Quayside Holdings Limited Analysis

Overview

Quayside Holdings Limited (QHL) and its wholly owned subsidiary, Quayside Securities Limited (QSL), were established in July 1991. The primary objectives of the Group were to acquire at valuation the shares in the Port of Tauranga Limited (POTL), then held by the Bay of Plenty Regional Council (Council) and, thereafter, to manage the shareholding in the interests of the Council.

A further, wholly owned, subsidiary Quayside Properties Limited (QPL) was established in October 2003. The purpose of QPL is direct investment in property.

On the 7th March 2008 an offer for Perpetual Preference Shares closed fully subscribed with the total number on issue being 200,000,000 which were sold at $1 each. The shares commenced trading under the code QHLHA on the NZDX on the 13 March 2008.

Performance

The following information was extracted from Quayside Holdings Limited's full year results, released 05 September 2025:

Quayside Holdings Limited and subsidiaries (“the Group”) is pleased to report its full year results for the year ending 30 June 2025.

Quayside has cemented its role as an intergenerational endowment stewarding a $2.7b fund. Quayside has delivered strong earnings under strengthened governance (new Investment Committee, SIPO review), progressing key assets (Tauranga Crossing, Panorama Towers) and regional development via Rangiuru Business Park milestones.

CEO Lyndon Settle states “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.

The Group is pleased to have provided net distributions of $47.0 million to Bay of Plenty Regional Council and $9.6 million to Perpetual Preference Shareholders. All dividends are fully imputed.

Operating Performance

Port of Tauranga delivered a strong financial performance for the year ended 30 June 2025, with underlying net profit after tax rising 23% to $126 million and total trade increasing 7% to 25.3 million tonnes. However, critical infrastructure constraints are limiting growth, as berth capacity issues forced the port to turn away new shipping services. A judicial review halted the fast-track consent process for the Stella Passage development due to a legislative error, delaying much-needed expansion. The port warns that without urgent government action, New Zealand risks losing hundreds of millions in GDP annually.

The Group’s consolidated profit after tax was $172 million, up 101% on FY24, and includes a one-off $49 million gain recognised by Port of Tauranga on disposal of an investment.