In 2017, CIRI set an ambitious goal: to grow the company’s asset base to $1 billion. This encompasses everything the company owns, including the value of our business operations, investments, buildings, real estate and equipment.
“Gross assets work to earn money for our shareholders,” said CIRI Chief Financial Officer Stig Colberg. “With the appropriate financing, the more assets we can put to work to grow the company’s businesses, the better.”
When CIRI was created by the Alaska Native Claims Settlement Act in 1971, it began with $36 million in cash and its land entitlements. Since that time, it has paid $1.3 billion to shareholders and, pending final audited financial information, will soon achieve $1 billion in gross assets.
When considering new investments, the company weighs the opportunity for a positive return to benefit shareholders against the potential risks that could negatively impact the investment. Leveraging both the company’s experience and its network of expert partners, CIRI works to achieve its goals of stable income and continued growth.
“As interest rates have been historically low for several years, growing our assets through prudent borrowing has been a responsible way for CIRI to grow net equity and shareholder dividends,” Colberg said.
Growing assets doesn’t directly translate to increasing shareholder dividends, as dividends are calculated based on a percentage CIRI’s shareholders’ equity. Shareholders’ equity is what remains after subtracting the company’s liabilities from its gross assets.
“The company’s overall portfolio of assets and businesses will help grow net income, thereby increasing shareholders’ equity and ultimately achieving our fundamental objective of paying steady and growing dividends to CIRI shareholders,” said CIRI President and CEO Sophie Minich. “A good mix of properly financed assets, working for our shareholder-owners, is how we get there.”
A more detailed accounting of CIRI’s 2017 financial condition will be available to shareholders when the annual report is released in April.