Rangatira Annual Report 2025 - Flipbook - Page 14
Rangatira Investments
We recognise the challenges of the current market
cycle but still have conviction our initial investment
thesis remains intact, and the value of our investment
is supported by a strong and growing underlying
consumer demand and a proven operator. A focus on
existing operating assets has de-risked the investment
(relative to the more development focused entities) and
we expect to enjoy relatively consistent returns over
the long-term.
Fiordland Lobster Company
We expect lower earnings in FY25 and FY26 as, with
the removal of trade sanctions, Australia volume is now
selling into China. We had initially thought this might be
a net positive, but market prices dropped below those
expected before settling at prices like those prior to the
Australia trade barriers being removed.
In response we are undertaking a significant
restructure of Australian operations which will impact
FY26 earnings, with the benefit expected in FY27 as
we consolidate facilities and fishing areas that we
operate in.
At the same time, we are looking at ways to reduce the
dependence on China wet markets by expanding into
second tier cities, alternative buyers, and corporate
customers. Lastly, we will also strengthen domestic
markets in NZ and Australia by maximizing local sales
of live, frozen, or cooked seafood.
Stuart Drummond Transport
The forestry sector began the last financial year
with a continuation of the difficult export conditions
of the previous year. Through the second half of
the year, export prices climbed encouraging private
woodlot owners to commence harvesting through
the summer season.
Stuart Drummond Transport benefited from these
increased volumes, adding to the commitments
secured from institutional forestry owners through the
region. The team worked hard to lift its capability and
customer service, successfully securing significant
contracts with subsequent delivery further enhancing
the business’s reputation for reliability and value.
Consequently, FY25 delivered a stronger year-onyear financial result, with the company continuing
to deliver strong cash flows and funding a distribution
to investors.
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While export prices continue to be volatile, the
business continues to seek growth opportunities,
either via organic development or acquisition, as well
as adding new services to its customer offering. We
remain confident the business is well positioned to
deliver attractive returns to Rangatira over the medium
term.
Kiwifruit orchards
Oaklands and Eastern Rise Orchards are now at near
full production and have commenced paying regular
distributions.
We purchased an additional $1.9m worth of Eastern
Rise units in 2024 and an additional $0.8m worth
of Aurora Gold in March 2025 (both from existing
unitholders).
Our aggregate Zespri exposure is now 652,181 shares
which is worth $3.9m (at latest share price of $6).
Aurora Gold is still in its investment phase but
developing well with yields higher than expected
at the time of our investment.
Post-development, the orchards are now good cash
generators for the portfolio. We will work closely with
the Dunstan family to continue to grow our kiwifruit
interests.
Long term risks such as disease and trade restrictions
remain, though we are not overexposed to kiwifruit at
the portfolio level.
NZ Pastures
We now have 15 forestry developments owned across
3 entities with the same set of co-investors.
We successfully sold down 5 forestry properties in
2024 while also acquiring a further 4 properties, so
we are left with a similar number of planted hectares.
We expect to progressively sell down our carbon
position.
We have also undertaken development of both sheep
and beef properties to improve pasture, breeding
stock, irrigation and fencing to improve the productivity
and carrying capacity of land.
