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Annual Report MASTERTON TRUST LANDS TRUST 20 10 ANNUAL REPORT MASTERTON TRUST LANDS TRUST VALUES In undertaking the work of the Trust, we stay true to the intentions of Masterton’s early settlers who secured land to assist future generations in educational, cultural and community activities. LEGACY PROFESSIONALISM EDUCATION Honouring the vision of Using knowledge, skills and Working with the community to Masterton’s early settlers in expertise to grow the Trust assets support learning opportunities securing land from which future and maximise the returns. that are open and accessible generations could benefit. to all. STEWARDSHIP ACCOUNTABILITY ADVANCEMENT Responsible decision-making to To our owners, the people of Providing extraordinary maintain and grow the resources Masterton, and our tenants. educational and cultural in our care. opportunities for Masterton people. Thanks to tenants and grant recipients for assisting with photographs for this report. Cover: Former Alan MacDiarmid Scholar Greg Haslett. CONTENTS THE YEAR IN REVIEW 1 CHAIRMAN’S REPORT 2 SCHOLARSHIPS 4 EDUCATION 6 SCHEDULE OF GRANTS 8 PROPERTY 10 COMMUNITY 12 GOVERNANCE 13 FINANCIAL STATEMENTS 14 AUDIT REPORT 20 UCOL Catering Course Lennox Design Studio THE YEAR IN REVIEW OPERATING SURPLUS $1.6 million Up 7.7% RENTAL INCOME $3.6 million Up 2.5% EQUITY $38.4 million Down 0.8% TOTAL ASSETS $52.2 million Down 0.7% Debt as percentage of property assets 28.7% Up 0.6% WALT (Weighted Average Lease Term) 5.1 years TOTAL GRANTS 1.16 million Up 8.4% CASH GRANTS $868,520 Up 14.4% NON-CASH GRANTS $339,267 Up 7.1% 1 CHAIRMAN’S REPORT I am pleased to present the Trust’s annual report for the year ended 31 March 2010, another challenging year but one which the Trust has weathered well and emerged from in a strong position for the future. Despite the continuation of difficult economic times we have been able to maintain our income and property values while distributing a record financial return to the Masterton community. A range of factors have combined to produce this strong set of results for 2010. Record value for cash grants two-year focus on the curriculum to allow schools to be A record amount of cash was distributed to the Masterton fully prepared. community in the form of grants, an increase of 14.4% The gifted and talented programme for students in art, on the previous year. When concessional rents (non-cash English, mathematics, marketing and graphic design grants) were added, total grants were $1.16 million, the continued. This was the third and final year for the highest annual figure in the Trust’s history. purchase of Smartboards for the Secondary sector. Education remained the focus of our grants programme The Trust continues to investigate ways to further develop with all Masterton schools and early childhood centres the professional development programme for the early benefiting through roll-based grants. In addition, the childhood education sector at similar levels to the Primary/ professional development initiatives in the Primary/ Intermediate and Secondary sectors. Intermediate and Secondary sectors continued to receive substantial funding. Annual scholarships for Masterton students, those attending UCOL Wairarapa and several special scholarships In the Primary sector literacy, numeracy and ICT remained again accounted for a significant portion of education the focus of the Trust-funded programmes begun in grants. It is always exciting to hear from former 2005. After evaluating the two-year One Day School scholarship recipients who have established successful pilot, principals were unanimous in their support for its careers or gone on to further study. We profile some of continuation. Principals’ leadership courses were extended them in this report. to Assistant and Deputy Principals. We were pleased to provide a special grant to Makoura In a first for the Secondary sector, each of the five College during the year following strong community Masterton colleges received a $2,000 teacher scholarship support for the college to sustain itself in the future. We for research projects which have benefited all schools also supported Wairarapa College’s investment in a new through information sharing where appropriate. hall and are delighted with the quality facility that is now Teacher professional development on the new curriculum serving the school and wider community. introduced in 2010 involved all schools and completed a 2 Trust assistance for UCOL Wairarapa has taken various forms over the years. This year we worked with UCOL to support the reinstatement of the catering course, which ended up being oversubscribed. We look forward to building on this success in 2011. Property portfolio 84% Retail 9% Ground The Trust’s diverse portfolio continues to provide relative 3% Educational 1% Community stability in overall valuation, despite tough economic times. A mix of local, national and international tenants and leases 2% Industrial 1% Recreational provides a strong foundation for growth when strategic opportunities arise in the future. The Trust’s policy of non-speculative land holdings and minimising development risk has proven highly effective, 2% Rent Free 29% Ground contributing to stability over the year. 19% Educational 6% Recreational The value of the property portfolio held its own, especially when compared with other property trusts nationally and 3% Community 1% Residential internationally. 37% Retail 4% Industrial During the year the Trust negotiated the purchase of the lessee improvements in properties at the town end of Lincoln Road. In accordance with Trust policy we purchased buildings situated on Trust property from tenants. Supporting tenants 8% Rent Free 13% Ground Our commitment to supporting our tenants where we are 6% Educational 2% Recreational able has paid off with 100% retention of tenants over the 1% Community 69% Retail past two years. They have rewarded us with their loyalty which, combined with our commitment to continual 2% Industrial upgrade of properties, and market rentals, has contributed to a growth in rental income. Our low-risk lease expiry profile enables good continuity of leases with an average lease term of 5.1 years. During the year we completed the internal upgrade of the Star Block, a large retail area in central Masterton. 27% Local This included a more than $100,000 investment in fire 59% National systems, a monitored alarm system and the creation of fire 14% International compartments. The block is now fully occupied and work on the exterior will be completed in the next financial year. We welcomed new tenants, Spices of India and Lennox Design, to the Star Block and sub-divided premises now occupied by Clarkes Jewellers. A number of other property upgrades continued with the installation of automatic doors, suspended ceilings, energy efficient lighting and heat pumps. Thanks Finance I would like to thank my fellow trustees and the Trust staff for their hard work and commitment in what has been During the year we maintained or improved our banking another challenging but successful year. Our thanks also commitments as agreed with our bankers, ANZ National. This go to our tenants, grant recipients and the professional included managing changes in the finance market as a result and trades people who assist the Trust. We look forward to of the international financial turmoil. working with you again in the coming year. The operating surplus increased over the previous year as a result of well-controlled expenditure. J A Sadler Chairman 3 UCOL Wairarapa Bachelor of Nursing graduate, Corina Ngatai, received her Tertiary Scholarship in 2007. Now working as a Registered Nurse at the Greytown Medical Centre, Corina was inspired to become a nurse after caring for a terminally ill cancer patient. Corina’s aim is to use her role in primary health care to prevent chronic disease and keep people well. Tertiary scholarships are an important part of the Trust’s annual educational grants programme. Hundreds of grants for SCHOLARSHIP SUCCESS tertiary and apprentice study are made each year along with one Alan MacDiarmid Scholarship. Here we profile just a few of the former recipients and find out where they are now. A Tertiary Scholarship helped Richie Trotman complete his Carpentry Apprenticeship with Masterton firm Rigg-Zschokke Ltd in 2006. After some time working in Masterton and further training, Richie now works in Wellington as a Quantity Surveyor with Fletcher Construction. 4 Above: Former Alan MacDiarmid Scholar, Greg Haslett, has completed an Below: 2010 Alan MacDiarmid Scholar and former undergraduate and First Class Honours Bachelor of Science degree in chemistry at Rathkeale College student, Timothy Foster, receives Victoria University. Greg’s year-long research project on synthesising glycoproteins in the annual scholarship for the top Chemistry pure form to better understand the chemical cause of asthma caught the attention of student in Masterton secondary schools from Cambridge University. He has received a Cambridge Commonwealth Trust Prince of Trustee Christine Brewster. Timothy will study for Wales Scholarship to study at Cambridge University for a PhD in Chemistry. a Health Science degree at Otago University. 5 Above: The Trust echoed the Masterton community’s support for Makoura College during the year with a special grant of $25,000 to help move the college into the future. Sixteen computers on wheels were purchased to assist the development EDUCATION of e-learning in the junior school. A further 10 new computers are used by Design Art and Digital Photography students. UCOL Wairarapa’s catering course was revitalised during the year with the assistance of the Trust. Now oversubscribed, the course is looking to further expand. The purchase of Barista equipment was part of the Trust’s contribution. 6 Above: A second grant of $40,000 was made to Below: The Marimba Mega-Mix music workshop was one of a range of inspirational Wairarapa College for its new hall and performing arts workshops held as part of the Be Inspired Conference, attended by 120 Year 6-8 centre, opened during the year.
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