• Expects to record several material adjustments, including an impairment, onerous contract provisions and fair value adjustments
• Adjustments largely related to Qube's obligations with respect to the Moorebank Logistics Park (MLP) Interstate Rail Terminal
• Expects to reflect a $127.6 million impairment on the carrying value of Qube's investment in Moorebank Interstate Terminals Pty Ltd

Qube Holdings Limited has announced that as part of the preparation of its annual financial statements for FY25, the company has undertaken an impairment assessment and a fair value assessment of certain assets in accordance with the applicable accounting standards. Based on Qube's preliminary assessment, it expects to record several material adjustments, including an impairment, onerous contract provisions and fair value adjustments as at 30 June 2025. The adjustments are largely related to Qube's obligations with respect to the Moorebank Logistics Park (MLP) Interstate Rail Terminal (MLP Interstate). Qube's obligations with respect to developing the MLP Interstate arose as part of the broader Moorebank transaction that was entered into by a Qube led consortium in June 2015. As part of that transaction, the consortium committed to develop an interstate rail terminal on the leased land. In July 2021, Qube entered into a binding agreement to sell 100% of the warehousing and property components of the MLP to the LOGOS Consortium (now ESR) for around $1.67 billion. As part of that structure, Qube retained the obligation to manage the construction of Stage 1 of the terminal and to initially fund the Stage 1 construction. It is that obligation, combined with a weak medium to long term volume outlook for the MLP Interstate, that has resulted in most of the adjustments. Qube expects to reflect a $127.6 million impairment on the carrying value of its 65% interest in the Moorebank Interstate Terminals Pty Ltd joint venture, a $29.8 million fair value reduction on the balance of the volume-based milestone amounts receivable from ESR, and $62.0 million in onerous contract and other liabilities relating to the forecast increased cost to complete Stage 1 of the Moorebank Interstate and related rail access works. The company will also record a $89.7 million profit on the sale of its Minto freehold property. Qube notes that all of the items will be treated as non-underlying items in its FY25 accounts given their non-recurring and/or non-cash nature.

Qube's underlying earnings are expected to be in the previously announced range of at least 5.0% above the corresponding FY24 underlying earnings.