annual report year ended march 31, 2012 · wellington tenths trust annual report 2011-2012 annual...

Wellington Tenths Trust Annual Report 2011-2012

Annual Report Year Ended March 31, 2012

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Front Cover Photo: view over Wellington from Te Ahumairangi Lookout


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

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5


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

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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

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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


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


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

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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

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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


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.

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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

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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.

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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


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


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


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


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


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


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


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


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


Statement of Movements in Trust Capital for the year ended March 31, 2012


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


23


Statement of Financial Position as at March 31, 2012


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


24


Statement of Financial Position as at March 31, 2012


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


25


Statement of Cash Flows for the year ended March 31, 2012


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)


26



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


27


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



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




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




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




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


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



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



NOTE 13. ADVANCES TO TENTHS VILLAGE LIMITED AND VILLAGE AT THE PARK LIMITED


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


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


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.


2012 Valuations

2011 Valuations

2012 Valuations

2011 Valuations

35




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%).


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




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



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


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



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


Audit Report

40


41


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



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


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