Senior Trust reports strong results at 2025 ASM

Senior Trust Retirement Village Income Generator Limited (STIG) has reported strong financial results and a positive outlook at its Annual Shareholder Meeting noting the increasing opportunities in the retirement village sector underpinned by an ageing population.

Executive Director John Jackson opened the meeting, welcoming shareholders and acknowledging the uncertain global and domestic environment. He noted that despite recent challenges the company had paid attractive returns to Shareholders during the financial year while protecting investor capital.

“I am proud of what we have achieved. Even in this difficult environment, the company has delivered an attractive return and, most importantly, protected your share capital,” says Jackson.

Three factors underpinning performance

Jackson outlined three core factors that have supported STIG’s performance: the stability of the retirement industry, the company’s investment strategy, and the expertise of its management team.

“The retirement industry is a well-regulated sector built on a fundamental fact: New Zealand’s population is getting older and more people are heading into retirement. The demand for quality retirement living is not going away,” says Jackson.

He emphasised STIG’s lending model, based on carefully selecting experienced operators developing high-quality villages. “Our team has many years of experience and closely monitors our mortgage-backed loans. This expertise allows us to navigate the market with confidence and protect your investment,” says Jackson.

Managing redemption requests

Jackson addressed shareholder interest in redemption requests, noting a rise in the past year. “We have a defined process in place to handle redemption requests, which is detailed in our Product Disclosure Statement, and we are focused on delivering a positive outcome for those requesting redemptions,” says Jackson.

A resolution put to shareholders at the meeting sought approval to increase the company’s share repurchase arrangement capability. Since 2021, the company’s shares on issue have grown nearly four-fold, making the existing limit outdated. The resolution was passed, providing greater flexibility to meet redemption requests when additional cash reserves are available.

Signs of a turning market

Looking ahead, Jackson noted positive indicators in the housing and retirement village markets. “We sense that the market is beginning to turn. We are already seeing an uptick in interest in some of the villages we lend to, reflected in increased attendance at open homes. A recent drop in residential mortgage rates is also encouraging,” says Jackson.

He added that while demand may temporarily slow, it will not disappear. “People who have delayed moving into a village because of uncertainty in the housing market will come back. When they do, our investment strategy of lending to good people building great villages will pay off,” says Jackson.

Strong financial results

The company reported a profit of $12.7 million for the year ending 31 March 2025 and paid out $12.57 million in gross distributions to shareholders, equivalent to a distribution rate of 7 percent per annum (pre-tax).

STIG’s share price has remained stable at $1 since inception, demonstrating delivery on its key objective of capital stability. Shareholder capital has grown to more than $200 million, enabling the company to expand its lending activity.

As part of its risk management approach, the company also confirmed it has repaid all bank debt, further strengthening its financial position. Retained earnings of over $1 million after distributions highlight a focus on both returns and long-term sustainability.

Expanding leadership and opportunities

Jackson welcomed the recent appointment of Matt Major as Chief Executive Officer of Senior Trust Management Limited, the Manager of STIG, and supported his nomination to the board.

“It is a testament to Senior Trust that we can attract candidates of Matt’s quality who bring a wealth of experience,” says Jackson.

Major, who recently returned from senior roles in London’s fund management and alternative asset sectors, told shareholders he was impressed with STIG’s focus on disciplined growth and long-term value creation.

The meeting also heard updates on the company’s portfolio, including progress on the Stoney Creek Village property in Wanaka. Jackson confirmed a conditional agreement had been reached with a prospective purchaser at a price above the carrying value in audited financial statements. Progress was being monitored closely.

In closing, Jackson reaffirmed STIG’s commitment to investors. “We remain focused on our objectives of delivering attractive returns, stability of capital, and being a company that is responsive to your needs. We believe that we have the people, the systems, and the policies to continue to deliver premium returns to you as investors,” says Jackson.

With New Zealand’s ageing population driving long-term demand, Jackson expressed confidence about the road ahead. “We are seeing early signs that the residential market is starting to improve and that resident inflow is increasing. This bodes well for measured growth, and with bank deposit rates falling, history tells us this will result in an increase of investment funds into Senior Trust,” says Jackson.