Reef Casino Trust (RCS) addressed unitholders at its Annual General Meeting, reporting a stable distributable profit of $10.2 million for 2024, enabling a total distribution of 20.42 cents per unit. While slightly lower than 2023, the result aligned with pre-pandemic levels. Revenue reached $25.5 million, driven by strong local and domestic patronage at the Reef Hotel Casino, though increased payroll and regulatory costs impacted rental income. The Trust maintained a strong balance sheet, renegotiating its $15 million term loan facility with the Bank of Queensland. Capital expenditure focused on compliance, safety, and operational enhancements.
CEO Brad Sheahon highlighted increased revenues at the Reef Hotel Casino complex driven by local and domestic visitors, offsetting the slower return of international tourism. Electronic gaming remained a key revenue driver, while hotel revenue increased due to strong bookings. Management is focused on cost control amid rising regulatory and operational expenses, adapting to the evolving regulatory landscape in Queensland with enhanced compliance measures.
The Trust forecasts a distributable profit between $3.2 million and $3.8 million for the first half of 2025, compared to $4.336 million in the same period last year. Revenues at the Reef Hotel Casino complex are comparable to 2024, but costs are higher due to regulatory compliance and the potential control transaction. The Trust is currently evaluating non-binding takeover proposals from Iris Hotel Group and Morris Group. An Independent Board Committee is carefully considering these proposals, but there is no certainty of a transaction. The Trust will keep the market informed of any developments, while continuing operations and aiming to deliver a unit distribution for 2025.
