The 4plex has had a variety of unknown issues come to light over the year. One of the major repairs required was the collapse of the main line, a liner was installed that will resolve the problem for years to come. Still a heavy cost on a young business.
As the 2020 year ended, a waterline broke in the heating system and unfortunately, after nearly a month of delay, insurance provided a decline on the claim for repairs. The Trust needed to provide and equity injection as cash in Miikowap was low to due low tenancy as not all units were yet available until the summer of 2020. Payment of the repairs were incurred in January 2021.
As of Oct 2021, 4 units are completely rented and is expected to have a positive cashflow in the year 2022 as repairs and maintenance are expected to lower than the previous 2 years
The graph is a blend of all funds held by CIBC in the Business, Investment, and Long Term Growth Fund
Since inception, the Trust first put money towards the Long Term Growth Fund around 2011 as the Trustees knew the path forward would be to utilize the growth of the LTGF. After 10 years after inception, the LTGF is accessible to allocate for Business Fund use. With the Trustees considering a new strategy, these funds will be discussed further to fund the idea of investment properties.
But to provide a sense of the growth, $500k was the starting amount, keeping in mind half of it was Savanna Shares converted to a mutual fund investment at the time. The book value is $1.4 million (what we put in) and with growth it is now worth $2.7 million
In 2020, the Miikowap Business Development Corp became the primary business of focus along with all the CIBC investments, total revenues for the Trust were $48k. NCSG as income partnership was listed as nil due to poor performance in the region including COVID19. Miikowap was impacted slightly due the nature of COVID19, tenants were relieved of half there rent for a few months in the highest times of restrictions.
The usual expenses were kept to a minimum totaling $180k which is $40k less than 2019. Most of the decrease in expenses was in travel, the Trustees look to maintain the low travel costs for meetings and keep them local to the Nation.
With the all the challenges of the past couple years and limited investment options, the Trustees are please to have provided $7,489 distribution to Council on behalf of the beneficiaries of the Onihcikiskowapowin Business Trust. Since inception, the Trust has distributed $1.741 Million as part of purpose to create an income for the medium to long term
Year in review