NPT Limited – FY 2018 Interim Results

29 NOVEMBER 2017

NPT LIMITED FY18 INTERIM RESULTS

NZX-listed property company NPT Limited today released its Interim Report and Interim Results
Presentation for the six months ended 30 September 2017.
Key Points (prior period to 30 September 2016 figures in brackets).
• Net profit before tax increased by 6.35% to $3.066m ($2.883m).
• Net profit after tax decreased by 4.74% to $2.411m ($2.531m).
• Net profit before extraordinary items (previously trading profit) increased by 5.07% to
$3.562m ($3.390m).
• Distributable profit
1
before income tax increased by 6.51% to $3.782m ($3.551m).
• Distributable profit after current tax increased by 6.11% to $3.212m ($3.027m).
• Gross rental income increased by 2.62% to $8.647m ($8.426m).
• Net Tangible Asset Backing (NTA) was 71.99 cents per share (73.77 cents per share).
• Value of the property portfolio has increased by 1.34% to $180.55m
2
($178.17m).
Shareholders will receive a cash dividend of 0.90 cents per share for the quarter ended 30
September 2017 with imputation credits of 0.1544 cents per share attached.
Notes:
•
1
Distributable profit is a non-GAAP financial measure adopted by NPT and investors in assessing NPT’s profit
available for distribution. It is defined as net profit before income tax, adjusted for non-recurring and/or non-
cash items and current tax. Further information, including the calculation of distributable profit and the
adjustments to net profit before income tax, is set out in note 9 to the interim consolidated financial
statements for the six months ended 30 September 2017.
•
2
The figure $180.55m used for the value of the property portfolio includes the carrying value of the AA Centre
which has been reclassified as investment property held for sale as a consequence of NPT entering into an
agreement on 12 October 2017 to sell to SkyCity. Further information related to this is set out in note 12 to
the interim consolidated financial statements for the six months ended 30 September 2017.
ENDS


For more information, please contact:

Tony Osborne T 09 375 9081
Chief Executive Officer E tony@npt.co.nz
NPT Limited W www.npt.co.nz

---

Optimised
Property
Investments
Interim Report
For the six months
ended 30 September 2017
Contents
CONTENTS
01. Chairman’s Report
04. Chief Executive’s Report
08. Executive Management
09. Interim Financials
14. Notes
29. Independent Review Report
31. Directory

NPT Interim Report for the six months ended 30 September 2017
Chairman’s Report
The Board and Management
have given considerable
focus to reviewing the
business and evaluating
various opportunities for
growth.

NPT
Chairman’s
Report
Summary of Results
Of particular interest to shareholders will be the
fact that our net profit before tax increased by
6.35% over the same period last year. Although
this was tempered somewhat by a higher tax
charge that resulted in a lower after tax profit,
it shows that improvements are being made.
More details of our results are set out in the
CEO Report and our financial statements
Dividend Distribution
Shareholders will receive a cash dividend of 0.90
cents per share for the quarter ended 30 September
2017, with Imputation Credits of 0.1544 cents per
share attached. That brings the total distribution
for the year to date to 1.80 cents per share.
The record date will be 5pm on 13 December 2017,
with payment being made on 10 January 2018.
Board Appointments
We are pleased to note that Carol Campbell
was reappointed to the Board by Shareholders
at the annual meeting in August. It is of
significant value to the Board to have Carol
provide continuity and to fulfil the role of
Chair of the Audit and Risk Committee.
On behalf of the Board of
Directors of NPT Limited
(‘NPT’), I am pleased to present
the 2017 Interim Report.
Our results for the six months
ending 30 September 2017 are
in line with our expectations.
1

The result of considering external management is
that we have entered into an agreement in principle
with Augusta Capital Limited on the key terms
of a management agreement. At this stage, the
agreement in principle is non-binding and subject
to a number of conditions being met including
due diligence by both parties, negotiation of the
detailed terms of the management agreement
and the approval of our Shareholders.
Should the conditions be satisfied and the
management agreement proceed in its
current form, the key terms include:
• NPT will receive a one-off payment
of $4.5m from Augusta.
• The agreement will be for no less than five
years (unless terminated by either party for
cause) and thereafter shall continue until
NPT exercises its right to discontinue, which
would require a resolution of shareholders.
• The fees charged under the management
agreement will be in line with sector benchmarks.
The process to move from the current agreement
in principle to finalised documents that can be put
before Shareholders for consideration could take
six to ten weeks from now, although the Christmas
period may interrupt this process to a small extent.
We will update Shareholders as soon as possible.
Bruce Cotterill
Chairman
Chairman's Report
Looking Ahead
As you will know, Allen Bollard, Paul Duffy and myself
joined Carol Campbell on the Board in April this year.
Since then, the Board and Management have given
considerable focus to reviewing the business and
evaluating various opportunities for growth.
Some of the options we have considered
include purchasing a substantial property
portfolio, externalisation of management and
forming strategic partnerships, together with
combinations of these options and others.
The Board has now refined the options to the
extent that a preferred strategy is developing. We
expect to be in a position to share more detail on
this in the near future. What we can say though is
that it is our intention that NPT grow by investing
in property assets where there are discernible
opportunities to add value and improve yields.
Proposal to Externalise Management
While we continue to evaluate various opportunities,
consideration has also been given to whether
externalisation of management may enable
us to achieve our objectives, including greater
scale, more quickly. This is because it affords
us access to significant resources that are well
beyond our own limited internal resources.
Our intention is that NPT grow by
investing in property assets where
there are discernible opportunities
to add value and improve yields.
NPT Interim Report for the six months ended 30 September 20172

3

Chief Executive’s Report
Chief
Executive’s
Report
We have made steady progress against our objectives,
while facing challenges in leasing vacant space at
Eastgate Shopping Centre and Print Place.
Some highlights of our financial results are:
• Net profit before tax increased by 6.35% to
$3.066m, from $2.883m in September 2016.
• Net profit after tax decreased by 4.74% to $2.411m,
from $2.531m in September 2016.
• Gross rental increased by 2.62% to $8.647m, from
$8.426m in September 2016.
Our March 2017 valuations were maintained in this
period on the basis that there were no material
changes in value. Full revaluations will be undertaken
at the end of the current year which will also take into
account some capital projects undertaken throughout
the year.
On a property-by-property basis, we provide the
following updates for your information.
Whilst working with the Board on
plans for the future of NPT and
assessing new opportunities, we
have also maintained our focus
on meeting profit forecasts and
enhancing the value of existing
assets.
NPT Interim Report for the six months ended 30 September 20174

On the positive side, our anchor tenants - The
Warehouse, Warehouse Stationery and Countdown
- continue to trade well within the centre. The
wide range of social and medical services available
further underpins the performance of Eastgate.
Recognising that we needed to bring in additional
specialist expertise, we engaged Colliers
International to assist us in running the centre.
The Colliers International team are the largest,
independent specialist manager of shopping centres
in New Zealand and this relationship gives us
access to a dedicated team of leasing, marketing
and operational experts. The majority of this
expertise is based in Christchurch which provides
close support for centre management staff.
We are confident that, with Colliers
International’s assistance, Eastgate’s financial
performance will improve over time.
Cnr Buckleys Road &
Linwood Avenue,
Christchurch
Net lettable area
26,870m
2

Market value
$59.5m
Occupancy
95.92%
WALT
4.2 years
Eastgate
Shopping
Centre
As is widely acknowledged the
retail sector is under pressure. We
have experienced some retailers
failing over the last two years,
particularly in the fashion area.
This pressure requires us to be
constantly focussed on new ideas
for Eastgate, including targeted
expansion of Eastgate’s food and
alternate services categories.
5

Chief Executive’s Report
6
Chief Executive’s Report
The property is strategically located immediately
adjacent to Heinz Wattie’s Tomoana factory.
Discussions are ongoing with Kraft Heinz in respect
of potential expansion.
This property continues to
perform well as a key part of the
Heinz Wattie’s logistics chain.
113 Elwood Road,
Hastings
Net lettable area
60,059m
2
Market value
$27.0m
Occupancy
100.0%
WALT
9.3 years
Heinz
Wattie’s
National
Distribution
Centre
To maximise value we would have needed to
undertake extensive capital investment, at the same
time as incurring the loss of rental revenue.
Although manageable, the Board took the view that
SkyCity’s offer to purchase this property would allow
NPT to utilise the proceeds from the sale to invest
in other property assets to add value and improve
returns.
Having negotiated a relatively long settlement
period, we are able to maintain our distributable
profit position for FY18 and into FY19 while we seek
to replace this asset.
Although we had considered that the
AA Centre presented opportunities
to add further value over time, the
departure of AA Insurance from
six floors planned for March 2018
posed significant challenges.
99 Albert Street,
Auckland
Net lettable area
12,205m
2
Market value
$40.85m
Occupancy
99.47%
WALT
2.0 years
AA Centre
NPT Interim Report for the six months ended 30 September 20176

Tony Osborne
Chief Executive Officer
Anchored by The Warehouse, we are fortunate to
have a very good mix of goods and services on offer.
This is a real strength of the property, as is the
location in an established catchment.
In the meantime, we are still actively seeking tenants
for the vacant space.
We continue to enjoy full
occupancy at 22 Stoddard Road.
Having come to the view that
this property no longer fits with
where the Board sees NPT being
positioned in the future, the
decision has been made to sell if an
acceptable price can be achieved.
17 Print Place,
Middleton,
Christchurch
Net lettable area
12,388m
2
Market value
$11.0m
Occupancy
78.51%
WALT
1.1 years
Print Place
22 Stoddard Road,
Mt Roskill,
Auckland
Net lettable area
8,412m
2
Market value
$36.0m
Occupancy
100.00%
WALT
4.4 years
22
Stoddard
Road
7

Executive Management
Tony Osborne
Chief Executive Officer
Tony joined NPT in February 2014
as General Manager Property.
He has over 25 years experience in
property and construction across
such asset classes as retail,
commercial, industrial, medical
and education.
Prior to NPT, Tony was Manager
Property at Port Marlborough NZ
for five years, where he created
Board of Directors
Leadership
Bruce Cotterill
Chairman, Non-Executive
Independent Director
Paul Duffy
Non-Executive
Director
Allen Bollard
Non-Executive
Independent Director
Carol Campbell
Non-Executive
Independent Director
Bruce Cotterill joined the Board of
NPT in April 2017.
Bruce is an experienced CEO,
Chairman and Company Director,
who has excelled in a number
of sectors and in a range of
extremely demanding roles in
businesses going through major
transformation brought about by
financial performance, structural
change and cultural issues.
As a CEO he has lead real
estate group Colliers, both in
New Zealand and Australia,
Kerry Packer’s ACP Magazines,
and iconic New Zealand
sportswear company Canterbury
International. As CEO of Yellow
Pages Group he was appointed
to lead that Company through
a period of dramatic change,
including the restructure of the
Company’s $1.8 billion of debt.
Bruce was Chairman of Noel
Leeming Group for 8 years until
that Company’s sale to The
Warehouse, and he is currently
Chairman of both MOVE
Logistics Limited, and Swimming
New Zealand.
Paul Duffy has over 35 years’
experience in the property
investment/development
industry, including CEO/executive
director of DNZ Property Fund
(now named Stride Property) for
13 years.
During his career, Paul held the
position of General Manager of
Fletcher Property Limited and
was Joint Managing Director
of US Real Estate Subsidiaries
for the Abu Dhabi Investment
Authority. In this role he oversaw
the formation of a large real
estate portfolio in the United
States and Europe.
Paul is currently a Director of a
number of private companies.
Paul is the chairman of Augusta
Capital and Augusta Funds
Management.
Allen has a long background in
accounting, business analysis,
risk management, tax, and
finance, mostly in property and
construction.
Starting as a partner in a major
accounting firm, he was then
CFO for three listed property
companies and for ten years
was CEO/CFO of Tramco
Group, which managed and
financed several large privately
held leasehold land owning
partnerships including Viaduct
Harbour Holdings, Tram Lease,
Quay Lease, Kiwi Forests,
Wairakei Pastoral and Calland
Properties Ltd.
He is now an independent
business and finance consultant
and Director, still advising Tramco
and is an independent trustee for
the Wyborn and Green families.
He is the Government approved
independent director of Tamaki
Makaurau Community Housing
Joint Venture and Chair of the
Odyssey House Board of Trustees.
Carol Campbell joined the Board
of NPT in May 2015. Carol is
a Chartered Accountant and
a member of the Chartered
Accountants Australia and New
Zealand.
Carol has extensive financial
experience and a sound
understanding of efficient Board
governance. Carol holds a number
of directorships across a broad
spectrum of companies, including
T&G Global, New Zealand Post,
NZME and the Fisher Listed
Investment companies – Kingfish,
Barramundi and Marlin Global,
where she is also Chair of the
Audit and Risk Committee. She is
also a Director of Kiwibank and
Chair of Ronald McDonald House
Charities in New Zealand.
Carol was a Director of The
Business Advisory Group for 11
years, a Chartered Accountancy
Practice, and prior to that a
partner at Ernst & Young for over
25 years.
a commercial property business
within the wider port business by
initiating a successful property
development programme that
provided purpose-built facilities
for a range of customers.
Tony was appointed to the CEO
role in an acting capacity in March
2016. This appointment was
confirmed in August 2016.
The Leadership Team
NPT Interim Report for the six months ended 30 September 20178

9
2017
Interim Financials
FINANCIAL STATEMENTS
For the six months ended 30 September 2017

Financials
10
Financials
NOTE
UNAUDITED 6
MONTHS
30 SEP 2017
$000
UNAUDITED 6
MONTHS
30 SEP 2016
$000
Gross Rental Income
8,6478,425
Other Income
41
Total Income
8,651 8,426
Direct Property Operating Expenses
6(2,542)(2,741)
Net Finance Costs
7(1,442)(1,293)
Administration Expenses
8(1,105)(1,003)
Net Loss on Sale of Plant and Equipment
14-(87)
Unrealised Loss in Fair Value of Interest Rate Swaps
10(36)(420)
Transaction Costs23(460)-
Total Expenses
(5,585)(5,544)
Profit Before Income Tax
3,0662,883
Income Tax Expense(655)(352)
Net Profit After Taxation
2,4112,531
Other Comprehensive Income
--
Total Comprehensive Income
2,4112,531
Earnings Per Share
Cents Per Share
Basic and Diluted Earnings Per Share
221.491.56
Interim Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2017
The notes set out on pages 14 to 28 form part of, and should be read in conjunction with, the financial statements.
NPT Interim Report for the six months ended 30 September 201710

11
Interim Consolidated Statement of Changes in Shareholders' Funds
For the six months ended 30 September 2017
NOTE
UNAUDITED
CONTRIBUTED
CAPITAL
$000
UNAUDITED
RESERVES
$000
UNAUDITED
ATTRIBUTABLE
TO OWNERS OF
THE GROUP
$000
Shareholders' Funds at 1 April 2016 (audited)
134,089(14,297)119,792
Net Profit after Taxation
-2,5312,531
Distributions Paid and Payable to Shareholders
24-(2,873)(2,873)
Shareholders' Funds at 30 September 2016
134,089(14,639)119,450
Shareholders' Funds at 1 April 2017 (audited)
134,089(17,016)117,073
Net Profit after Taxation
-2,4112,411
Distributions Paid and Payable to Shareholders
24-(2,916)(2,916)
Shareholders' Funds at 30 September 2017
134,089(17,521)116,568
The notes set out on pages 14 to 28 form part of, and should be read in conjunction with, the financial statements.

Financials
Interim Consolidated Statement of Financial Position
As at 30 September 2017
NOTE
UNAUDITED
6 MONTHS
30 SEP 2017
$000
AUDITED
12 MONTHS
31 MAR 2017
$000
Current Assets
Cash and Cash Equivalents
1,0612,030
Trade and Other Receivables
11128462
Prepayments
375616
Investment Property Held for Sale
1244,690-
Total Current Assets
46,2543,108
Non-Current Assets
Investment Properties
12135,861178,173
Plant & Equipment
141,1271,068
Total Non-Current Assets
136,988179,241
Total Assets
183,242182,349
Current Liabilities
Trade and Other Payables
151,4722,589
Tax Payable
243296
Total Current Liabilities
1,7152,885
Non-Current Liabilities
Bank and Other Loans
1661,00058,500
Deferred Tax Liability
173,0042,972
Interest Rate Swaps
10955919
Total Non-Current Liabilities
64,95962,391
Shareholders' Funds
Contributed Capital
18134,089134,089
Reserves
19(17,521)(17,016)
Total Shareholders' Funds
116,568117,073
Total Shareholders' Funds and Liabilities
183,242182,349
The Board of NPT Limited approved the financial statements for issue on 29 November 2017.
Bruce Cotterill Carol Campbell
Chairman Chair Audit and Risk Committee
The notes set out on pages 14 to 28 form part of, and should be read in conjunction with, the financial statements.
NPT Interim Report for the six months ended 30 September 201712

Interim Consolidated Statement of Cash Flows
For the six months ended 30 September 2017
The notes set out on pages 14 to 28 form part of, and should be read in conjunction with, the financial statements.
NOTE
UNAUDITED
6 MONTHS
30 SEP 2017
$000
UNAUDITED
6 MONTHS
30 SEP 2016
$000
Cash Flows from Operating Activities
Cash was provided from/(applied to):
Gross Rental Income
9,2138,350
Interest Income
2239
Taxation Paid
(676)(661)
Other Income
138150
Operating Expenses
(4,839)(3,109)
Interest Expense
(1,430)(1,299)
Net Cash Inflow from Operating Activities
2,4283,470
Cash Flows from Investing Activities
Cash was provided from/(applied to):
Fixed Assets
(144)(284)
Capital Expenditure on Investment Properties
(2,837)(7,586)
Net Cash (Outflow) from Investing Activities
(2,981)(7,870)
Cash Flows from Financing Activities
Cash was provided from/(applied to):
(Repayment)/Drawdown of Bank and Other Loans (Secured)
2,5007,500
Distributions made to Shareholders
24(2,916)(2,873)
Net Cash (Outflow)/Inflow from Financing Activities
(416)4,627
Net Increase/(Decrease) in Cash and Cash Equivalents
(969)227
Cash and Cash Equivalents at Beginning of Period
2,0303,101
Cash and Cash Equivalents at the End of the Period
1,0613,328
Reconciliation of Net Profit to Net Cash Flow from Operating Activities
Net Profit after Taxation
2,4112,531
Items Classified as Investing or Financing Activities:
Unrealised (Gain)/Loss in Fair Value of Investment Properties
Transaction Costs
460-
Loss on Sale of Plant and Equipment
-87
Unrealised Loss in Fair Value of Interest Rate Swaps
36420
Movement in Deferred Taxation
32(201)
Movements in Working Capital Items:
Accounts Receivable and Prepayments
574327
Trade and Other Payables
(1,117)357
Taxation Payable
(53)(109)
Non-Cash Item
Depreciation
8558
Net Cash Inflow from Operating Activities
2,4283,470
13

Financials
01. Reporting Entity
The reporting entity is the consolidated group comprising NPT Limited (‘the Company‘) and its New Zealand subsidiaries
together referred to as ‘the Group‘. NPT Limited is a limited liability company incorporated and domiciled in New Zealand.
NPT Limited is registered under the Companies Act 1993, is listed on the New Zealand Stock Exchange (NZX) and is an FMC
reporting entity under the Financial Markets Conduct Act 2013.
The principal activity of the Company is investing in industrial, retail and commercial property in New Zealand.
02. Statement of Compliance and Basis of Preparation
These interim consolidated financial statements have been prepared in accordance with Generally Accepted Accounting
Practice in New Zealand (‘NZ GAAP‘). They comply with New Zealand equivalents to International Financial Reporting
Standards (‘NZ IFRS‘) and other applicable Financial Reporting Standards, as appropriate for a profit-orientated entity
that falls into the Tier 1 for profit category as determined by the New Zealand Accounting Standards Board.
The interim consolidated financial statements also comply with International Financial Reporting Standards (‘IFRS‘) issued
by the International Accounting Standards Board.
The accounting policies below have been applied consistently to all periods presented in these interim consolidated financial
statements.
These interim consolidated financial statements have been prepared in accordance with Generally Accepted Accounting
Practice in New Zealand (‘NZ GAAP’) and the requirements set out in section 7 of the Financial Markets Conduct Act 2013
and the Main Board Listing Rules of the NZX. The interim consolidated financial statements comply with the New Zealand
Equivalent to International Accounting Standard NZ IAS 34 and IAS 34 “Interim Financial Reporting”.
Basis of Measurement
The interim consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation
of investment properties and certain financial instruments. They are the same accounting policies as were applied for the
year ended 31 March 2017 consolidated financial statements.
Cost is based on the fair value of the consideration given in exchange for assets.
Accounting policies are selected and applied in a manner which ensures that the resulting financial information satisfies the
concepts of relevance and reliability, therefore ensuring that the substance of the underlying transactions or other events
are reported.
Functional and Presentation Currency
The interim consolidated financial statements are presented in New Zealand Dollars (NZD), which is the Group’s functional
currency, rounded to the nearest thousand dollars (000’s) except in certain notes where disclosure may be to the dollar.
Critical Judgements in Applying Accounting Policies and Key Sources of Estimation Uncertainty
In the application of NZ IFRS, management are required to make judgements, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions
are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the
results of which form the basis of making the judgements. Actual results may differ from these estimates. The estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised if the revision affects only that period or in the period of the revision and future
periods if the revision affects both current and future periods.
In particular, information about significant areas of estimation, uncertainty and critical judgements in applying accounting
policies that have the most significant effect on the amount recognised in these Interim Consolidated Financial Statements
are described in the following notes:
(i) Investment Properties - Note 12
(ii) Deferred Tax - Note 17
Notes to the Interim Consolidated Financial Statements
For the six months ended 30 September 2017
NPT Interim Report for the six months ended 30 September 201714

03. Significant Accounting Policies
The accounting policies set out below have been applied consistently to all periods presented in these interim consolidated
financial statements.
Basis of Consolidation
(a) Subsidiaries
The interim consolidated financial statements incorporate the assets, liabilities, equity, revenue, expenses and cash flows
of entities controlled by NPT Limited at the end of the reporting period or from time to time during the reporting period.
A controlled entity is any entity over which NPT Limited has the power to direct relevant activities, exposure, or rights,
to variable returns from its involvement with the investee, and the ability to use its power over the investee to affect the
amount of investor return.
Consistent accounting policies are employed in the preparation and presentation of the interim consolidated financial
statements.
Accounting policies of subsidiaries are consistent with the policies adopted by the Company.
All material intra-group transactions, balances, income and expenses are eliminated on consolidation.
(b) Investment Properties
Investment properties, which are properties held to earn rentals and/or for capital appreciation, are initially brought to
account at cost plus related costs of acquisition. After initial recognition, investment properties are stated at fair value
at each 31 March annual reporting date as determined by an independent registered valuer. As at 30 September 2017, the
Board assessed each property on an individual basis and determined there was no material value change to the overall total
portfolio with respect to the prior independent valuation performed at 31 March 2017. Investment properties are valued
annually. The fair value is based on market values, being the estimated amount for which a property could be exchanged on
the date of the valuation between a willing buyer and a willing seller in an arm's length transaction after proper marketing
wherein the parties had each acted knowledgeably, prudently and without compulsion.
In the absence of an active market, alternative valuation techniques are utilised which may include discounted cash flow
projections, capitalisation of income or sales comparison approach as appropriate to the property being valued. The
valuations are prepared by considering the aggregate of the estimated cash flows expected from rental income, the
occupancy rates, average lease terms and capitalisation rates which reflect the current market conditions. The estimate of
fair value is a judgement which has been made based on the market conditions which apply at each reporting date.
Any gains or losses arising from changes in the fair value of investment properties are included in Profit or Loss within the
Consolidated Statement of Comprehensive Income in the period in which they arise.
Subsequent expenditure is charged to the asset's carrying amount only when it is probable that future economic benefits
associated with the item will flow to the Group and the cost of the item can be measured reliably.
The net gain or loss on disposal of assets is calculated as the difference between the carrying amount of the investment
property at the time of the disposal and the proceeds on disposal and is included in Profit or Loss within the Consolidated
Statement of Comprehensive Income in the period in which the disposal occurred.
(c) Fixed Assets
Each class of fixed assets is stated at cost less accumulated depreciation and any impairment. Any gains or losses arising
from disposal of fixed assets are included in Profit and Loss within the Consolidated Statement of Comprehensive Income.
Depreciation
Depreciation is charged on a straight-line basis to write down the cost of fixed assets to its estimated residual value over its
estimated useful life. Fixed assets residual values are reviewed annually.
Summary of rates used:-
Computer Equipment & Software 30% - 40%
Plant & Equipment 7% - 67%
Furniture & Fittings 8.5% - 30%
Lease Fitouts 8.40%
15

Financials
03. Significant Accounting Policies (continued)
(d) Operating Leases
(i) Group as Lessor
Property leases under which all the risks and rewards of ownership are effectively retained by the lessor (the Group)
are classified as operating leases. Annual rental income and expenditure are included in Profit or Loss within the
Consolidated Statement of Comprehensive Income on a systematic basis over the term of the lease.
(ii) Group as Lessee
Property leases are recognised as an expense on a straight line basis over the lease term.
(e) Lease Incentives
In the event lease incentives are provided to lessees, such incentives are recognised as an asset. The aggregate benefits
provided are amortised to the Profit or Loss within Consolidated Statement of Comprehensive Income on the straight
line basis over the period of the lease as a reduction in rental income, except where another systematic basis is more
representative of the time pattern in which benefits provided are consumed.
(f) Impairment of Assets
Assets other than investment properties and deferred tax assets are tested for impairment whenever events or changes in
circumstance indicate that the carrying amount exceeds its recoverable amount. The recoverable amount is the higher of
an asset's fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are separately identifiable cash flows that are largely independent of the cash flows from other
assets or groups of assets (cash generating units).
(g) Borrowing Costs
Where the Group borrows funds generally and uses them to fund a qualifying asset, the amount of borrowing costs
capitalised is determined by applying the capitalisation rate to the expenditure on that asset. The capitalisation rate is the
weighted average of the borrowing costs applicable to the borrowings that are outstanding during the period, other than
borrowings made specifically for the purpose of funding a qualifying asset.
Other borrowing costs are expensed when incurred and are recognised using the effective interest rate.
(h) Revenue Recognition
Revenue is measured at the fair value of the consideration received or receivable and represents rental received and
property expenses recovered in the normal course of business. The following specific recognition criteria must be met before
revenue is recognised:
(i) Rental Income
Rental Income from Operating Leases is recognised on a straight line basis over the term of the relevant lease including
any lease incentives.
(ii) Interest Income
Interest Income is recognised on an effective interest method.
(iii) Sale of Investment Properties/Non-Current Assets Held for Sale
Revenue on the sale of Investment Properties/Non-Current Assets Held for Sale is recognised when the risks and rewards
have transferred to the buyer.
(iv) Property Management Income
Property management income is recognised on completion of service.
(i) Taxation
The tax expense recognised in the Profit or Loss comprises the sum of deferred tax and current tax not recognised in other
comprehensive income or directly in equity.
(i) Current Tax
Current tax is calculated by reference to the amount of income taxes payable or recoverable in respect of the taxable
profit or tax loss for the period. It is calculated using tax rates and tax laws that have been enacted or substantively
enacted by reporting date. Current tax for current and prior periods is recognised as a liability (or asset) to the extent it
is unpaid (or refundable).
NPT Interim Report for the six months ended 30 September 201716

03. Significant Accounting Policies (continued)
(i)Taxation (continued)
(ii) Deferred Tax
Deferred tax is calculated by using the liability method in respect of temporary differences arising from differences
between the carrying amount of assets and liabilities in the financial statements and the corresponding tax base of
those items.
Deferred tax liabilities are recognised for all taxable temporary differences. Deferred tax assets are recognised to the
extent that it is probable that sufficient taxable income will be available against which deductible temporary differences
or unused tax losses and tax credits can be utilised. However, deferred tax assets and liabilities are not recognised if the
temporary differences giving rise to them arise from the initial recognition of assets and liabilities (other than as a result
of a business combination) which affects neither taxable income nor accounting profit.
If a deferred tax liability or asset arises from investment property that is measured at fair value, there is a rebuttable
assumption that the carrying amount of the investment property will be recovered through sale. The presumption has
not been rebutted.
The Group holds investment properties for the purpose of capital appreciation and rental income and therefore the
measurement of any related deferred tax reflects the tax consequences of recovering the carrying amount of the
investment property entirely through sale.
In New Zealand there is no capital gains tax, therefore the tax consequences on sale will be limited to depreciation
previously claimed for tax purposes (i.e. depreciation recovered).
Deferred tax liabilities are recognised for taxable temporary differences arising on investments in subsidiaries except
where the consolidated entity is able to control the reversal of the temporary differences and it is probable that the
temporary differences will not reverse in the foreseeable future.
Deferred tax assets arising from deductible temporary differences associated with these investments and interests are
only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the
benefits of the temporary differences and they are expected to reverse in the foreseeable future.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the
liability is settled or the asset is realised based on tax rates that have been enacted or substantively enacted at reporting
date. Deferred tax is charged or credited in the Consolidated Statement of Comprehensive Income, except when it
relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
(j) Goods and Services Tax (GST)
All items in the Statement of Financial Position are stated exclusive of GST, with the exception of receivables and payables, which
are stated inclusive of GST. All items in the Consolidated Statement of Comprehensive Income are stated exclusive of GST.
Cash flows are included in the Consolidated Statement of Cash Flow on a net basis. The GST component of cash flows arising
from investing and financing activities which is recoverable from, or payable to the taxation authority, are classified as an
operating cash flow.
(k) Cash and Cash Equivalents
Cash and cash equivalents comprise cash on hand, demand deposits, and other short-term highly liquid investments that
are readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value.
(l) Financial Instruments
Financial Assets and Financial Liabilities are recognised on the Statement of Financial Position when the Group becomes a
party to the contractual provisions of the instrument.
(i) Accounts Receivable
Accounts Receivable are measured at initial recognition at fair value and are subsequently measured at amortised cost
using the effective interest rate method. Appropriate allowances for estimated irrecoverable amounts are recognised in
Profit and Loss within the Consolidated Statement of Comprehensive Income when there is objective evidence that the
asset is impaired. The allowance recognised is measured as the difference between the asset‘s carrying amount and the
present value of estimated future cash flows discounted at the effective interest rate computed at initial recognition.

17

Financials
03. Significant Accounting Policies (continued)
(l) Financial Instruments (continued)
(ii) Accounts Payable
Accounts Payable are initially measured at fair value and subsequently measured at amortised cost using the effective
interest rate method.
(iii) Equity Instruments
Equity Instruments issued by the Company are recorded as the proceeds are received, net of direct issue costs.
(iv) Fair Value Estimation
The fair value of financial instruments traded in active markets is based on quoted market prices as at each reporting
date.
The fair value of derivative financial instruments is based on quoted market prices. Where such prices are not available,
use is made of discounted cash flow analysis using the applicable yield curve for the duration of the instruments.
The nominal value less estimated credit risk adjustments of accounts receivable and payable are assumed to
approximate their fair values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the
future contractual cash flows at the current market vs. interest rate that is available to the Group for similar financial
instruments.
(v) Loans and Borrowings
All loans and borrowings are initially recognised at fair value plus transaction costs. After initial recognition, these loans
and borrowings are subsequently measured at amortised cost using the effective interest rate method which allocates
the cost through the expected life of the loan or borrowing. Amortised cost is calculated taking into account any issue
costs and any discount or premium on drawdown. Interest accrued on Loans and Borrowings is separately disclosed
under Trade and Other Payables (refer Note 15).
The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating
interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future
cash payments through the expected life of the financial liability, or where appropriate, a shorter period, to the net
carrying amount of the financial instrument.
(vi) Derivative Financial Instruments
The Group‘s activities expose it primarily to the financial risk of changing interest rates. The Group therefore uses interest
rate swap contracts to manage these exposures.
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently re-
measured to their fair value at the reporting date. The gain/loss on re-measurement to fair value is recognized in Profit
or Loss within the Consolidated Statement of Comprehensive Income.
In determining the fair value of derivatives, an adjustment would be made to reflect the creditworthiness of the
counterparty, only if material.
(vii) Changes in Accounting Policy
A number of minor revisions and amendments to existing standards came into effect for the reporting period but none of
these materially impacted the interim consolidated financial statements of the Group.
Where changes have been made to the presentation in the interim consolidated financial statements, comparatives have
been reclassified in order to be consistent.
NPT Interim Report for the six months ended 30 September 201718

04. Standards and Interpretations on Issue not yet Adopted
The Group has elected not to early adopt the following standards, which have been issued by the International Accounting
Standards Board and the New Zealand Accounting Standards Board.
NZ IFRS 9 Financial instruments (Effective from 1 January 2018)
The New Zealand Accounting Standards Board (NZASB) issued the completed version of NZ IFRS 9 Financial Instruments,
bringing together the classification and measurement, impairment and hedge accounting to replace NZ IAS 39 Financial
Instruments: Recognition and Measurement and all previous versions of NZ IFRS 9.
NZ IFRS 15 Revenue from Contracts with Customers (Effective from 1 January 2018)
NZ IFRS 15 establishes principles for reporting useful information to users of financial statements about the nature, amount,
timing and uncertainty of revenue and cash flows arising from an entity‘s contracts with customers. The core principle of NZ
IFRS 15 is that an entity recognises revenue to depict the transfer of promised goods or services to customers in an amount that
reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
NZ IFRS 16 Leases (Effective from 1 January 2019)
NZ IFRS 16 changes the relevant information to be reported by lessors and lessees with a view to faithful representation of
information to the users of financial statements so they can assess the effect leases have on cash flow, financial performance
and the financial position of the entity. The standard requires the lessee to recognise assets and liabilities for the rights and
obligations created by those leases. Lessors reporting requirements are similar to the previous standard NZ IAS 17 Leases.
The Directors have evaluated the impact of these new standards on the interim consolidated financial position, financial
performance and cash flows of the Group. Their current preliminary evaluation has indicated that there is no material effect on
the Group‘s result in adopting the new standards but in some instances additional disclosures may be required.
05. Director Changes
On 21 April 2017 shareholders voted in support of Board changes of NPT Limited which resulted in the removal of Tony
Sewell (Chair) and Jim Sherwin, to be replaced by independent directors Allen Bollard and Bruce Cotterill (Chair). Augusta
Chair, Paul Duffy was also voted on to the Board. Carol Campbell maintained her Board position as an independent director.
06. Direct Property Operating Expenses
UNAUDITED
6 MONTHS
30 SEP 2017
$000
UNAUDITED
6 MONTHS
30 SEP 2016
$000
Tenant Operating Expenses
(1,929)(1,873)
Owner Operating Expenses
(502)(743)
Bad Debts
-(14)
Movement in Allowance for Doubtful Debts
(111)(111)
Total Direct Property Operating Expenses
(2,542)(2,741)
07. Net Finance Costs
UNAUDITED
6 MONTHS
30 SEP 2017
$000
UNAUDITED
6 MONTHS
30 SEP 2016
$000
Interest Received
2239
Interest and Finance Charges
(1,464)(1,332)
Net Finance Costs
(1,442)(1,293)
19

Financials
08. Administration Expenses
UNAUDITED
6 MONTHS
30 SEP 2017
$000
UNAUDITED
6 MONTHS
30 SEP 2016
$000
Audit Fees
(60)(47)
Directors Fees
(137)(77)
Employee Costs
(441)(493)
Office Costs
(139)(102)
Rent
114
Professional Fees
(198)(155)
Registry and Stock Exchange Fees
(77)(51)
Shareholder Communications
(50)(44)
Other Operating Expenses
(14)(38)
Total Administration Expenses
(1,105)(1,003)
09. Distributable Profit
Distributable profit is the net profit before income tax adjusted for non-cash items and/or non-recurring items and current tax.
UNAUDITED
6 MONTHS
30 SEP 2017
$000
UNAUDITED
6 MONTHS
30 SEP 2016
$000
Net Profit Before Income Tax
3,0662,883
NZ IFRS and other non-recurring and non-cash adjustments
Net change in fair value Interest Rate Swaps
36420
Net change in fair value of Other Assets
8558
Net Lease Incentives
5(39)
Net Lease Contributions
130142
Loss/(gain) on disposal Fixed Assets
-87
Transaction Costs
460-
Distributable Profit Before Taxation
3,7823,551
Current tax expense
(570)(524)
Distributable Profit after Current Tax
3,2123,027
Weighted Average Number of shares for the purpose of Basic Distributable Profit (000’s)
161,920161,920
Weighted Basic Distributable Profit after Current Tax per share (cents)
1.981.87
Weighted Average Number of shares for the purpose of Diluted Distributable Profit (000’s)
161,920161,920
Weighted Diluted Distributable Profit after Current Tax per share (cents)
1.981.87
NPT Interim Report for the six months ended 30 September 201720

10. Interest Rate Swaps
The Group manages its interest rate risk by using floating-to-fixed Interest Rate Swaps which have the economic effect of
converting interest on borrowings from floating rates to fixed rates.
Changes in the fair value of Swaps are recognised in the Consolidated Statement of Comprehensive Income. Any unrealised
loss is expected to unwind over the longer term. Swaps have been recognised as non-current as the current portion is not
considered material for separate disclosure in the Statement of Financial Position.
The Group has four interest rate swaps currently in place, the first for $20m will expire on 7 May 2019, the second for $5m
expires on 22 April 2021, The third, also for $5m, expires on 30 September 2021, and the fourth for $10m will expire on 8 May
2022.
UNAUDITED
6 MONTHS
30 SEP 2017
$000
AUDITED
12 MONTHS
31 MAR 2017
$000
Balance, Beginning of Period
9191,651
Current Year Fair Value Change of Swaps
36(732)
Balance, End of Period
955919
11. Trade and Other Receivables
UNAUDITED
6 MONTHS
30 SEP 2017
$000
AUDITED
12 MONTHS
31 MAR 2017
$000
Trade Receivables
265494
Allowance for Doubtful Debts
(158)(55)
Total Accounts Receivable
107439
Other Loans and Receivables
2123
Total Trade and Other Receivables
128462
12. Investment Properties
Reconciliation of Carrying Amount
UNAUDITED
6 MONTHS
30 SEP 2017
$000
AUDITED
12 MONTHS
31 MAR 2017
$000
Balance at the Beginning of the Period
178,173171,265
Capitalised Costs
-4,736
Capitalised Lease Incentives and Commissions
(126)1,606
Revaluation of Investment Properties
-(1,651)
Increase in Property Work in Progress
2,5042,217
Investment Property Held for Sale Reclassified
(44,690)-
Balance at the End of the Period
135,861178,173
The Board reviewed each property as at 30 September 2017 and determined that there has been no material value change
in the overall portfolio carrying value from the 31 March 2017 independent valuations. Valuations will be completed at 31
March 2018, the next reporting period.
On the 12th of October 2017 an agreement to sell the AA Centre to SkyCity Entertainment Group for an agreed $47m
became unconditional. Settlement will take place in July 2018. Under the agreement, NPT is required to complete capital
improvements to the building, which were commenced prior to the agreement being signed. The estimated cost is $2 million.
21

Financials
13. Investment in Subsidiaries
PERCENTAGE HELD
GROUP
30 SEP 2017
GROUP
31 MAR 2017
Eastgate Shopping Centre Limited
100%100%
The National Property Trust No 2 Limited
100%100%
22 Stoddard Road Limited
100%100%
99 Albert Street Limited
100%100%
NPT Management Team Limited
100%100%
NPT 10 Limited
100%100%
NPT 11 Limited
100%100%
All of the subsidiaries are wholly owned companies incorporated in New Zealand with a 31 March annual reporting date.
14. Fixed Assets
UNAUDITED 6 MONTHS 30 SEP 2017
LEASE
FITOUTS
$000
PLANT &
EQUIPMENT
$000

FURNITURE &
FITTINGS
$000
COMPUTER
EQUIPMENT
$000
TOTAL
$000
Cost
Balance at the Beginning of the Period
5245353781381,575
Additions
653771-173
Disposals
-(22)(26)(59)(107)
Balance at the End of the Period
589550423791,641
Accumulated Depreciation
Balance at the Beginning of the Period
(190)(103)(118)(96)(507)
Depreciation
(23)(30)(18)(14)(85)
Disposals
(44)36275978
Balance at the End of the Period
(257)(97)(109)(51)(514)
Net Book Value at the End of the Period
332453314281,127
AUDITED 12 MONTHS 31 MAR 2017
LEASE
FITOUTS
$000
PLANT &
EQUIPMENT
$000
FURNITURE &
FITTINGS
$000
COMPUTER
EQUIPMENT
$000
TOTAL
$000
Cost
Balance at the Beginning of the Year
4221733681141,077
Additions
1023788025585
Disposals
-(16)(69)(2)(87)
Balance at the End of the Year
5245353781381,575
Accumulated Depreciation
Balance at the Beginning of the Year
(148)(69)(89)(71)(377)
Depreciation
(42)(36)(26)(25)(129)
Disposals
-2(3)1(1)
Balance at the End of the Year
(190)(103)(118)(96)(507)
Net Book Value at the End of the Year
334432260421,068
NPT Interim Report for the six months ended 30 September 201722

15. Trade and other Payables
UNAUDITED
6 MONTHS
30 SEP 2017
$000
AUDITED
12 MONTHS
31 MAR 2017
$000
Accrued Interest and Fees Payable to Bank
322324
GST Payable
113-
Rent in Advance
296146
Other Creditors and Accruals
7172,119
Total Trade and Other Payables – Current
1,4482,589
Other Creditors and Accruals
24-
Total Trade and Other Payables – Non-Current
24-
Total Trade and Other Payables
1,4722,589
16. Bank and Other Loans
UNAUDITED
6 MONTHS
30 SEP 2017
$000
AUDITED
12 MONTHS
31 MAR 2017
$000
Bank of New Zealand (Secured)
61,00058,500
Total Bank Loans – Non-Current
61,00058,500
On 16 July 2015 the Group entered into a new bank facility agreement for $70 million with the Bank of New Zealand. The
facility is secured by way of General Security Agreements granted by NPT Limited and each subsidiary of the Company. In
addition, the facility is secured by registered first mortgages over all of the real property assets and the cross guarantee of
each of the Group's subsidiary companies. The facility is for 60 consecutive months and is due to expire on 22 July 2020.
The weighted average cost of funds for bank debt under the facility, including margin and line fee, at the reporting date was
4.75% (31 March 2017: 5.08%).
The Group recognises the risk of the fluctuating economic value of financial instruments because of changes in interest
rates in its attempt to manage its cash flow interest rate risk. The Group manages this risk by using floating-to-fixed
Interest Rate Swaps.
Generally, the Group raises borrowings at floating rates and swaps them into fixed rates that are lower than those
available if the Group borrowed at fixed rates directly. Under the Interest Rate Swaps, the Group agrees with other parties
to exchange the difference between fixed contract rates and floating rate interest amounts calculated by reference to the
agreed notional principal amounts. Changes in the fair value of Interest Rate Swaps are recognised in Profit or Loss within
the Statement of Comprehensive Income.
Refer to Note 21 for additional information.
17. Deferred Taxation Asset/(Liability)
UNAUDITED
6 MONTHS
30 SEP 2017
$000
AUDITED
12 MONTHS
31 MAR 2017
$000
Investment Properties Depreciation Recovery
(3,350)(3,350)
Interest Rate Swaps
267257
Other
79121
Balance at the End of the Period
(3,004)(2,972)
23

Financials
18. Contributed Capital
UNAUDITEDAUDITED
6 MONTHS
30 SEPT 2017
No of shares
6 MONTHS
30 SEPT 2017
$000
12 MONTHS
31 MAR 2017
No of shares
12 MONTHS
31 MAR 2017
$000
Fully Paid Shares on Issue
161,920,433134,089161,920,433134,089
Movement in Shares on Issue
Balance at the Beginning of the Year
161,920,433134,089161,920,433134,089
Balance at the End of the Year
161,920,433134,089161,920,433134,089
All shares have equal voting rights and share equally in distributions and any surplus on winding up.
19. Reserves
Retained Earnings
Cumulative gains/losses retained by the Group after other reserves and distributions to Shareholders were:
UNAUDITED
6 MONTHS
30 SEP 2017
$000
AUDITED
12 MONTHS
31 MAR 2017
$000
Balance at the Beginning of the Year
451,113
Net Profit after Taxation
2,4113,073
Transfer to Unrealised Investment Property Revaluation Reserve
-1,651
Distribution to Shareholders
(2,916)(5,791)
Balance at the End of the Period
(460)45
Unrealised Investment Property Revaluation Reserve
Unrealised investment property reserves for the revaluations of Investment Properties held by the Group were:
UNAUDITED
6 MONTHS
30 SEP 2017
$000
AUDITED
12 MONTHS
31 MAR 2017
$000
Balance at the Beginning of the Year
(17,061)(15,410)
Transfer from Retained Earnings
-(1,651)
Balance at the End of the Year
(17,061)(17,061)
Total Reserves at the End of the Year
(17,521)(17,016)

NPT Interim Report for the six months ended 30 September 201724

20. Segment Information
The principal business activity of the Group is to invest in New Zealand properties. Investment properties have similar
economic characteristics, methods of management and are under leases of various terms. Segment reporting is presented
in a consistent manner with internal reporting provided to the chief operating decision maker. The Chief Executive is the
chief operating decision maker who receives internal financial information on a property by property basis, assessing
property performance and deciding on the resource allocation. During the 6 months to 30 September 2017 new directors
were appointed who reassessed and changed the previous reporting structure to the board. The Group operates only in
New Zealand. On this basis all of the Group's property have been aggregated into a single reporting segment to most
appropriately reflect the nature and financial effects of the business activities.
Segment values for the six months ended 30 September 2017 were as follows:
INVESTMENT PROPERTY
$000
UNALLOCATED
$000
TOTAL
$000
Segment Revenue
8,6478,647
Net Segment Revenue
5,9715,971
Net Profit/(Loss) before Taxation
5,975(2,909)3,066
Change in Fair Value of Investment Properties
---
Segment values for the six months ended 30 September 2016 were as follows:
INVESTMENT PROPERTY
$000
UNALLOCATED
$000
TOTAL
$000
Segment Revenue
8,4258,426
Net Segment Revenue
5,5355,535
Net Profit/(Loss) before Taxation
5,527(2,644)2,883
Change in Fair Value of Investment Properties
---
25

Financials
21. Financial Instruments
Exposure to interest rate, credit, liquidity and other market risks arise in the normal course of the Group's business.
The main risks, arising from the Group's Financial Instruments, are interest rate risk and credit risk.
Interest Rate Risk
The Group's exposure to interest rate risk primarily arises from its long term variable rate borrowings. Interest Rate Swaps
are used to reduce exposure to fluctuating interest rates arising on floating rate borrowings.
Management monitors the level of interest rates on an ongoing basis, and from time to time, will recommend to the Board
that fixed rates are locked in. The notional principal or contract amounts of interest rate contracts outstanding at each
reporting date were $40m (March 2017: $40m).
GROUP AS AT 30 SEPTEMBER 2017
DESIGNATED
AT FAIR VALUE
$000
LOANS AND
RECEIVABLES AT
AMORTISED COST
$000
FINANCIAL
LIABILITIES AT
AMORTISED COST
$000
TOTAL
CARRYING
AMOUNT
$000
FAIR VALUE
$000
Financial Assets
Cash and Cash Equivalents
-1,061-1,0611,061
Accounts Receivable
-128-128128
Total Financial Assets
1,189-1,1891,189
Financial Liabilities
Bank and Other Loans
--61,00061,00061,000
Trade and Other Payables
--1,4721,4721,472
Interest Rate Swaps
955--955955
Total Financial Liabilities
955-62,47263,42763,427
GROUP AS AT 31 MARCH 2017
DESIGNATED
AT FAIR VALUE
$000
LOANS AND
RECEIVABLES AT
AMORTISED COST
$000
FINANCIAL
LIABILITIES AT
AMORTISED COST
$000
TOTAL
CARRYING
AMOUNT
$000
FAIR VALUE
$000
Financial Assets
Cash and Cash Equivalents
-2,030-2,0302,030
Accounts Receivable
-462-462462
Total Financial Assets
2,492-2,4922,492
Financial Liabilities
Bank and Other Loans
--58,50058,50058,500
Trade and Other Payables
--2,5892,5892,589
Interest Rate Swaps
919--919919
Total Financial Liabilities
919-61,08962,00862,008
Fair Value Estimation
The fair value of financial instruments that are not traded in an active market such as derivative financial instruments, are
determined using a valuation technique such as discounted cash flows. The carrying value less an impairment allowance for
other financial assets and liabilities is not expected to be materially different to their fair values.
The only financial instruments measured at fair value in the Interim Consolidated Statement of Financial Position are
derivatives (Interest Rate Swaps). The fair value of Interest Rate Swaps is calculated as the present value of the estimated
future cash flows based on observable yield curves. As this valuation technique maximises the use of observable market
data as an input, the instrument is classified as Level 2 under NZ IFRS 7 Financial Instruments Disclosure.
NPT Interim Report for the six months ended 30 September 201726

22. Earnings Per Share
Earnings per Share is calculated by dividing the Profit or Loss attributable to Shareholders (excluding distributions) of the
Company by the weighted average number of ordinary Shares on issue during the period.
UNAUDITED
6 MONTHS
30 SEP 2017
$000
UNAUDITED
6 MONTHS
30 SEP 2016
$000
Profit/(Loss) attributable to Shareholders of the Group
2,4112,531
Number of Shares on Issue
161,920161,920
Basic Earnings per Share (cents)
1.491.56
Number of Ordinary Shares
At the Beginning of the Year
161,920,433161,920,433
At the End of the Year
161,920,433161,920,433
Number of Ordinary Shares for Basic and Diluted Earnings Per Share
161,920,433161,920,433
23. Transaction Costs
At a special meeting of shareholders held on 21 April 2017 a resolution to purchase two properties from Kiwi Property
Holdings Limited, raise equity for those purchases, and enter into a management contract with Kiwi Property Group
Limited, was not approved by shareholders. Consequently, these proposed transactions were terminated and did not
proceed.
The investigation of the above proposal, and three other proposals, incurred substantial due diligence, financial
investigation, and other legal costs for the Group that have collectively been described as transaction costs. These
costs totalled $1.339 million in the 2017 financial year. A further $0.460 million of costs was incurred in the 6 months
to 30 September 2017; they are included in the Interim Consolidated Financial Statements as transaction costs in the
Consolidated Statement of Comprehensive Income.
24. Distributions Paid and Payable
UNAUDITED
6 MONTHS
30 SEP 2017
$000
UNAUDITED
6 MONTHS
30 SEP 2016
$000
The following distribution was declared
and paid in respect of the previous year
0.900cents (2016:0.875 cents)1,4581,416
The following distributions were declared
and paid during the period
0.900cents (2016:0.900 cents)1,4581,457
Total Distributions Paid
2,9162,873
27

Financials
25. Related Party Transactions
Key Management Personnel
The Group has a related party relationship with its key personnel. The Key Management Personnel are the Directors and
Executive Management.
UNAUDITED
6 MONTHS
30 SEP 2017
$000
UNAUDITED
6 MONTHS
30 SEP 2016
$000
Salaries and other short term employee benefits
441493
Directors fees
13777
Total payments to key management personnel
578570
The table above includes remuneration of the Chief Executive Officer and other Employees of the Group.
26. Capital Commitments
At the interim reporting date the Group had $2.125 million committed to capital expenditure (March 2017: $2.20 million).
27. Contingent Liabilities
At the interim reporting date the Group had no material contingent liabilities (March 2017: Nil).
28. Subsequent Events
Sale of the AA Centre
As disclosed more fully in note 12, on 12 October 2017 an agreement to sell the AA Centre to SkyCity Entertainment Group
for an agreed $47m became unconditional, but is subject to completion of agreed capital improvements estimated to be
$2m. Settlement is expected to take place in July 2018.
NPT Interim Report for the six months ended 30 September 201728

Chartered Accountants
Member of Grant Thornton International Ltd



Grant Thornton New Zealand
Audit Partnership

L4, Grant Thornton House

152 Fanshawe Street
P O Box 1961
Auckland 1140
P +64 (0)9 308 2570
F +64 (0)9 309 4892
www.granthornton.co.nz






Independent Review Report



To the Shareholders of NPT Limited

Report on the Consolidated Interim Financial Statements
We reviewed the accompanying consolidated interim financial statements of NPT Limited on pages
10 to 28 which comprise the consolidated interim statement of financial position as at 30 September
2017, and the consolidated interim statement of comprehensive income, consolidated interim
statement of changes in shareholders’ funds and consolidated interim statement of cash flows for the
period then ended, and notes to the financial statements, including a summary of significant
accounting policies.
Director’s Responsibility for the Consolidated Interim Financial Statements
The directors are responsible for the preparation and fair presentation of these consolidated interim
financial statements in accordance with New Zealand equivalents to International Financial
Reporting Standards issued in New Zealand by the New Zealand Accounting Standards Board, and
for such internal control as the directors determine is necessary to enable the preparation and fair
presentation of consolidated interim financial statements that are free from material misstatement,
whether due to fraud or error.
Our Responsibility
Our responsibility is to express a conclusion on the consolidated interim financial statements. We
conducted our review in accordance NZ SRE 2410, Review of Historical Financial Statements
Performed by the Independent Auditor of the Entity. NZ SRE 2410 requires us to conclude whether
anything has come to our attention that causes us to believe that the consolidated financial
statements, taken as a whole, are not prepared in all material respects in accordance with New
Zealand equivalents to International Financial Reporting Standards issued in New Zealand by the
New Zealand Accounting Standards Board. As the auditor of NPT Limited NZ SRE 2410 requires
that we comply with the ethical requirements relevant to the audit of the annual consolidated financial
statements.
A review of consolidated interim financial statements in accordance with NZ SRE 2410 is a limited
assurance engagement. The auditor performs procedures, primarily consisting of making enquiries
of management and others within the entity, as appropriate and applying analytical procedures, and
evaluates the evidence obtained.
29

Chartered Accountants
Member of Grant Thornton International Ltd



The procedures performed in a review are substantially less than those performed in an audit
conducted in accordance with International Standards on Auditing (New Zealand). Accordingly, we
do not express an audit opinion on these consolidated interim financial statements.
Other than in our capacity as auditor we have no relationship with, or interests in, the Entity.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that these
consolidated interim financial statements on pages 10 to 28 do not present fairly, in all material
respects, the consolidated interim financial position of NPT Limited as at 30 September 2017, and its
consolidated interim financial performance and consolidated interim cash flows for the period then
ended, in accordance with New Zealand equivalents to International Financial Reporting Standards
issued in New Zealand by the New Zealand Accounting Standards Board.
Restriction on use of our report
This report on the consolidated interim financial statements is made solely to the shareholders, as a
body. Our limited assurance work has been undertaken so that we might state to the shareholders,
as a body those matters which we are required to state to them in an independent review report and
for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the NPT Limited and the shareholders, as a body, for our work,
for this report or for the opinion we have formed.
Grant Thornton New Zealand Audit Partnership

Kerry Price
Partner
Auckland, New Zealand

29 November 2017
NPT Interim Report for the six months ended 30 September 201730

Company
NPT Limited
PO Box 105 090
Auckland City Post
Auckland 1143
Phone: 09 375 9081
www.npt.co.nz
Bankers
Bank of New Zealand
Level 6
Deloitte Centre
80 Queen Street
Auckland
Auditor
Grant Thornton New Zealand Audit Partnership
L4, Grant Thornton House
152 Fanshawe Street
PO Box 1961
Auckland 1140
Registrar
Link Market Services Limited
Level 11
Deloitte Centre
80 Queen Street
Auckland 1010
PO Box 91976
Auckland 1142
Phone: 09 375 5998
Fax: 09 375 5990
Legal Advisor
David Stock
Barrister and Solicitor
Level 3
22 Moorhouse Avenue
Christchurch
Directory
Directory
31

Notes
NPT Interim Report for the six months ended 30 September 201732

OPTIMISED
PROPERTY
INVESTMENTS

---

Contents

Interim Result
For the six months ended 30 September 2017

2
Heading goes here
Contents
1. Highlights

2. Financial Performance

3. Capital Management

4. Portfolio Summary

5. Outlook

1

3
Heading goes here
Highlights
2

Highlights
Financial Performance (30 September 2016 figures in brackets)
•Total income of $8.65m ($8.43m) up 2.6%
•Operating profit before other gains/(losses) of $3.56m ($3.39m) up 5.0%
•Net profit before taxation of $3.07 ($2.88m) up 6.4%
•Net profit after taxation of $2.41m ($2.53m) down 4.7%
•Distributable profit before taxation of $3.78m ($3.55m) up 6.5%
•Distributable profit after current tax of $3.21m or 1.98 cps ($3.03m or 1.87 cps) up 5.9%
•Cash dividend maintained at 3.60 cps for the full year ended 31 March 2018.
•0.90 cps cash dividend for the 2nd quarter (0.1544 cps imputation credits attached)
•Net Tangible Asset backing (NTA) 71.99 cps (73.77 cps) down 2.4%

Portfolio (31 March 2017 figures in brackets)
•No revaluations performed for the six months to September 2017
•Loan to value ratio 34.1% (33.2%)
•Occupancy at 96.52% (95.99%)
•
Weighted average lease term (WALT) 4.3 years (4.6 years)

3

5
Heading goes here Financial Performance
4

Heading goes here
Financial Performance
30 Sep 2017
$m
30 Sep 2016
$m

Change $m

Change %
Total income
8.65 8.43 0.22 2.6%
Direct property operating expenses (2.54) (2.74) 0.20 7.3%
Total operating income 6.11 5.69 0.42 7.4%
Interest and finance charges (1.43) (1.30) (0.13)
Administration expenses (1.11) (1.00) (0.11)
Net Loss on sale of plant and equipment - (0.09) 0.09
Unrealised loss in fair value of interest rate swaps (0.04) (0.42) 0.38
Transaction costs (0.46) - (0.46)
Net profit before taxation 3.07 2.88 0.19 6.6%
Income tax expense (0.66) (0.35) (0.31)
Net profit after taxation 2.41 2.53 -.012 (4.7%)
* The Investment Property portfolio was not revalued during the period. The Board reviewed each property as at 30 September
2017 and determined that there had been no material value change to the overall total portfolio from the 31 March 2017
independent valuations.
5

Heading goes here
Distributable Profit
30 Sep 2017
$m
30 Sep 2016
$m

Change $m

Change %
Net profit before taxation 3.07 2.88 0.19 6.6%
Adjustments:
Net change in fair value of interest rate swaps 0.03 0.42 (0.39)
Net change in fair value of other assets 0.08 0.06 0.02
Net lease incentives 0.01 (0.04) 0.05
Net lease contributions 0.13 0.14 (0.01)
Loss/(gain) on disposal fixed assets - 0.09 (0.09)
Transaction costs 0.46 - 0.46
Distributable profit before taxation 3.78 3.55 0.23 6.5%
Current tax expense (0.57) (0.52) (0.05)
Distributable profit after current tax 3.21 3.03 0.18 5.9%
Weighted average number of shares on issue (millions) 161.9 161.9
Distributable profit after current tax per share 1.98 cps 1.87cps 5.9%
6

8
Heading goes here
Balance Sheet
30 Sep 2017
$000’s
31 Mar 2017
$000’s
Total shareholders’ funds 116,568 117,073
Shares on issue (millions) 161,920 161,920
Net tangible assets (NTA) per share 71.99 cps 72.30 cps
Gross property value 174,350 174,350
Work in progress 4,720 2,217
Combined property value 179,070 176,567
Drawn bank debt 61,000 58,500
Loan to value ratio 34.1% 33.1%
7

9
Heading goes here Capital Management
8

10
Heading goes here

Banking
30 Sep 2017
$m
31 March 2017
$m
Bank facility limit (BNZ) 70.0 70.0
Drawn bank debt 61.0 58.50
Available undrawn debt 9.0 11.50
Weighted average cost of debt (incl. margins & line fees) 4.75% 5.08%
Remaining duration of bank facility 2.8 years 3.3 years
% of drawn debt hedged 65.6% 68.4%
Loan to value ratio covenant (< 50% of gross property value) 34.1% 33.1%
Interest cover ratio covenant (EBIT >1.75x total debt interest cost) 3.4 x 3.6 x
9

11
Heading goes here
Portfolio Summary
10

Location
Occupancy WALT 31 March 2017
Valuation
Net Rental
Income ($000)
AA Centre Auckland 99.47% 2.0 yrs $40.85m 1,331.8
Eastgate Shopping
Centre
Christchurch 95.92% 4.2 yrs $59.50m 1,935.0
Print Place Christchurch 78.51% 1.1 yrs $11.00m 527.9
Heinz Wattie‘s
Warehouse
Hastings 100.00% 9.3 yrs $27.00m 1,099.5
Roskill Centre Auckland 100.00% 4.4 yrs $36.00m 1,210.6
Total Portfolio 96.52% 4.6 yrs $174.35m 6,104.8
Portfolio Summary
11

13
Heading goes here
Outlook
12

14
Heading goes here
Outlook
•Continue to focus on improving net revenue from the existing portfolio.
•With additional resources provided by Colliers International at Eastgate, we expect to
build some momentum in leasing of vacant space.
•Additional leasing focus should result in development opportunities at Eastgate on a pre-
committed basis.
•Actively seek to re-invest sale proceeds from the AA Centre into other property assets where
there is the opportunity to add value.
•Complete due diligence and management agreement negotiation process with Augusta to a
successful conclusion.
•Maintain cash dividend guidance for FY18 of 3.60 cps.

13

15
Heading goes here
Thank You
14

---

Amount ($000s)Percentage change
8,647
2.62%
2,411
-4.74%
2,411
-4.74%
Amount per securityImputed amount per security
NZ$0.009NZ$0.00154
Comments:The financial information for this announcement has been
extracted from the unaudited interim financial statements of
the Group and further commentary is set out in the
accompanying announcement.
Final Dividend
Record Date13 December 2017
Dividend Payment Date10 January 2018
Revenue from ordinary activities
Profit from ordinary activities after tax
attributable to security holder.
Net profit attributable to security holders.
Interim/Final Dividend
NPT Limited
Results for announcement to the market
Reporting Period
Previous Reporting Period
6 months to 30 September 2017
6 months to 30 September 2016

---

APPENDIX 7 – NZSX Listing Rules
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(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
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make this notice
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numbernumber
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state whether:Taxable
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non-renouncable
change
x
whether:
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x
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If more than one security is affected by the event, use a separate form.
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Amount per security
Currencydividendin dollars and cents
details -
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Total monies
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Amount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
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of applications this must be the
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Notice DateAllotment Date
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conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
13 December, 201710 January, 2018
$$$0.001544
$
New Zealand Dollars
$1,457,284
Date Payable
$0.005030
Enter N/A if not
applicable
NZ NAPE 0007S3
In dollars and cents
$0.003970
09 302 458409 302 458929112017
Ordinary Shares
EMAIL: announce@nzx.com
Notice of event affecting securities
NPT Limited
Matt BurgessDirectors Resolution