Part 3: Forecast financial statements

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Part 3: Forecast financial statements

Statement of forecast financial performance for the period 1 July 2008 to 30 June 2011

Table 8: Statement of forecast financial performance for the period 1 July 2008 to 30 June 2011

	2008/09 Parent Budget $000	2008/09 Group Budget $000	2009/10 Group Budget $000	2010/11 Group Budget $000
Revenue
Rental income - tenants	14,095	355,266	371,238	381,933
Rental income - income-related rent subsidy	0	521,665	549,249	575,493
Interest income	5,053	5,053	3,101	3,884
Crown appropriation income	31,198	31,776	28,465	29,039
Other income	126,030	4,400	3,780	3,075
Total operating revenue	176,375	918,160	955,833	993,424
Expenses
Maintenance/cost of ownership	35	197,008	204,602	212,060
Rates	2,372	101,684	107,048	112,192
Rental property depreciation	7,136	175,895	183,295	189,679
Management assets depreciation	3,251	13,011	13,845	16,252
Third party rental leases	0	52,932	59,096	65,276
Other direct costs	975	66,449	50,599	56,189
Employee remuneration and benefits	72,983	72,983	76,694	80,463
Interest costs	22,117	133,291	136,905	136,491
Indirect expenses	50,006	54,306	50,400	52,551
Total expenses	158,876	867,559	882,484	921,154
Operating surplus before tax	17,499	50,602	73,349	72,270
Income tax expense	8,102	25,202	30,563	31,437
Net surplus after tax	9,397	25,400	42,786	40,833

Statement of forecast movement in equity for the period 1 July 2008 to 30 June 2011

Table 9: Statement of forecast movement in equity for the period 1 July 2008 to 30 June 2011

	2008/09 Parent Budget $000	2008/09 Group Budget $000	2009/10 Group Budget $000	2010/11 Group Budget $000
Opening equity	3,877,747	11,687,379	11,802,110	11,927,863
Net surplus	9,397	25,400	42,786	40,833
Changes in revaluation reserve	0	0	0	0
Changes in other reserves	(2,706)	310	2,311	184
Total recognised revenues and expenses	6,691	25,710	45,096	41,017
Distribution to owners	1,661	1,661	0	15,267
Contribution from owners	90,682	90,682	80,656	25,485
Closing equity	3,973,459	11,802,110	11,927,863	11,979,097

Statement of forecast financial position for the period 1 July 2008 to 30 June 2011

Table 10: Statement of forecast financial position for the period 1 July 2008 to 30 June 2011

	2008/09 Parent Budget $000	2008/09 Group Budget $000	2009/10 Group Budget $000	2010/11 Group Budget $000
Equity
capital contribution	3,662,094	3,675,744	3,756,400	3,781,885
Retained earnings	112,512	(101,473)	(56,967)	(31,401)
Revaluation reserve	196,234	8,188,161	8,188,161	8,188,161
Other reserves	2,619	39,677	40,268	40,452
Sharedholders' funds	3,973,459	11,802,110	11,927,863	11,979,096
Short-term debt	39,000	235,000	161,000	175,000
Accounts payable and other liabilities	20,781	114,983	114,983	114,983
Employee entitlements	4,705	4,705	4,705	4,705
Provisions	24,848	40,179	41,166	42,042
Total current liabilities	89,334	394,866	321,854	336,730
Loans	263,574	1,592,364	1,692,830	1,683,928
Deferred tax liability	4,558	1,528,175	1,500,066	1,471,912
Total non-current liabilities	268,132	3,120,539	3,192,896	3,155,840
Total liabilities and shareholders' funds	4,330,925	15,317,514	15,442,612	15,471,666
Assets
Current assets
Bank	323	1,247	65	748
Receivables and prepayments	162,091	43,921	43,839	43,729
Investments	44,278	37,278	40,905	78,621
Fair value of derivatives	191	3,218	3,859	3,151
Total current assets	206,883	85,664	88,668	126,249
Non-current assets
Fixed assets (non-property)	10,156	40,642	58,172	69,667
Rental property - land and buildings	488,294	15,013,485	15,115,406	15,111,685
Current fair value of derivatives	2,393	51,793	49,184	49,278
Mortgages and other lending	125,930	125,930	131,183	114,787
Investments in subsidiaries	3,497,269	0	0	0
Total non-current assets	4,124,042	15,231,850	15,393,944	15,345,417
Total assets	4,330,925	15,317,514	15,442,612	15,471,666

Statement of forecast cashflows for the period 1 July 2008 to 30 June 2011

Table 11: Statement of forecast cashflows for the period 1 July 2008 to 30 June 2011

	2008/09 Parent Budget $000	2008/09 Group Budget $000	2009/10 Group Budget $000	2010/11 Group Budget $000
Cash flows from operating activities
Rent receipts - tenants	14,095	352,516	368,424	379,054
Rent receipts - income-related rent subsidy	0	521,665	549,249	575,493
Other receipts from the Crown	35,698	29,109	26,727	26,302
Interest received from customers and investments	5,053	5,053	3,101	3,884
Other receipts	77,134	10,927	7,714	7,734
Payments to suppliers and employees	(76,808)	(523,296)	(530,060)	(556,637)
Income tax paid	(9,202)	(52,321)	(58,082)	(59,407)
Interest paid	(21,945)	(132,258)	(134,937)	(135,878)
Net cash flows from operating activities	24,023	211,394	232,136	240,546
Cash flows from investing activities
Sale of rental properties and management assets	224	30,984	34,170	34,281
Mortgage and other lending repayments	11,989	11,989	19,967	16,256
Purchase of rental properties and management assets	(28,001)	(320,704)	(367,282)	(267,999)
Mortgage and other lending	(42,856)	(42,856)	(25,390)	0
Change in short-term investments	0	(2,332)	(2,029)	(1,740)
Investment in subsidiaries	(80,341)	0	0	0
Net cash flows used in investing activities	138,986	322,920	340,564	219,202
Cash flows from financing activities
Capital contributions	90,682	90,682	80,656	25,485
Crown borrowings	25,799	26,586	26,467	5,098
Dividends paid	(1,661)	(1,661)	0	(15,267)
Other debt increase/(repayment)	0	(3,464)	123	(35,975)
Net cash flows from/(used in) financing activities	114,820	112,143	107,246	(20,660)
Net increase in cash and cash equivalents	143	617	1,182	683
Cash and cash equivalents at beginning of period	466	630	1,247	64
Cash and cash equivalents at end of period	323	1,247	65	747