MARK WYNNE
Chair
LYNDON SETTLE
Chief Executive Officer
As we step into FY26, it’s important to pause and reflect on the journey we’ve taken over the past year. FY25 was a year of meaningful progress for Quayside — strategically, culturally, and commercially. It was a year where our purpose, to grow a responsible and diversified fund that generates long-term returns to support the and prosperity of the Bay of Plenty, was activated through our decisions and actions.
We affirmed with Council the desire to be an intergenerational investor that operates under an endowment model, whereby the inflation adjusted principal is preserved, and the fund exists into perpetuity. What this means for our community of beneficiaries and examples already in action are shared throughout this year’s Report.
Through a ratepayer lens, Quayside’s dividend to BOPRC this year represents a contribution of $397 per ratepayer. As at 30 June 2025, Quayside’s net assets equate to $19,453 per ratepayer, with $16,571 of that being represented by our investment in the Port of Tauranga.
Turning to the portfolio highlights; our 54.14% Port shareholding remains the largest asset in our fund. One of the most significant developments this year was Council enabling a potential divestment of a portion of our Port shareholding. This endorsement came after much rigour and engagement and reflects a high degree of trust and confidence from our shareholder. The opportunity to diversify our holdings and unlock capital to create greater intergenerational wealth, while maintaining a significant stake in the Port is a testament to our shared commitment to long-term regional prosperity. That said, the team is in no rush to push through a transaction and will only sell when the conditions are right and we can achieve the best outcome for our region.
From a strategic perspective, the Port’s Stella Passage development remains a critical infrastructure project that will have a domino effect on Port productivity and earnings. The Tauranga Port facilities are now operating at full capacity, resulting in new shipping lines being turned away due to the lack of availability of berth space. The urgency to progress this development to safeguard New Zealand’s supply chain resilience, economic competitiveness, and more locally, the strength of the dividend returning from our largest asset is imperative.
Quayside’s Investment Portfolio has performed strongly, recording normalised earnings of $66.5m for the year ended 30 June 2025, slightly behind budget, but significantly ahead of prior year results. This was driven by gains in our listed assets, private equity and real estate of $21.3m. We continue to strengthen our investment capability through the establishment of a standalone Investment Committee with highly respected external committee members complementing our own Board of Directors and have completed an independent review of our Statement of Investment Policy and Objectives (“SIPO”), ensuring our strategy remains fit for purpose.
The portfolio grew 6.5% this year and 7.1% net (5 year rolling return), supported by solid fund performance and liquidity from distributions. Listed equities returned 8.6% for the year, led by our global portfolio. Property performed well with Tauranga Crossing receiving additional investment, contributing to Stage 3 development, which will further support growth in the Tauranga Western Corridor. This coincides with the announcement of SH29 as a road of national significance, unlocking future housing opportunities in the region.
Additionally, Panorama Towers continues to build momentum, having secured a medical facility spanning five levels as its anchor tenant.
Our Special Purpose Assets portfolio, which holds the Rangiuru Business Park, has proudly reached several key milestones this year, with the opening of the motorway interchange bridge in February, market validation via the first and significant land sale of 8.7ha, vested infrastructure and the issuing of first Records of Titles in June. These achievements reflect the long-term vision and commitment, aligned with our shareholder, that underpin our approach to regional development.
Our organisational cultural transformation has gained momentum that revolves around a high performance mindset and sharpening our performance edge, underpinned by the finalisation and rollout of refreshed values. These values are now being embedded into our daily operations, shaping how we work, lead, and engage with our stakeholders and partners.
It’s been nothing short of a huge year for Quayside. Our value to the Bay of Plenty community and beneficiaries is evidenced largely through the $2.7b fund, which we prudently manage on their behalf. Our focus and commitment to growing a resilient perpetual fund, an enduring dividend and financial security to the Bay of Plenty has never been more true.
Noho ora mai rā,
Mark Wynne
Chair
Lyndon Settle
Chief Executive
Normalised Profit
Normalised Profit represents the IFRS Net Profit After Tax (NPAT) adjusted to exclude the impact of Overhang, PGF funding, Future Proofing initiatives, and other one-off or non-recurring costs, to provide a clearer view of underlying financial performance.
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