Reef Casino Trust has reported a 4.8% increase in revenue and a 6.4% rise in net profit for 2025, supported by strong casino and hotel performance. Meanwhile, a takeover bid at $3.87 per unit is underway, backed by major unitholders and recommended by the board.
- Revenue up 4.8% to $26.745 million
- Net profit rises 6.4% to $5.41 million
- Distributable profit increases to $10.82 million
- Takeover bid by Iris Cairns Property Pty Ltd at $3.87 per unit
- Strong operational performance despite inflation and regulatory costs
Financial Performance Highlights
Reef Casino Trust has delivered a robust financial result for the year ended 31 December 2025, with revenue climbing 4.8% to $26.745 million and net profit after tax rising 6.4% to $5.41 million. Distributable profit, a key non-IFRS measure used to determine unitholder distributions, increased to $10.82 million, up from $10.17 million in 2024. This growth supported a full-year distribution of 21.73 cents per unit, up from 20.42 cents the previous year.
The Trust's balance sheet remains strong, with total assets increasing to $103.618 million and an unused debt facility of nearly $14 million, providing financial flexibility. Operating expenses rose slightly, primarily due to transaction-related costs linked to the ongoing takeover bid process.
Operational Drivers and Market Conditions
The positive financial outcome was underpinned by solid performance at the Reef Hotel Casino complex in Cairns. Casino revenues benefited from a 2.5% increase in visitation, driven by local and domestic promotional activities during the high season. Electronic gaming revenues rose 2.9%, while table gaming saw a notable 13.6% increase, supported by higher win rates despite fewer premium players.
The hotel segment also contributed to growth, with room revenues up 11.2% due to strong bookings from interstate and intrastate visitors. Food and beverage revenues were stable, supported by increased promotions and events. These operational gains offset inflationary pressures and higher regulatory costs, including increased casino supervisory levies and compliance expenses related to new anti-money laundering and counter-terrorism financing legislation.
Regulatory Environment and Risk Management
The Trust and its operator, Casinos Austria International (Cairns) Pty Limited, continue to navigate a complex regulatory landscape. Recent legislative changes have increased oversight and compliance requirements, necessitating investments in technology and processes to meet harm minimisation and anti-money laundering standards. The Trust maintains a low risk appetite and closely monitors government policy and regulatory developments to mitigate potential impacts on operations.
Environmental risks, including climate change and the health of the Great Barrier Reef, remain a consideration given their potential effect on tourism and insurance costs. The Trust has emergency plans and local engagement strategies in place to manage these risks.
Takeover Bid Developments
A significant development for the Trust is the off-market cash takeover bid by Iris Cairns Property Pty Ltd, offering $3.87 per unit for all 49.8 million units. The bid, supported by the Trust’s two major unitholders; Casinos Austria International and Accor; is recommended unanimously by the board, subject to regulatory approvals and the absence of a superior proposal.
The offer was scheduled to close on 13 March 2026 but is expected to be extended beyond 31 May 2026 to allow the Queensland Office of Liquor and Gaming Regulation additional time for suitability investigations. The Trust continues to operate as usual during this period, with a focus on managing costs and capital expenditure carefully.
Outlook
Looking ahead, the Trust remains cautiously optimistic. While inflation and cost-of-living pressures pose ongoing challenges, the recovery in international tourism; particularly from cruise ship arrivals and increased airline capacity; supports a positive trading environment. The Trust’s strategy to promote the Reef Hotel Casino as a key destination in Cairns, alongside strong local and domestic patronage, underpins confidence in future performance.
However, the final outcome of the takeover bid and the evolving regulatory framework will be critical factors to watch in 2026.
Bottom Line?
Reef Casino Trust’s solid 2025 results set the stage for a pivotal year ahead as the takeover bid unfolds amid regulatory scrutiny and market recovery.
Questions in the middle?
- Will the takeover bid by Iris Cairns Property Pty Ltd successfully complete, and on what timeline?
- How will ongoing regulatory changes and compliance costs impact the Trust’s profitability going forward?
- What strategies will the Trust employ to sustain growth amid fluctuating tourism patterns and inflationary pressures?