Senior Trust Capital has halted dividend payments on its $65 million investment fund, citing anticipated losses amid an ongoing investigation by New Zealand’s Financial Markets Authority (FMA).
The move marks a significant escalation in the regulatory probe, which has focused on the lender’s exposure to retirement village projects, including Ōrewa Sands.
The decision to freeze distributions comes as the company warns shareholders of potential write-downs.
The FMA has been examining Senior Trust Capital’s lending practices since late 2024, raising concerns about the valuation and risk profile of its non-performing assets.
The dividend suspension effectively locks in capital to absorb these expected losses, signaling that the regulator’s findings may have material financial implications for the firm.
For investors, the halt in payouts underscores the liquidity constraints facing the lender.