Trust works to maintain balance

IN CHARGE: Lands Trust chairman John Bunny. PHOTO/SUPPLIED

Lands Trust Masterton has increased its property portfolio to a record $63.6 million - assets owned by the people of Masterton - while grants were maintained above $1 million for the seventh consecutive year in the financial year ending March 31.

In his report on the 143-year-old trust's annual result, chairman John Bunny said a balance had been achieved between continued investment in new and existing property and maintaining the level of grants.

Support for all levels of the education sector, from early childhood to tertiary, benefited the vast majority of Masterton students and teachers with $441,584 granted to collaborative initiatives and schools, Mr Bunny said.

The community grants programme gave a total of $135,152 to 35 non-profit community organisations with an additional $140,829 going to civic projects and Aratoi Art and History Museum.

Mr Bunny said the trust supported two major projects that would provide enduring benefits to the community.

A contribution of $25,000 was made to the new Masterton Town Square and the Motorplex drag strip received $20,000.

A $30,000 grant funded a water safety and learn-to-swim programme for 450 children and a week's public swimming at the Masterton pool complex.

In other financial results, rental income increased by 4 per cent to $4.2 million and operating surplus was up by 2 per cent.

The average rental security over the entire property portfolio increased from 4.8 years in 2013 to 5.3 years.

"This reflected continued investment in replacing and improving properties in recent years in an extensive programme of structural assessment, demolitions, replacement buildings and strengthening work since 2011.

"Investment in building safety with no substantial immediate increase in rental income means that the conservative financial limits that the trust operates within will need to be monitored.

"The essential work of ensuring buildings are safe for both tenants and the community was equally important to the level of grants which are not expected to increase in the short term," Mr Bunny said.

He said after several years of active investment in new property, building activity over the year was limited to existing property upgrades and decisions on developments for Lone Star and FMG. An earthquake prone building at 27 Lincoln Rd, which once housed Lamberts Cycles was demolished, with the empty space adjacent to Lands Trust Park now held for future development. The rear of the Lands Trust building at 189 Queen St was upgraded for new tenant Ngti Kahungunu ki Wairarapa, and the trust purchased the ground lease for land on the Dixon and Russell St corner occupied by Mills Brothers, enabling consolidation of the entire site for future development.

The vacant trust property adjacent to Millennium Reserve on Pownall St was made available for use by Rangitne o Wairarapa.

The year also saw the completion of decades of service by long-serving trustees Alan Sadler and Garry Daniell.

Lands Trust Masterton is a public lands trust formed to own and manage surplus land not sold to Masterton's working class settlers. Income from the trust's property rentals is distributed in the form of grants to assist educational, community and cultural activities. This concept has played a key role in the evolution of the town since 1871.