29th August 2001 - The Reef Casino Trust (RCT) today reported its best ever after tax net operating profit of AUD$4.15 million for the six months ended 30 June 2001, its fourth straight half-yearly profit. This compares with $2.76 million for the same period last year or an excellent increase of 50.5%. This profit for the six months just ended has even exceeded the $3.99 million result for the six months to December 2000, historically a stronger half.

In accordance with the Trust Constitution's requirement to obtain an independent valuation of the investment property every three years, an independent valuation was carried out as at 20 June 2001 by Colliers Jardine.  The valuation is on the basis of fair market value of the property in its existing use.  The valuation increases the value of the Trust's investment property to $105 million, resulting in an abnormal profit of $34.5 million.

Reef Casino Trust is a single purpose trust that is listed on the Australian Stock Exchange. Its main asset is the Reef Hotel Casino complex in Cairns, Queensland, which comprises the Reef Casino, the 5-star 128 suite Sofitel Reef Casino, a conference centre, conservatory, night club and various restaurants and bars. 

In late-1999, a recapitalisation program was initiated by the new joint-venture partnership of Casinos Austria and global hotel group Accor, to revitalise the complex after it ran into serious financial difficulties during the late-1990s. In the past two years, the complex has experienced a complete financial turnaround.

A third consecutive distribution, once again tax free

Ben Macdonald, Chairman of the responsible entity of the Trust said, "In view of the strong result, the directors of the responsible entity of the Trust have declared an increased distribution of 0.3 cents ($0.003) per unit payable on 17 September 2001."

"The total payment amounts to just under $3 million and is once again tax free in the hands of the unitholders. This makes the distribution even more attractive than fully franked dividends."

"This distribution represents a solid increase of 20% over the distribution for the same period last year and is equal to the distribution for the six months to December 2000." 

Operating Synergies 

The Reef Hotel Casino complex operator, Casinos Austria International (Cairns) Pty Ltd (a partnership between Casinos Austria and Accor) generated rentals to the Trust of $8.08 million or a 29.7% increase over the same period last year. This was achieved on total complex revenues of $29.03 million or 20.9% better than the same period last year.

Enhancements to the complex

Planned enhancements to the main lobby/foyer to greet our arriving guests to the complex will provide them with the best possible environment.  Capital expenditure will be entirely funded from internal cash reserves.

Looking ahead, Ben Macdonald said, "Should the strong trading continue for the rest of the year, the Trust could report a record full year result for 2001."