accumulated Depreciation
490,272 (89,648)
489,193 (70,890)
490,272 (89,648)
489,193 (70,890)
400,624 418,303 400,624 418,303
Website Development Less Accumulated Depreciation
15,457 (14,612)
15,547 (13,345)
15,457 (14,612)
15,547 (13,345)
845 2,112 845 2,112
Te Aro Pa 52,188 - 52,188 -
Total Fixed Assets $609,023 $578,787 $568,612 $542,111
Wellington Tenths Trust has made advances of $9,096,805 (2011: $9,096,805) to Tenths Village Limited as corporate trustee for Tenths Village Trust. The advance is interest free and is repayable on demand. The beneficial owners of Wellington Tenths Trust are also the ultimate beneficiaries of Tenths Village Trust. Tenths Village Limited has used this advance to acquire 100% of the shares in Village at the Park Limited for $2,500,000 and to make advances to Village at the Park Limited as at March 31, 2012, secured by a se-cond ranking debenture over the land, repayable on demand at least four years after draw down. Village at the Park Limited has advanced $5,994,860 to the joint venture with the Hurst Group in Village at the Park Lifecare Limited, the operator of the Village at the Park Retirement Village and repayment will be determined by Village at the Park Limited. Village at the Park Limited has a 50% interest in Village at the Park Lifecare Limited. Capital Hill Limited has made advances of $633,732 to Village at the Park Limited. The advance is unsecured and interest free. It is not anticipated that repayment will be demanded within the next twelve months.
NOTE 12. LOAN TO WHAREWAKA O PONEKE CHARITABLE TRUST Wellington Tenths Trust has made a loan of $894,039 to Wharewaka o Poneke Charitable Trust. The loan was advanced on December 20, 2010 for an initial term of five years with interest only repayments during the term. Interest on the loan is charged at 10.45%. The principal amount is to be repaid at the expiry of the initial term, if the term has not been renewed.
34
Wellington Tenths Trust Annual Report 2011-2012
NOTE 15. INVESTMENT PROPERTIES (at valuation)
Freehold Land & Improvements 383-387 Adelaide Road, Wellington 433 Adelaide Road, Wellington 435 Adelaide Road, Wellington 437 Adelaide Road, Wellington 38 Buckle Street, Wellington 213-217 Taranaki Street, Wellington 40 Waripori Street, Wellington 42 Waripori Street, Wellington 64 Waripori Street, Wellington 64a Waripori Street, Wellington
1,813,000
408,000 582,000 426,800
6,930,000 7,524,000
203,000 413,250 397,000 402,550
1,875,000
427,000 592,000 437,000
6,565,000 7,350,000
203,000 412,000 397,000 407,000
1,813,000
408,000 582,000 426,800
- -
203,000 413,250 397,000 402,550
1,875,000
427,000 592,000 437,000
- -
203,000 412,000 397,000 407,000
Total Freehold Land & Improvements $19,099,600 18,665,000 $4,645,600 4,750,000
Notes to the Financial Statements for the year ended March 31, 2012
NOTE 14. INVESTMENT IN SUBSIDIARIES
NOTE 13. ADVANCES TO TENTHS VILLAGE LIMITED AND VILLAGE AT THE PARK LIMITED (continued) The Trustees have reviewed the independent valuation undertaken of the land, buildings and site improvements of Village at the Park at March 31, 2012 which values the investment property at $35,030,000. The Trustees have reviewed the underlying net equity and secured loans in the Village at the Park at $7,692,132 and together with the value of the on-going business leads the Trustees to consider the Tenths Village 50% investment to have a current value greater than the loans made to Tenths Village Limited and Village at the Park Limited.
Name of entity Principal Activities Interest Held by Group
2012 2011
Capital Hill Limited Commercial Rental 100% 100%
Nga Tekau Seafoods Limited Non-Trading 100% 100%
Pipitea Properties Limited Commercial Rental 100% 100%
Taranaki 10 Trust Investment Trust 100% 100%
Taranaki 217 Limited Student Accommodation 100% 100%
Taranaki 2001 Limited Property Developer 100% 100%
Wellington Tenths Lambton Quay Ltd Commercial Rental 100% 100%
All of the subsidiaries have a March 31 balance date and have been owned for the full financial year. Taranaki 217 Limited and Taranaki 2001 Limited are wholly-owned subsidiaries of Taranaki 10 Limited, as Trustee for the Taranaki 10 Trust, the beneficial owner of which is Wellington Tenths Trust.
Group Wellington Tenths Trust
2012 Valuations
2011 Valuations
2012 Valuations
2011 Valuations
35
Wellington Tenths Trust Annual Report 2011-2012
Notes to the Financial Statements for the year ended March 31, 2012
Group Wellington Tenths Trust
2012 Valuations
2011 Valuations
2012 Valuations
2011 Valuations
NOTE 15. INVESTMENT PROPERTIES (at valuation) continued
Leasehold Land 381 Adelaide Road, Wellington 557-567 Adelaide Road, Wellington 128 Rintoul Street, Wellington 18 Russell Terrace, Wellington 28-32 Russell Terrace, Wellington 44 Waripori Street, Wellington Gilbert Road, Upper Hutt
1,597,400 2,646,000
179,450 -
4,900,000 213,000
1,209,785
1,580,000 2,505,000
126,000 213,000
4,900,000 213,000
1,210,427
1,597,000 2,646,000
179,450 -
4,900,000 213,000
1,209,785
1,580,000 2,505,000
126,000 213,000
4,900,000 213,000
1,210,427
Total Leasehold Land 10,745,635 10,747,427 10,745,635 10,747,427
Total Investment Properties $29,845,235 $29,412,427 $15,391,235 $15,497,427
The investment properties owned by the Wellington Tenths Trust and it’s subsidiaries, with the exception of the property listed below, have been valued based on a valuation performed by independent registered public valuer, Colliers International, as at March 31, 2012. The investment property located at Gilbert Road, Upper Hutt has been valued based on a valuation performed by independent registered public valuer, Allison Associates Ltd as at March 31, 2012. The valuation basis used was open market value less disposal costs.
NOTE 16. PIPITEA STREET PROJECT Wellington Tenths Trust entered into an Unincorporated Joint Venture agreement dated May 25, 2008 relating to the development of the properties previously owned at Pipitea Street, Wellington. The Joint Venture is known as “Pipitea Street Project”. The parties to the Joint Venture agreement are Wellington Tenths Trust (25%) and Pipitea Street Trust (Redwood Group Limited) (75%). The agreement involved the sale of the properties at Pipitea Street to the Joint Venture and Wellington Tenths Trust has advanced $9,000,000 to the Joint Venture as at March 31, 2012 (2011: $9,000,000). In addition the Trust’s share of equity accounted profits to March 31, 2012 in relation to this project was $(10,611). Construction commenced in July 2008 and was completed in December 2010. The building is fully tenanted to a Government agency.
NOTE 17. LAMBTON QUAY PROJECT Wellington Tenths Trust entered into an Unincorporated Joint Venture agreement dated September 30, 2008 relating to the development of the properties previously owned at 2-8 Lambton Quay, Wellington. The Joint Venture is known as “KS Exchange Joint Venture”. The parties to the Joint Venture agreement are Wellington Tenths Trust (25%) and Lambton Quay Trust (Redwood Group Limited) (75%).
Group Wellington Tenths Trust
2012 2011 2012 2011
Opening Balance Holdings costs associated with project
1,055,802 283,183
1,737,698 (681,896)
1,055,802 283,183
1,737,698 (681,896)
Closing Balance $1,338,985 $1,055,802 $1,338,985 $1,055,802
36
Wellington Tenths Trust Annual Report 2011-2012
Notes to the Financial Statements for the year ended March 31, 2012
Group Wellington Tenths Trust
2012 2011 2012 2011
NOTE 18. OTHER INVESTMENTS
Wellington Tenths Development Trust Nicholson Group Limited Adelaide Road Development Costs Hikoikoi Management Limited Te Aro Pa Investments
19,592 73,812
103,643 922,019
-
13,435 73,812
103,643 507,453 49,788
9,592 73,812
103,643 924,326
-
13,435 75,913
103,643 509,761
-
Total Other Investments $1,119,066 $748,131 $1,111,373 $752,540
NOTE 19. INTANGIBLE ASSETS
Description Westpac Stadium Seats
16,000
24,000
16,000
24,000
Total Intangible Assets $16,000 $24,000 $16,000 $24,000
The $120,000 purchase of 10 Westpac Stadium seats is being amortised on a straight line basis, over a period of 15 years from 2000 to 2014.
NOTE 20 BANK OVERDRAFTS The Wellington Tenths Trust has an overdraft facility with Westpac Banking Corporation for $350,000. This facility has been secured over the Trust’s properties located at 28-32 Russell Terrace, 381 Adelaide Road, 383 to 387 Adelaide Road, 557 to 559 Adelaide Road, 433 Adelaide Road, 387 and 435 Adelaide Road, Wellington. Taranaki 217 Limited has an overdraft facility with BNZ bank for $100,000. This facility has been secured over 213-217 Taranaki Street, Wellington.
NOTE 21. UNCLAIMED DISTRIBUTIONS
Unclaimed Distributions at Beginning of Year Distribution Declared
1,401,811 512,173
1,249,579 457,299
1,401,811 512,173
1,249,579 457,299
1,913,984 1,706,878 1,913,984 1,706,878
Less Distributions Claimed
357,079
305,067
357,079
305,067
Unclaimed Distributions at End of Year $1,556,905 $1,401,811 $1,556,905 $1,401,811
NOTE 22. PALMERSTON NORTH MAORI RESERVE
Funds are transferred between Palmerston North Māori Reserve and Wellington Tenths Trust. The balance also includes expenses paid by the Trusts on behalf of the other Trust. Any cash advances owing to Palmerston North Māori Reserve are charged interest at 9.95%. In 2012 interest was charged at the previous Westpac overdraft rate.
37
Wellington Tenths Trust Annual Report 2011-2012
Notes to the Financial Statements for the year ended March 31, 2012
NOTE 23. TERM LOANS
Description—Maturity Date—Interest Rate
Bank of New Zealand—3/7/2012—4.67% Westpac Banking Corporation—31/12/2012—5.30% Westpac Banking Corporation—31/12/2012—5.30% Westpac Banking Corporation—31/12/2012—5.30% Westpac Banking Corporation—30/4/2012—5.95% Westpac Banking Corporation—31/10/2013—5.55%
3,299,733 1,500,000
615,000 750,000
3,156,000 890,000
3,555,444 1,500,000
615,000 750,000
3,156,000 1,000,000
-
1,500,000 615,000 750,000
3,156,000 890,000
-
1,500,000 615,000 750,000
3,156,000 1,000,000
Total Commitment 10,210,733 10,576,444 6,911,000 7,021,000
Less Current Portion (next 12 months) 382,079 278,381 120,000 -
Net Term Liability $9,828,654 $10,298,063 $6,791,000 $7,021,000
Group Wellington Tenths Trust
2012 2011 2012 2011
The Bank of New Zealand loan is secured by a registered 1st mortgage over 217 Taranaki Street, Wellington together with a General Security Agreement over all companies in the Group.
NOTE 24. CONTINGENT LIABILITIES & COMMITMENTS Taranaki 217 Limited The Wellington Tenths Trust and Taranaki 10 Limited have guaranteed an advance of $4,750,000 from the Bank of New Zealand Limited to Taranaki 217 Limited. The amount advanced consists of a Line of Credit facility of $100,000 for five years at the Bank of New Zealand Line of Credit Prime Rate, together with a Term Loan of $4,650,000 for five years at an interest rate 1.25% above the 90 day Bank Bill Rate. The advance is secured by way of first mortgage over the property located at 213-217 Taranaki Street, Wellington together with joint guarantees, each in the sum of $4,750,000 plus interest and costs, from the Wellington Tenths Trust and Taranaki 10 Limited. Village at the Park Healthcare Limited and Village at the Park Lifecare Limited The Wellington Tenths Trust (on behalf of Village at the Park Limited), Hurst Holdings Limited, Terence Leonard Pratley and Geoffrey Ewan McPhail are the joint guarantors of the mortgage from Westpac Banking Corporation to Village at the Park Lifecare Limited, and of the CreditLine facility to Village at the Park Healthcare Limited. The mortgage to Village at the Park Lifecare Limited, and CreditLine facility to Village at the Park Healthcare Limited are secured by way of a first ranking exclusive mortgage from Village at the Park Lifecare Limited over the property situated at 71 Rintoul Street, Wellington, and first ranking exclusive general security agreements charging the personal and non-personal property of Village at the Park Lifecare Limited and Village at the Park Healthcare Limited. The Wellington Tenths Trust’s liability in respect of the guarantees provided for Village at the Park Healthcare Limited and Village at the Park Lifecare Limited are limited to an amount equivalent to 50% of guaranteed monies, reflecting the shareholding of Village at the Park Limited in the joint venture companies.
38
Wellington Tenths Trust Annual Report 2011-2012
Notes to the Financial Statements for the year ended March 31, 2012
NOTE 25. RELATED PARTY TRANSACTIONS All members of the Wellington Tenths Trust group, as listed in Notes 6 & 14 are related parties of the Trust. During the year the trust has advanced loans to support it’s subsidiaries and associates as required, and received loan repayments from its subsidiaries and associates, in the normal course of business. The Wellington Tenths Trust has received advances from the Palmerston North Māori Reserve Trust of which Sir Ngatata Love, Mr Mark Te One and Ms Jeanie Hughes are trustees. Hikoikoi Management Limited, as associate of the Wellington Tenths Trust, of which trustee Sir Ngatata Love and Lennox Love are directors, provided administration and management services to the Wellington Tenths Trust, and was paid $95,275 (2011: $86,306). Hikoikoi Management Limited is owned 50% each by Palmerston North Māori Reserve and the Wellington Tenths Trust. It is charged with running the administration of both these trusts. Pipitea Properties Limited, a wholly owned subsidiary of the Wellington Tenths Trust, of which Trustee Sir Ngatata Love is director. On March 31, 2012, the Wellington Tenths Trust charged Capital Hill Limited, a wholly-owned subsidiary of the Wellington Tenths Trust, of which trustees Sir Ngatata Love and Mr Peter Love are directors, a management fee of $85,016 (2011: $33,383) for management services which had been provided to Capital Hill Limited by the Wellington Tenths Trust, it’s management and trustees, for the year. On March 31, 2012, the Wellington Tenths Trust charged Taranaki 217, a wholly-owned subsidiary of the Wellington Tenths Trust, of which trustees Sir Ngatata Love, Mr Mark Te One and Mr Peter Love are directors, a management fee of $52,000 for management services which had been provided to Taranaki 217 by the Wellington Tenths Trust, it’s management and trustees, for the year. All the above related party transactions are conducted on a normal trading basis, at fair market rates, as if transactions were conducted between parties at arm’s length except for interest on advances which is not charged.
39
Wellington Tenths Trust Annual Report 2011-2012
Audit Report
40
Wellington Tenths Trust Annual Report 2011-2012
41
Wellington Tenths Trust Annual Report 2011-2012
Proxy Form—2012
P O Box 39294
Wellington Mail Centre, Lower Hutt 5045
24 Marine Parade, Hikoikoi 5012
Telephone: 04 4732502
Fax: 04 5898810
I ____________________________________________________________________________
of __________________________________________________________________________
being an owner in the Wellington Tenths Trust (shareholder number _____________________)
do hereby appoint _____________________________________________________________
or failing him/her ______________________________________________ to act as my proxy
to attend and vote on all matters at the Annual General Meeting of beneficial owners to be held
on September 22, 2012, and at any adjournment thereof.
Dated this ____________________ day of _____________________________________ 2012.
Signature of Owner: ____________________________________________________________
In the presence of
Witness ______________________________________________________________________
Occupation ___________________________________________________________________
Address ______________________________________________________________________
Notes: 1. Proxy forms when completed must either be handed in at the registration desk on the day of the meeting by 12.30pm or be
lodged with the Secretary (Executive Office) before 10am on the working day before the meeting. A proxy must be a
beneficial owner or a descendant of a beneficial owner.
2. The persons following are qualified to act as a witness to a signature on a proxy form:
Solicitors of the High Court, Justice of the Peace, Officer of the Maori Land Court, Licensed Interpreter of the Maori
Language, Registered Medical Practitioner, Officiating Minister, registered Nurse, School Teacher, Officer of the
Department of Justice and Chartered Accountant
CU
T H
ER
E
CU
T H
ER
E
CU
T H
ER
E
CU
T H
ER
E
CU
T H
ER
E
42
Wellington Tenths Trust Annual Report 2011-2012
Wellington Tenths Trust Annual Report 2011-2012
Contact Details
Trustees: Professor Sir Ngatata Love (leave of absence)
Richard Carroll (Interim Chair) Piki Carroll
Vennessa Ede Jeanie Hughes Grant Knuckey Lennox Love Peter Love
Mark Te One Wayne Mulligan (resigned April 2012)
Dr Tony Ruakere (resigned February 2012)
Executive Office
Keith Hindle, Erini Shepherd, Ritihia Hailwood, Vicki Hollywell Gilbert Douglas, Shamia Shariff
Physical Address: 24D Marine Parade, Hikoikoi, Petone, Wellington 5012 Postal Address: P O Box 39294, Wellington Mail Centre, Lower Hutt 5045 Telephone: 04 4732502 Facsimile: 04 5898810 Email: info@tekau,maori.nz Website: www.tekau.maori.nz
Banker: Westpac Banking Corporation Limited
Accountants:
BDO Wellington Limited
Auditor: WHK Wellington
Legal Advisors:
Gibson Sheat
Property Managers: Westerman Property Solutions Limited
This report is prepared on behalf of the Wellington Tenths Trust by JaVaSi Services Limited
44
Wellington Tenths Trust Annual Report 2011-2012