Advisory business TDB will release its latest report on post-settlement iwi and their most recent financial results. Video \ Jason Dorday
Ten biggest iwi had asset increase of only $100 million from 2022
Report found little growth in valuations, assets stand at $8.2 billion
Iwi got a 3.8% return last year, slightly better than 2023.
Assets of the 10 biggest iwi rose only $100 million in the last three years to reach $8.2 billion, according to a new report just released.
Phil Barry, a director of Wellington-headquartered consultancy TDB Advisory, issued the latest iwi investment report from July 1, 2023 to June 30, 2024.
Thatfound little growth in valuations despite big holdings in property, tourism, fishing, forestry, farming, managed funds and global equities.
But the report highlighted how last year was better than 2023.
Barry acknowledged little asset growth lately.
“The reason we’re relatively upbeat about 2024 is the iwi overall achieved a 3.8% return despite a very challenging domestic investment environment.
“Having said that, the 3.8% is the third-lowest return in the last 10 years and comes on top of 2023, which had the lowest return in that time of only 0.4%.”
Ōrākei Marae at Takaparawhau. Photo / Dean Purcell
The report said property and forestry market downturns resulted in half of the iwi posting financial losses in 2023.
“In 2024, by contrast, most iwi saw positive returns, thanks in particular to the strong performance of their financial investments and some one-off gains,” the report said.
With combined assets of approximately $8.2b, the iwi covered are Ngāi Tahu, Ngāpuhi, Ngāti Awa, Ngāti Pāhauwera, Ngāti Porou, Ngāti Toa, Ngāti Whātua Ōrākei, Raukawa, Tūhoe and Waikato-Tainui.
Auckland Airport's Novotel, an asset owned partly by Waikato-Tainui.
The report refers to the 10 iwi as post-settlement, even though Ngāpuhi has not settled with the Crown.
Barry said: “We have included that iwi because of the size of its member base. It is the largest iwi by population. Even without a settlement, it’s still got $100 million of assets.”
Those 10 iwi represent roughly 70% of all post-settlement iwi assets nationally, which total around $12b.
The 2024 report covers the same 10 iwi as the 2023 report.
Property-dominant iwi continued to face challenges from soft real estate values and high financing costs.
Te Tōangaroa, where a new stadium is planned. This area is owned by Ngāti Whātua Ōrākei.
Ngāti Whātua Ōrākei’s Auckland-centric property portfolio suffered losses for the second year in a row.
But rural-based Ngāti Pāhauwera rebounded from a -16.2 % return in 2023 to a +4.4% return in 2024 and Ngāti Porou maintained a positive return close to 3%.
Each iwi’s asset mix reflects its settlement resources, strategic preferences and opportunities in its rohe.
Ngāti Whātua Ōrākei, Ngāti Toa and Waikato-Tainui all hold most assets in land and buildings, largely as a legacy of land via Te Tiriti o Waitangi settlements.
Ngāpuhi, Ngāti Awa and Ngāti Pāhauwera have most of their assets in primary industries such as forestry, farming and fishing, while Ngāti Porou and Tūhoe hold the bulk of their portfolios in financial investments, which includes managed funds such as global equities.
Ōtaki campus of Te Wānanga o Raukawa.
Ngāi Tahu and Raukawa maintain a more balanced spread across property, primary and financial asset classes, TDB found.
Elevated interest rates, suppressed property demand and reduced valuations took their toll. Iwi with substantial real estate holdings – Ngāti Whātua Ōrākei and Ngāti Toa – were particularly impacted. They prioritised tenant retention and deferred non-essential developments and asset sales.
Weak export markets, driven by China’s economic slowdown, hit primary industries, particularly forestry, dairy and red meat. Ngāti Awa and Ngāti Pāhauwera continued orchard investments amid modest revenue growth and anticipated market recovery.
Phil Barry of TDB Advisory. Photo / Jason Dorday
Ngāpuhi’s net assets equate to only about $489/member because it has more than 186,000 tangata whenua but has not yet negotiated a full settlement with the Crown. Small-population iwi with significant assets have far higher wealth per capita. Most iwi fall within a range of $8000 to $20,000 in net assets per member.
Iwi are long-term, values-driven investors who want to grow their portfolios sustainably and are gradually diversifying, the report said.
They tend to have long investment horizons and an intergenerational perspective.
This long-term view means iwi are often prepared to be patient and withstand short-term market volatility, as seen in 2022–2023, in pursuit of steady growth over decades, TDB said.
Anne Gibson has been the Herald’s property editor for 25 years, written books and covered property extensively here and overseas.
