THE Fiji National Provident Fund’s (FNPF) hotel subsidiaries declared a total of $39 million in dividends in the 2025 financial year on the back of solid operational performances.
Dividends increased by 22 per cent compared to the 2024 financial year.
According to the FNPF 2025 annual report,
– Momi Bay Resort contributed $26m ($41m over two years);
– Natadola Bay Resort – $5m (following $13m in the 2024 financial year);
– FNPF Hotel Resorts – $5m, up from $3.87m); and
– Grand Pacific Hotel – $3m($400,000 in FY2017).
The Fund stated those dividend declarations – that met the requirements of the Companies Act 2015 in ensuring profitability and solvency – exceeded pre-COVID levels and reinforced the long-term value of its growth assets.
“Strong hotel performance led to a significant increase in portfolio value. The enterprise value rose from $976m in FY2024 to $1.2 billion in FY2025, a 24 per cent valuation uplift,” the Fund stated in the report.
“This growth was driven by infrastructure upgrades and strategic expansions across the hotel portfolio.”
At present, there are ongoing developments in some of its hotel properties to boost future returns, and include the Westin Fiji renovation of 280 rooms and new amenities; GPH rebranding to InterContinental; and upgrades at Holiday Inn Suva, InterContinental Fiji, Marriott Momi Bay, and Sheraton Fiji.
FNPF’s hotel portfolio comprise of seven hotels managed by Marriott International and InterContinental Hotel Group (IHG) and together, they generated about 40per cent of the Fund’s equities portfolio income with the rest coming from its investments in the telecommunications, finance, transport and the wholesale and retail sectors.
Fair value gains from the revaluation of the Fund’s investments in hotels and non-hotel subsidiaries and associates totaled $222 million, with gains from the hotel portfolio contributing to almost 70per cent of the total fair value gains, according to the annual report.
Fund’s offshore portfolio grows to $1.1 billion in 2025
FIJI National Provident Fund’s (FNPF) offshore portfolio grew to $1.1 billion in the 2025 financial year – a 31.8 per cent increase from $856 million recorded last year.
The Fund stated this growth was mainly driven by net unrealised capital and foreign exchange gain totalling $178m, and also additional investments and reinvestments totalling $138m.
Its key offshore investments during the year included an additional $64m in BSP PNG, new $46m investment in an S&P 500 Index Exchange Traded Fund, additional $20m investment in the Martin Currie Real Income Fund, additional $0.6m investment in the IFC Emerging Asia Fund, and dividend reinvestment of $8m in both Martin Currie portfolios.
It stated key offshore divestments during the year included proceeds of sales of underlying securities – Emerging Asia Fund of $5.8m, and The Infrastructure Fund of $5.3m.
Offshore dividend income for the 2025 financial year was $61.1m, up 19.2 per cent from $51.3m in the 2024 financial year.
“This increase was largely due to BSP PNG’s strong performance and higher dividends per share,” the Fund stated.
“Follow-on investments contributed to $5m in new dividend income with BSP PNG and the Martin Currie Real Income Fund being the largest contributor of new income.”
The Fund added the offshore equities portfolio accounted for 27.8 per cent of total equities, 23.8 per cent of growth assets and 9.4 per cent of total assets.
Currency exposures, it stated were diversified across PGK (55.6 per cent), AUD (26.2 per cent), and USD (18.1 per cent), with investments spanning the Asia-Pacific, Americas and Europe.
The Fund generated over $1 billion in investment income, which enabled the declaration of a credit interest rate of 8.75 per cent, the highest in more than three decades.
The Fund’s total assets also increased to $12.1 billion, a growth of $1.5 billion from the $10.6 billion asset base recorded in the 2024 financial year.
Commercial lending portfolio reaches $1.4bn
FIJI National Provident Fund’s (FNPF) commercial lending portfolio reached $1.4 billion as at year-end, a 13.1 per cent increase from $1.2bn in 2024.
On a gross basis, the Fund said portfolio growth was 7.9 per cent.
Total income for the year from this portfolio rose to $67.3 million, up from $65.3m in the previous year. In line with its commitment to purposeful progress, the Fund said new investments were approved in key sectors such as tourism and aviation. It said it also strengthened partnerships with commercial banks through syndicated lending, particularly within the tourism sector.
“Despite these positive developments, the portfolio continued to face challenges from low-interest rate environment, high market liquidity, and increased competition from financial institutions that were adopting increasingly aggressive strategies,” the Fund said in its 2025 annual report. It added that consistent with IFRS 9 requirements, the loan portfolio was assessed using the expected credit loss (ECL) model. The Fund stated with improved credit risk and stronger valuations in FNPF subsidiaries’ hotel
assets.
Several conservative assumptions from the COVID-19 period from 2020 to 2022 were revised to reflect pre-pandemic norms. It stated that as a result, the portfolio’s credit risk profile improved compared to 2024, leading to a lower overall impairment provision.
