Performance Report 2026
Royal New Zealand Foundation of the Blind
Produced 2026 by Accessible Formats Service, Blind Low Vision NZ, Auckland.
Transcriber's Note
If reading this etext on a portable braille device, please note that it is unproofed by touch. In this e-text edition, CE in a table header indicates “controlling entity”.
Contents
Board Statement 1-3
Statement of Service Performance Financial Review 4−10
Financial Review 11
Financial Statements
Statement of Comprehensive Revenue and Expense 12
Statement of Financial Position 13-14
Statement of Changes in Net Assets/Equity 14
Statement of Cash Flows 15
Notes to the Financial Statements 16-72
Auditor's Report 73-74
General Information
Board's Interests 75-77
Board's Remuneration 78
Directors' Meeting Attendance 79
Employee Remuneration 79
Pages 1-2
Board Statement
The Board of the Royal New Zealand Foundation of the Blind are pleased to present to members the Performance Report of the Royal New Zealand Foundation of the Blind (the "Controlling Entity" or "Blind Low Vision NZ") and its subsidiaries (the "Group" or "RNZFB") for the year ended 30 June 2026.
The Board are responsible for presenting the Performance Report for the year ended 30 June 2026 in accordance with the constitution of the Royal New Zealand Foundation of the Blind and generally accepted accounting practice, which present fairly the service performance, financial position, operations and cashflows of the Group.
The Board consider the Performance Report of the Group has been prepared using appropriate accounting policies which have been consistently applied and supported by reasonable judgements and estimates and that all relevant Performance Reporting and accounting standards have been followed.
The Board believe that proper accounting records have been kept which enable with reasonable accuracy, the determination of the financial position of the Group and facilitate compliance of the Performance Report with the constitution of the Royal New Zealand Foundation of the Blind.
The Board consider that they have taken adequate steps to safeguard the assets of the Group, and prevent and detect fraud and other irregularities. Internal control procedures are also considered to be sufficient to provide reasonable assurance as to the integrity and reliability of the Performance Report.
This Performance Report is signed on behalf of the Board by:
Ms Donna McCaskill
Chair of the Board
Mr Richard Patete
Chair of the Audit Committee
19 September 2026
Pages 3-4
Statement of Service Performance for the Year Ended 30 June 2026
The Royal New Zealand Foundation of the Blind Group comprises of Blind Low Vision NZ as the primary service provider and Controlling Entity, together with other entities under its control—principally Foundation Properties Limited, which manages the Group's investment properties and oversees its investment in the retirement village joint venture.
Blind Low Vision NZ is here to empower people who are blind, deafblind or have low vision to shape their own lives. We offer guidance and support so that people can make informed decisions about their day-to-day lives. Our focus is on supporting choice, confidence and independence.
The purpose that brings us together and the priorities that guide our work are outlined on print page 6.
Over the past year, we've continued to refine how we measure success and improve the quality of our data. This helps us better understand what's working and how we can keep improving.
We're proud of the progress we've made this year in making our services more welcoming, visible, and easy to access. From the very first contact, we've shifted to a more client-friendly welcome process, giving people the information they need, in the format that suits them best, whether that's email, SMS, or large print. It's a small but important step towards greater accessibility, helping clients feel supported from day one.
We've also been building stronger relationships with eye health professionals so that more people with significant vision needs connect with Blind Low Vision NZ at the right time. Our presence at key industry events has helped raise awareness and trust, contributing to a steady stream of regular referrers. Behind the scenes, we've tightened up our data systems so we can report on our impact with greater clarity and accuracy.
Blind Low Vision NZ's approach is grounded in the Enabling Good Lives principles, which means our clients are at the centre of everything we do. Support is flexible and tailored to each person's goals, preferences and aspirations. Recreation activities have been a key entry point for many clients, especially those hesitant to engage. These activities often lead to deeper involvement, with people going on to access full rehabilitation programmes. By focusing on meaningful partnerships, choice and trust, we've helped build confidence, independence and stronger connections.
Page 5
This year's Library activities included a continued focus on introducing new content, helping to strengthen the Library's offering and encourage ongoing client engagement.
Policy and Advocacy has transitioned its campaigns organising practices to a community organising model. This approach amplifies our advocacy for systemic change, utilizing the narrative, voice, and lived experience of our clients, ensuring a person-centred approach.
Policy and Advocacy has delivered on the first Integrated Data Infrastructure (IDI) report looking solely at the life outcome statistics for people who are blind, deafblind, and low vision. This piece of work provides evidence that verifies the stories of Blind Low Vision NZ clients and the systemic barriers they face every day. This report is provided in a number of different accessible formats on the Blind Low Vision NZ website.
On 22 October 2025, Hon Louise Upston, Minister for Disability Issues, hosted the BLVNZ Digital Accessibility Breakfast in the Legislative Council Chamber at Parliament. The theme of the event was "Accessing the Essentials: Digital Accessibility". Guests in the room heard from Minister Upston about the importance of digital accessibility and the Minister emphasised that it is a priority for the government. Blind Low Vision NZ CEO, Andrea Midgen, challenged the government to implement accessibility in all government agencies and crown-owned entities. Guests who attended the event included politicians, ministerial staff, public servants from Department of Internal Affairs (DIA) and Social Investment Agency (SIA), the CEO of Whaikaha, data experts, major banks, university professors, and leaders from the tech sector. As a result of this breakfast, Policy and Advocacy have built strong relationships with the DIA and Westpac, which has opened doors such as the possibility of BLVNZ being included in the new Digital ID Trust Framework.
We hosted the main launch event for the IDI report, Shining a Light on Blindness, in Auckland. Deputy Prime Minister, Hon David Seymour, Labour's Hon Priyanca Radhakrishnan, and the Green Party's Ricardo Menendez March, all spoke about the importance of evidence in creating and implementing policies for disabled people. A smaller community launch was held in Wellington supporting an ongoing conversation for creating positive changes for blind, deaf blind and low vision people.
The proposed changes to the Total Mobility scheme created an opportunity for Policy and Advocacy to apply our new organising strategy. This resulted in clients, staff, and community members doing their own submissions on the proposed changes. This activity was elevated with a Day of Action on 10 June where over 500 people either called or emailed the Minister of Disability Issues, Hon Louise Upston, asking her to intervene and reverse the subsidy reduction.
Page 6
Mission Statement
Empower New Zealanders who are blind, deafblind, or low vision to live the life they choose.
Our Purpose
Our purpose is to connect, educate, equip and support New Zealanders who are blind, deafblind, or have low vision to be independent and self-reliant and do the things they need and want to in life. As well as supporting individuals, Blind Low Vision NZ seeks to make big-picture change by advocating for inclusive communities and for optimal eye care services for all New Zealanders.
Our Values
Person Centred
People are at the heart of everything we do and we are led by their needs. We design services that meet people's needs now and in the future.
Collaborative
We believe that to make change happen, we need to bring people, ideas and resources together in new combinations. Partnerships and teamwork are fundamental to our success and we co-design through effective engagement and collaboration.
Adaptable
We acknowledge the world around us is changing and that we need to change by innovating and applying creative solutions to move forward. We are resourceful in response to this change.
Accountable
We deliver on our promise and hold ourselves responsible. We are honest, candid, transparent and respectful in all aspects of our work, applying good judgement for effective decision-making.
Our Key Priorities
Empower Independence
People who are blind, deafblind or have low vision have choices about how they live their lives as independent citizens in their communities.
Train and Educate
Empower people who are blind, deafblind or have low vision with the information, advice and tools to thrive through lifelong learning opportunities.
Social Inclusion
People who are blind, deafblind or have low vision are included in society and have choices as to how to actively participate.
For Purpose
People centered, knowledge based, adaptable and drives change.
Page 7
Empower Independence
How we will deliver:
Empower people through on-going support services including information, mobility, equipment, and recreation, to realise their potential as citizens. Connect people with technology that is accessible and affordable, so they are future ready.
Our Objectives
Improve focus and priority to the provision of core daily living skills to enhance independence.
The Library saw a modest increase in the number of clients using EasyReader and Alexa in FY26, partly reflecting the retirement of Booklink web and the transition of users to these newer platforms.
This year has seen a continuation to strengthen the fundamentals of the Guide Dog programme. We are reviewing and refreshing our breeding plan. With a focus on developing reciprocal relationships with other service dog schools, we have purchased four puppies and a brood to improve our breeding lines. The new puppies brought our total puppies to 70 (2025: 66) and there are 168 (2025: 148) teams working across the country. A production schedule has been developed to assist with planning and resource allocation across all components of the journey to produce guide dogs. We continue to aim for increased success rates for delivering guide dogs to meet the support needs of our community.
Measures
Indicator | 2026 | 2025
Number of clients accessing technology programme offerings. (Alexa Skill and EasyReader app reporting) | 2,308 | 2,215
Number of puppies produced on an annual basis via the breeding programme. | 70 | 66
Number of active working dogs. | 168 | 148
Page 8
Train and Educate
How we will deliver:
Core rehabilitation/habilitation services as the cornerstone of what we do and provide, including an emphasis on youth transition programs towards acquiring the skills of job readiness, preparation, and employment choices.
Our Objectives
The ratio of the number of clients receiving services out of total membership may reflect a reduction in the number of new clients and clients becoming more independent.
Continued emphasis on the development and implementation of "refreshed" employment, youth transition, emotional support, and deafblind programmes. Implement a refreshed focus on the provision of sport, leisure, and recreational programme opportunities for clients.
The Youth Pathways services for clients 16 to 21 years of age has increased by 107% on last year. This large increase in engagement for this service can be explained by, increased promotional exposure for the Oppenheim Trust on social media, webinars and emails. This is a fund which is available to BLVNZ clients studying at a tertiary level.
Applications open in September each year and run through until the middle of January. There was a noticeable increase in youth client engagement with the Work Ready services during November 2025 through to January 2026, seeking information and support with the application process. An outbound Youth Reconnection Project commenced in March 2026, where direct contact was made over four months to 731 clients between the ages of 16 and 25 years of age. Many of the clients were not aware of the services and support available through BLVNZ and as such this outreach resulted in additional service requests around employment and youth pathways. Please note that the project ran into FY27, as such we expect an increase in youth engagement for the Employment and Youth Pathways program during the first quarter of FY27.
The over 21 years group indicate a consistent level of engagement for clients with the Employment and Youth Pathways service. Promotional channels such as client emails, online webinars, information in the Korero client newsletter and PSP referrals continue to be the main avenues of engagement for this cohort.
Measures
Table:
Indicator | 2026 | 2025
Ratio of the number of clients accessing our services out of total membership. | 38% | 41%
Number of clients we have supported via our employment and youth transition programmes aged 16−21 years. | 56 | 27
Number of clients we have supported via our employment and youth transition programmes aged 22−65 years. | 170 | 169
End table
Page 9
Social Inclusion
How we will deliver:
Enhance the opportunities for people who are blind, deafblind or have low vision by promoting the principle of society being fully inclusive. Encourage access for all to public services, information, and the physical environment. Increase awareness and public education. Collaborate with consumer organisations to achieve measurable impact.
Our Objectives
We have widened our reach through partnerships and third-party providers, allowing us to connect with and provide services to more people, across more of the country, especially those in rural parts of Aotearoa.
As well as the continued stream of new clients coming into services, this year we have focussed on reconnecting with clients who have not engaged with us for over 12 months to ensure everyone is accessing the support they need. This has resulted in over 355 people returning to us for further service. Our services continue to offer a holistic approach to support and rehabilitation from counselling, participation in social activities and sports, right through to specialised orientation and mobility and technology support. To help us ensure our services reflect what is important for our clients, we have established a Client Reference Group. This newly formed group will work with the Board at a strategic level to ensure our services remain relevant.
We seek to extend the current SSP indicator to include other measurable data such as meetings with and letters written to Ministers, Members of Parliament, Local Government, heads of departments, and public servants to better capture the true impact of the lobbying and advocacy work we do.
Measures
Table
Indicator | 2026 | 2025
Total number of new clients registered for the year. | 1,738 | 1,758
Submissions on issues important to people who are blind, deafblind or have low vision. | 22 | 18
End Table
Page 10
For Purpose
How we will deliver:
Hold ourselves accountable to deliver the most cost effective and sustainable ways of working, including maximising the digital world to drive our decision-making. Inspire a diverse workforce with a culture of accountability, performance, and recognition.
Our Objectives
Create and cultivate an organisational culture which promotes well-being and where our community embraces the values of person centred, collaborative, adaptable and accountable.
On-going emphasis on the diversification of the revenue streams to support the operations of the organisation.
Measures
Table
Indicator | 2026 | 2025
Number of employees who are blind or have low vision. | 31 | 30
Total expenses as a percentage of budgeted expenses for the year. (See footnote 1) | 94.0% | 92.8%
Total cash donations and bequests received. | $24,699,544 | $32,574,313
Percentage of net operating cash inflows generated from RNZFB property portfolio made available for charitable purposes. (See footnote 2) | 81.9% | 89.9%
1 Controlling entity only. This excludes expenses incurred by our subsidiaries and the retirement village joint venture which are predominantly related to our property portfolio.
2 Based on the net operating cash inflows of our property portfolio included in Foundation Properties Limited.
End Table
Page 11
Financial Review
The financial year ending 30 June 2026 was a positive one for the Royal New Zealand Foundation of the Blind (RNZFB) and its subsidiaries. The RNZFB Group results include Blind Low Vision NZ (BLVNZ) the service provider combined with other entities controlled by the RNZFB Group, primarily Foundation Properties Limited, which manages investment properties owned by the RNZFB Group and oversees the groups investment in the retirement village joint venture.
RNZFB Group operating revenue was $36.1 million, a decrease of $9.5m on the previous financial year. Total operating revenue for Blind Low Vision NZ was $29.9m, a decrease of $10.5m on the previous year. Lower legacy income was the main factor driving the lower revenues of both the Group and BLVNZ. The difference between Group Income and BLVNZ income is largely the rental income generated from the investment properties Foundation Properties Limited owned in Parnell, Auckland.
This financial year the RNZFB Group recorded a $1.9m deficit before interest, dividend, revaluations and gains on sale of property compared to a $12.0m surplus the previous financial year. The lower operating result was due to lower income and higher costs.
Lower income was due to lower legacy income. Higher costs were primarily due to personnel costs and inflationary pressures across a number of other costs.
The RNZFB Group recorded a $0.3m decrease in the value of investment properties resulting from a decrease in property valuations reflecting current market conditions. This compares to a $3.2m increase in the previous financial year. During FY26 the value of RNZFB's long term investment portfolio increased $7.7m compared to an increase of $4.3m recorded in FY25. This was due to a continuation of increases in the value of stocks and bonds that the RNZFB hold through Mercer on our behalf.
Both the investment properties and bonds and investment assets are held by the RNZFB Group to ensure financial sustainability and to generate income over the long term. Total RNZFB Group comprehensive revenue and expense surplus was $41.8m, compared to $17.4m surplus recorded the previous year. The accounting surplus was significantly impacted by fair value gains on bonds and investments and the share of the gain generated from our joint venture, whereas last years accounting surplus was significantly impacted due to fundraising income, the gain on bonds and investments, gains on investment property and the share of the loss generated from our joint venture.
Both the RNZFB and BLVNZ remain very dependent on charitable giving, which provides around 75% of BLVNZ's operating income and 62% of the RNZFB Group income.
Competition for the donor dollar remains incredibly high, and we are hugely grateful to our supporters who give generously to help provide essential services to New Zealanders who are blind or have low vision.
Stephen Keeling
Chief Financial Officer
Page 12
Statement of Comprehensive Revenue and Expense for the Year Ended 30 June 2026
Table
The notes on print pages 16 to 72 are an integral part of these financial statements.
Item | Note | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Revenue | Blank | Blank | Blank | Blank | Blank
Revenue from non-exchange transactions | 4 | 22,396 | 32,844 | 22,396 | 32,844
Revenue from exchange transactions | 4 | 13,698 | 12,763 | 7,552 | 7,566
Total operating revenue | Blank | 36,094 | 45,607 | 29,948 | 40,410
Expenses | Blank | Blank | Blank | Blank | Blank
Independence | Blank | 16,787 | 16,894 | 16,935 | 16,939
Educate and Equip | Blank | 3,130 | 2,604 | 3,147 | 2,604
Social Inclusion | Blank | 3,073 | 1,994 | 3,100 | 1,991
For Purpose Organisation | Blank | 6,054 | 5,061 | 5,903 | 4,902
Grants | 5 | 948 | 688 | 948 | 688
Fundraising | Blank | 7,578 | 6,055 | 7,578 | 6,055
Governance | Blank | 399 | 345 | 399 | 345
Total expenses | Blank | 37,969 | 33,641 | 38,010 | 33,524
(Deficit)/Surplus before interest dividends, revaluations and gains on sale of property | Blank | (1,875) | 11,966 | (8,062) | 6,886
Finance income | Blank | 282 | 233 | 265 | 200
Fair value gain on bonds, investments and other financial assets | Blank | 7,746 | 4,297 | 7,709 | 4,297
Dividend received from Foundation Properties Limited | Blank | - | - | 4,200 | 4,000
Finance expenses | 5 | (517) | (674) | - | -
Surplus before property and related investee gains/(losses) | Blank | 5,636 | 15,822 | 4,112 | 15,383
Exchange rate variance on revaluation of investment property | 15 | 306 | 772 | 306 | 772
Fair value (loss)/gain on investment property | 15 | (304) | 3,225 | (16) | (159)
Gain on sale of property | Blank | - | 804 | - | 804
Gain on sale of investment property | Blank | - | 66 | - | 66
Share of equity accounted investees gain/(loss) for the year | 17 | 36,118 | (3,338) | - | -
Total comprehensive revenue and expense for the year | Blank | 41,756 | 17,351 | 4,402 | 16,866
End Table
Page 13
Statement Of Financial Position as at 30 June 2026
Table
The notes on print pages 16 to 72 are an integral part of these financial statements.
Item | Note | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Current assets | Blank | Blank | Blank | Blank | Blank
Cash and cash equivalents | 6 | 4,265 | 5,425 | 3,335 | 4,189
Term investments | 7 | 3,270 | 7,280 | 3,270 | 7,280
Trade and other receivables (from exchange transactions) | 8 | 1,836 | 1,926 | 822 | 1,226
Recoverables (from non-exchange transactions) | 9 | 955 | 3,217 | 955 | 3,217
Advance to related party | 26 | 26 | 250 | 250 | 1,913
Inventories | 10 | 77 | 13 | 77 | 13
Total current assets | Blank | 10,653 | 18,111 | 10,372 | 15,925
Non-current assets | Blank | Blank | Blank | Blank | Blank
Recoverables (from non-exchange transactions) | 9 | 909 | 1,218 | 909 | 1,218
Bonds, investments and other financial assets | 11 | 62,024 | 51,265 | 59,975 | 51,265
Property, plant and equipment | 12 | 42,359 | 38,078 | 29,045 | 27,475
Intangible assets | 13 | 430 | 485 | 430 | 485
Biological assets | 14 | 91 | 87 | 91 | 87
Investment property | 15 | 119,182 | 119,985 | 7,840 | 7,591
Investment in joint venture | 17 | 60,660 | 24,542 | - | -
Investment in controlled entities | 16 | - | - | 54,605 | 54,605
Total non-current assets | Blank | 285,655 | 235,661 | 152,895 | 142,727
Total assets | Blank | 296,308 | 253,772 | 163,267 | 158,652
Current liabilities | Blank | Blank | Blank | Blank | Blank
Trade and other payables (from exchange transactions) | 18 | 2,039 | 1,997 | 1,731 | 1,738
Other liabilities (from non-exchange transactions) | 19 | 2,372 | 2,345 | 2,372 | 2,345
Bank loan | 20 | 1,500 | 1,000 | - | -
Advances from controlled entities | 26 | - | - | - | 100
Land lease income received in advance | 21 | 82 | 82 | - | -
Employee benefits and obligations | 22 | 2,272 | 1,970 | 2,272 | 1,970
Total current liabilities | Blank | 8,265 | 7,394 | 6,375 | 6,153
Non-current liabilities | Blank | Blank | Blank | Blank | Blank
Bank loan | 20 | 9,900 | 9,900 | - | -
Land lease income received in advance | 21 | 8,115 | 8,197 | - | -
Employee benefits and obligations | 22 | 66 | 75 | 66 | 75
Total non-current liabilities | Blank | 18,081 | 18,172 | 66 | 75
Total liabilities | Blank | 26,346 | 25,566 | 6,441 | 6,228
Total net assets | Blank | 269,962 | 228,206 | 156,826 | 152,424
End Table
Page 14
Table
Item | Note | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Equity | Blank | 269,962 | 228,206 | 156,826 | 152,424
Total net equity | 23 | 269,962 | 228,206 | 156,826 | 152,424
End Table
Statement of Changes in Net Assets/Equity for the Year Ended 30 June 2026
Table
The notes on print pages 16 to 72 are an integral part of these financial statements.
Item | Note | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Balance of net assets/equity at 1 July | Blank | 228,206 | 210,855 | 152,424 | 135,558
Total comprehensive revenue and expense for the year | Blank | 41,756 | 17,351 | 4,402 | 16,866
Balance of net assets/equity at 30 June | 23 | 269,962 | 228,206 | 156,826 | 152,424
End Table
Page 15
Table
The notes on print pages 16 to 72 are an integral part of these financial statements.
Item | Note | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Cash flows from operating activities | Blank | Blank | Blank | Blank | Blank
Cash was received from: | Blank | Blank | Blank | Blank | Blank
Non exchange transactions | Blank | 24,700 | 32,574 | 24,700 | 32,574
Exchange transactions | Blank | 13,043 | 12,370 | 7,862 | 7,358
Cash was applied to: | Blank | Blank | Blank | Blank | Blank
Payments to employees | Blank | (19,462) | (18,263) | (19,362) | (18,163)
Payments to suppliers | Blank | (16,243) | (14,503) | (16,791) | (14,686)
Payments of grants | Blank | (1,128) | (779) | (1,128) | (779)
Finance expense | Blank | (517) | (674) | - | -
Net cash inflows/(outflows) from operating activities | Blank | 393 | 10,725 | (4,719) | 6,304
Cash flows from investing activities | Blank | Blank | Blank | Blank | Blank
Interest income | Blank | 292 | 243 | 279 | 214
Acquisition of short-term investment term deposit | Blank | (9,270) | (13,280) | (9,270) | (13,280)
Proceeds of short-term investment term deposit | Blank | 13,280 | 10,000 | 13,280 | 10,000
Dividend received from controlled entity | Blank | - | - | 4,200 | 4,000
Purchase of bonds, investments and other financial assets | Blank | (3,013) | (1,000) | (1,000) | (1,000)
Other Investment Income | Blank | 482 | - | - | -
Contribution to controlled entity | 16 | - | - | (2,013) | (427)
Proceeds from sale of property, plant and equipment | Blank | 137 | 842 | 137 | 842
Purchase of property, plant and equipment | Blank | (2,133) | (5,718) | (1,655) | (5,718)
Purchase of intangible assets | Blank | (93) | (200) | (93) | (200)
Net proceeds for the sale of Investment Property | Blank | - | 426 | - | 426
Additions to investment property | Blank | (1,735) | (1,794) | - | -
Net cash (outflows)/inflows from investing activities | Blank | (2,053) | (10,481) | 3,865 | (5,143)
Cash flows from financing activities | Blank | Blank | Blank | Blank | Blank
Proceeds from ASB loan | Blank | 500 | 1,000 | - | -
Net cash inflows/ (outflows) from financing activities | Blank | 500 | 1,000 | - | -
Net (decrease)/increase in cash and cash equivalents | Blank | (1,160) | 1,244 | (854) | 1,161
Cash and cash equivalents at the beginning of the year | Blank | 5,425 | 4,181 | 4,189 | 3,028
Cash and cash equivalents at the end of the year | 6 | 4,265 | 5,425 | 3,335 | 4,189
End Table
Page 16
Notes to the financial statements
Note 1 Reporting Entity
The financial statements presented here are for the reporting entity Royal New Zealand Foundation of the Blind ("Controlling Entity"), a charity, which is an Incorporated Society and registered under the Charities Act 2005 (registration number CC21361). The Controlling Entity is a public benefit entity for the purposes of financial reporting in accordance with the Financial Reporting Act 2013. These consolidated financial statements for the year ended 30 June 2026 comprise the controlling entity and its controlled entities, (together referred to as the "Group") and individually as "Group entities".
The Controlling Entity is domiciled and operates in New Zealand and is primarily involved in the provision of services to empower New Zealanders who are blind, deafblind, or low vision to live the life they choose.
The Controlling Entity registered office and its principal place of business is 539 Parnell Road, Parnell, Auckland.
Note 2 Basis of Preparation
a. Statement of compliance
The consolidated financial statements have been prepared in accordance with the constitution of the Royal New Zealand Foundation of the Blind and New Zealand Generally Accepted Accounting Practice ("NZ GAAP"). They comply with Public Benefit Entity Standards ("PBE Standards") for Tier 1 not-for-profit public benefit entities.
The financial statements for the year ended 30 June 2026 were approved and authorised for issue by the Board on 19 September 2026.
b. Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except for non-current recoverables from non-exchange transactions, bonds and investments, biological assets, and investment property, which are measured at fair value. The methods used to measure fair values are discussed further in notes 9, 11, 14, and 15.
Changes in presentation have been made for reclassifications to give a better understanding to these financial statements.
Page 17
c. Going Concern
The consolidated financial statements have been prepared on a going concern basis and with the current year positive working capital, the Directors believe that the future expected cash flows are sufficient to satisfy day to day obligations as they fall due.
d. Accounting standards issued not yet effective
There are no new, revised or amended standards that are not yet effective and/or applicable to the Group as at 30 June 2026.
e. Functional and presentation currency
These financial statements are presented in New Zealand dollars ($), which is the Controlling Entity and Group's functional and presentational currency. All financial information presented in New Zealand dollars has been rounded to the nearest thousand or nearest dollar where appropriate.
f. Income Tax
The Controlling Entity is exempt from income tax by virtue of its charitable objectives under section CW41 and CW42 of the Income Tax Act 2007 and its status as a registered charity.
Page 18
g. Use of estimates and judgements
Judgements
In the process of applying the Controlling Entity's and Group's accounting policies, management has made the following judgements that have had the most significant effect on the amounts recognised in the financial statements:
Control Assessment Judgement
Management has judged that both the Controlling Entity and its trading controlled entities are public benefit entities. The primary objective of all entities is to provide services for community or social benefit. Any equity invested in the trading controlled entity has been provided with a view to supporting that primary objective rather than for a financial return to members.
Management has judged that Foundation Properties Limited and Foundation Ventures Limited are controlled by the Controlling Entity as the Board appoint and remove the Board of Foundation Properties Limited and Foundation Ventures Limited. The Controlling Entity also owns 100% of the issued share capital of Foundation Properties Limited and Foundation Ventures Limited. Accordingly, Foundation Properties Limited and Foundation Ventures Limited have both been consolidated into the Group financial statements.
There are also specific trusts which do fall within the control of the Group and Controlling Entity due to the commonality of objectives, the ability of the Controlling Entity's management to influence operating decisions and its treatment upon dissolution.
Revenue Recognition
Revenue is recognised according to the policies outlined in Note 3 (I) which outlines the key judgements made.
Statement of Service Performance
In preparing the Group's Consolidated Statement of Service Performance on pages 4 to 10, management has made judgements in relation to which measures and indicators best reflect the achievement status of our performance of the Group's mission to empower New Zealanders who are blind, deafblind, or low vision to live the life they choose, and ultimately contribute towards specific key priorities and objectives.
Page 19
The selection of measures to report was initially based on management's assessment of what data was currently available, reliable, and could be independently verified. This was further refined through discussions with staff and key management personnel, as a result the key services were identified that would best illustrate what the Group has done in pursuit of its objectives. The performance measures related to our key services are designed to inform on our key priorities of independence, educate and equip, social inclusion, and for purpose organisation. It must be noted, that through this process management decided not to report against all objectives/measures that contribute to the outcome of the Group's services because, at this time, outputs for these measures are not easily available.
Estimates
Assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment in the year ending 30 June 2026 include the following:
Revenue from legacies
Where revenue from legacies derives from a life interest it is estimated using mortality rates published by New Zealand Statistics.
Valuation of investment property
Estimates relating to fair value of investment property are described in more detail in note 3(g) and note 15.
The Royston property has been valued on the assumption that planning has been granted for the appropriate developments across the entire site. If this assumption was not applied the value would be materially lower, refer to note 15.
Allocation of overheads
For the purpose of disclosing expenditure by classification in the Statement of Comprehensive Revenue and Expenses, Overhead costs including finance, human resources, administration and information technology have been allocated to the various support service lines on the basis of headcount. Property costs have been allocated on occupancy proportions and fleet costs on the basis of motor vehicle usage.
Changes in Accounting Estimates
There have been no material changes in the accounting estimates during the year ended 30 June 2026.
Page 20
Note 3 Material Accounting Policies
The accounting policies set out below have been applied consistently to all periods presented in these financial statements. There have been no changes in material accounting policies during the year ended 30 June 2026.
The accounting policies have been applied consistently by Group entities.
a. Basis of consolidation
The Group financial statements incorporate the financial statements of the Controlling Entity and controlled entities (including special purpose entities) controlled by the Controlling Entity (its subsidiaries). Control is achieved where the Controlling Entity has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The acquisition method is used to prepare the Group financial statements, which involves adding together like items of assets, liabilities, equity, revenue and expenses on a line-by-line basis. All significant balances and transactions between the Controlling Entity and its subsidiaries are eliminated on consolidation. The financial statements of subsidiaries are included in the Group financial statements from the date that control commences until the date that control ceases.
b. Foreign currency
Transactions in foreign currencies are converted at the rate of exchange at the date of the transaction.
At the balance date, any foreign currency monetary assets and liabilities are translated at the exchange rate at that date and any resulting exchange variations are included in the surplus/(deficit).
c. Financial instruments
Non-derivative financial instruments
Non-derivative financial instruments comprise cash and cash equivalents, trade receivables, short-term investments, other receivables from exchange transactions, recoverables from non-exchange transactions, bonds and investments, trade and other payables from exchange transactions, bank loan, other liabilities from non-exchange transactions, employee benefits, assets held for sale and revenue received in advance.
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Non-derivative financial instruments are recognised initially at fair value plus directly attributable transaction costs.
A financial instrument is recognised if the Group becomes a party to the contractual provisions of the instrument. Financial assets are derecognised if the Group's contractual rights to the cash flows from the financial assets expire. Financial liabilities are derecognised if the Group's obligations specified in the contract expire or are discharged or cancelled.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances, short-term deposits and bank overdrafts.
Subsequent to initial recognition, these financial assets are measured at amortised cost using the effective interest method, less any impairment losses. They are categorised as loans and receivables.
Term investments
Term investments comprise term deposits which have a term greater than three months and therefore do not fall into the category of cash and cash equivalents. Those with a maturity date less than 12 months from balance date are deemed current and those greater are shown as non-current.
Bonds, investments and other financial assets
Financial assets are classified at fair value through surplus/(deficit) (FVTSD) where the financial asset is either held for trading or it is designated as a FVTSD. A financial asset may be designated at FVTSD upon initial recognition if the financial asset forms part of a group of financial assets or financial liabilities or both, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is provided internally on that basis. Investments consist of equities, bonds and cash managed by an investment advisor or held directly. Management view the portfolio as a whole as this is in line with the investment strategy. All investments are therefore designated at fair value through surplus/(deficit): Financial assets at FVTSD are stated at fair value, with any resultant gain or loss recognised in the statement of comprehensive revenue and expense surplus/(deficit).
Investments in other financial assets are stated at FVTSD.
The net gain or loss recognised in surplus/(deficit) incorporates any dividend or interest earned on the financial asset.
Page 22
Receivables and advances
Advances to related parties comprise cash advances with no fixed repayment date. A loss allowance for expected credit losses is recognised if the estimated loss allowance is not trivial.
Other non-derivative financial instruments
Trade and other payables from exchange transactions, bank loan, other liabilities from non-exchange transactions, employee benefits, advances from controlled entities and deferred revenue.
A loss allowance for expected credit losses ("ECL") is recognised if the estimated loss allowance is not trivial.
Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the effective interest method. They are categorised as financial liabilities at amortised cost.
Impairment of financial assets
Financial assets are assessed for indicators of credit loss at the end of each reporting period. A credit loss exists where there is objective evidence that the estimated future cash flows have been impacted. Objective evidence could include:
• Significant financial difficulty of the counterparty;
• or Default or late payments; or
• It becomes probable that the counterparty will enter bankruptcy or financial reorganisation.
The Group applies the simplified ECL approach, in measuring ECL's, receivables have been grouped, and assessed on a collective basis as they posses shared credit risk characteristics. They have then been grouped based on the days past due. A provision matrix is then established based on historical credit loss experience, adjusted for forward looking factors specific to the debtors and the economic environment.
Page 23
d. Property, plant and equipment
Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Items of property, plant and equipment under construction are measured at cost. Cost includes expenditures that are directly attributable to the acquisition of the asset. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment. Donated property, plant and equipment are recognised at fair value on the date of acquisition with the corresponding amount recorded in the surplus/(deficit).
Depreciation
Depreciation is recognised in the surplus/(deficit) on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Land is not depreciated.
The estimated useful lives are as follows:
• Buildings 3-50 years, 2025: 3-50 years
• Leasehold improvements 6-35 years, 2025: 6-35 years
• Vehicles 5 years, 2025: 5 years
• Plant, furniture and equipment 3-10 years, 2025: 3-10 years
• Guide dogs 8 years, 2025: 8 years
Depreciation methods, useful lives and residual values are reassessed at each reporting date.
e. Intangible assets
Intangible assets are recorded at cost less accumulated amortisation and impairment. Amortisation is charged on a straight-line basis over their useful lives as follows:
• Audio masters 10 years, 2025: 10 years
The estimated useful life and amortisation period is reviewed at the end of each reporting date.
f. Biological assets
Biological assets represent the breeding stock for guide dogs. Biological assets are initially recognised at cost, except those acquired through non-exchange transactions which are instead recognised at fair value as their deemed cost at initial recognition.
Biological assets are subsequently measured at fair value less costs to sell with any change therein recognised in the surplus/(deficit). Fair value methodology is described in note 3(n).
Page 24
g. Investment property
Investment property is property held either to earn rental income or for capital appreciation or for both. Investment property is initially recognised at cost, except those acquired through non-exchange transactions which are instead recognised at fair value as their deemed cost at initial recognition. Investment property is subsequently measured at fair value with any change therein recognised in the surplus/(deficit). Fair value methodology is described in note 3(n).
Investment Property under construction is recognised at cost.
h. Leases
All of the Group's leases are classified as operating leases. Operating lease payments/receipts are recognised on a straight line basis over the lease term as an expense/revenue.
i. Inventories
Inventories held for sale are measured at the lower of cost and net realisable value. The cost of inventories is based on the first-in first-out principle, and includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
j. Impairment of non-financial assets
The carrying amounts of the Group's assets are reviewed at each balance date to determine whether there is any indication of impairment. If an indication of impairment exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
An impairment loss is recognised whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses directly reduce the carrying amount of assets and are recognised in the surplus/(deficit).
Page 25
For cash-generating assets the recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
Where an impairment loss subsequently reverses, the carrying amount of the cash generating asset is increased to the revised estimate of its recoverable amount, but only to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the cash generating asset in prior years. A reversal of an impairment loss is recognised in the surplus/(deficit) immediately, unless the relevant asset is carried at fair value, in which case the reversal of the impairment loss is treated as a revaluation increase.
k. Employee benefits
Defined contribution plans
Contributions to defined contribution superannuation plans, including KiwiSaver, are expensed in the surplus/(deficit) when employees have rendered the service entitling them to the contributions.
Other long-term employee benefits
The Group's obligation in respect of long-term employee benefits other than pension plans is the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value and is based on the remuneration expected to apply at the date of settlement. Any expenses are recognised in the surplus/(deficit) in the period in which they arise.
Termination benefits
Termination benefits are recognised as an expense when the Group is demonstrably committed, without realistic possibility of withdrawal, to a formal detailed plan to terminate employment and has raised a valid expectation in those affected.
Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.
Page 26
I. Revenue
Revenue is recognised when the amount of revenue can be measured reliably and it is probable that economic benefits will flow to the Group, and measured at the fair value of consideration received or receivable.
The following specific recognition criteria in relation to the Group's revenue streams must also be met before revenue is recognised.
i. Revenue from exchange transactions
Contract revenue
Revenue from a contract to provide services is recognised by reference to the stage of completion. The stage of completion is determined by reference to the specific output required from each contract. The specific output is based on either agreed milestones or number of hours of service delivery. Amounts received in advance for services to be provided in future periods are recognised as a liability until such a time as the service is provided.
Rental income
Operating lease agreements with tenants provide for regular monthly payments of rental and outgoings. All income is recognised on a straight line basis. Operating expenses borne by tenants are offset by recoveries from tenants. Operating expenses not borne by tenants are recognised as property expenses. Lease incentives granted are recognised as an integral part of the total rental income over the term of the lease.
ii. Revenue from non-exchange transactions
With the exception of services-in-kind, inflows of resources from non-exchange transactions are only recognised as assets where both:
• It is probable that the associated future economic benefit or service potential will flow to the Group, and
• Fair value is reliably measurable.
Page 27
Inflows of resources from non-exchange transactions that are recognised as assets are recognised as non-exchange revenue to the extent that a liability is not recognised in respect to the same inflow. Consideration is given to the existence of conditions (return obligations) or restrictions in determining whether a liability should be recognised.
Conditions on transferred assets are stipulations that specify that the future economic benefits or service potential embodied in the asset is required to be consumed by the recipient as specified or future economic benefits or service potential must be returned to the transferor. The Group considers whether the conditions are enforceable and will be enforced in assessing if a present obligation exists. No liability is recognised unless the conditions contain substance.
Restrictions on transferred assets are stipulations that limit or direct the purposes for which a transferred asset may be used, but do not specify that future economic benefits or service potential is required to be returned to the transferor if not deployed as specified. No liability is recognised.
Non-exchange transactions are not exchange transactions. The Group receives value from another entity without directly giving approximately equal value in exchange.
The following specific recognition criteria in relation to the Group's non-exchange transaction revenue streams must also be met before revenue is recognised.
Fundraising
The Group's fundraising activities involve public fundraising campaigns, puppy sponsorship and community events. Fundraising is non-exchange revenue and is recognised at the point at which cash is received. Revenue from fundraising without specific conditions and without an obligation to repay is recognised at the time of receipt.
Grants, Donations and Legacies
The recognition of non-exchange revenue from Grants, Donations, and Legacies depends on the nature of any stipulations attached to the inflow of resources received, and whether this creates a liability (i.e. present obligation) rather than the recognition of revenue.
Revenue from Legacies is recognised as a receivable/asset when the entity gains control of the contribution (refer to note 3(p)). Control is determined when the undisputed right to receive the contribution is established and this is usually when written notification is received from the estate of the legator.
Page 28
Stipulations that are "conditions" specifically require the Group to return the inflow of resources received if they are not utilised in the way stipulated, resulting in the recognition of a non-exchange liability that is subsequently recognised as non-exchange revenue as and when the "conditions" are satisfied.
Stipulations that are "restrictions" do not specifically require the Group to return the inflow of resources received if they are not utilised in the way stipulated, and therefore do not result in the recognition of a non-exchange liability, which results in the immediate recognition of non-exchange revenue.
Donations in the form of general grants are recognised when the right to receive them is established. Revenue from specifically designated grants where the designated expenditure during the year has not occurred or is incomplete, and where there is an obligation to repay the funds is recognised as deferred income and will be recognised as revenue in future years as conditions are met.
Donated volunteer time (services in kind) is subjective and difficult to measure and is therefore not reported in the financial statements.
Donated goods (goods in kind) is measured and recognised at fair value as at the date of acquisition, which may be ascertained by reference to an active market, or by appraisal.
An appraisal of the value of an asset is normally undertaken by a member of the valuation profession who holds a recognised and relevant professional qualification. For many assets, the fair value will be readily ascertainable by reference to quoted prices in an active and liquid market.
m. Other income
Other income comprises:
• Sale of guide dogs
• Fair value increase in the value of biological assets
• Equipment sales and rental income
• Other sundry income
Page 29
n. Determination of fair values
A number of the Controlling Entity's accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following methods. We use the following categories (levels) to provide an analysis of bonds and investments, investment property and biological assets that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable:
• Level 1: Quoted unadjusted prices in active markets for identical instruments 
• Level 2: Inputs that are not level 1 that are observable either directly or indirectly 
• Level 3: Inputs that are not observable
Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability.
o. Statement of cash flows
Cash and cash equivalents include cash on hand and in banks and short-term deposits. The following terms are used in the statement of cash flows:
Operating activities are the principal revenue producing activities of the Group and other activities that are not investing or financing activities.
Investing activities are the acquisition and disposal of long-term assets.
Financing activities are activities that result in changes in the size and composition of the borrowings of the Group.
p. Legacies receivable
Monetary legacies receivable are financial instruments, the policy for which is in note 3(c). Legacies receivable in the form of property or other non-financial assets are initially recognised at fair value and not re-measured other than for the impact of changes in estimated mortality rates and the unwind of present value discounting. When the Group obtains title to the property or other non-financial asset, it is reclassified to the appropriate statement of financial position line item.
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q. Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation.
r. Joint Ventures
Joint ventures are a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control.
Joint ventures that are structured in a separate vehicle are classified as jointly-controlled-entities and the results and asset and liabilities of joint ventures are incorporated in these consolidated financial statements using the equity method of accounting. Refer Note 17.
Under the equity method, an investment in a joint venture is recognised initially in the consolidated statement of financial position at cost and adjusted thereafter to recognise the Group's share of the comprehensive revenue and expenses of the joint venture. When the Group's share of losses of a joint venture exceeds the Group's interest in that joint venture, the Group discontinues recognising its share of further losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the joint venture.
Any share of unrealised gains from the sale of goods by the joint venture to an entity within the Group are eliminated within the Group. Refer Note 17.
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Note 4 Revenue
a) Revenue from non-exchange transactions
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Donations | 12,953 | 11,437 | 12,953 | 11,437
Legacies | 9,443 | 21,407 | 9,443 | 21,407
Total revenue from non-exchange transactions | 22,396 | 32,844 | 22,396 | 32,844
End Table
b. Revenue from exchange transactions
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Service contracts | 7,203 | 7,173 | 7,203 | 7,173
Rental income | 5,580 | 5,280 | 105 | 83
Other investment income | 671 | - | - | -
Other income | 244 | 310 | 244 | 310
Total revenue from exchange transactions | 13,698 | 12,763 | 7,552 | 7,566
End Table
c) Revenue from Service Contracts (Government Contracts)
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Ministry of Social Development—White Canes | 37 | 38 | 37 | 38
Ministry of Health | 6,326 | 6,316 | 6,326 | 6,316
Ministry of Social Development | 690 | 692 | 690 | 692
Accident Compensation Corporation | 150 | 127 | 150 | 127
Total revenue from service contracts | 7,203 | 7,173 | 7,203 | 7,173
End Table
Page 32
Notes 5 Expenses
Grants expense
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Grants were paid to: | Blank | Blank | Blank | Blank
Blind Citizens of New Zealand Inc (See footnote 1) | 230 | 217 | 230 | 217
Parents of Vision Impaired (NZ) Inc | 180 | 165 | 180 | 165
Deafblind Association NZ Charitable Trust (See footnote 1) | 115 | 78 | 115 | 78
Kapo Maori Aotearoa New Zealand Inc | 150 | 72 | 150 | 72
Blind Sport New Zealand | 60 | 37 | 60 | 37
Community Support Groups | 53 | 39 | 53 | 39
Retina New Zealand Inc | 45 | 41 | 45 | 41
Macular Degeneration New Zealand Trust (See footnote 1) | 40 | - | 40 | -
Braille Authority of New Zealand Aotearoa Trust (See footnote 1) | 20 | 15 | 20 | 15
Goalball Manawatu Titans Sports Club | 10 | - | 10 | -
Goalball New Zealand (See footnote 1) | 5 | 5 | 5 | 5
New Zealand Lawn Bowling Association | 5 | 5 | 5 | 5
New Zealand Blind & Vision Impaired Indoor Bowlers Federation | 5 | 4 | 5 | 4
Auckland Blind Sports and Recreation Club Inc | 5 | 3 | 5 | 3
Wellington Regional Blind & Low Vision Indoor Bowls | 5 | - | 5 | -
Hamilton Blind and Vision Impaired Indoor Bowling Club | 5 | - | 5 | -
New Zealand Blind Cricket Association Inc | 4 | - | 4 | -
Blind Sailing New Zealand Inc | 4 | - | 4 | -
Kiwi Blind Fishing | 3 | 2 | 3 | 2
Waikato Bay of Plenty Blind Lawn Bowling Assn | 3 | - | 3 | -
Gisborne Vision Impaired Indoor Bowling Club | 1 | - | 1 | -
Manukau South Blind Sports Club | - | 5 | - | 5
Total grants expenditure | 948 | 688 | 948 | 688
Footnote 1 Directors of the controlling entity are also board members, trustees or members of these entities.
End Table
Employee benefit expense
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Wages and salaries | 19,263 | 17,811 | 19,163 | 17,711
Contributions to defined contribution plan | 503 | 450 | 503 | 450
Movement in liability for long service leave | (12) | 8 | (12) | 8
Total employee benefit expense | 19,754 | 18,269 | 19,654 | 18,169
End Table
Page 33
Depreciation and amortisation
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Depreciation | Blank | Blank | Blank | Blank
Buildings | 1,137 | 890 | 869 | 671
Plant, furniture and equipment | 658 | 640 | 658 | 640
Guide dogs | 917 | 671 | 917 | 671
Total | 2,712 | 2,201 | 2,444 | 1,982
Amortisation | Blank | Blank | Blank | Blank
Audio masters | 149 | 125 | 149 | 125
Total | 149 | 125 | 149 | 125
Total depreciation and amortisation | 2,861 | 2,326 | 2,593 | 2,107
End Table
Plant, furniture and equipment includes all assets apart from Buildings and Guide dogs.
Depreciation and amortisation has been included in the following categories in the Statement of comprehensive revenue and expense of the Group and the Controlling.
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Independence | 2,178 | 1,765 | 2,003 | 1,604
Educate and Equip | 293 | 238 | 222 | 216
Social Inclusion | 80 | 73 | 97 | 59
For Purpose Organisation | 310 | 250 | 271 | 228
Total depreciation and amortisation | 2,861 | 2,326 | 2,593 | 2,107
End Table
Page 34
Other expenses include the following:
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Loss on births, deaths or retirements of guide dogs | 70 | 271 | 70 | 271
Total other expenses | 70 | 271 | 70 | 271
End Table
Auditor remuneration:
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Included in the expenses: | Blank | Blank | Blank | Blank
Fees to Deloitte Limited for: | Blank | Blank | Blank | Blank
Audit of Financial Report | 215 | 191 | 123 | 107
Taxation due diligence services | 26 | - | 26 | -
Total audit remuneration | 241 | 191 | 149 | 107
End Table
Finance expenses:
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Bank loan interest | 517 | 674 | - | -
Total finance expenses | 517 | 674 | - | -
End Table
Page 35
Note 6 Cash and Cash Equivalents
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Cash at bank | 109 | 159 | (13) | 38
Cash at bank—Restricted | - | 34 | - | 34
Call deposits | 4,156 | 4,232 | 3,348 | 4,117
BNZ term deposits | - | 1,000 | - | -
Total cash and cash equivalents | 4,265 | 5,425 | 3,361 | 4,189
End Table
Cash at bank earns interest at floating rates based on daily bank deposit rates.
To comply with the amendments to the Construction Contracts Act 2002, the Group has placed $0 (2025: $33,694) of funds in a restricted account with the Bank of New Zealand to cover contractor retentions. The following interest is earned on call deposits:
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Call deposits | 0.25%-1.60% | 0.9%-2.80% | 0.25%-1.60% | 0.9%-1.00%
End Table
Note 7 Term Investments
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Term deposit | 3,270 | 7,280 | 3,270 | 7,280
Total term investments | 3,270 | 7,280 | 3,270 | 7,280
Current | 3,270 | 7,280 | 3,270 | 7,280
Non-current | - | - | - | -
End Table
The following interest is earned on Term deposits:
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Term deposits | 2.15%-5.67% | 2.80%-5.67% | 2.15%-5.67% | 3.95%-5.67%
End Table
Page 36
Note 8 Trade and Other Receivables—From Exchange Transactions
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Trade receivables | 1,724 | 1,682 | 682 | 1,044
Provision for expected credit losses | - | - | - | -
Goods and Services Tax | 112 | 244 | 140 | 182
Other receivables | - | - | - | -
Total trade and other receivables from exchange transactions | 1,836 | 1,926 | 822 | 1,226
End Table
Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.
As at 30 June, the ageing analysis of trade receivables is, as follows:
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Current | 255 | 1,013 | 26 | 404
Not yet due
Past due and not impaired | 786 | 648 | 643 | 621
31-60 days | 32 | 13 | - | 11
61-90 days | (5) | - | 3 | -
Over 91 days | 656 | 8 | 10 | 8
Total trade and other receivables from exchange transactions | 1,724 | 1,682 | 682 | 1,044
End Table
See note 25 on credit risk of trade receivables, which explains how the Group manages and measures credit quality of trade receivables that are neither past due nor impaired.
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Note 9 Recoverables—From Non-Exchange Transactions
Legacies receivable—current & non-current
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Current | 955 | 3,217 | 955 | 3,217
Non-current | 909 | 1,218  | 909 | 1,218
Total recoverables from non-exchange transactions | 1,864 | 4,435 | 1,864 | 4,435
End Table
Legacies receivable—Financial assets & Non-Financial assets
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Financial assets | 1,782 | 4,352 | 1,782 | 4,352
Non-Financial assets | 82 | 83 | 82 | 83
Total recoverables from non-exchange transactions | 1,864 | 4,435 | 1,864 | 4,435
End Table
Non-financial assets within legacies receivable comprises our allocated share of a property in an estate.
Legacy Revenue Sensitivity
The Group estimates legacies revenue where it holds an interest in an asset with a life tenancy, by estimating life expectancy of the life tenant based on mortality rates (number of months' life expectancy) published by Statistics NZ. If this estimate was reduced by 12 months, the value of the legacy receivable would increase by $46,537 (2025: $62,295), and if it was increased by 12 months, the value of the legacy receivable would decrease by $44,272 (2025: $59,263).
Note 10 Inventories
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Inventories held for sale | 77 | 13 | 77 | 13
Total inventories | 77 | 13 | 77 | 13
End Table
Included in expenses are a number of inventory items deemed to have no value and scrapped, 2026: $nil (2025: $nil).
Page 38
Note 11 Bonds and Investments
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Investment funds | 39,132 | 32,390 | 39,132 | 32,390
Investment bonds | 20,843 | 18,875 | 20,843 | 18,875
Total bonds and investments | 59,975 | 51,265 | 59,975 | 51,265
Other financial assets | 2,049 | - | - | -
Total bonds, investments and other financial assets | 62,024 | 51,265 | 59,975 | 51,265
End Table
Investment in bonds and investments
The fair value of bonds and investments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date.
The fair value of units held by the Funds in managed investment funds is determined by reference to published bid prices at the close of business on the reporting date being the redemption price established by the underlying investment fund managers.
Both investment funds and investment bonds are Level 2 in the fair value hierarchy.
Investment in Financial Assets
On the 28 April 2026 the Group paid €1,000,002.08 (NZ$2,012,968) for an investment in Inclusion and Accessibility Labs (trading as Vially).
The investment comprised 517 Series Seed Preference shares, and represents an 18% ownership interest in the company. Given the proximity of the investment to year end, the purchase price is considered to be best approximate fair value as at 30 June 2026. The investment in Vially is Level 3 in the fair value hierarchy.
Page 39
Note 12 Property, Plant and Equipment
Table
Group | Land $000s | Buildings $000s | Plant, furniture and equipment $000s  | Guide dogs $000s | Guide dogs Under construction $000s | Total $000s
Cost | Blank | Blank | Blank | Blank | Blank | Blank
At 1 July 2024 | 3,376 | 22,764 | 16,065 | 3,958 | 653 | 46,817
Additions | - | 5,273 | 444 | - | 2,235 | 7,953
Transfers | - | 7,957 | (7,957) | 2,173 | (2,173) | -
Disposals | (38) | (51) | - | (759) | - | (848)
At 30 June 2025 | 3,338 | 35,943 | 8,552 | 5,372 | 715 | 53,922
At 1 July 2025 | 3,338 | 35,943 | 8,552 | 5,372 | 715 | 53,922
Additions | - | 334 | 1,337 | - | 2,436 | 4,106
Transfers | 1,140 | 1,938 | (100) | 2,224 | (2,224) | 2,977
Disposals | - | - | (196) | (257) | - | (453)
At 30 June 2026 | 4,478 | 38,215 | 9,593 | 7,339 | 927 | 60,552
Depreciation | Blank | Blank | Blank | Blank | Blank | Blank
At 1 July 2024 | - | 6,278 | 6,454 | 1,481 | - | 14,213
Charge for the year | - | 890 | 640 | 671 | - | 2,201
Disposals | - | (51) | - | (521) | - | (572)
At 30 June 2025 |  - |  7,117 | 7,094 | 1,631 | - | 15,842
At 1 July 2025 | - | 7,117 | 7,094 | 1,631 | - | 15,842
Charge for the year | - | 1,137 | 658 | 917 | - | 2,712
Disposals | - | - | (180) | (181) | - | (361)
At 30 June 2026 | - | 8,254 | 7,571 | 2,367 | - | 18,193
Carrying amounts | Blank | Blank | Blank | Blank | Blank | Blank
At 30 June 2025 | 3,338 | 28,826 | 1,458 | 3,741 | 715 | 38,078
At 30 June 2026 | 4,478 | 29,961 | 2,021 | 4,972 | 927 | 42,359
End Table
Page 40
Table
Controlling Entity | Land $000s | Buildings $000s | Plant, furniture and equipment $000s  | Guide dogs $000s | Guide dogs Under construction $000s | Total $000s
Cost | Blank | Blank | Blank | Blank | Blank | Blank
At 1 July 2024 | 371 | 14,671 | 16,065 | 3,958 | 653 | 35,718
Additions | - | 5,273 | 444 | - | 2,235 | 7,953
Transfers | - | 7,957 | (7,957) | 2,173 | (2,173) | -
Disposals | (38) | (51) | - | (759) | - | (848)
At 30 June 2025 | 333 | 27,850 | 8,553 | 5,372 | 715 | 42,823
At 1 July 2025 | 333 | 27,850 | 8,553 | 5,372 | 715 | 42,823
Additions | - | 334 | 1,337 | - | 2,436 | 4,106
Transfers | - | 100 | (100) | 2,224 | (2,224) | 
Disposals | - | - | (196) | (257) | - | (453)
At 30 June 2026 | 333 | 28,284 | 9,593 | 7,339 | 927 | 46,476
Depreciation | Blank | Blank | Blank | Blank | Blank | Blank
At 1 July 2024 | - | 6,004 | 6,454 | 1,480 | - | 13,938
Charge for the year | - | 671 | 640 | 671 | - | 1,982
Disposals | - | (51) | - | (521) | - | (572)
At 30 June 2025 | - | 6,624 | 7,094 | 1,630 | - | 15,348
At 1 July 2025 | - | 6,624 | 7,094 | 1,630 | - | 15,348
Charge for the year | - | 869 | 658 | 917 | - | 2,444
Disposals | - | - | (180) | (181) | - | (361)
At 30 June 2026 | - | 7,493 | 7,572 | 2,366 | - | 17,431
Carrying amounts | Blank | Blank | Blank | Blank | Blank | Blank
At 30 June 2025 | 333 | 21,226 | 1,459 | 3,742 | 715 | 27,457
At 30 June 2026 | 333 | 20,791 | 2,021 | 4,973 | 927 | 29,045
End Table
Page 41
In 2023 the Group settled the purchase of the ground floor of the Nathan Residences of the retirement village for $12,725,000. A portion of this ground floor space is occupied by the Controlling Entity through two leases with Foundation Properties Limited for offices and a community hub and has been treated as Property, Plant and Equipment for the Group.
Included in property plant and equipment is the cost of land ($3,004,887) and buildings ($8,094,227) associated with the BLVNZ offices, and the cost of land ($1,139,598) and buildings ($1,837,776) associated with the community hub. The balance of the space is leased to commercial tenants and is treated as investment property within the Group (note 15). The Controlling Entity leased the office space commencing 1 April 2023, and the community hub from 1 September 2025, 15 year and 13 year leases respectively with a 10 year right of renewal. The portion related to the community hub was transferred from investment property in the current year.
Included within Buildings for both the Group and the Controlling Entity is the Guide Dog Centre, which reached practical completion in January 2025. The facility comprises kennels, an isolation wing, a breeding centre, and a playpark, and has a carrying value of $10,863,588 at 30 June 2026 (2025: $11,187,874). Also included are the South Auckland offices, with a carrying value of $4,860,696 at 30 June 2026 (2025: $5,095,055).
Page 42
Note 13 Intangible assets
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Cost: Audio Masters | Blank | Blank | Blank | Blank
Balance at 1 July | 2,507 | 2,307 | 2,507 | 2,307
Additions | 93 | 200 | 93 | 200
Balance at 30 June | 2,600 | 2,507 | 2,600 | 2,507
Cost: Computer Software | Blank | Blank | Blank | Blank
Balance at 1 July | 2,401 | 2,401 | 2,401 | 2,401
Additions | - | - | - | -
Balance at 30 June | 2,401 | 2,401 | 2,401 | 2,401
Total cost | 5,001 | 4,908 | 5,001 | 4,908
Accumulated amortisation | Blank | Blank | Blank | Blank
Audio Masters | Blank | Blank | Blank | Blank
Balance at 1 July | 2,021 | 1,896 | 2,021 | 1,896
Amortisation for the year | 149 | 125 | 149 | 125
Balance at 30 June | 2,170 | 2,021 | 2,170 | 2,021
Computer Software | Blank | Blank | Blank | Blank
Balance at 1 July | 2,401 | 2,401 | 2,401 | 2,401
Amortisation for the year | - | - | - | -
Balance at 30 June | 2,401 | 2,401 | 2,401 | 2,401
Total accumulated amortisation | 4,571 | 4,422 | 4,571 | 4,422
Carrying amounts | Blank | Blank | Blank | Blank
At 1 July 2025 | 485 | 410 | 485 | 410
At 30 June 2026 | 430 | 485 | 430 | 485
End Table
Page 43
Note 14 Biological Assets
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
At fair value | Blank | Blank | Blank | Blank
Balance at 1 July | 87 | 120 | 87 | 120
Births/acquisitions | 36 | 22 | 36 | 22
Deaths/retirements | (32) | (55) | (32) | (55)
Balance at 30 June | 91 | 87 | 91 | 87
End Table
At 30 June 2026, breeding stock comprised 12 dogs (2025: 11 dogs) of a mixture of ages. The Group is exposed to health and disease risks related to its breeding stock. The Group has extensive processes in place aimed at mitigating those risks including not maintaining the breeding stock in one location and regular veterinary examinations.
The fair value of Biological Assets is valued using level three unobservable inputs—refer note 3(n).
The fair value of breeding stock is based on the market values of dogs of similar age, breed and genetic make-up. This market price is established by reference to recent transactions in the market.
Note 15 Investment Property
The following investment properties were carried by the Group at fair value, by valuation method level three unobservable inputs—refer note 3(n):
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
The Parnell Estate, Auckland | 88,392 | 90,944 | - | -
Retirement Village | 22,950 | 21,450 | - | -
York Way, Royston, UK | 7,840 | 7,591 | 7,840 | 7,591
Total investment property | 119,182 | 119,985 | 7,840 | 7,591
End Table
ASB holds a mortgage over the Parnell Estate including the following properties:
545 Parnell Rd, Parnell Auckland
2 & 20 Titoki Street, Parnell, Auckland
8 George Street, Parnell, Auckland
Page 44
The Foundation Village Partnership has syndicated bank facilities provided by a banking syndicate comprising of the ANZ Bank New Zealand Limited, the ASB Bank Limited and the Industrial and Commercial Bank of China (New Zealand) Limited that hold a first mortgage over the leasehold interest in the Retirement Village including the following properties:
4 Maunsell Rd, Parnell Auckland
537−539 Parnell Road, Parnell, Auckland
Summary of the change in fair value of investment properties
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Balance at 1 July | 119,985 | 114,944 | 7,591 | 7,727
Additions | 2,213 | 1,846 | - | 53
Disposal | (41) | (802) | (41) | (802)
Transfer to property plant and equipment | (2,977) | - | - | -
Exchange rate variance | 306 | 772 | 306 | 772
Change in fair value recognised in (deficit) or surplus | (304) | 3,225 | (16) | (159)
Balance at 30 June | 119,182 | 119,985 | 7,840 | 7,591
End Table
Summary of income and expense from Investment properties
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Rental income derived from investment properties | 5579 | 5579 | - | -
Land Coupon and Credit Support fee income | 671 | - | - | -
Direct operating expenses generating rental income | (1,057) | (1,249) | - | -
Profit arising from investment properties carried at fair values before fair value gains and losses, gain on sale of property, interest | 5,193 | 4,030 | - | -
End Table
Page 45
The investment properties in the Group are:
Parnell Estate consisting of six properties on the border of Newmarket and Parnell, including improvements across four standalone structures located at the following addresses;
537-545 Parnell Road, 2-20 Titoki Street and 8 George Street, Parnell, Auckland, and
2. Retirement village consisting of the land in respect of the transaction with The Foundation Village Partnership as described below, and
3. A half share interest in land to the south of the A505 and north of York Way, Royston, Hertfordshire, England.
Refer to note 28 for capital commitments related to investment properties.
Investment properties are stated at fair value as determined by registered independent valuers. The valuers have appropriate recognised professional qualifications and recent experience in the location and category of property being valued. The fair values are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation between a willing buyer and willing seller in an arm's length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion.
The latest valuations for investment properties were carried out by registered valuers, Lambert Smith Hampton (UK) in May 2026, Savills (NZ) Limited in May 2026 and CBRE (NZ) in July 2026, with the latter two members of the Institute of Valuers of New Zealand. The Group is of the view that the valuations would not be materially different had they been performed as at balance date on 30 June 2026. The latest valuations are:
10 Titoki Street, Cnr 4 Maunsell Road and 541 Parnell Road was carried out by CBRE (NZ).
2,16, 20 Titoki Street, 539 Parnell Road Ground Floor, 545 Parnell Road and 8 George Street, Parnell, Auckland was carried out by Savills (NZ) Limited.
The freehold property known as Land at Royston Gateway, Durham Way & Darlington Road, Royston, Hertfordshire SGB SPF, was valued as at 31 May 2026 by an external valuer, Lambert Smith Hampton, a regulated firm of Chartered Surveyors. The valuation was prepared in accordance with the requirements of the Royal Institution of Chartered Surveyors (RICS): RICS Valuation—Global Standards and the national standards and guidance set out in the UK national supplement together known as "the RICS Valuation Standards", effective at the Valuation Date. The valuation has been prepared and reported under Fair Value as published by FRS 102—the Financial Reporting Standard as defined in UK and Ireland Generally Accepted Accounting Practice.
Page 46
Valuations are completed in accordance with the Chartered Accountants Australia and New Zealand Equivalent to International Accounting Standard PBE IPSAS 16 and API—PINZ Professional Practice 2009—Guidance Note 1–Valuations for Use in New Zealand Financial Reports. The valuer and management have considered all the factors and the basis of valuation for these properties has been on a highest and best use (HABU) basis.
The estimate of fair value has been made based on circumstances which apply at balance date excluding Royston which assumes planning permission has been granted for development. It is reasonably possible based on existing knowledge that changes in these estimates and assumptions within the next financial year could give rise to a material adjustment to the carrying amount.
The following lease receivables are due under non-cancellable leases:
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Future minimum lease payments receivable under non-cancellable | Blank | Blank | Blank | Blank
Not later than one year | 28,058 | 4,089 | - | 33
Later than one year and not later than five years | 15,797 | 36,445 | - | -
Later than five years | 62,898 | 65,187 | - | -
Total | 106,753 | 105,721 | - | 33
End Table
Page 47
Investment Properties held for commercial tenants
The investment properties are leased to third parties and 1,233 sqm of the ground floor (2025: 967 sqm) at 539 Parnell Road, Parnell, Auckland is leased to the Controlling Entity (eliminated on consolidation). Leases contain initial non-cancellable periods in the range of 0-12 years. No contingent rents are charged.
In regard to the Parnell Estate, valuations are prepared using income capitalisation and discounted cash flow methodology based on the estimated rental cash flows expected to be received from the property adjusted by a discount rate ranging from 7.50% to 8.75% (2025: ranging 7.50% to 8.75%) and capitalisation rate ranging from 5.00% to 6.75% (2025: ranging from 5.00% to 6.75%) that both appropriately reflects the risks inherent in the expected cash flows. For land, where there are no cash flows, a direct comparison approach has been adopted. The valuations takes into account occupancy rates, capitalisation rates and average lease terms before expiry (WALE) of 25.57 years (2025: 26.38 years).
The Group's freehold land at Royston, for which the Group and Controlling Entity hold a 50% share, has been re-zoned mixed use development and is partially developed for retail and industrial use. The valuation is denominated in Pounds Stirling (GBP) and fluctuations with the New Zealand Dollar (NZD) (2026: 0.4337, 2025: 0.4512) will impact on the valuation. Lambert Smith Hampton are members of the Royal Institute of Chartered Surveyors (RICS). The GBP valuation at June 2026 was GBP3,400,000 (2025: GBP3,425,000) valuation NZD7,839,520 at June 2026 (2025: NZD7,590,869). The valuation has been prepared using a "day one" residual appraisal which assumes immediate commencement of the assumptions that vacant possession has been achieved and that planning permission has been granted for redevelopment. This was then benchmarked against comparable land transactions in order to arrive at the fair value.
During the year there was no disposal of land which forms part of the Royston development. In 2025 there was net proceeds of $427k, which was subsequently reinvested in FPL to use for investment in the same asset class of investment property and achieve similar returns in the future.
Bledisloe Royston Trust ("BRT") is the joint Trustee for the owners and represents the Controlling Entity's interest in this land.
Page 48
Investment Properties held for retirement village
In terms of the Foundation Village Partnership Agreement The Foundation Village Partnership has and will acquire leasehold interests in land owned by the Group as required for the various stages of the retirement village development. The Foundation Village Partnership has acquired leasehold interests for 105 years in exchange for the following payments as agreed in the Partnership Agreement:
Lease payments received
• Stage 1A Nathan Residences—Parnell Road Site—$8,620,000 (received March 2023)
Lease payments to be received
• Stage 1B—Abbott Residences—$18,700,000 (Leasehold interest commenced November 2022).
• Stage 2A—Pearson House—$4,400,000 (Leasehold interest commenced September 2023)
• Stage 2B—Pearson Residences—$8,220,000 (Leasehold interest has not commenced)
The development of Stage 1B Abbott Residences was practically completed on 1 July 2026 and Stage 2A Pearson House's refurbishment was practically completed in October 2024. Lease payments for Stage 1B Abbott Residences and Stage 2A Pearson House is expected in 2027. Stage 2B Pearson Residences has not commenced as at 30 June 2026.
The Stage 1A Nathan Residences land lease commenced in May 2021 resulting in the land lease income of $8,620,000 being recognised and spread over 105 years.
The Stage 1B Abbott Residences land lease commenced in November 2022 resulting in the land lease income of $18,700,000 being recognised and spread over 103 years.
The Stage 2A Pearson House land lease commenced in September 2023 resulting in the land lease income of $4,400,000 being recognised and spread over 102 years.
Page 49
The Group will retain its freehold interest in the land and receive nominal rental payments in addition to the leasehold payments above.
The valuation performed by CBRE assessed the fair value of the land (reversion value) based on a combination of land value per square metre and the number of units the resource consent allows on the land, increased by the present value of future land payments. Significant assumptions used by the valuer include land value at $4,900-$6,200 (2025: $4,900-$6,200) per square metre, $320,000-$375,000 (2025: $320,000-$375,000) per unit consented in terms of the resource consent and land payment discounted at 7% over 6 months (2025: 7% over 18 months).
A component of the valuation reflects the reversion value at lease expiry, which is determined by projecting the expected land value over the reversion period and then discounting this amount back to present value. Given the significant time period before reversion occurs, the majority of the valuation is attributable to the future land payments to be received.
On the 75th anniversary from the commencement date of the lease both parties will negotiate in good faith (for a maximum period of 24 months) to agree a renewal of the lease on "similar terms".
Future property valuations will reduce significantly as the respective land payments are received and recognised in financial assets.
Page 50
Note 16 Controlled Group Entities
The Group controls eleven entities, all registered in New Zealand, its interest in which is represented by 100% of their net assets. The subsidiaries and their principal activities (if any) during the year ended 30 June 2026 are:
Property investment, development and management
• Bledisloe Royston Trust (BRT)
• Foundation Properties Limited (FPL)
• Foundation Village Limited
• Foundation Ventures Limited
Provision of Member services and equipment
• Sir Arthur Pearson Memorial
• Fund Oppenheim Tertiary
• Education Trust Henderson Fund
• Forsyth Fund
• Cyril White Award Fund
• Netta & Jack Shortt Fund
• Roger Kan
All controlled entities have the same reporting date as the Controlling Entity.
The total investment and advances to controlled entities is made up as follows:
Table
Item | 2026 $000s | 2025 $000s
Investment in Foundation Properties Limited | 54,505 | 54,505
Investment in Foundation Ventures Limited | 100 | 100
Total | 54,605 | 54,605
End Table
Page 51
During the year no related party debts have been written off or forgiven.
a. The investment and advance in Foundation Properties Limited is made up as follows:
Table
Item | 2026 $000s | 2025 $000s
Opening Balance | 54,505 | 54,078
Additional investment | - | 427
Closing Balance | 54,505 | 54,505
End Table
In 2025 RNZFB resolved to invest net proceeds from the monies received from the partial Royston property sale of $427k in Foundation Properties Limited.
b. The investment and advance in Foundation Ventures Limited is made up as follows
Table
Item | 2026 $000s | 2025 $000s
Investment in Foundation Ventures Limited | 100 | 100
Total | 100 | 100
Opening Balance | (100) | (100)
Advance to Foundation Ventures Limited | 2,013 | -
Closing Balance | 1,913 | (100)
End Table
The advance from Foundation Ventures Limited of $100,000 has been offset against the payment by Royal New Zealand Foundation of the Blind, for the investment in Inclusion and Accessibility Labs on the 28 April 2026. Refer to Note 11 Bonds and Investments under Investment in financial assets.
c. Foundation Properties Limited (FPL) controls Foundation Village Limited, registered in New Zealand. The interests are represented by 100% of their net assets. Both entities have the same reporting date.
The total investment during the year by FPL in Foundation Village Limited (FVL) is made up as follows:
Table
Item | 2026 $000s | 2025 $000s
Opening Balance | 10,000 | 10,000
Additional investment | - | -
Closing Balance | 10,000 | 10,000
End Table
Page 51
Note 17 Investment in Joint Venture
Joint Venture
The Foundation Village Partnership (the Joint Venture Partnership) was formed on 13 November 2019 for the purpose of constructing and operating an upscale retirement village in Parnell, Auckland, on part of the land assets owned by FPL, with the objective to generate an ongoing and substantial legacy for the RNZFB Group. The equal Partners are Foundation Village Limited, and Generus Foundation Limited, an entity ultimately owned by the interests of Mr Graham Wilkinson. The village was registered as a retirement village on 10 December 2019 (registration number 2745912). The present intention is that the village will consist of three new buildings (named Nathan, Abbott and Pearson), containing up to 158 (2025: 158) retirement units and 26 (2025: 26) aged care units, carparks, some commercial and retail units, along with various common facilities, some of which will be within the existing historical Pearson House building, which has been refurbished.
Foundation Village Limited's primary activity is property development and has a 50% interest in the retirement village development which comprises a number of stages:
• Stage 1A (Nathan Residences) was practically completed in December 2023
• Stage 1B (Abbott Residences) demolition of Awhina house in November 2022 cleared the site and practically completed July 2026.
• Stage 2A (Pearson House) refurbishment practically completed October 2024.
• Stage 2B (Pearson Residences) development has not commenced. Resource Consent was received on the 9th August 2024
FVL has made no capital contributions during 2026 (2025: $0) with total contributions being $10,000,000 to the partnership, being FVL's share under the agreement. No further contributions are expected over the next 12 months.
During the year there were no further advances to TFVP relating to the development of future stages of the village. As at 30 June 2026 FVL has advanced $250,000 which is unsecured.
The current commitments relate to:
1. A development management agreement with Generus Living Group Limited with associated annual management fee and a development fee subject to certain financial performance incentives and achieving various financial criteria.
2. A management service agreement with Generus Living Group Limited to manage the operation of the retirement village.
Page 53
There were no contingent assets or contingent liabilities relating to interests in The Foundation Village Partnership to which the Group would jointly and/or severally either benefit or be liable for.
Foundation Properties Limited and its partner in the joint venture provide financial guarantees on The Foundation Village Partnerships lease obligations to FPL. As FPL ultimately owns the freehold land FPL essentially self guarantees its share of the lease liability therefore management have determined there is no accounting required to account for its own guarantee.
Syndicated bank facilities are now provided by a banking syndicate comprising of the ANZ Bank New Zealand Limited, the ASB Bank Limited and the Industrial and Commercial Bank of China (New Zealand) Limited. Bank facilities are secured by a registered first mortgage over the property, first ranking general security agreement over the assets of the Partnership and are supported by guarantees from Generus Living Group Limited and Foundation Properties Limited. The loans are repayable from the proceeds received from the issue of occupation right agreements. The development facilities consist of three individual facilities totalling $180,316,314 as at 30 June 2026 (2025: $170,194,891), of which $146,748,225 (2025: $73,046,620) has been drawn down from the facilities as at 30 June 2026. The development facilities expire on 31 August 2027.
The following summarises the financial information of The Foundation Village Partnership, and reconciles the carrying amount of the Group's interest.
Table
Item | Group 2026 $000s | Group 2025 $000s
Percentage ownership interest | 50% | 50%
Total assets (including cash & cash equivalents $2,608,656: 2025 $2,602,183) | 360,159 | 213,263
Total liabilities (including trade and other payables $9,175,245: 2025 $10,923,000) | (238,839) | (164,178)
Net assets (100%) | 121,320 | 49,084
Group share of net assets (50%) and carrying amount of interest in equity-accounted investees | 60,660 | 24,542
End Table
Page 54
Table
Item | Group 2026 $000s | Group 2025 $000s
Total revenue (including fair value gain on investment property of $72,499,915 (2025: loss of $6,589,033) | 76,663 | (2,881)
Total expenses (including depreciation $8,335: 2025: $11,345, interest expense $357,822: 2025 $360,876) | (4,427) | (3,795)
Total comprehensive surplus/(deficit) for the year (100%) | 72,236 | (6,676)
Total group share of comprehensive surplus/(deficit) for the year in equity-accounted investees (50%) | 36,118 | (3,338)
End Table
***
Table
Item | Group 2026 $000s | Group 2025 $000s
Percentage ownership interest | 50% | 50%
Opening Balance | 24,542 | 27,880
Share of equity-accounted investees surplus/(deficit) for the year | 36,118 | (3,338)
Carrying amount of the investment in equity-accounted investees | 60,660 | 24,542
End Table
Page 55
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Trade payables | 1,263 | 1,282 | 1,263 | 1,282
Other payables | 776 | 715 | 468 | 456
Total trade and other payables from exchange transactions | 2,039 | 1,997 | 1,731 | 1,738
End Table
Trade payables are non-interest bearing and are normally settled on 30 day terms.
Other payables are non-interest bearing and have an average term of 30 days.
Note 19 Other Liabilities—From Non-Exchange Transactions
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Conditional funds | 1,864 | 1,816 | 1,864 | 1,816
Other liabilities | 508 | 529 | 508 | 529
Total other liabilities—from non-exchange transactions | 2,372 | 2,345 | 2,372 | 2,345
End Table
Other liabilities are non-interest bearing and are payable on demand.
Page 56
Note 20 Bank Loan
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
ASB term loan—Committed Cash Advance | 9,900 | 9,900 | - | -
ASB term loan—Redrawable Committed Cash Advance | 1,500 | 1,000 | - | -
Total bank loan | 11,400 | 10,900 | - | -
Current Liability | 1,500 | 1,000 | - | -
Non Current Liability | 9,900 | 9,900 | - | -
Total | 11,400 | 10,900 | - | -
End Table
Foundation Properties Limited has two term loan facilities in place with ASB which were renegotiated in November 2025 with both term loan facilities being extended 1 year from November 2026. The variations were formalised and effective from 19 November 2025. The first facility is a Committed Cash Advance Facility (CCAF) for $9.9m, interest only, with an expiry date of 18 November 2027 with interest payable in arrears at the end of each drawing period (monthly). The interest rate is the 30 day BKBM bid rate plus a margin of 1.85%, less a 0.15% sustainability discount. The second facility is a Redrawable Committed Cash Advance Facility (RDW-CCAF) for $3.0m, interest only, with an expiry date of 18 November 2027 with interest payable in arrears at the end of each drawing period (monthly). The interest rate is the 30 day BKBM bid rate plus a margin of 1.25%, less a 0.15% sustainability discount. The line fee is 0.6% per annum of the facility limit charged monthly in arrears. There is $1.5m of undrawn funds under this facility as at 30 June 2026.
These loans are subject to covenants which have been complied with, including an EBIT to Interest Expense bank debt servicing ratio at no less than 2.0 times and security over the assets, 8 George Street Parnell Auckland, 2 and 20 Titoki Street Parnell Auckland and 545 Parnell Road Parnell Auckland.
Page 57
Note 21 Land Lease Receipt in Advance
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Opening Balance | 8,279 | 8,361 | - | -
Less Lease income recognised | (82) | (82) | - | -
Total Land Lease Receipt in Advance | 8,197 | 8,279 | - | -
End Table
***
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Current Liability | 82 | 82 | - | -
Non-current Liability | 8,115 | 8,197 | - | -
Total Land Lease Receipt in Advance | 8,197 | 8,279 | - | -
End Table
***
Note 22 Employee Benefits and Obligations
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Current | Blank | Blank | Blank | Blank
Accrued salaries | 953 | 711 | 953 | 711
Annual leave | 1,279 | 1,216 | 1,279 | 1,216
Long service leave | 40 | 43 | 40 | 43
Total | 2,272 | 1,970 | 2,272 | 1,970
Non-current | Blank | Blank | Blank | Blank
Long service leave | 66 | 75 | 66 | 75
Total employee benefits and obligations | 2,338 | 2,045 | 2,338 | 2,045
End Table
Page 58
Note 23 Equity
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Equity balances | Blank | Blank | Blank | Blank
The Equity is represented by | Blank | Blank | Blank | Blank
Restricted purposes designated by donors | 1,404 | 1,464 | 1,404 | 1,464
Special purposes designated by the Board | 94,207 | 86,765 | 52,982 | 45,289
Special purposes designated by the Board | 94,207 | 86,765 | 52,982 | 45,289
Retained surplus | 147,324 | 114,453 | 75,413 | 80,147
Endowed capital funds | 27,027 | 25,524 | 27,027 | 25,524
Balance at 30 June | 269,962 | 228,206 | 156,826 | 152,424
End Table
Restricted Funds
This balance represents the unexpended balance of funds received from donors for Restricted purposes.
Special Purposes
These are funds set aside for future capital purchases and other special purposes. This amount includes all movements through the statement of comprehensive revenue and expense deemed by directors to be capital related, and also revaluation of investment property and investments in shares and bonds.
Retained Surplus
This includes all funds received and retained for general purposes.
Endowed Capital Funds
These are endowment funds received by the Controlling Entity where the Donor or the Board has specified them as an endowment fund. These funds cannot be spent but are invested for the future of the Controlling Entity.
Page 59
Table
Equity Movements | Restricted Funds $000s | Special Purposes $000s | Retained Surplus $000s | Endowed Capital Funds $000s | Total $000s
Group | Blank | Blank | Blank | Blank | Blank
At 1 July 2024 | 1,265 | 79,243 | 104,713 | 25,634 | 210,855
Current year surplus | - | - | 17,351 | - | 17,351
Revaluation transfer (note 15) | - | 3,225 | (3,225) | - | -
Revaluation of Bonds, Investments and other financial assets | - | 4,297 | (4,297) | - | -
Reclass Restricted and Endowed Capital funds | 209 | - | (213) | 4 | -
Reclass Restricted to Retained Surplus | (10) | - | 124 | (114) | -
At 30 June 2025 | 1,464 | 86,765 | 114,453 | 25,524 | 228,206
At 1 July 2025 | 1,464 | 86,765 | 114,453 | 25,524 | 228,206
Current year surplus | - | - | 41,756 | - | 41,756
Revaluation transfer (note 15) | - | (304) | 304 | - | -
Revaluation of Bonds, Investments and other financial assets | - | 7,746 | (7,746) | - | -
Reclass Restricted and Endowed Capital funds from Retained Surplus | (60) | - | (1,443) | 1,503 | -
At 30 June 2026 | 1,404 | 94,207 | 147,324 | 27,027 | 269,962
End Table
Page 60
Table
Equity Movements | Restricted Funds $000s | Special Purposes $000s | Retained Surplus $000s | Endowed Capital Funds $000s | Total $000s
Controlling Entity | Blank | Blank | Blank | Blank | Blank
At 1 July 2024 | 1,265 | 41,151 | 67,508 | 25,634 | 135,558
Current year surplus | - | - | 16,866 | - | 16,866
Revaluation transfer (note 15) |  | (159) | 159 | - | -
Revaluation of Bonds, Investments and other financial assets | - | 4,297 | (4,297) | - | -
Reclass Special Purposes and Retained Surplus | - | - | - | - | -
Reclass Restricted and Endowed Capital funds from Retained Surplus | 209 | - | (213) | 4 | -
Reclass Restricted and Endowed Capital funds to Retained Surplus | (10) | - | 124 | (114) | -
At 30 June 2025 | 1,464 | 45,289 | 80,147 | 25,524 | 152,424
At 1 July 2025 | 1,464 | 45,289 | 80,147 | 25,524 | 152,424
Current year surplus | - | - | 4,402 | - | 4,402
Revaluation transfer (note 15) | - | (16) | 16 | - | -
Revaluation of Bonds, Investments and other financial assets | - | 7,709 | (7,709) | - | -
Reclass Special Purposes and Retained Surplus | - | - | - | - | -
Reclass Restricted and Endowed Capital funds from Retained Surplus | (60) | - | (1,443) | 1,503 | -
At 30 June 2026 | 1,404 | 52,982 | 75,413 | 27,027 | 156,826
End Table
Page 61
Note 24 Categories of financial assets and liabilities
The carrying amounts of financial assets and liabilities in each of the financial statements are as follows:
Group | Financial assets at amortised cost $000s | FVTSD $000s | Financial liabilities at amortised cost $000s | Total $000s
As at 30 June 2026 Assets | blank | blank | blank | blank
Cash and cash equivalents | 4,265 | - | - | 4,265
Term investments | 3,270 | - | - | 3,270
Trade and other receivables (from exchange transactions) | 1,836 | - | - | 1,836
Recoverables (from non-exchange transactions) | 1,864 | - | - | 1,864
Advance to related party | 250 | - | - | 250
Bonds, investments and other financial assets | - | 62,024 | - | 62,024
Total financial assets | 11,485 | 62,024 | - | 73,509
Non-financial assets | - | Blank | Blank | 222,799
Total assets | Blank | Blank | Blank | 296,308
Liabilities
Trade and other payables (from exchange transactions) | - | - | 2,039 | 2,039
Other liabilities (from non-exchange transactions) | - | - | 2,372 | 2,372
Bank loan | - | - | 11,400 | 11,400
Employee benefits and obligations | - | - | 2,338 | 2,338
Total financial liabilities | - | - | 18,149 | 18,149
Land lease income received in advance | - | - | 18,149 | 18,197
Other Non-financial liabilities | Blank | Blank | Blank | -
Total non financial liabilities | Blank | Blank | Blank | 18,197
Total liabilities | Blank | Blank | Blank | 26,346
End Table
Page 62
Table
Group | Financial assets at amortised cost $000s | FVTSD $000s | Financial liabilities at amortised cost $000s | Total $000s
As at 30 June 2025 | Blank | Blank | Blank | Blank
Assets | Blank | Blank | Blank | Blank
Cash and cash equivalents | 5,425 | - | - | 5,425
Term investments | 7,280 | - | - | 7,280
Trade and other receivables (from exchange transactions) | 1,926 | - | - | 1,926
Recoverables (from non-exchange transactions) | 4,435 | - | - | 4,435
Advance to related party | 250 | - | - | 250
Bonds, investments and other financial assets | Blank | 51,265 | Blank | 51,265
Total financial assets | 19,316 | 51,265 | - | 70,581
Non-financial assets | Blank | Blank | Blank | 183,191
Total assets | Blank | Blank | Blank | 253,772
Liabilities | Blank | Blank | Blank | Blank
Trade and other payables (from exchange transactions) | - | - | 1,997 | 1,997
Other liabilities (from non-exchange transactions) | - | - | 2,345 | 2,345
Bank loan | - | - | 10,900 | 10,900
Employee benefits and obligations | - | - | 2,045 | 2,045
Total financial liabilities | - | - | 17,287 | 17,287
Land lease income received in advance | Blank | Blank | Blank | 8,279
Other non-financial liabilities | Blank | Blank | Blank | -
Total non-financial liabilities | - | - | - | 8,279
Total liabilities | Blank | Blank | Blank | 25,566
End Table
Page 63
Table
Controlling Entity | Financial assets at amortised cost $000s | FVTSD $000s | Financial liabilities at amortised cost $000s | Total $000s
As at 30 June 2026 | Blank | Blank | Blank | Blank
Assets | Blank | Blank | Blank | Blank
Cash and cash equivalents | 3,335 | - | - | 3,335
Term investments | 3,270 | - | - | 3,270
Trade and other receivables (from exchange transactions) | 822 | - | - | 822
Recoverables (from non-exchange transactions) | 1,864 | - | - | 1,864
Advances to related party | 1,913 | - | - | 1,913
Bonds, investments and other financial assets | - | 59,975 | - | 59,975
Total financial assets | 11,204 | 59,975 | - | 71,179
Non-financial assets | - | - | - | 92,008
Total assets |  |  |  | 163,267
Liabilities
Trade and other payables (from exchange transactions) | - | - | 1,731 | 1,731
Other liabilities (from non-exchange transactions) | - | - | 2,372 | 2,372
Advances from related party | - | - | - | -
Employee benefits and obligations | - | - | 2,338 | 2,338
Total financial liabilities | Blank | Blank | 6,441 | 6,441
Non-financial liabilities | Blank | Blank | Blank | Blank
Total liabilities | Blank | Blank | Blank | 6,441
End Table
Page 64
Table
Controlling Entity | Financial assets at amortised cost $000s | FVTSD $000s | Financial liabilities at amortised cost $000s | Total $000s
As at 30 June 2025 | Blank | Blank | Blank | Blank
Assets | Blank | Blank | Blank | Blank
Cash and cash equivalents | 4,189 | - | - | 4,189
Term investments | 7,280 | - | - | 7,280
Trade and other receivables (from exchange transactions) | 1,226 | - | - | 1,226
Recoverables (from non-exchange transactions) | 4,435 | - | - | 4,435
Bonds, investments and other financial assets | - | 51,265 | - | 51,265
Total financial assets | 17,130 | 51,265 | - | 68,395
Non-financial assets | Blank | Blank | Blank | 90,257
Total assets | Blank | Blank | Blank | 158,652
Liabilities | Blank | Blank | Blank | Blank
Trade and other payables (from exchange transactions) | - | - | 1,738 | 1,738
Other liabilities (from non-exchange transactions) | - | - | 2,345 | 2,345
Advances from controlled entities | - | - | 100 | 100
Employee benefits and obligations | - | - | 2,045 | 2,045
Total financial liabilities | Blank | Blank | 6,228 | 6,228
Non-financial liabilities | Blank | Blank | Blank | Blank
Total liabilities | Blank | Blank | Blank | 6,228
End Table
Page 65
Financial liabilities
Trade payables and employee benefits are mostly payable within one year. The Group has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.
Foundation Properties Limited has two term loan facilities in place with ASB. The first facility is a Committed Cash Advance Facility (CCAF) for $9.9m, interest only, with an expiry date of 18 November 2027 with interest payable in arrears at the end of each drawing period (monthly). The interest rate is the 30 day BKBM bid rate plus a margin of 1.85% (2025: 2.00%), less a 0.15% (2025: 0.15%) sustainability discount. The second facility is a Redrawable Committed Cash Advance Facility (RDW-CCAF) for $3.0m, interest only, with an expiry date of 18 November 2027 with interest payable in arrears at the end of each drawing period (monthly). The interest rate is the 30 day BKBM bid rate plus a margin of 1.25% (2025: 1.3%), less a 0.15% (2025: 0.15%) sustainability discount. The line fee is 0.6% per annum of the facility limit charged monthly in arrears. There is $1.5m of undrawn funds under this facility as at 30 June 2026.
Other liabilities represent funds held on behalf of independent organisations in a trust capacity and are repayable on demand, as well as deferred income which is repayable if certain conditions are not met.
Table
Maturity analysis | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Current—less than 12 months | Blank | Blank | Blank | Blank
Trade and other payables (from exchange transactions) | 2,039 | 1,997 | 1,731 | 1,738
Other liabilities (from non-exchange transactions) | 2,372 | 2,345 | 2,372 | 2,345
Employee benefits and obligations | 2,272 | 1,970 | 2,272 | 1,970
Advances from controlled entities | - | - | - | 100
Bank Loan | 1,500 | 1,000 | - | -
Non-Current—greater than 12 months | Blank | Blank | Blank | Blank
Bank loan | 9,900 | 9,900 | - | -
Employee benefits and obligations | 66 | 75 | 66 | 75
Total liabilities | 18,149 | 17,287 | 6,441 | 6,228
End Table
Page 66
Note 25 Financial Risk Management
The Group is risk averse and seeks to minimise its exposure to risks associated with financial assets and liabilities.
Market Risk
The Group is exposed to market risk in the form of interest rate risk and also movement in property values and investments. Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The term deposits are made for varying periods of up to, and including, twelve months depending on the immediate cash requirements of the Group, and earn interest at the respective term deposit rates. The investment bonds are held to maturity.
Cash flow Sensitivity
The Group has 30 day fixed rate loans. There is no surplus or deficit sensitivity in the mortgage and life interest receivables to interest rate risk as they are at fixed rates and are measured at amortised cost.
Credit Risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The carrying amount of financial assets represents maximum credit exposure.
In the normal course of business, the Group incurs credit risk from cash and cash equivalents, amounts on deposit, trade and other receivables, monetary legacies receivable, advances to related parties and loans to subsidiaries and investment bonds.
The Group does not anticipate non-performance by counterparties. There is no significant concentration of credit risk within the Group.
Page 67
Liquidity Risk
Liquidity risk is the risk that the Group will encounter difficulty raising liquid funds to meet commitments as they fall due. The Group has the following liabilities:
• On-going commitments to pay trade and other payables, bank loan and overdraft, other liabilities and employee benefits.
• Funds received under restricted endowments may be required to be repaid if they are not used for the stipulated purpose.
The Group pays trade and other payables, bank loan and overdraft, other liabilities and employee benefits when they fall due (mostly within one year) and none are past due. The Controlling Entity has cash and other short-term deposits which it can use to meet its ongoing payment obligations. There are no concentrations of liquidity risk.
The Controlling Entity does use VISA credit cards for purchases from time to time and has a facility to borrow up to $165,000, however these are repaid in full each month.
Fair values
All current financial instruments recognised in the statement of financial position are stated at carrying amounts that are also a reasonable approximation of their fair values.
Page 68
Note 26 Related Parties Transaction
Controlling Entity
The Controlling Entity has entered into certain transactions with its subsidiaries Foundation Properties Limited ("FPL") and Foundation Ventures Limited.
The Controlling Entity leases premises from Foundation Properties Limited.
During the year there was no proceeds from the sale of Royston properties compared with 2025, $427k had been invested in Foundation Properties Limited.
The value of these transactions for the Controlling Entity recorded in the financial statements are:
Table
Controlling Entity | 2026 $000s | 2025 $000s
Performance dividend income from subsidiary | Blank | Blank
Foundation Properties Limited | 4,200 | 4,000
Premise lease payments to subsidiaries | Blank | Blank
Foundation Properties Limited | (848) | (680)
End Table
The following short-term advance facility closing balances are recorded in the financial statements:
Table
Controlling Entity | 2026 $000s | 2025 $000s
Advances (from) to controlled entities | Blank | Blank
Foundation Ventures Limited | 1,913 | (100)
Foundation Properties Limited | - | -
Foundation Properties Limited | 1,913 | (100)
End Table
The terms and conditions are that the advances are non-interest bearing.
Page 69
Group
Investments and transactions with Foundation Properties Limited are disclosed in Note 16 Controlled Group Entities and Note 17 Investment In Joint Venture.
Related party transactions between Foundation Village Limited and The Foundation Village Partnership
During the year there were no further advances to TFVP relating to the development of future stages of the retirement village development, refer to note 17. As at 30 June 2026 FVL has advanced $250,000 which is unsecured (2025: $250,000) with no fixed terms for repayment.
Table
Controlling Entity | 2026 $000s | 2025 $000s
Advance to The Foundation Village Partnership | 250 | 250
Total | 250 | 250
End Table
Related party transactions with joint venture partner—Generus Living Group Limited
During the financial year Foundation Properties Limited recognised the following other investment income from Generus Living Group:
Table
Controlling Entity | 2026 $000s | 2025 $000s
Land Coupon | 496 | -
Credit Support Fee | 175 | -
Total Other Investment Income | 671 | -
End Table
As at 30 June 2026 the following other investment income is due from Generus Living Group and is included in receivables from exchange transactions:
Table
Controlling Entity | 2026 $000s | 2025 $000s
Land Coupon | 125 | -
Credit Support Fee | 65 | -
Total | 190 | -
End Table
Investments and transactions with The Foundation Village Partnership are disclosed in Note 17 Investment In Joint Venture.
Page 70
Key Management personnel remuneration
The Group classifies its key management personnel into one of two classes:
• Members of the governing body
• Chief Executive and the Executive team
The annual fees for the Chairman and Deputy Chair of the Controlling Entity governing body increased in July 2025 to $21,525 (2025: $21,000) and $11,931 (2025: $11,640) respectively, and other members of the governing body increased to an annual fee of $9,943 (2025: $9,700) per annum.
The Chief Executive and the Executive team are employed as employees of the Group, on normal employment terms.
The aggregate level of remuneration paid and number of persons (measured in "people" for Members of the governing body, and "full-time-equivalents" (FTE's) for Chief Executive and the Executive team) in each class of key management personnel is presented below:
Table
2026 | Group Number of Individuals | CE Number of Individuals | Group Remuneration $000s   | CE Remuneration $000s
Members of governing committee | 12 | 9 | 208 | 108
Chief executive officer and the executive team | 7 | 7 | 1,680 | 1,680
End Table
***
Table
2025 | Group Number of Individuals | CE Number of Individuals | Group Remuneration $000s   | CE Remuneration $000s
Members of governing committee | 12 | 9 | 188 | 88
Chief executive officer and the executive team | 6 | 6 | 1,359 | 1,359
End Table
Page 71
The following legal consulting fees were paid at market rates to a member of the governing body for the provision of expert legal advice for specific matters outside of the scope of their normal duties.
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Paid to Thompson Blackie Biddies: | Blank | Blank | Blank | Blank
Controlling Entity | - | 11 | - | 11
Foundation Properties Limited | 98 | 119 | - | -
Total legal fees paid to Thompson Blackie Biddies | 98 | 130 | - | 11
End Table
No close family members of key management personnel are employed by the Group.
No loan advances have been made to any close family members of key management personnel.
Note 27 Objectives for Managing Capital
The Controlling Entity seeks to maintain sufficient equity to enable it to manage its on-going operations and obligations. Surplus funds are invested having regard to the cash flow profile of future plans. The Controlling Entity is not subject to any externally imposed capital requirements. The Group is subject to covenants in relation to the ASB loan which have been met (refer note 20).
Page 72
Note 28 Capital Commitments, Leases and Contingent Liabilities
Capital Commitments involve building works where the Controlling Entity or Group have contracts in place for work to be undertaken in the next twelve months.
There are capital commitments of $400,000 for the Group as at 30 June 2026 (2025:$400,000). This relates to a $500,000 commitment to complete refurbishment works relating to investments properties. As at 30 June 2026 $100,000 has been spent.
Table
Item | Group 2026 $000s | Group 2025 $000s | CE 2026 $000s | CE 2025 $000s
Non-cancellable operating lease payments: | Blank | Blank | Blank | Blank
Not later than one year | 1,083 | 1,016 | 1,849 | 1,544
Later than one year and not later than five years | 3,851 | 3,205 | 6,917 | 5,318
Later than five years | 1,686 | 3,538 | 6,442 | 7,287
Total | 6,620 | 7,759 | 15,208 | 14,149
End Table
During the year ended 30 June 2026, the Controlling Entity recognised $1,884,223 (2025: $1,732,838) as an expense in the Statement of comprehensive revenue and expense in respect of the operating leases for buildings, vehicles and equipment. The respective expense for the Group was $1,035,904 (2025: $1,053,072).
The Group and Controlling Entity had no other contingent liabilities or contingent assets at 30 June 2026 (2025: $nil).
In September 2025, the Group held an Apology Hui for survivors of abuse in care. The Group continues to engage with survivor representatives regarding a redress framework. The Group may make payments as part of this process; however, the nature, timing and amount of any such payments remain uncertain. Accordingly, no provision has been recognised at balance date, as any potential obligation cannot be reliably estimated.
Note 29 Subsequent Events
Subsequent to Balance date Stage 1B Abbott Residence received practical completion on the 1 July 2026.
The Board of Directors and management is not aware of any matters or circumstances since the end of the reporting period, not otherwise dealt with in these financial statements that have significantly or may significantly affect the operations of the Group.
Page 73
Deloitte: Independent Auditor's Report
To the Members of Royal New Zealand Foundation of the Blind
Opinion
We have audited the consolidated and separate performance report of Royal New Zealand Foundation of the Blind (the "entity") and its subsidiaries ("the group"), which comprise the consolidated and separate financial statements on pages 12 to 72, and the consolidated statement of service performance on pages 4 to 10. The complete set of consolidated and separate financial statements comprise the consolidated and separate statement of financial position as at 30 June 2026, and the statement of financial performance, statement of comprehensive revenue and expense, statement of changes in net assets/equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated and separate performance report presents fairly, in all material respects:
• the consolidated and seperate financial position of the group and entity as at 30 June 2026, and its consolidated and seperate financial performance and cash flows for the year then ended; and
• the consolidated service performance for the year ended 30 June 2026 in that the service performance information is appropriate and meaningful and in accordance with the group's measurement bases or evaluation methods
in accordance with Public Benefit Entity Standards ("PBE Standards") issued by the New Zealand Accounting Standards Board.
Basis for opinion
We conducted our audit of the consolidated and separate financial statements in accordance with International Standards on Auditing ("ISAs"), and the audit of the consolidated service performance information in accordance with the ISAs (NZ) and New Zealand Auditing Standard 1 (Revised) The Audit of Service Performance Information ("NZ AS 1"). Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Consolidated Performance Report section of our report.
We are independent of the group in accordance with Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Our firm carries out other assignments for the entity in the area of taxation due diligence advice. These services have not impaired our independence as auditor of the entity or group. In addition to this, partners and employees of our firm deal with the entity and its subsidiaries on normal terms within the ordinary course of trading activities of the business of the entity and its subsidiaries. The firm has no other relationship with, or interest in, the entity or any of its subsidiaries.
Other information
The Board is responsible on behalf of the group for the other information. The other information comprises the information in the Financial Review and General Information that accompanies the consolidated and separate performance report and the audit report.
Our opinion on the consolidated and separate performance report does not cover the other information and we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and consider whether it is materially inconsistent with the consolidated and separate performance report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If so, we are required to report that fact. We have nothing to report in this regard.
Page 74
Board's responsibilities for the consolidated performance report
The Board responsible on behalf of the group for:
• the preparation and fair presentation of the consolidated and seperate performance report in accordance with PBE Standards;
• the selection of elements/aspects of service performance, performance measures and/or descriptions and measurement bases or evaluation methods that present service performance information that is appropriate and meaningful in accordance with PBE Standards
• the preparation and fair presentation of service of service performance information in accordance with the Group's measurement bases or evaluation methods, in accordance with PBE Standards;
• the overall presentation, structure and content of the service performance information in accordance with PBE Standards; and
• such internal control as the Board determines is necessary to enable the preparation of a consolidated and seperate performance report that is free from material misstatement, whether due to fraud or error.
In preparing the consolidated and separate performance report, the Board is responsible on behalf of the group for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intends to liquidate the group or to cease operations, or has no realistic alternative but to do so.
Auditor's responsibilities for the audit of the consolidated financial report/performance report
Our objectives are to obtain reasonable assurance about whether the consolidated and separate performance report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (NZ) and NZ AS 1 will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this consolidated and separate performance report.
A further description of our responsibilities for the audit of the consolidated and separate performance report is located on at the External Reporting Board's website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-report-13-1/
This description forms part of our auditor's report.
Restriction on use
This report is made solely to the Members, as a body, in accordance with Constitution of the Royal New Zealand Foundation of the Blind. Our audit has been undertaken so that we might state to the Members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Members as a body, for our audit work, for this report, or for the opinions we have formed.
Auckland, New Zealand
21 September 2026
***
This audit report relates to the consolidated and separate performance report of Royal New Zealand Foundation of the Blind (the "entity") and its subsidiaries (the "group") for the year ended 30 June 2026 included on the entity's website. The Board is responsible for the maintenance and integrity of the entity's website. We have not been engaged to report on the integrity of the entity's website. We accept no responsibility for any changes that may have occurred to the consolidated and separate performance report since they were initially presented on the website. The audit report refers only to the consolidated and separate performance report named above. It does not provide an opinion on any other information which may have been hyperlinked to/from these consolidated and separate performance report. If readers of this report are concerned with the inherent risks arising from electronic data communication, they should refer to the published hard copy of the audited consolidated and separate performance report and related audit report dated 19 September 2026 to confirm the information included in the audited consolidated and separate performance report presented on this website.
Page 75
Board's Interests
The following are particulars of general disclosures of interest by Directors of the Royal New Zealand Foundation of the Blind Incorporated holding office at 30 June 2026, pursuant to section 6.10 of the Constitution of the Royal New Zealand Foundation of the Blind Incorporated.
All the directors have an interest in the insurance policies below:
• QBE Insurance—Association Liability and Statutory Liability Insurance
• Chubb Group—Personal Accident and International Travel Insurance
Ms Martine Abel-Williamson
Consumer Advocate, Auckland Emergency Department Research Group
Trustee, BLENNZ
Board Member, Blind Citizens New Zealand
Immediate Past President, World Blind Union (Table Officer position)
Board Member, Disability Connect (Disability Information and Advice service agency)
Board member, Accessible Books Consortium
Director, Egoli Limited (access and inclusion consultancy business)
Northern Consumer Council, Health NZ I Te Whatu Ora
Health Quality and Safety Commission, National Trauma Network Expert Advisory Group member
Pacific President, International Council for the Education of Persons with Visual Impairment
Consumer Advisor, Mercy Hospice Clinical Governance Group
Trustee, National Advocacy Trust
Lay member, Physiotherapy Board of NZ
Member, South Pacific Educators on Vision Impairment NZ
Member, Northern Integrated Clinical Governance Committee of Te Whatu Ora
***
Partner, Gary Williamson
Employee, Blind Low Vision NZ
Mr John Billings
Member International Opticians Association
Fellow of the Association of British Dispensing Opticians
Member of Association of Dispensing Opticians NZ Inc
Registered Dispensing Optician, Optometrists and Dispensing Opticians Board NZ
Employed by Andrew Black Optometrists, Wellington
Member of the Continuing Education Committee Optometrists and Dispensing Opticians Board NZ
Professional Conduct Committee member Optometrists and Dispensing Opticians Board NZ
Freeman of the Worshipful Company of Spectacle Makers
Member, Health Practitioners Disciplinary Tribunal
Page 76
Mr Clive Lansink
Director, Accessible Information and Communications Limited
Member, Blind Citizens New Zealand
Director, Foundation Ventures Limited (appointed 21 November 2025)
Applicant for resident, Foundation Retirement Village
Treasurer, Goalball New Zealand
Chair, Braille Technical Committee, International Council on English Braille
***
Partner, Mary Schnackenberg
Bylaws committee, International Council on English Braille
Secretary and Treasurer, The Braille Authority of NZ Aotearoa Trust
Ms Donna McCaskill
Trustee, D-List
Managing Director, Mahi Toa Workforce
Panel member, Te Ope Tamiro I Sport and Recreation Integrity Commission
Employment coach and connector, YMCA
Mr Chris Orr
Auckland Council Universal Design Panel
Member, Blind Citizens New Zealand
Mr Richard Patete
Trustee, Henderson Trust
Member, Chartered Accountants Australia New Zealand
Member, Institute of Directors
Director, Foundation Properties Limited
Director, Foundation Ventures Limited (appointed 21 November 2025)
Director, Foundation Village Limited
Trustee, Bledisloe Royston Trust
Mr Ronald Scott
Director, Stellaris Ltd
Independent Advisor to the Audit, Finance and Risk Management Committee, Western Bay District Council
Vice Chair, Bay of Plenty AA
Director, Workbridge Holdings Ltd
Director, Workbridge Employment Services
National Councilor, Automobile Association
Board Member, Consumer NZ Inc
Page 77
Ms Judy Small
Member, Deafblind Association NZ
Ms Anne Marie Taggart
Director, Scotfern Consulting Limited
Director, Oceanside Property Limited
Employed by Ministry of Education
Chief Executive: Mrs Andrea Midgen
Director, Foundation Properties Limited
Director, Foundation Ventures Limited (appointed 21 November 2025)
Director, Foundation Village Limited
Trustee, Eye Health Aotearoa
Trustee, Macular Degeneration NZ
Director, Inclusion and Accessibility Labs, trading as Vially
Chief Financial Officer: Mr Stephen Keeling
Director, Foundation Ventures Limited (appointed 21 November 2025)
Director, Keeling Rentals Limited
Director, Keeling Ventures Limited
Member, Chartered Accountants Australia New Zealand
Chief Operating Officer: Mr Greg Hurn
Director, Foundation Properties Limited
Director, Foundation Village Limited
Director, Foundation Ventures Limited (ceased 21 November 2025)
Trustee, Bledisloe Royston Trust
Board Secretary
Diana Chandler
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Board Remuneration
The Board's remuneration is paid in the form of Directors' fees. Additional fees are paid to the Chair and Deputy Chair and FPL delegate to reflect the additional responsibilities of these positions. The Controlling Entity meets Directors' reasonable travel and other costs associated with Royal New Zealand Foundation of the Blind business. Directors who are also members of the Controlling Entity receive normal services from the Controlling Entity on the same terms and conditions as other members.
The Board will every five years, and at any other time it considers appropriate, commission a report from an independent external advisor appointed by the Foundation giving the opinion of the independent external advisor as to whether, the then-current remuneration of Directors is reasonable and equivalent to that which would be paid in comparable circumstances.
Pursuant to section 8.10 of the constitution of the Royal New Zealand Foundation of the Blind, the value of all benefits received by the Board during the financial year is set out below:
Table
Member | Fees
$000s
Mr Clive Lansink | 17
Ms Judy Small | 11
Ms Martine Abel-Williamson | 10
Mr John Billings | 10
Ms Donna McCaskill | 14
Mr Chris Orr | 10
Mr R Patete | 15
Mr R Scott (See footnote 1) | 10
Ms Anne Marie Taggart | 11
Total | 108
Footnote 1 Mr R Scott's Fees are paid to Stellaris Limited
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Directors' Meeting Attendance
Table
(Meetings attended–Meetings held/member)
Member | Board Meetings | Audit Committee | Governance Committee | People | Client Services
M Abel-Williamson | 6-6 | - | - | 3-3 | 3-4
J Billings | 6-6 | - | - | 3-3 | 4-4
C Lansink | 6-6 | 3-4 | 3-3 | 3-3 | 4-4
D McCaskill | 6-6 | - | 3-3 | - | 4-4
C Orr | 6-6 | 4-4 | - | - | 4-4
R Patete | 6-6 | 4-4 | - | 3-3 | -
R Scott | 6-6 | 4-4 | 3-3 | - | -
J Small | 5-6 | - | 3-3 | 2-2 | 4-4
AM Taggart | 6-6 | 4-4 | 2-2 | 3-3 | -
End Table
In addition, the directors attend strategic and business planning meetings, consumer consortium meetings, engagement road shows and various tele-conference meetings.
Employee Remuneration
The following are particulars of the number of employees or former employees of the Controlling Entity who, in their capacity as employees, received remuneration and any other benefits in excess of $100,000, pursuant to section 11.4.1.12 of the constitution of the Royal New Zealand Foundation of the Blind.
Remuneration | 2026 Number of employees | 2025 Number of employees
$100,001-$110,000 | 8 | 7
$110,001-$120,000 | 7 | 4
$120,001-$130,000 | - | 3
$130,001-$140,000 | 2 | 2
$140,001-$150,000 | 3 | 1
$150,001-$160,000 | 1 | -
$160,001-$170,000 | - | 3
$180,001-$190,000 | 2 | -
$190,001-$200,000 | - | 1
$200,001-$210,000 | 1 | 1
$210,001-$220,000 | - | 1
$220,001-$230,000 | 3 | -
$250,001-$260,000 | 1 | -
$260,001-$270,000 | - | 1
$290,001-$300,000 | - | 1
$310,001-$320,000 | - | 1
$320,001-$330,000 | - | 1
$350,001-$360,000 | 1 | -
Total | 29 | 27
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End of Performance report 2026