Australia’s Reef Casino Trust (RCT) has reported a 6.4 percent uptick in profit for 2025, amongst its ongoing takeover by property investor Iris.
According to financial results released on Thursday, the group saw a total of AU$5.41 million ($3.82 million) in net profit, boosted by a 4.8 percent uptick in revenue – to AU$26.74 million ($18.88 million).
The group highlights that the group’s income was primarily derived from rental income from the Reef Hotel Casino, which totaled AU$25.52 million ($18.02 million), helping to offset cost increases linked to its casino supervisory levy and ‘regulatory uplift requirements’.
The group’s CEO Brad Seahon highlighted that the second half of the year, including its high season, was ‘buoyant in Cairns’, noting that ‘local and domestic markets held up well for the complex’ and international tourism ‘almost recovered to pre-pandemic levels’, despite having ‘relatively fewer’ Chinese visitors’.
Visitation was up by 2.5 percent yearly, while electronic gaming revenue was up by 2.9 percent yearly. EGM is the biggest contributor to rentals paid to the trust. Table gaming revenue was up by 13.6 percent yearly in 2025, due to higher drop and win rate. The group notes that ‘despite fewer premium players […] the premium play result was also higher due to a higher win rate’. Table gaming was ‘primarily supported by local and interstate visitors’.
Looking ahead, the group’s Chair Wendy Morris notes that there is a ‘challenging operational environment’ and ‘ongoing heightened regulatory oversight’. The executive noted that ‘despite relatively fewer Chinese arrivals, the international tourist market continues to recover, slowly’. Morris highlighted growth in the cruise ship market in Cairns, as ‘international and domestic airline capacity to the region continues to increase’ and ‘business events and conferences are showing strong forward bookings’.
Takeover bid likely to extend beyond deadline
In an update regarding the trust’s planned takeover by Iris, the group noted that ‘the offer is currently scheduled to close on 13th March 2026 (although Iris has confirmed its intention to extend the offer) and has the support of the Trust’s two major unitholders, Casinos Austria International and Accor’.
RCT had previously warned that crucial casino-licensing approvals were unlikely to be granted before the offer closes in March, with Queensland’s suitability investigations expected to run until the end of May.
The approvals are a mandatory condition of Iris’s off-market bid for all units in the ASX-listed trust, which owns the Reef Hotel Casino in Cairns.
Iris had previously indicated its plans to extend the offer period beyond May 31st, 2026, to give regulators more time to complete their assessments.
However, if the offer period is extended by more than a month, unitholders who have already accepted may gain withdrawal rights. Major unitholders have reconfirmed they will not exercise such rights, provided no higher bid emerges and the independent expert maintains that the offer is reasonable.
RCT agreed to a sweetened takeover offer from Iris earlier this year, with the bidder increasing its price to AU$3.87 ($2.52) per unit from AU$3.72 ($2.42).
The revised offer values the trust at about AU$192.7 million ($125.6 million) and raises the deal’s break fee to AU$1.9 million ($1.2 million).
Iris plans an off-market cash bid for all 49.8 million units in RCT, offering a 4.3 percent premium to the last closing price and more than 40 percent above levels in February when Iris first approached the trust.
Based in Sydney and part of Iris Capital, the Iris Hotel Group operates 13 hotels and two casinos — Casino Canberra, the country’s first legal casino, and Lasseters Hotel Casino in Alice Springs.
RCT’s two largest unitholders — France’s Accor and Casinos Austria International — which together control more than 71 percent of units, have signaled support and intend to accept the offer unless a higher rival proposal emerges.
The takeover still requires an 80 percent minimum acceptance level, Queensland casino and liquor approvals, and final sign-off on related share-purchase agreements. Iris lodged its bidder’s statement in August, with RCT issuing its target’s statement in late September.
