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Finances

Performance Measure 1

Achievement

Analysis

Financial statements indicate operating surplus

The impact of the Pandemic on operating outcomes was evident in both holiday operation performance investment portfolio performance – both negatively impacted.

The operational loss for 19/20 was $0.272m.

Closure of holiday operations at the end of March and a slight reduction in occupancy to the closure date let to a loss of $0.158m.

Fair value movement on investments was negative $0.239. This was offset somewhat by earnings and accrued earnings of $0.125m.

Performance Measure 2

Achievement

Analysis

Property valuations are accurate

A revaluation of the Ambassador apartments was commissioned effective 30 June 2020. The revaluation provided for an increase in land value of $0.350m whilst apartment values fell by some $0.475m.

The valuation of Ambassador, whilst a disappointing outcome, reflected the Valuer-General’s comments in the 2020 Property Market Movement Report for the Gold Coast. In the report it was noted that land values in the residential unit market had increased slightly but the residential unit market had declined.

Performance Measure 3

Achievement

Analysis

Returns on investments reflect growth against CPI.

CPI for the eight capital cities averaged 2.1%.

Cash returns on property were negative.

The worth of the Colonial investment portfolio achieved a compound return of -3.57%%.

Property. Holiday facilities recorded an operational loss and, as such, a negative return on investment.

Investment. Positive returns for first half of the financial year were reversed once the full market impacts of the Pandemic flowed through to markets. A compound return of negative 3.57% was achieved for the year for the reporting period.

Overall a disappointing outcome nonetheless significantly impacted by external circumstances beyond the control of the business entity.