When you invest in STC, you’ll be buying shares in Senior Trust Capital. As a shareholder of STC, you’ll have an interest in the company’s assets, which includes loans to retirement village developers and/or equity investments. The combination of revenue from loans and capital growth from equity investments delivers shareholders a regular steady income by way of a dividend, paid quarterly.
Your return is made up of pro-rata quarterly distributions (four distributions per year). Our full dividend distribution policy is outlined in our Product Disclosure Statement.
Since its incorporation in August 2008 Senior Trust Capital has paid 8 cents per $1 share distribution (pre-tax), per annum (pro-rata per quarter).
From March 2019 the dividend distribution policy takes advantage of the benefit of tax deductions and pays at a rate of 6.50% pa (net of tax)
Directors set the quarterly distribution in accordance with dividend distribution policy as stated in the Product Disclosure Statement. Dividend distribution rates may vary and are not guaranteed and will be declared only after meeting the required solvency requirements.
Payments are made direct to your nominated account through Link Market Services with PIE tax payments deducted at source for greater convenience.
All Loans are secured and backed by personal guarantees of the operators, however, the investment and returns are not guaranteed. All risks are outlined in the Senior Trust Capital Product Disclosure Statement, which is available here.
STC's shares are not traded freely on an open market. However, as Senior Trust Capital is a continuous issuer of shares, it has the capability to work with investors to on-sell their shares to new incoming investors. STC has a database of past, present and prospective Shareholders in which a significant number of shares have been traded over the year. A trading history is available on request.
Senior Trust Capital is a Portfolio Investment Entity (PIE), which means that investors pay tax based on their individual Prescribed Investor Rate (PIR). The maximum tax deducted at source is 28% which may offer tax savings to some investors.
You need to hold a current New Zealand IRD number to invest in Senior Trust Capital.
The loan and equity placements Senior Trust Capital make are used to establish new or expand existing retirement villages and aged care facilities, or to assist such ventures in capital restructuring.
Where Senior Trust Capital makes loans to retirement and aged care operators, we are paid a return through interest and any other fees or charges payable by the relevant borrower. Senior Trust Capital also works to increase the net asset value (NAV) of the company’s shares through investing directly into retirement villages. This investment is re-valued each year by independent valuers specialised in the retirement village industry. Our key investment objective is to invest in retirement and aged care operators in a way that protects, and grows, our shareholders’ capital and maintains an attractive income return by way of dividend.
The loans made are typically secured by mortgages over retirement village and aged care facility land and/or property. In addition to a mortgage, Senior Trust Capital often also takes general securities over personal property, and guarantees and indemnities from persons associated with the relevant retirement village or aged care facility.
The minimum investment for shares in Senior Trust Capital is $5,000 and thereafter in multiples of $1,000.
Senior Trust Capital is operated separately as required by the Financial Markets Authority. Whereas Senior Trust Capital is a company that issues shares in itself, Senior Trust Retirement Village Listed Fund offers investment opportunities in retirement villages and aged care facilities through units in a listed fund.
Drawing on the management teams 20 plus years’ experience in the industry the Directors have evolved a business model that targets experienced capable operators delivering high quality retirement solutions at the premium end of the market. High quality villages in superior locations have proven over the past twenty years to be consistent reliable performers .