STIG's 2025 AGM has reported strong results, with increased opportunities in the retirement village sector underpinned by an ageing population.
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 AGM, 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,” said Jackson.
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.”
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.”
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.”
A resolution put to shareholders at the AGM 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 Since 2021, the company’s shares on issue have grown nearly four-fold, making the existing limit outdated.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.
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.”
Jackson 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.”
The company reported a profit of NZD 12.7 million for the year ending 31 March 2025 and paid out NZD 12.57 million in gross distributions to shareholders, equivalent to a distribution rate of seven per cent per annum (pre-tax).
STIG’s share price has remained stable at NZD 1 since inception, demonstrating delivery on its key objective of capital stability. Shareholder capital has grown to more than NZD 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 NZD 1 million after distributions highlight a focus on both returns and long-term sustainability.
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