The state's largest private landowner and one of the nation's largest private charities said its revenue for the fiscal year ending June 30, 2006, topped the the previous record of $838.8 million in its 2003-2004 fiscal year.

The trust also said it spent nearly $221 million to educate children of native Hawaiian ancestry during its latest fiscal year.

"Through increased educational services and outstanding endowment performance during the 2005-2006 fiscal year, Kamehameha Schools made significant strides toward fulfilling its mission to improve the capability and well-being of Native Hawaiians," the trust said in a news release today.

Kamehameha Schools, which was established by the 1884 will of Princess Bernice Pauahi Bishop, educates children of Hawaiian ancestry.

Earlier this month, a 15-judge panel 9th Circuit U.S. Court of Appeals upheld the estate's century-old Hawaiian preference admission policy.

The trust said 5,398 students were enrolled at its preschools and at its Kapalama Heights and Neighbor Island campuses. Kamehameha said it served another 23,000 learners through its various community outreach programs and its 14 charter schools.

Kamehameha Schools said its $221 million in expenses was about the same amount it spent in each of the past five years.

On the investment front, trust said it generated a 17 percent total return for year, which surpassed its internal goal of earning 5 percent more than the inflation rate.

The trust's investments in energy companies jumped 32.3 percent, while its real estate holdings were up 29.5 percent. Investments in non-U.S. companies increase 26.7 percent.

"Peaks like this year help us smooth our valleys like we experience in the periods between 2000 and 2002," said Kirk Belsby, the estate's vice president for endowment.