Quarterly Report December 2017

IthasbeenagoodyearforPrecinct.
Werecordedanotherstrongresultin2017and
achievedmanyconstructionmilestonesacrossour
developmentassets.Wealsosawourinvestment
portfoliooccupancygrowto100%.
CAPITALMANAGEMENT
InSeptemberofthisyear,Precinctsuccessfullyraised
$150millionoffouryear,fixed-ratesubordinated
convertiblenotes.
Itisacapitalmanagementinitiativewhichiswellsuited
toPrecinct’scurrentstrategyandopportunities.Thisisa
flexiblefundingoptionthatallowsPrecincttohave
capitalavailabletomatchourdevelopment
commitmentswhileensuringthatearningsarenot
dilutedintheshortterm.
Precinctfurtherimproveditscapitalstructurefollowing
theissueofa$100millionsecured,unsubordinated,
fixed-ratesevenyearbondsattheendofNovember
2017.Theproceedsofthebondissuewillbeusedto
repaybankdebt.
TheseinitiativesareconsistentwithPrecinct’sstrategyof
diversifyingourfundingsources.
AGM
TheAnnualGeneralMeetingofshareholderswasheld
atthePullmanHotelinAucklandon9November2017.
Themeetingwaswellattendedandprovidedan
opportunityforshareholderquestionsanddiscussion.
PresentationsfromtheChairmanandCEOweregiven
toreviewPrecinct’srecentperformanceandactivity
acrossitsportfolio.
Allresolutionsputtoshareholderswerepassedatthe
meeting,withbothCraigStoboandLaunaInman
beingre-electedasindependentdirectors.
Proxyinstructionswereprovidedinrespectof395
shareholdersrepresentingaround33%ofallshareson
issue.Theproxyinstructionswerestronglyinfavourofall
resolutions.
Precinctwelcomesfeedbackfromanyshareholdersin
advanceofthe2018annualgeneralmeeting.
DEAR SHAREHOLDER,
Quarterly update
Dec 2017
Financialinformationisshownasat30September2017
Artists impression of the proposed
Wynyard Quarter development
20YEARSLISTEDONTHENZX
ThisyearPrecinctcelebratesits20thbirthdayasalisted
companyontheNewZealandStockExchange.When
wefirstlistedbackin1997,wewereaunittrustand
ownedjustsixproperties.
Wesignificantlyenhancedourcorporategovernance
whenwecorporatisedin2011andhavecontinuedto
refineourongoingstrategyinordertogrowvaluefor
you,ourshareholders.
Today,PrecinctisanestablishedNewZealandbusiness,
andhavebecomeacitycentrespecialistinvestingin
highqualityrealestate.
Precinctcurrentlyown15propertiesacrossAuckland
andWellington,andisrankedintheNZXtop25.
OUTLOOK
WearepositiveaboutNewZealand’seconomyand
expectpropertymarketstoremainstrong,particularly
inAucklandwheregrowthwillbedrivenbyagrowing
population,tourismandconstruction.
Weremainconfidentintheearningsguidance
providedtothemarket.Theboardexpectsfullyear
earningsforthe2018financialyearofapproximately
6.30centspershare,beforeperformancefeesand
expectstopayadividendof5.80centspershare.This
representsa3.6%increaseindividendtoshareholders.
Precinct’s2018interimresultswillbeannouncedonthe
28thofFebruary2018.
Onbehalfoftheboardandexecutiveteam,Iwould
liketothankyouallforyouron-goingsupportofthe
business.Ithasbeenabusyperiodoverthelast12
monthsandwearepleasedwithourstrongcitycentre
specialistposition.Welookforwardtodeliveringmore
ofourlong-termstrategyinthecomingyearandwish
allourshareholdersaMerryChristmas,HappyNewYear
andsafetravelsovertheholidayperiod.
Yoursfaithfully,
CraigStobo
Chairman
PRECINCT KEY METRICS (30.09.17)
$2.1bn100%9.0years
Portfolio valueOverall occupancyWeighted average lease term
$1.5bn6.2%72%
Market capWeighted average cap rateWeighting to Auckland(by value)
GRID AKL
BUILDING

DISCLAIMER:TheinformationandopinionsinthisreportwerepreparedbyPrecinctPropertiesNewZealandLimited(PCT).PCTmakesnorepresentationor
warrantyastotheaccuracyorcompletenessoftheinformationinthisreport.Opinionsincludingestimatesandprojectionsinthisreportconstitutethecurrent
judgmentofPCTasatthedateofthisreportandaresubjecttochangewithoutnotice.Suchopinionsarenotguaranteesorpredictionsoffuture
performance.Thisreportisprovidedforinformationpurposesonlyanddoesnotconstituteinvestmentadvice.
NeitherPCT,noranyofitsBoardmembers,officers,employees,advisers(includingAMPHaumiManagementLimited)orotherrepresentativeswillbeliablefor
anydamage,lossorcostincurredbyanyrecipientofthisreportorotherpersoninconnectionwiththisreport.
Pleasecontactourregistrar,Computershare
•Tochangeinvestmentdetailssuchasname,postaladdressormethodofpayment,and
•Forquestionsonyourdividendandshareholding
REGISTRAR: Computershare Investor Services Limited. T +64-9-488-8777 Email: enquiry@computershare.co.nz
If you have any questions please feel free to email us at hello@precinct.co.nz
Payment date1 December 2017
Excluded dividend per share1.2545 cents per share (cps)
Fully imputed dividend per share0.1955 cps
Cash dividend per share1.45 cps
Imputation credits0.076 cps
DIVIDEND
Proposed
2nd Quarter 2018 financial year23 March 2018
3rd Quarter 2018 financial year8 June 2018
INDICATIVE DIVIDEND PAYMENT DATES
ThesedatesrepresentthecurrentexpectationofPrecinct(PCT)asatthe
dateofpublication,aresubjecttoPCTboardapproval,maychange
withoutnoticeandarenotaguaranteeorwarrantyastothepaymentof
adividendortheactualpaymentdates.
Year to date (Unaudited)
Dividends declared1.45 cps
Full year forecast operating earnings per share
(before performance fees)
6.30 cps
Full year forecast dividend per share5.80 cps
FINANCIAL SUMMARY
as at 30.09.2017
Total gross returnPrecinct (NZX: PCT)Listed Property
Sept quarter4.8%0.4%
SHAREHOLDER RETURNS
Returns are based on close price, and assume reinvestment of dividend
(returns exclude imputation credits). Listed property is the S&P/NZX All Real
Estate Gross index. Source IRESS
Balance sheet
Unaudited
30 September 17
Audited
30 June 17
Total assets$2,119.2 m$2,079.2 m
Net equity$1,506.8 m$1,505.6 m
Number of shares on issue1,211.1 m1,211.1 m
Net tangible assets per share$1.24$1.24
Bank covenant gearing (%)19.5%25.1%
WYNYARDQUARTER
SinceourlastquarterlyreportinJune,amajormilestone
reachedhasbeenthecompletionofourmostrecent
development,WynyardQuarterStageOne.
ThefirststageofWynyardQuarterconsistsoftwo
buildingstotallingaround13,000squaresmetresof
officespace.
Thedevelopmentwhichcommencedattheendof
2015completedaheadofprogramandconsistentwith
budget.Bothbuildingsachieved100%occupancy
uponcompletion.
Weexpecttofurtherprogressthenextstageof
WynyardQuarteroverthenext12months.
BOWENCAMPUS
FaçadeinstallationatCharlesFergussonTower
continuetoadvancewiththefaçadeonlevels2-12
nowcomplete.
FollowingthecommitmentfromtheCrowntoleasethe
4remainingfloorsofTheBowenStatebuilding,Bowen
Campusisnow100%pre-committed.
Constructionworksremainonprogrammeandon
budgetwithexpectedpracticalcompletioninApril
2019.
DEVELOPMENT UPDATE
COMMERCIALBAY
Constructionhasprogressedwelloverrecentmonths.
Thebulkexcavationofthesiteisnowfinishedandthe
pilingforboththeCRLandCommercialBaystructure
hasalsobeencompleted.Inaddition,tanking,slaband
wallconstructionfortheCRLisnowwelladvanced
acrossthesite.
InAugust,HarbourEats,thecommunaldiningofferat
CommercialBaywaslaunched.Itwillbedesignedby
thelegendaryNewYork-basedAvroKO,whoareoneof
theworld’smostrespectednamesinhospitalitydesign.
The700-seateaterywilluseplentyofnaturalgreenery
andfoliage,makingthemostoftheopenairatrium
thatwillsitrightatthewaterfrontlocation.
HarbourEatswillbelocatedonlevel2ofCommercial
BayandextendfromLowerQueenStreettoLower
AlbertStreetbehindHSBChouse.
Youcanfindoutmoreat:www.commercialbay.co.nz
HARBOUR
EATS