Rangatira Annual Report 2025 - Flipbook - Page 11
Annual Report 2025
Given that we also have a policy to pay consistent
dividends from year to year we are mindful that we
have the right mix of businesses that provide us
regular cashflow to cover dividends. However, these
businesses often have a lower growth profile and while
they provide solid cash returns, they don’t grow their
capital value as much, so invariably have a lower return
profile.
To increase the return of the portfolio we have
businesses that are predominately focused on growth,
while this carries more risk, they offer better returns. In
most cases these businesses are reinvesting all their
profits back into the business to grow their markets or
their market position.
Growth assets
Yield assets
46%
54%
Target return – 12 to 20% pa
Target return - 8 to 12% pa
Northland Waste
Grow earnings through to FY29 by acquisition
and organic growth - market share growth,
new waste streams and regional expansion.
BeGroup
Return of 8% pa yield and 3% pa
capital appreciation.
NZS Group
Grow earnings through improved market
conditions, increasing presence in Auckland
and other regions.
Boulcott Hospital
Increase earnings with addition of new theatres.
Fiordland Lobster
Improve operating performance, growth from
new markets / products to increase earnings.
Stuart Drummond Transport
Grow earnings through organic growth
and improved market conditions.
Magritek
Generates yield of 4% pa, continue to grow
earnings at 10% pa with new product features,
wider adoption of benchtop devices and
expanding US and Asian markets.
Venture Capital
Achieve 12% return pa across the portfolio
of funds.
We aim to have a 50/50 split between yield and growth
businesses which is captured in the table below.
NZ Pastures
Improve beef / sheep farm return through
farm improvements, progressively trade
down carbon position.
Kiwifruit orchards
All Orchards now fully developed and returning
8% pa yield and 3% pa capital appreciation.
Polynesian Spa
Return of 10% pa. Increase profitability with growth
of Asian tourist market and selected capex to
maintain and improve customer experience.
APC
Complete sale to trade player.
Rainbow’s End
Yield of 10% pa. Grow visitor numbers
through new Pirate Ship ride while increasing
in-park spend.
Listed assets / cash / loans
8%, 3% and 7%+ pa returns respectively.
New Investments
Complete three new investments over the next
five years.
11
