Precinct Properties New Zealand Limited/Announcement

Strong revenue growth drives PCT interim results

Half Year Results28 February 2018PCTReal Estate

View on NZX PDF 1 PDF 2 PDF 3 PDF 4 PDF 5

Precinct Properties New Zealand Limited Head Office Wellington Office
E hello@precinct.co.nz Level 12, 188 Quay Street, Auckland 1010 T 0800 400 599 Level 19, 157 Lambton Quay, Wellington T 0800 400 599
W www.precinct.co.nz PO Box 5140, Auckland 1141, New Zealand F +64 9 927 1655 PO Box 2, Wellington 6140, New Zealand F +64 4 494 2267
NZX announcement – 28 February 2018
Strong revenue growth drives PCT interim results
Performance summary for the six months ended 31 December 2017
Financial summary
• Strong uplift in net operating income before tax of $40.9 million, up 3.8% (1H17: $39.4 million)
driven by 3.7% lift in net property income (NPI).
• Net operating income
1
of $38.2 million, consistent with previous comparable period (1H17: $38.8
million).
• Net profit after tax of $17.7 million, reduced from $39.1 million in 1H17 following fair value
movement for 10 Brandon Street in Wellington.
• Earnings guidance for FY18 unchanged at 6.30 cps. Dividend guidance maintained at 5.80 cps
representing a YoY increase of 3.6%.
Capital management
• Issued $150 million of subordinated convertible notes in September 2017.
• Issued $100 million of senior secured, seven year bonds in November 2017.
• Strong balance sheet position with gearing of 23.0% (30 June 2017: 25.1%).
• Post balance date, commenced a marketing campaign to divest a 50% interest in ANZ
Centre, Auckland.
Strong investment portfolio
• Occupancy of 99% (30 June 2017: 100%) and a weighted average lease term (WALT) across
the portfolio of 8.8 years (30 June 2017: 8.7 years)
• 19 leasing transactions totalling 8,170 square metres were secured during the period.
• Strong like for like rental growth up 12.4% in Wellington corporate assets and 3.1% across the
portfolio.
Development update
Commercial Bay
• Project remains on budget with yield on cost maintained at 7.5%, supported by strong leasing
outcomes.
• Increased leasing across the retail space at Commercial Bay with leasing commitments of 60%
(30 June 2017: 46%).
• Total office commitments across the Tower maintained at 66% (30 June 2017: 66%).
• Leasing momentum continues with strong interest in the retail centre and around 15% of the
Tower or 6,000 square metres currently under negotiation.
• The release of a tower lobby fly-through and a 360 degree retail experience.
Bowen Campus
• Construction works remain on programme and on budget.

1
Net operating income is an alternative performance measure which adjusts net profit after tax for a number of non-cash items as detailed in the
reconciliation provided at the end of this announcement. Precinct’s dividend policy is based upon net operating income. This alternative
performance measure is provided to assist investors in assessing Precinct’s performance for the year.

Precinct Properties New Zealand Limited Head Office Wellington Office
E hello@precinct.co.nz Level 12, 188 Quay Street, Auckland 1010 T 0800 400 599 Level 19, 157 Lambton Quay, Wellington T 0800 400 599
W www.precinct.co.nz PO Box 5140, Auckland 1141, New Zealand F +64 9 927 1655 PO Box 2, Wellington 6140, New Zealand F +64 4 494 2267
• Remaining office space at Bowen Campus leased to the Crown, now unconditional.
• New Zealand Defence Force lease at Bowen State building extended to 18 years during the
period.
Future opportunities advancing
• Continue to advance Wynyard Quarter development with commitment for Stage 2 expected
within 6 months.
• Advancing the second stage of Commercial Bay with the integration and redevelopment of 1
Queen Street into a mixed hotel/office use. Negotiations with a preferred hotel operator are
advanced and commitment to this project targeted for later this year.
• Bowen Campus Stage 2 design continues and site preparation works are underway.

Note: Further information can be found within the 2018 Interim Report and results presentation. You can find these at
www.precinct.co.nz/interim-report-2018
Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) reported its financial results for
the six months ended 31 December 2017 today, with net operating income, which adjusts for
a number of non-cash items, of $38.2 million or 3.15 cents per share (cps), consistent with the
previous comparable period (2017: $38.8 million or 3.20 cps). Net profit after tax (NPAT) of
$17.7 million compares with $39.1 million for the same period last year, with the difference
mainly attributable to the fair value movement of 10 Brandon Street in Wellington and
movement in financial instruments this period.
Scott Pritchard, Precinct’s CEO, said “It has been an active six-month period. We have
continued to focus on our long-term strategy as city centre specialists and have achieved
strong rental growth across our investment portfolio”.
“We have advanced our developments with construction progressed at Commercial Bay in
Auckland and Bowen Campus in Wellington. Bowen Campus continues to track well with the
project benefitting from further office leasing while remaining on budget and on programme.
Commercial Bay has also progressed with retail leasing advancing to 60% and office pre-
leasing maintained at 66%. Enquiry levels for both retail and office remain elevated and the
company is buoyed by the interest from potential occupiers in this development.
The recent completion of Wynyard Quarter Stage One and high occupancy levels across our
portfolio have both contributed positively to our increased revenues, with our Wellington
corporate assets achieving particularly strong growth during the period.

Precinct Properties New Zealand Limited Head Office Wellington Office
E hello@precinct.co.nz Level 12, 188 Quay Street, Auckland 1010 T 0800 400 599 Level 19, 157 Lambton Quay, Wellington T 0800 400 599
W www.precinct.co.nz PO Box 5140, Auckland 1141, New Zealand F +64 9 927 1655 PO Box 2, Wellington 6140, New Zealand F +64 4 494 2267
As projects advanced during the year we reduced our risk profile, and continued to diversify
our funding sources which remains a core component of Precinct's capital management
strategy,” he said.
During the period, Precinct further improved its capital structure through a number of capital
management initiatives including a successful convertible notes offer and bond issue, totalling
$250 million.
Interim results
The completion of Wynyard Quarter Stage One, higher occupancy levels and improved
rental growth have contributed to an increase in net property income by 3.7% to $47.6 million
(31 December 2016: $45.9 million).
After adjusting for Wynyard Quarter Stage One, foregone income associated with
development projects and 10 Brandon Street, like for like income was 3.1% higher than the
previous comparable period. The Auckland portfolio saw an increase of 2.5% while in
Wellington the corporate assets saw NPI increase by an impressive 12.4%. This was due to
occupancy increasing by around 10%.
The fall in the New Zealand interest rate swap curve during the period was the primary reason
for the fair value loss in financial instruments of $6.9 million. This loss compared with a $15.3
million gain for the same period last year.
Current tax expense increased by $2.1 million to $2.7 million. This was a result of a higher level
of deductibles in the prior period due to the disposal of depreciable assets at Bowen Campus
in October 2016.
An internal review of the 30 June 2017 property valuations undertaken at 31 December 2017
indicated no material value movement in the period for all the assets apart from 10 Brandon
Street in Wellington.
With a number of options for 10 Brandon Street having been assessed to date, we have now
completed our options analysis and tested the market for the asset to be sold. Following an
independent valuation at 31 December 2017, a further valuation write down of $14.7 million
to $7.0 million (30 June 2017: $20.2 million) has occurred at this property. Whilst not imminent,
the most likely option for this asset is for it to be strengthened and repositioned.

Precinct Properties New Zealand Limited Head Office Wellington Office
E hello@precinct.co.nz Level 12, 188 Quay Street, Auckland 1010 T 0800 400 599 Level 19, 157 Lambton Quay, Wellington T 0800 400 599
W www.precinct.co.nz PO Box 5140, Auckland 1141, New Zealand F +64 9 927 1655 PO Box 2, Wellington 6140, New Zealand F +64 4 494 2267
The value of net tangible assets per share at interim balance date was $1.23 (30 June 2017:
$1.24). Further financial information can be found within the 2018 Interim Report. You can find
these at www.precinct.co.nz/interim-report-2018
Investment portfolio performance
Leasing progress has continued over the last six months with overall portfolio occupancy
remaining in excess of 99% (30 June 2017: 100%) and WALT increased to 8.8 years (30 June
2017: 8.7 years).
In addition, 57 rent reviews were settled over the 6 months to 31 December 2017, resulting in
a 4.1% increase on valuation rents at 30 June 2017. Market rent reviews across the investment
portfolio provided a 3.0% uplift.
With good levels of leasing enquiry in both Auckland and Wellington, we expect to reduce
the remaining vacant office space in the portfolio and to see further organic growth
achieved.
Precinct’s 50% owned co-working space provider, Generator successfully launched its new
innovation focused co-working space at GridAKL in Wynyard Quarter. Occupancy is sitting
well ahead of expectations and contributing to the emerging vibrancy of the new
commercial precinct. Generator now manages 12,000 square metres across three locations.
Generator House at 11 Britomart Place, Takutai Square will be the newest site to join
Generator’s co-working offering. Located across three upper levels, this new executive space
will be available for occupation from May 2018.
Capital management
In September 2017, we successfully raised $150 million of four-year, fixed-rate subordinated
convertible notes. Precinct considers this to be a capital management solution which is well
suited to its current strategy and opportunities. It is a flexible funding option that gives Precinct
the capital available to match development commitments while ensuring that earnings are
not diluted in the short term.
Also in the period, Precinct issued a $100 million senior secured seven year bonds with the
proceeds used to repay bank debt. Both issues have further strengthened Precinct’s capital
management position.

Precinct Properties New Zealand Limited Head Office Wellington Office
E hello@precinct.co.nz Level 12, 188 Quay Street, Auckland 1010 T 0800 400 599 Level 19, 157 Lambton Quay, Wellington T 0800 400 599
W www.precinct.co.nz PO Box 5140, Auckland 1141, New Zealand F +64 9 927 1655 PO Box 2, Wellington 6140, New Zealand F +64 4 494 2267
At balance date Precinct has total borrowings (including convertible notes) of $600.4 million
(30 June 2017: $452.1 million) and total assets of $2.2 billion (30 June 2017: $2.1 billion). Gearing
as measured under borrower covenants, which disregards subordinated debt, has
consequently decreased during the period to 23.0% (30 June 2017: 25.1%).
Consistent with Precinct’s capital recycling strategy and ongoing capital management, we
are seeking to progress the sale of a 50% interest of ANZ Centre in Auckland. Real estate
agency firm Colliers International has been appointed to market the asset for sale.
Development update
Commercial Bay
As strong retail leasing progress has been achieved over the last six months, we have also
achieved a pleasing level of success with securing the key retailers who will define our unique
retail mix at Commercial Bay. This includes renowned food and beverage operators Mimi
Gilmour, Al Brown and Josh Emett who will each have a concept in Commercial Bay
alongside legendary New York restaurant Saxon + Parole, as well as a number of leading local
and international fashion retailers who remain confidential at this stage.
In August 2017, Harbour Eats, the communal dining offer at Commercial Bay was also
launched. Located on level 2, the 700-seat eatery is designed by one of the world’s leading
hospitality design firms, New York-based, AvroKO and will offer a food destination unlike
anywhere else in the world.
In the period we were also excited to share a taste of Commercial Bay with the release of a
tower lobby fly-through and a 360 degree retail experience.
As outlined at the full year FY17 results, Precinct received independent advice that the
completion of the retail centre will likely be delayed beyond its contracted date of November
2018, potentially to late Q1 2019. Our contractor has recently advised that their programmed
date for retail completion is December 2018. Our updated independent advice remains that
the contractor’s December 2018 programme date is unlikely to be achieved. With
construction still at an early stage we continue to closely monitor progress on site.
The contractor’s programme date for the completion of the office tower remains mid 2019
(July). Independent programme advice has also been sought for the office tower. This advice
shows that there is some risk to achieving the programme completion date, but that this will

Precinct Properties New Zealand Limited Head Office Wellington Office
E hello@precinct.co.nz Level 12, 188 Quay Street, Auckland 1010 T 0800 400 599 Level 19, 157 Lambton Quay, Wellington T 0800 400 599
W www.precinct.co.nz PO Box 5140, Auckland 1141, New Zealand F +64 9 927 1655 PO Box 2, Wellington 6140, New Zealand F +64 4 494 2267
depend on the rate of façade installation, a workstream which has just commenced and will
be closely monitored. Precinct notes that these reviews are independent of the contractor
and have been sought by Precinct so that we can inform lessees of likely occupation dates.
Precinct remains comfortable with the provisions of its construction contract and the
provisions which protect Precinct from losses due to contractor delay.
Precinct continues to forecast a profit on cost of over $200 million and a yield on cost of 7.5%.
Bowen Campus
Construction works remain on programme and on budget with 100% of the office space at
Bowen Campus pre-committed.
During the period, the lease to the New Zealand Defence Force at Bowen State was
extended to 18 years. The WALT across Bowen Campus has increased to almost 17.0 years (30
June 2017: 15.0 years).
The previously announced lease to the Crown across the top four floors totalling 4,700 square
metres at Bowen State building also became unconditional during the period.
Dividend payment
Precinct shareholders will receive a second-quarter dividend of 1.45 cents per share plus
imputation credits of 0.0936 cents per share. Offshore investors will receive an additional
supplementary dividend of 0.042494 cents per share to offset non-resident withholding tax.
The record date is 12 March 2018 with payment to be made on 23 March 2018.
Outlook and guidance
Precinct has a clear strategy of city centre specialisation which is expected to provide long
term outperformance. We remain comfortable with our earnings pathway into the future.
With supportive capital markets and both occupier and investment markets remaining strong,
Precinct is well positioned to advance our city centre strategy and increase shareholder value
in 2018 and beyond.
Full year operating earnings after tax for the 2018 financial year are expected to be
approximately 6.30 cents per share, before performance fees. Dividend guidance also
remains unchanged at 5.80 cents per share, representing a 3.6% increase in dividends to
shareholders.

---

www.precinct.co.nz
C R E A T I N G
C I T Y C E N T R E
P R E C I N C T S
I N T E R I M R E P O R T 2 0 1 8

04
Chairman's and
CEO's Report
12
The Numbers
30
Directory
Cover page image: Artists impression of Commercial Bay retail offering
Contents page Image: Artists impression of Commercial Bay, lower Queen Street,
Auckland
More information can be found at
www.precinct.co.nz

Commercial Bay.
Developing a premium
retail offering in the heart of
Auckland CBD.

04
CHAIRMAN'S AND CEO'S REPORT
CHAIRMAN'S AND CEO'S REPORT
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
RESULTS OVERVIEW
It has been an active six-month period since
June 2017. We have continued to focus on our
long-term strategy as city centre specialists and
have achieved strong rental growth across our
investment portfolio.
We have advanced our developments with
construction progressed at Commercial Bay in
Auckland and Bowen Campus in Wellington.
Bowen Campus continues to track well with the
project benefitting from further office leasing
while remaining on budget and on programme.
Commercial Bay has also progressed with retail
leasing advancing to 60% and office pre-leasing
maintained at 66%. Enquiry levels for both retail
and office remain elevated and the company is
buoyed by the interest from potential occupiers
in this development.
The recent completion of Wynyard Quarter
Stage One and high occupancy levels across
our portfolio have both contributed positively to
our increased revenues, with our Wellington
corporate assets achieving particularly strong
growth during the period.
As projects advanced during the year we
reduced our risk profile, and continued to
diversify our funding sources which remains a
core component of Precinct's capital
management strategy. During the period,
Precinct further improved its capital structure
through a number of capital management
initiatives including a successful convertible notes
offer and bond issue, totalling $250 million.
$38.2173
M
Net operating income
INTERIM RESULTS
Precinct has delivered another good operating
performance for the first half of its 2018 financial
year.
Net operating income, which adjusts for a
number of non-cash items, was $38.2 million or
3.15 cents per share (cps), and was consistent
with the previous comparable period
(31 December 2016: $38.8 million).
A further valuation write down at 10 Brandon
Street in Wellington, movement in financial
instruments and a higher current tax expense this
period contributed to net profit after tax of
$17.7 million for the six months ended
31 December 2017 (31 December 2016:
$39.1 million).
Dividends attributable to shareholders for the six
months ending 31 December 2017 totalled 2.90
cps (31 December 2016: 2.80 cps) representing
an increase of 3.6%.
The completion of Wynyard Quarter Stage One,
higher occupancy levels and improved rental
growth have contributed to an increase in net
property income by 3.7% to $47.6 million
(31 December 2016: $45.9 million).
After adjusting for Wynyard Quarter Stage One,
foregone income associated with development
projects and 10 Brandon Street, like for like
income was 3.1% higher than the previous
comparable period. The Auckland portfolio saw
an increase of 2.5% while in Wellington the
corporate assets saw net property income
increase by an impressive 12.4%. This was due to
occupancy increasing by around 10%.
+12.4
6.7
%
Increase in net property income in our Wellington
corporate assets

05
CHAIRMAN'S AND CEO'S REPORT
The fall in the New Zealand interest rate swap
curve during the period was the primary reason
for the fair value loss in financial instruments of
$6.9 million. This loss compared with a
$15.3 million gain for the same period last year.
Current tax expense increased by $2.1 million to
$2.7 million. This was a result of a higher level of
deductibles in the prior period due to the
disposal of depreciable assets at Bowen Campus
in October 2016.
An internal review of the 30 June 2017 property
valuations undertaken at 31 December 2017
indicated no material value movement in the
period for all the assets apart from 10 Brandon
Street in Wellington.
With a number of options for 10 Brandon Street
having been assessed to date, we have now
ANZ CENTRE, AUCKLAND (CENTRE OF PHOTO)
KEY FINANCIAL INFORMATION
Key Financial Information
($ millions unless otherwise stated)31 December 201731 December 2016Change
Gross rental income
65.7
64.32.2%
Operating income before indirect expenses
47.6
45.93.7%
Operating income before income tax
40.9
39.43.8%
Net operating income
1
38.2
38.8(1.5%)
Net profit after income tax
17.7
39.1(54.7%)
Earnings per share based on operating income before
tax (cents)
3.38
3.254.0%
Earnings per share based on operating income after
tax (cents)
3.15
3.20(1.6%)
Net distribution (cents per share)
2.90
2.803.6%
Payout Ratio (%)
92
875.2%
The information set out above has been extracted from the financial statements set out on pages 13 to 25.
1 Net operating income is an alternative performance measure which adjusts net profit after tax for a number of non-cash
items. This alternative performance measure is provided to assist investors in assessing Precinct's performance for the year.

06
CHAIRMAN'S AND CEO'S REPORT
CHAIRMAN'S AND CEO'S REPORT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
completed our options analysis and tested the
market for the asset to be sold. Following an
independent valuation at 31 December 2017, a
further valuation write down of $14.7 million to
$7.0 million (30 June 2017: $20.2 million) has
occurred at this property. Whilst not imminent,
the most likely option for this asset is for it to be
strengthened and repositioned.
The value of net tangible assets per share at
interim balance date was $1.23 (30 June 2017:
$1.24).
CAPITAL MANAGEMENT
In September 2017, Precinct successfully raised
$150 million of four-year, fixed-rate subordinated
convertible notes. Precinct considers this to be a
capital management solution which is well suited
to its current strategy and opportunities. It is a
flexible funding option that gives Precinct the
capital available to match development
commitments while ensuring that earnings are
not diluted in the short term. Also in the period,
Precinct issued $100 million of senior secured
seven year bonds with the proceeds used to
repay bank debt. Both issues have further
strengthened Precinct's capital management
position.
$250173
M
Non bank funding secured in the period
At balance date Precinct has total borrowings
(including convertible notes) of $600.4 million
(30 June 2017: $452.1 million) and total assets of
$2.2 billion (30 June 2017: $2.1 billion). Gearing as
measured under borrower covenants, which
disregards subordinated debt, has consequently
decreased during the period to 23.0% (30 June
2017: 25.1%).
23.0
6.7
%
Gearing as at 31 December 2017
Precinct was 75% hedged through the use of
interest rate swaps (30 June 2017: 65%) and had
a weighted average interest rate including all
fees of 5.4% at 31 December 2017 (30 June 2017:
5.6%).
Consistent with Precinct’s capital recycling
strategy and ongoing capital management, we
are seeking to progress the sale of a 50% interest
of ANZ Centre in Auckland. Real estate agency
firm Colliers International has been appointed to
market the asset for sale.
“
DIVERSIFYING OUR FUNDING SOURCES
REMAINS A CORE COMPONENT OF
PRECINCT'S CAPITAL MANAGEMENT
STRATEGY”
>> Craig Stobo, Chairman.
($ millions unless otherwise stated)31 December 201730 June 2017Change
Total assets
2,202.6
2,079.25.9%
Total liabilities
713.9
573.624.5%
Total equity
1,488.7
1,505.6(1.1% )
Shares on issue (million shares)
1,211.1
1,211.10.0%
NTA per share (cents)
122.9
124.3(1.1% )
Gearing ratio at balance date (%)
1
23.0
25.1(8.4% )
1 For loan covenant purposes deferred tax losses, fair value of swaps and the convertible note are not included in the
calculation of gearing ratio.

07
CHAIRMAN'S AND CEO'S REPORT
OPERATIONAL UPDATE
Leasing progress has continued over the last six
months with overall portfolio occupancy
remaining in excess of 99% (30 June 2017: 100%)
and WALT increased to 8.8 years (30 June 2017:
8.7 years).
In addition, 57 rent reviews were settled over the
6 months to 31 December 2017, resulting in a
4.1% increase on valuation rents at 30 June 2017.
Market rent reviews across the investment
portfolio provided a 3.0% uplift.
With good levels of leasing enquiry in both
Auckland and Wellington, we expect to reduce
the remaining vacant office space in the
portfolio and to see further organic growth
achieved.
Precinct’s 50% owned co-working space
provider, Generator successfully launched its
new innovation focused co-working space at
GridAKL in Wynyard Quarter. Occupancy is
sitting well ahead of expectations and
contributing to the emerging vibrancy of the
new commercial precinct. Generator now
manages 12,000 square metres across three
locations. Generator House at 11 Britomart Place,
Takutai Square will be the newest site to join
Generator’s co-working offering. Located across
three upper levels, this new executive space will
be available for occupation from May 2018.
99
6.7
%
Portfolio occupancy
8.8 YEARS
Weighted average lease term
“HIGH OCCUPANCY LEVELS ACROSS
OUR INVESTMENT ASSETS IS A MAJOR
ACHIEVEMENT AND REFLECTS THE HIGH
QUALITY REAL ESTATE WITHIN OUR
PORTFOLIO”
>> Scott Pritchard, CEO.
INTERIOR IMAGES AT CO-WORKING SPACE, GENERATOR

08
CHAIRMAN'S AND CEO'S REPORT
CHAIRMAN'S AND CEO'S REPORT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
DEVELOPMENT PROGRESS
Commercial Bay
As strong retail leasing progress has been
achieved over the last six months, we have also
achieved a pleasing level of success with
securing the key retailers who will define our
unique retail mix at Commercial Bay. This
includes renowned food and beverage
operators Mimi Gilmour, Al Brown and Josh Emett
who will each have a concept in Commercial
Bay alongside legendary New York restaurant
Saxon + Parole, as well as a number of leading
local and international fashion retailers who
remain confidential at this stage.
In August 2017, Harbour Eats, the communal
dining offer at Commercial Bay was also
launched. Located on level 2, the 700-seat
eatery is designed by one of the world’s leading
hospitality design firms, New York-based, AvroKO
and will offer a food destination unlike anywhere
else in the world.
In the period we were also excited to share a
taste of Commercial Bay with the release of a
tower lobby fly-through and a 360 degree retail
experience. These can be viewed at
www.commercialbay.co.nz.
As outlined at the full year FY17 results, Precinct
received independent advice that the
completion of the retail centre will likely be
delayed beyond its contracted date of
November 2018, potentially to late Q1 2019. Our
contractor has recently advised that their
programmed date for retail completion is
December 2018. Our updated independent
advice remains that the contractor’s December
2018 programme date is unlikely to be achieved.
With construction still at an early stage we
continue to closely monitor progress on site.
The contractor’s programme date for
completion of the office tower remains mid 2019
(July).
ARTISTS IMPRESSION OF HARBOUR EATS

09
CHAIRMAN'S AND CEO'S REPORT
Independent programme advice has also been
sought for the office tower. This advice shows
that there is some risk to achieving the
programme completion date, but that this will
depend on the rate of façade installation, a
workstream which has just commenced and will
be closely monitored. Precinct notes that these
reviews are independent of the contractor and
have been sought by Precinct so that we can
inform lessees of likely occupation dates.
Precinct remains comfortable with the provisions
of its construction contract and the provisions
which protect Precinct from losses due to
contractor delay.
Precinct continues to forecast a profit on cost of
over $200 million and a yield on cost of 7.5%.
Bowen Campus
Construction works remain on programme and
on budget with 100% of the office space at
Bowen Campus pre-committed.
During the period, the lease to the New Zealand
Defence Force at Bowen State was extended to
18 years. The WALT across Bowen Campus has
increased to almost 17.0 years (June 2017: 15.0
years).
The previously announced lease to the Crown
across the top four floors totalling 4,700 square
metres at Bowen State building also became
unconditional during the period.
BOWEN CAMPUS PROGRESS AT JANUARY 2018

10
CHAIRMAN'S AND CEO'S REPORT
CHAIRMAN'S AND CEO'S REPORT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
FUTURE OPPORTUNITES
Wynyard Quarter Stage Two
Following on from the successful completion of
Wynyard Quarter Stage One, we are continuing
to advance Stage Two, being one of the
remaining three sites available for future
development. Negotiations are taking place with
occupiers for Stage Two and we remain on
target to commit to developing another 8,000
square metre office building.
1 Queen Street
As a second stage of the Commercial Bay
project, we are continuing to assess our
development options at 1 Queen Street. We
have identified the most feasible option to be a
mixed use development, comprising hotel with
office above. Negotiations are on-going with a
preferred hotel operator and we believe this
offering will further support the Commercial Bay
retail precinct, particularly food and beverage.
Bowen balance land
The remaining development land at Bowen
Campus is currently being designed to
accommodate up to 20,000 square metres of
commercial office space. This space is
considered suitable for both Crown and
corporate occupiers. The existing 3,800 square
metre Annex building is currently being
demolised to allow for future development.
ARTISTS IMPRESSION OF WYNYARD QUARTER STAGE TWO

11
CHAIRMAN'S AND CEO'S REPORT
MARKET UPDATE
The overall Auckland CBD office vacancy rate
was recorded at 5.9% or approximately 86,100
square metres of vacant space as at December
2017, a slight uplift compared to the 5.7% or
81,700 square metres reported by Colliers
International as at June 2017. The Prime CBD
office vacancy rate also increased over the past
six months to 4.3% or approximately 26,200
square metres of vacant space (June 2017:
3.8%).
Consistent with recent market trends, the current
low prime grade vacancy rate remains driven by
elevated demand from commercial occupiers.
Taking into consideration the limited supply
pipeline with no new prime grade building
expected to be completed prior to the new PwC
Tower at Commercial Bay in 2019, prime
vacancy rates are not forecast to significantly
increase in the short term.
The Wellington CBD office market has in recent
months experienced a flurry of activity with many
commercial occupiers forced to quickly relocate
to alternative premises due to their buildings
being withdrawn temporarily and in some cases
permanently, from the market following the
November 2016 Kaikoura earthquake. According
to the latest Colliers International research the
overall Wellington CBD office vacancy rate
further decreased from 7.8% or 107,500 square
metres in June 2017 to 7.4% or 103,400 square
metres as at December 2017 (December 2016:
10.5% or 154,500 square metres).
The increased demand for seismically strong
buildings have accordingly resulted in the prime
vacancy rate falling throughout the post-quake
months, with the latest survey results sourced
from Colliers indicating the prime vacancy rate
in Wellington is at a historic low of 0.1% or 283
square metres as at December 2017 (June 2017:
0.1% and December 2016: 2.0%). Looking ahead,
whilst a significant increase in prime inventory is
forecast from 2018 onwards, the prime vacancy
rate in Wellington is anticipated to remain
subdued over the short term due to strong
occupier demand and high levels of pre-
commitment across the Wellington
Accommodation Project (WAP 2) assets and
other projects such as 20 Customhouse Quay
and PwC Centre.
OUTLOOK
Precinct has a clear strategy of city centre
specialisation which is expected to provide long
term outperformance. We remain comfortable
with our earnings pathway into the future.
With supportive capital markets and both
occupier and investment markets remaining
strong, Precinct is well positioned to advance our
city centre strategy and increase shareholder
value in 2018 and beyond.
Full year operating earnings after tax for the 2018
financial year are expected to be approximately
6.30 cents per share, before performance fees.
Dividend guidance also remains unchanged at
5.80 cents per share, representing a 3.6%
increase in dividends to shareholders.
Craig Stobo, Chairman
Scott Pritchard, CEO

12
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
The Numbers
THE NUMBERS
FOR THE SIX MONTHS ENDED 31 DECEMBER 2017

13
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six months ended 31 December 2017
Amounts in $millions
Notes
Unaudited six
months
ended
31 December
2017
Unaudited six
months
ended
31 December
2016
Audited year
ended
30 June 2017
Revenue
Gross rental income
65.7
64.3
126.2
Less direct operating expenses
(18.1)
(18.4)
(35.8)
Operating income before indirect expenses47.6
45.9
90.4
Indirect expenses / (revenue)
Interest expense
1.8
1.6
3.5
Interest income
(0.2)
-
(0.1)
Other expenses
7
5.1
4.9
9.8
Total indirect expenses / (revenue)6.7
6.5
13.2
Operating income before income tax40.9
39.4
77.2
Non operating income / (expenses)
Unrealised net gain / (loss) in value of
investment and development properties
6
(14.7)
(12.1)
77.5
Unrealised net gain / (loss) on financial
instruments
(6.9)
15.3
11.8
Net realised gain / (loss) on sale of investment
properties
6
-
-
-
Total non operating income / (expenses)(21.6)
3.2
89.3
Net profit before taxation19.3
42.6
166.5
Income tax expense / (benefit)
Current tax expense
2.7
0.6
2.5
Depreciation recovered on sale
-
-
-
Deferred tax expense / (benefit) - financial
instruments
(1.6)
4.3
3.3
Deferred tax expense / (benefit) - depreciation
-
(1.4)
(1.4)
Total taxation expense / (benefit)1.1
3.5
4.4
Share of profit or (loss) of joint ventures(0.5)
-
-
Net profit and total comprehensive income after
income tax attributable to equity holders
17.7
39.1
162.1
Earnings per share (cents per share)
Basic and diluted earnings per share
8
1.46
3.23
13.38
Other amounts (cents per share)
Operating income before income tax per share
3.38
3.25
6.37
Net operating income per share
11
3.15
3.20
6.17
The accompanying notes on pages 17 to 25 form part of these Financial Statements

14
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six months ended 31 December 2017
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
Amounts in $millions unless otherwise statedCents per
share
Shares (m)Ordinary
shares
Retained
earnings
Total equity
At 1 July 2016
1,211.11,046.7364.21,410.9
Total comprehensive income for
the period
39.139.1
Distributions
FY16 Q4 final distribution1.35(16.4)(16.4)
FY17 Q1 interim distribution1.40(17.0)(17.0)
At 31 December 2016
1,211.11,046.7369.91,416.6
Total comprehensive income for
the period
123.0123.0
Distributions
FY17 Q2 interim distribution1.40(17.0)(17.0)
FY17 Q3 interim distribution1.40(17.0)(17.0)
At 30 June 2017
1,211.11,046.7458.91,505.6
Total comprehensive income for
the period
17.717.7
Distributions
FY17 Q4 final distribution
1.40(17.0)(17.0)
FY18 Q1 interim distribution
1.45(17.6)(17.6)
At 31 December 20171,211.11,046.7442.01,488.7
All shares have been fully paid, carry full voting rights, have no redemption rights, have no par value
and are subject to the terms of the constitution.
The accompanying notes on pages 17 to 25 form part of these Financial Statements

15
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2017
Amounts in $millionsNotesUnaudited six
months
ended
31 December
2017
Audited year
ended 30 June
2017
Current assets
Cash
2.6
4.3
Debtors and other current assets
6.7
8.9
Provision for tax
0.6
1.9
Total current assets9.9
15.1
Non current assets
Fair value of derivative financial instruments
10
15.0
12.8
Other assets
2.8
2.1
Investment in joint ventures
7.0
4.6
Development properties
6
623.1
509.2
Investment properties
6
1,544.8
1,535.4
Total non current assets2,192.7
2,064.1
Total assets2,202.6
2,079.2
Current liabilities
Fair value of derivative financial instruments
10
1.6
2.9
Accrued development capital expenditure
23.9
34.5
Acquisition settlement obligation
27.2
26.7
Other current liabilities
5.6
8.4
Total current liabilities58.3
72.5
Non current liabilities
Interest bearing liabilities
9
606.6
456.9
Fair value of derivative financial instruments
10
27.3
20.9
Deferred tax liability
21.7
23.3
Total non current liabilities655.6
501.1
Total liabilities713.9
573.6
Total equity1,488.7
1,505.6
Total liabilities and equity2,202.6
2,079.2
Signed on behalf of the Board of Precinct Properties New Zealand Limited, who authorised the issue of
these financial statements on 27 February 2018.
DON HUSE
CHAIRMAN AUDIT & RISK COMMITTEE
CRAIG STOBO
CHAIRMAN
The accompanying notes on pages 17 to 25 form part of these Financial Statements

16
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended 31 December 2017
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
Amounts in $millionsUnaudited six
months
ended
31 December
2017
Unaudited six
months
ended
31 December
2016
Audited year
ended
30 June 2017
Cash flows from operating activities
Gross rental income per statement of comprehensive income
65.7
64.3
126.2
Less: Current year incentives
(3.6)
(0.9)
(2.2)
Add: Amortised incentives
2.2
1.7
3.6
Add: Working capital movements
(0.3)
(1.8)
(1.4)
Cash flow from gross rental income64.0
63.3
126.2
Interest income
0.2
-
0.1
Property expenses
(19.8)
(23.9)
(43.8)
Other expenses
(4.9)
(4.5)
(9.9)
Interest expense
(4.5)
(1.1)
(2.4)
Income tax
(1.5)
(15.6)
(17.5)
Net cash inflow / (outflow) from operating activities33.5
18.2
52.7
Cash flows from investing activities
Capital expenditure on investment properties
(7.9)
(10.4)
(18.2)
Capital expenditure on development properties
(123.7)
(70.0)
(172.8)
Capital expenditure on other assets
(0.7)
(0.7)
(1.5)
Investment in and advances to joint ventures
(2.5)
-
(4.6)
Disposal of investment properties
-
-
-
Capitalised interest on development properties
(14.2)
(7.4)
(17.5)
Net cash inflow / (outflow) from investing activities(149.0)
(88.5)
(214.6)
Cash flows from financing activities
Loan facility drawings to fund capital expenditure
132.3
81.1
192.5
Other loan facility drawings / (repayments)
1
(134.0)
22.2
38.3
Loan facility cancellations
(100.0)
-
-
Issue of convertible notes
150.0
-
-
Issue of senior secured bonds
100.0
-
-
Distributions paid to share holders
(34.5)
(33.3)
(67.2)
Net cash inflow / (outflow) from financing activities113.8
70.0
163.6
Net increase / (decrease) in cash held(1.7)
(0.3)
1.7
Cash at the beginning of the period
4.3
2.6
2.6
Cash at the end of the period2.6
2.3
4.3
1 Loan facility drawings are net of repayments made throughout the period.
The accompanying notes on pages 17 to 25 form part of these Financial Statements

17
NOTES TO THE FINANCIAL STATEMENTS
For the six months ended 31 December 2017
1. REPORTING ENTITY
Precinct Properties New Zealand Limited (Precinct) is incorporated in New Zealand and is registered
under the New Zealand Companies Act 1993.
Precinct is an FMC reporting entity for the purposes of the Financial Markets Conduct Act 2013.
These interim financial statements are those of Precinct, its two 100% owned subsidiaries and its joint
venture (the Group). Precinct's investment in Generator New Zealand Limited is accounted for using
the equity method.
The Group's principal activity is investment in predominantly prime CBD properties in New Zealand.
Precinct is managed by AMP Haumi Management Limited (the manager).
2. BASIS OF PREPARATION
The interim financial statements have been prepared in accordance with NZ IAS 34 and IAS 34 Interim
Financial Reporting.
The financial statements have been prepared:
• On a historical basis except for financial instruments, US private placement notes, investment and
development properties which are measured at fair value.
• Using the New Zealand Dollar functional and reporting currency.
• On a GST exclusive basis, except for receivables and payables that are stated inclusive of GST.
All financial information has been presented in millions, unless otherwise stated.
These interim financial statements should be read in conjunction with the financial statements and
related notes included in Precinct's Annual Report for the year ended 30 June 2017.
Precinct has elected to include additional comparative periods to assist users of the financial
statements.
3. FAIR VALUE ESTIMATION
Precinct classifies its fair value measurement using a fair value hierarchy that reflects the significance
of the inputs used in making the measurements. The fair value hierarchy has the following levels:
• Level 1 - Quoted prices (unadjusted) in active market for identical assets or liabilities.
• Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (by price) or indirectly (derived from prices).
• Level 3 - Inputs for the asset or liability that are not based on observable market data (unobservable
inputs).

18
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
4. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
In preparing Precinct’s interim financial statements, management continually make judgements,
estimates and assumptions based on experience and other factors, including expectations of future
events that may have an impact on Precinct.
All judgements, estimates and assumptions made are believed to be reasonable based on the most
current set of circumstances available to management. Actual results may differ from the
judgements, estimates and assumptions made by management.
The significant judgements, estimates and assumptions made in the preparation of these interim
financial statements are in relation to:
i. Investment and development properties
ii. Deferred tax assets and deferred tax liabilities
iii. Cross currency interest rate swaps and USPP notes
The same accounting policies and methods of computation are followed in the interim financial
statements as compared with the most recent annual financial statements.
5. SIGNIFICANT EVENTS AND TRANSACTIONS DURING THE PERIOD
Precinct's financial position and performance was affected by the following events and transactions
that occurred during the reporting period:
i. Convertible notes
On 27 September 2017, Precinct raised $150 million through a subordinated convertible note issue with
a conversion price cap of $1.40 per share. Refer to Note 9 for details.
ii. Senior secured bonds
On 27 November 2017, Precinct raised $100 million through a New Zealand public bond issue. Refer to
Note 9 for details.

19
6. INVESTMENT AND DEVELOPMENT PROPERTIES
Amounts in $millions
Valuer
1
Valuation
30 June 2017
Capitalised
incentives
Additions /
disposals
2
Revaluation
gain / (loss)
Book value
31 December
2017
Investment properties
3
Auckland
AMP CentreCBRE
163.4
(0.1)1.2-
164.5
ANZ Centre - AucklandJLL
324.0
0.10.2-
324.3
HSBC HouseJLL
93.8
(0.1)1.1-
94.8
PwC TowerCBRE
329.0
0.40.7-
330.1
Zurich HouseJLL
95.5
(0.3)0.7-
95.9
Mason BrothersColliers
37.2
0.1--
37.3
12 Madden StreetColliers
67.8
0.30.2-
68.3
Wellington
Dimension Data HouseColliers
114.3
0.60.7-
115.6
Mayfair HouseColliers
40.8
0.20.2-
41.2
No.1 and 3 The TerraceBayleys
70.5
-0.7-
71.2
No. 3 The Terrace
4
CBRE
11.7
---
11.7
Pastoral HouseColliers
42.9
0.10.7-
43.7
State Insurance TowerBayleys
144.5
1.30.4-
146.2
Market value (fair value) of
investment properties
1,535.4
2.66.8-
1,544.8
Development properties
3
Commercial BayJLL
370.0
0.185.8-
455.9
Bowen Campus Stage OneColliers
108.5
-40.5-
149.0
Bowen Campus Stage TwoColliers
10.5
-0.7-
11.2
10 Brandon Street
5
CBRE
6
20.2
-1.5(14.7)
7.0
Market value (fair value) of
development properties
509.2
0.1128.5(14.7)
623.1
1 30 June 2017 valuer.
2 Additions arise from subsequent expenditure recognised in the carrying amount. Disposals relate to completed sales,
unconditional contracts for sale at period-end and transfers to other categories of property.
3 All properties are categorised as level 3 in the fair value hierarchy. All properties are CBD office properties with the exception
of Commercial Bay, Bowen Campus and 10 Brandon Street which are under development.
4 No. 3 The Terrace relates to the freehold title in respect to Precinct's leasehold interest.
5 Leasehold property on a perpetually renewable lease. This property was previously known as Deloitte House.
6 30 June 2017 and 31 December 2017 valuer.

20
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
7. OTHER EXPENSES
Amounts in $millionsUnaudited six
months
ended
31 December
2017
Unaudited six
months
ended
31 December
2016
Audited year
ended
30 June 2017
Other expenses
Audit fees
0.1
0.1
0.2
Directors' fees and expenses
0.3
0.3
0.5
Manager's base fees
4.0
3.8
7.7
Manager's performance fees
-
-
-
Other
1
0.7
0.7
1.4
Total other expenses5.1
4.9
9.8
1 Other expenses includes valuation fees, share registry costs and annual report design and publication.
8. EARNINGS PER SHARE
Amounts in $millions
Unaudited six
months
ended
31 December
2017
Unaudited six
months
ended
31 December
2016
Audited year
ended
30 June 2017
Net profit after tax for basic and diluted earnings per share
($millions)
17.7
39.1
162.1
Weighted average number of shares for basic and diluted
earnings per share (millions)
1,211.1
1,211.1
1,211.1
There have been no new shares issued subsequent to balance date that would affect the above
calculations.

21
9. INTEREST BEARING LIABILITIES
Amounts in $millions31 December
2017
30 June 2017
Interest bearing liabilities
Bank loans
177.5
279.2
US private placement
97.9
97.9
NZ senior secured bond
175.0
75.0
Convertible note
150.0
-
Total drawn debt600.4
452.1
US private placement - fair value adjustments
11.7
8.8
Convertable note - embedded financial derivative adjustment
1.8
-
Capitalised borrowing costs
(7.3)
(4.0)
Net interest bearing liabilities606.6
456.9
Breakdown of borrowings:
Amounts in $ millions
Held atMaturity
1
Coupon
1
31 December
2017
30 June 2017
Bank loansAmortised costNov-20Floating
2
177.5
279.2
NZ senior secured bond
(PCT010)Amortised costDec-215.54%
75.0
75.0
NZ senior secured bond
(PCT020)Amortised costNov-244.42%
100.0
-
Convertible note (PCTHA)Amortised costSep-214.80%
150.0
-
US private placementFair valueJan-254.13%
73.2
71.4
US private placementFair valueJan-274.23%
36.4
35.3
Total612.1
460.9
Weighted average term to maturity
3.8 years
4.0 years
Weighted average interest rate before swaps (including funding costs)
4.09%
3.58%
1 As at 31 December 2017
2 Interest rates on bank loans are at the 90-day benchmark borrowing rate (BKBM) plus a margin. Precinct also pays facility
fees.
Precinct has committed funding of $1,182.9 million (June 2017: $1,032.9 million) including the NZ retail
bond, convertible note and US private placement.
All lenders have the benefit of security over certain assets of the Group. The Group has given a
negative pledge which provides that it will not permit any security interest in favour of a party other
than the lenders to exist over more than 15% of the value of its properties.
To substantially remove currency risk, US private placement proceeds have been fully swapped back
to New Zealand dollars.

22
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
Accounting Policy
Interest bearing liabilities
The US private placement is recognised at fair value including translation to NZD with any gains or
losses recognised in the profit or loss as they arise. This fair value is determined using swap models
and present value techniques with observable inputs such as interest rate and cross-currency
curves. This measurement falls into level 2 of the fair value hierarchy.
10. DERIVATIVE FINANCIAL INSTRUMENTS
Amounts in $millions31 December
2017
30 June 2017
Fair value of derivative financial instruments
Current assets
-
-
Non-current assets
1
15.0
12.8
Current liabilities
(1.6)
(2.9)
Non-current liabilities
(27.3)
(20.9)
Total(13.9)
(11.0)
Notional contract cover (fixed payer)
1110.0
990.0
Notional contract cover (fixed receiver)
325.0
75.0
Notional contract cover (cross currency swaps - fixed receiver)
97.9
97.9
Percentage of net drawn borrowings fixed
75.0%
65.3%
Weighted average term to maturity (fixed payer)
4.17 years
3.98 years
Weighted average interest rate after swaps (including funding costs)
5.42%
5.59%
1 This includes the cross currency interest rate swap valuation of $10.2 million (June 2017: $8.3 million) and a net credit value
adjustment of $0.4 million (June 2017: $0.4 million).
Accounting Policy
Derivative financial instruments
Precinct uses derivative financial instruments (interest rate and cross currency swaps) to manage
its exposure to interest rate and foreign exchange risks arising from operational, financing and
investment activities.
Derivative financial instruments are recognised initially at fair value and subsequently re-measured
and carried at fair value. They are carried as assets when the fair value is positive and liabilities
when the fair value is negative. The gain or loss on re-measurement to fair value is recognised
directly in profit or loss.
The fair value is the estimated amount that Precinct would receive or pay to terminate the swap
at the balance date, taking into account current rates and creditworthiness of the swap
counterparties. This is determined using swap models and present value techniques with
observable inputs such as interest rate and cross-currency curves. The fair value of derivatives fall
into level 2 of the fair value hierarchy.

23
11. RECONCILIATION OF NET PROFIT AFTER TAX TO NET OPERATING INCOME
Net operating income is net profit after tax, before revaluations on investment and development
properties, revaluations of derivative financial instruments, realised gain or loss on sale of investment
property, tax on disposal of depreciable assets and deferred tax.
Amounts in $millionsUnaudited six
months
ended
31 December
2017
Unaudited six
months
ended
31 December
2016
Audited year
ended
30 June 2017
Net profit after taxation
17.7
39.1
162.1
Unrealised net (gain) / loss in value of investment and
development properties
14.7
12.1
(77.5)
Unrealised net (gain) / loss on financial instruments
6.9
(15.3)
(11.8)
Net realised (gain) / loss on sale of investment properties
-
-
-
Depreciation recovered on sale
-
-
-
Deferred tax (benefit) / expense
(1.6)
2.9
1.9
Share of (profit) / loss of joint ventures
0.5
-
-
Net operating income38.2
38.8
74.7
Weighted average number of shares for net operating
income per share (millions)
1,211.1
1,211.1
1,211.1
Net operating income per share (cents)3.15
3.20
6.17
This additional performance measure is provided to assist share holders in assessing their returns for the
period.
12. CAPITAL COMMITMENTS
Precinct has $303.8m of capital commitments as at 31 December 2017 (June 2017: $405.3 million;
December 2016: $499.9 million) relating to construction contracts.

24
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the six months ended 31 December 2017
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
13. RELATED PARTY TRANSACTIONS
Fees charged by and owing to the manager:
Amounts in $ millions31 December 201731 December 201630 June 2017
Fees
charged
Owing at
31 December
Fees
charged
Owing at
31 December
Fees
charged
Owing at
30 June
Base management
services fee
4.00.7
3.81.3
7.70.6
Performance fee
--
--
--
Leasing fees
1.61.2
6.50.2
9.91.2
Development
manager fees
1.2-
0.9-
3.30.8
Acquisition and
disposal fees
--
--
--
Property and facilities
management fee
1.5-
1.3-
2.7(0.1)
a) Base management services fee
The base management services fee structure is as follows:
• 0.55% of the value of the investment properties to the extent that the value of the investment
properties is less than or equal to $1 billion; plus
• 0.45% of the value of the investment properties to the extent that the value of the investment
properties is between $1 billion and $1.5 billion; plus
• 0.35% of the value of the investment properties to the extent that the value of the investment
properties exceeds $1.5 billion.
These fees are expensed through indirect other expenses in the year in which they arise.
b) Performance fee
The performance fee is based on Precinct's quarterly adjusted equity total returns relative to its peers
in the NZ listed property sector as measured by the NZX listed property index. The performance fee is
calculated as 10% of Precinct's quarterly performance in excess of a benchmark index, subject to an
outperformance cap of 1.25% per quarter and after taking into account any brought forward
surpluses or deficits from prior quarters.
Any Initial Amount credited to the Carrying Account which is not used up in paying Performance Fees
or in offsetting subsequent Deficits will effectively expire 2 years after it is credited to the Carrying
Account. Similarly, any Deficit debited against the Carrying Account which is not used up in off-setting
subsequent Initial Amounts will also effectively expire 2 years after it is debited against the Carrying
Account.
No performance fee is payable in quarters where equity total returns are negative. As at
31 December 2017 there is a notional performance fee deficit of $1,113,039 to be carried forward to
the calculation of performance fees in future quarters (June 2017: $11,388,088 deficit; December 2016:
$10,777,024 deficit).
These fees are expensed through indirect other expenses in the year in which they arise.

25
c) Leasing fees
Precinct pays the Manager leasing fees where the manager has negotiated leases instead of or
alongside a real estate agent.
Leasing fees are capitalised to the respective investment or development property in the Statement
of Financial Position and amortised over the term certain life of the lease.
d) Development manager fees
Precinct pays development manager fees where the manager acts as development manager on
Precinct developments.
These fees are capitalised to the respective investment or development property in the Statement of
Financial Position.
e) Acquisition and disposal fees
Precinct pays fees to the manager for managing the sale or purchase of properties instead of or
alongside a real estate agent.
Acquisition fees are capitalised to the respective investment or development property in the
Statement of Financial Position.
Disposal fees are expensed through net realised gain or loss on sale of investement properties in the
year in which they arise.
f) Property and facilities management fee
Precinct pays a property and facilities management fee on a cost recovery basis to the manager.
These fees are expensed through direct operating expenses in the year in which they arise.
g) Other transactions with the manager
Precinct does not employ personnel in its own right. Under the terms of the Management Services
Agreement, the manager is appointed to manage and administer Precinct. The manager is
responsible for the remuneration of personnel providing management services to Precinct. Precinct's
Directors are considered to be the key management personnel and received Directors' fees for the
period ended 31 December 2017 of $222,860 (June 2017: $443,813; December 2016: $220,000).
Precinct received rental income from AMP Haumi Management Limited, AMP Capital Investors (New
Zealand) Limited, National Mutual Life Association of Australasia Ltd and AMP Services (NZ) Limited,
being the Manager or companies related to the Manager for premises leased in PWC Tower, AMP
Centre and 157 Lambton Quay. Total rent received by Precinct from these parties during the period
ended 31 December 2017 was $1,342,995 (June 2017: $3,223,101 December 2016 $1,532,479). As at
31 December 2017 an amount of $213 (June 2017: $208; December 2016: $1,548) was owing to
Precinct from these related parties.
h) Related party debts
No related party debts have been written off or forgiven during the year (June 2017: $nil; December
2016: $nil).
14. EVENTS AFTER BALANCE DATE
On 2 February 2018 Precinct's purchase of Queen Elizabeth Square from Auckland Council for
$27.2 million was completed.
On 27 February 2018 the Board approved the financial statements for issue and approved the
payment of a dividend of $17,561,250 (1.45 cents per share) to be paid on 23 March 2018.

26
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
REVIEW REPORT

27
INDEPENDENT REVIEW REPORT TO THE SHAREHOLDERS OF PRECINCT PROPERTIES NEW
ZEALAND LIMITED
We have reviewed the interim financial statements of Precinct Properties New Zealand Limited ("the
company") and its subsidiaries (together "the group") on pages 13 to 25, which comprise the
statement of financial position of the group as at 31 December 2017, and the statement of
comprehensive income, statement of changes in equity and statement of cash flows of the group for
the six month period ended on that date, and a summary of significant accounting policies and other
explanatory information.
This report is made solely to the company's shareholders, as a body. Our review has been undertaken
so that we might state to the company's shareholders those matters we are required to state to them
in a 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 company and the company's shareholders as a
body, for our review work, for this report, or for our findings.
Directors' Responsibilities
The directors are responsible for the preparation and fair presentation of interim financial statements
which comply with New Zealand Equivalent to International Accounting Standard 34:
Interim Financial
Reporting
and for such internal control as the directors determine is necessary to enable the
preparation and fair presentation of the interim financial statements that are free from material
misstatement, whether due to fraud or error.
Reviewer's Responsibilities
Our responsibility is to express a conclusion on the interim financial statements based on our review.
We conducted our review in accordance with NZ SRE 2410
Review of 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 financial statements, taken as a whole, are
not prepared in all material respects, in accordance with New Zealand Equivalent to International
Accounting Standard 34:
Interim Financial Reporting
. As the auditor of the group, NZ SRE 2410 requires
that we comply with the ethical requirements relevant to the audit of the annual financial statements.
Basis of Statement
A review of interim financial statements in accordance with NZ SRE 2410 is a limited assurance
engagement. The auditor performs procedures, primarily consisting of making enquiries, primarily of
persons responsible for financial and accounting matters, and applying analytical and other review
procedures.
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 those financial statements.
Ernst & Young provides other assurance services to the group including the statutory audit of the
group's year-end financial statements and provides limited assurance opinions in respect of individual
property expenses. We provide an agreed upon procedures engagement recalculating the
performance fee paid to the group's manager. We also provide reporting to the trustee of the group's
secured fixed rate bonds in relation to our audit. Other than the provision of those services and in our
capacity as auditor we have no relationship with, or interest in, the company or any of its subsidiaries.

28
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
Partners and employees of our firm may deal with the group on normal terms within the ordinary
course of trading activities of the business of the group.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the
accompanying interim financial statements, set out on pages 13 to 25, do not present fairly, in all
material respects, the financial position of the group as at 31 December 2017 and its financial
performance and cash flows for the six month period ended on that date in accordance with New
Zealand Equivalent to International Accounting Standard 34:
Interim Financial Reporting
.
Our review was completed on 27 February 2018 and our findings are expressed as at that date.
Ernst & Young
Auckland

29
DIRECTORY

30
DIRECTORY
DIRECTORY
PRECINCT PROPERTIES NEW ZEALAND LIMITED
INTERIM REPORT 2018
Precinct Properties New Zealand LimitedDirectors of Precinct
Registered Office of Precinct
Level 12,
188 Quay Street, Auckland, 1010
New Zealand
T: +64-9-927-1647
E: hello@precinct.co.nz
W: www.precinct.co.nz
Craig Stobo – Chairman, Independent Director
Don Huse – Independent Director
Launa Inman – Independent Director
Graeme Wong – Independent Director
Chris Judd – Director
Mohammed Al Nuaimi – Director
Rob Campbell – Director
Officers of PrecinctManager
Scott Pritchard, Chief Executive Officer
George Crawford, Chief Operating Officer
Richard Hilder, Chief Financial Officer
Davida Dunphy, General Counsel and Company
Secretary
AMP Haumi Management Limited
Level 12,
188 Quay Street
Auckland, 1010
New Zealand
BankersAuditor
ANZ New Zealand Bank
Bank of New Zealand
ASB Institutional Bank
Westpac New Zealand
The Hong Kong and Shanghai Banking
Corporation
Ernst & Young
2 Takutai Square
Britomart
Auckland 1010
New Zealand
Bond TrusteeSecurity Trustee
The New Zealand Guardian
Trust Company Limited
Level 15
191 Queen Street
Auckland
Public Trust
Level 35, Vero Centre
48 Shortland Street
Auckland 1010

31
DIRECTORY
REGISTRAR - Shareholders and Bondholders
Computershare Investor Services Limited
Telephone:+64-9-488-8700
Level 2, 159 Hurstmere RoadToll free:0800-359-999
Takapuna, AucklandEmail:enquiry@computershare.co.nz
Private Bag 92119Website:www.computershare.co.nz
Auckland 1142Fax:+64-9-488-8787
Please contact our registrar;
• To change investment details such as name, postal address or method of payment
• To elect to receive electronic communication
• For queries on dividends and interest payments.

www.precinct.co.nz
C R E A T I N G
C I T Y C E N T R E
P R E C I N C T S
I N T E R I M R E P O R T 2 0 1 8

---

APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(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.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumber
Date
Nature of event
BonusIf ticked,
Rights Issue
Tick as appropriate
Issue
state whether:Taxable
/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
a
whether:
Interim
a
YearSpecialDRP Applies
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per security
Payment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
Supplementary
Amount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceWithholding Tax(Give details)
Foreign
FWP Credits
Withholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date. In the case
of applications this must be the
last business day of the week.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
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:
EMAIL: announce@nzx.com
Precinct Properties New Zealand Limited
Richard HilderBoard Resolution
+64 9 927 1641 +64 9 927 165527022018
Notice of event affecting securities
NZAPTE0001S3
In dollars and cents
Retained Earnings
$0.002408
Precinct Properties New Zealand Limited Shares
$0.012092
Enter N/A if not
applicable
NZD$0.00042494
Up to $17,561,249.64
Date Payable
23 March, 2018
$$0.000936
$
12 March, 201823 March, 2018

---

Page 1 of 1
Precinct Properties New Zealand Limited

Results for announcement to the market

Reporting Period
6 months to 31 December 2017
Previous Reporting Period
6 months to 31 December 2016

Amount NZD ($m) Percentage change
Revenue from ordinary
activities
$ 65.7 2.2%
Profit (loss) from ordinary
activities after tax attributable
to security holders
$ 17.7 (54.7%)
Net profit (loss) attributable to
security holders
$ 17.7 (54.7%)

Dividend Amount per security Imputed amount per security
Interim $NZ 0.01450 $NZ 0.000936
Record Date 12 March 2018
Dividend Payment Date 23 March 2018

Comments:
1. Unaudited interim financial statements of Precinct Properties New Zealand Limited are
included within the 2018 Interim Report (attached to this announcement).
2. The interim report can also be found at www.precinct.co.nz

---

Precinct Properties New Zealand
Interim Results
28 February 2018

FY18 INTERIM RESULTS
Page 2
Agenda
Highlights
Page 3
Section 1 –Strategy progress
Page 4
Section 2 –Development summary
Page 6
Section 3 –Interim results and capital management
Page 16
Section 4 –Market and portfolio overview
Page 21
Section 5 –Conclusion and outlook
Page 30
Precinct Properties New Zealand Limited
Scott Pritchard, CEO
Richard Hilder, CFO
George Crawford, COO
Note: All $ are in NZD unless otherwise stated

FY18 INTERIM RESULTS
Page 3
Highlights
Note 1: Net operating income is an alternative performance measure which
adjusts net profit after tax for a number of non-cash items.
$40.9m
1H18 net operating income
1
before tax up 3.8%
3.7%
increase in net property income
$17.7m
1H18 net profit after tax
Financial performance
Capital management
99% occupancy and 8.8 year weighted
average lease term
Strong leasing across the portfolio
$250m
Non bank funding secured during the period
23.0%
reduced gearing ratio
Portfolio performance

Section 1
Strategy progress

FY18 INTERIM RESULTS
Page 5
Strategy progress since June
Empowering People
-Sourcing retail management team for Commercial Bay
-Diversity policy updated
-Intern program completed
Operational Excellence
-50% ANZ Centre being marketed for sale
-$250 million capital management initiatives
-Third location secured for Generator
-Portfolio WALT further extended to 8.8 years
-Strong Wellington occupancy lifting like for like rentals by 12.4%
Developing the Future
-Commercial Bay:
+Retail leasing commitments -60%
+15% of the tower under negotiation
-Bowen Campus:
+On programmeand budget
+100% office leased
-Wynyard Quarter stage 2 well advanced

Section 2
Development
summary

FY18 INTERIM RESULTS
Page 7
Development Summary
Current
■Targeted metrics remain on track
–Blended return on cost of 27%
–Blended yield on cost of 7.5%
■+76,000sqmadditional office NLA
–Currently 80% leased
■80% weighting to Auckland
Pipeline
■1 Queen Street mixed use office/hotel
■Wynyard Quarter Stage Two
■Bowen Campus Stage Two
■Additional c. 36,000 sqmof office area
Targeted Pipeline Returns
15%
Targeted profit on cost
$302 m
$131 m
$172 m
$21 m
$211 m
$51 m
$100 m $200 m $300 m $400 m $500 m $600 m $700 m
Com Bay
Bowen
Forecast cost to complete
To dateFY18FY19
7%
Yield on cost

FY18 INTERIM RESULTS
Page 8
Commercial Bay
■Targeted return
metrics maintained
■Independent advice on
completion dates
updated
■Settlement of Queen
Elizabeth Square
completed

FY18 INTERIM RESULTS
Page 9
Retail Leasing
■Leasing now at 60%
■Significant progress
achieved at Harbour Eats:
–50% of F&B operators
already committed
■Secured renowned F&B
operators
–Mimi Gilmour
–Al Brown
–Josh Emett
■Newto NZ fashion retailers
committed adding to the
retail mix
60%
Committed to date

FY18 INTERIM RESULTS
Page 10
Office Leasing
■Total office commitments remain at 66%
■Leasing momentum continues:
–Circa. 15% (6,000sqm) of space under
negotiations
–Commercialterms remain consistent
with feasibility assumptions
■Supportive Auckland CBD property
environment for the remaining tower
floors

FY18 INTERIM RESULTS
Page 11
Commercial Bay programmeupdate
■Previously announced delayed retail completion until late Q1 2019 based on
independent advice
■Contract date for retail completion is November 2018, contractor has
recently advised December 2018 date
■Our independent advice is that December 2018 completion is unlikely
■PwC Tower programme date for completion remains mid 2019 (July)
■Some risk to achieving Tower programme date dependent on the rate of
façade installation
■Both programmes are subject to increased and ongoing monitoring,
independent of the contractor
■Precinct remains confident with the provisions of its construction contract
and the protections from losses due to contractor delay

FY18 INTERIM RESULTS
Page 12
Bowen Campus
■100% pre-committed
–Lease to the Crown now
unconditional
■Lease to the New Zealand
Defence Force at Bowen State
building extended to 18 years
■Project works remain on
programme and budget

FY18 INTERIM RESULTS
Page 13
Future opportunities
Wynyard Quarter Stage Two
■Continue to advance Stage Two (10
Madden St)
–1 of the remaining 3 sites
■Development consists of another
8,000sqm office building across 6 floors as
well as a new F&B precinct and plaza
■Negotiations are taking place with
occupiers seeking 50% pre-commitment
■Remain on target to commit within next 6
months

FY18 INTERIM RESULTS
Page 14
Future opportunities
Commercial Bay Stage Two -1 Queen St
■Investigations continue into development
options
■Most feasible option mixed use
development
–Hotel with office above
■Negotiations with preferred hotel operator
are on-going
■Hotel use will further support the
Commercial Bay retail precinct,
particularly food and beverage and night
time trading

FY18 INTERIM RESULTS
Page 15
Future opportunities
Wynyard Quarter Stage 3
■Remaining stage of Wynyard Quarter precinct
■Potential for up to 20,000sqm of NLA across 2 separate
or interconnected buildings
■Commencement of stages 3 and 4 will be demand
led
Bowen Balance land
■Stage 2 currently being designed
■Site preparation works are underway including
demolition of existing Annex building
■Potential for up to c.20,000sqm of NLA across 2 new
builds
■Suitable for both Crown and corporate occupiers

Section 3
Interim Results
and Capital
Management

FY18 INTERIM RESULTS
Page 17
Financial performance
EPS reconciliation to comparative period
six months ended
31 December
2017
31 December
2016
($m)UnauditedUnaudited
Net property income $47.6 m $45.9 m
Indirect expenses ($1.1 m)($1.1 m)
Performance fee
Base fees ($4.0 m)($3.8 m)
EBIT $42.5 m $41.0 m
Net interest expense ($1.6 m)($1.6 m)
Operating profit before tax $40.9 m $39.4 m
Current tax expense ($2.7 m)($0.6 m)
Operating profit after tax $38.2 m $38.8 m
Unrealised net gain / (loss) in value of investment and
development properties
($14.7 m)($12.1 m)
Net realised gain / (loss) on sale of investment
properties
Unrealised net gain / (loss) on financial instruments($6.9 m)$15.3 m
Depreciation recovered on sale
Deferred tax (expense) / benefit $1.6 m ($2.9 m)
Share of profit or (loss) of joint venture($0.5 m)
Net profit after tax and unrealised gains $17.7 m $39.1 m
Weighted Number of Shares on Issue1,211.1 m 1,211.1 m
Net operating income before tax -gross (cps)3.38 cps3.25 cps
Net operating income after tax -(cps)3.15 cps3.20 cps
Payout ratio92%87%
■Net operating income of 3.15 cps
■Full year guidance remains around 6.30 cps
■Net profit after tax impacted by the ($14.7)
million fair value movement for 10 Brandon
Street
2.75 c
3.00 c
3.25 c
3.50 c

FY18 INTERIM RESULTS
Page 18
Net property income
■Overall NPI was $1.7 million (3.7%) higher following
the completion of Wynyard Quarter Stage One
■Allowing for developments and HSBC House net
property income was $1.2 million (3.1%) higher than
the comparative period
–NPI in the corporate Wellington assets increased
by 12.4% following a 10% lift in occupancy
–Auckland NPI increased 2.5%
Reconciliation of movement in net property income
Note 1: Variance relates to foregone income associated with Commercial Bay
For the 12 months ended
$m
Unaudited
six months
ended 31
December
2017
Unaudited
six months
ended 31
December
2016
D
AMP Centre$4.8 $4.5 + $0.3
PwC Tower$8.7 $8.4 + $0.4
ANZ Centre$9.1 $9.3 ($0.2)
Zurich House$2.4 $2.3 + $0.1
Auckland total$25.0 $24.4 + $0.6
Pastoral House$2.2 $2.2 ($0.0)
157 Lambton Quay$3.7 $3.1 + $0.7
State Insurance Tower$4.5 $4.3 + $0.3
Mayfair House$1.7 $1.6 + $0.1
No 1 The Terrace$2.9 $3.2 ($0.4)
Wellington total$15.0 $14.4 + $0.6
HSBC House$3.3 $4.0 ($0.8)
Total Investment portfolio$43.3 $42.9 + $0.4
Transactions and Developments
Commercial Bay$0.0 ($0.1)+ $0.1
12 Madden Street$2.2 + $2.2
Mason Brothers$1.2 $0.1 + $1.1
Bowen Campus$0.0 $2.0 ($1.9)
Bowen Annex
10 Brandon Street$0.9 $1.2 ($0.2)
Total$47.6 $45.9 + $1.7
$40.0 m
$45.0 m
$50.0 m
NPI

FY18 INTERIM RESULTS
Page 19
Taxation reconciliation
■Tax expense of $2.7 million
–$2.1 million higher than
comparable period
■Higher tax charge due to:
–Lower level of leasing costs
–Lower disposal of depreciable
assets
■Effective tax rate for FY18
expected to be around 4-6%.
■Second half expected to have a
lower tax expense due to:
–Disposal of depreciable assets
at Bowen Annex and No3 The
Terrace
–Higher level of leasing costs
Tax expense reconciliation
Unaudited
six months
ended 31
December
2017
Unaudited
six months
ended 31
December
2016
Net profit after tax and unrealised gains $17.7 m $39.1 m
Deferred tax benefit($1.6 m)$2.9 m
Current tax expense$2.7 m $0.6 m
Net profit before taxation$18.8 m $42.6 m
Less non assessable income
Unrealised net (gain) in value of investment
properties
$14.7 m $12.1 m
Unrealised net (gain) /loss on financial instruments$6.9 m ($15.3 m)
Share of profit or (loss) of joint ventures$0.5 m
Operating profit before Tax$40.9 m $39.4 m
Other deductible expenses
Depreciation($9.8 m)($8.8 m)
Leasing fees and incentives in the period($2.3 m)($8.7 m)
Capitalised interest on development properties($15.1 m)($7.4 m)
Disposal of depreciable assets($1.6 m)($12.4 m)
Other deductibles($2.4 m)$0.1 m
Taxable income$9.6 m $2.1 m
Tax at 28%$2.7 m $0.6 m
Current tax expense$2.7 m $0.6 m
Effective tax rate6.6%1.5%

FY18 INTERIM RESULTS
Page 20
Capital management
■$250 million of funding secured in period
–Total facilities increased to $1.18 billion
■Borrowings increased to $600 million due to
development expenditure
■Subordinated convertible note has resulted in
covenant gearing falling to 23.0% (June 17: 25.1%)
–Committed gearing around 34%
■Weighted average debt to maturity of 4.2 years
Key metricsDec 2017June 2017
Debt drawn ($m)600452
Gearing -Banking Covenant
23.0%25.1%
Weighted facility expiry (years)
3.84.0
Weighted average debt cost (incl fees)
5.4%5.6%
Hedged
75%65%
ICR (previous 12 months)
2.9 times3.9 times
Total debt facilities ($m)
1,1831,033
Debt maturity profileHedging profile
0.0%
50.0%
100.0%
FY 18FY 19FY 20FY 21FY 22
Average hedging
Policy RangeAverage Hedging
$200 m
$400 m
$600 m
$800 m
Jun 18Jun 19Jun 20Jun 21Jun 22Jun 23Jun 24Jun 25Jun 26>Jun 26
Debt Facility Expiry Profile
Year ending
USPPBankBondBank - UndrawnConvertible Note

Section 4
Market and
Portfolio
Overview

FY18 INTERIM RESULTS
Page 22
Portfolio activity
■Strong portfolio performance, driven
by growth in rental levels and
occupancy, especially Wellington.
■Total Rent reviews were 4.1% higher
than valuation
■Market events (leasing and reviews)
were 1.8% higher than valuation
■Compared with previous contract
rent, settled market rent reviews were
8.3% higher (2.9% including fixed and
index)
■Portfolio remains 4.7% under-rented
Leasing Events
New LeasesNumberArea
Auckland82,918 m²
Wellington62,733 m²
Sub Total145,651 m²
RoR, Extensions & Restructures
Auckland42,408 m²
Wellington1110m²
Sub Total52,518 m²
Total Leasing198,170 m²
Rent ReviewsNumberArea
Auckland4130,531 m²
Wellington1610,842 m²
Total Reviews5741,372 m²
Increase to contractTotal rent
Market rentreviews8.3%$3.4m
Fixedand indexed1.7%$14.6m
Totalreviews2.9%$18.0m

FY18 INTERIM RESULTS
Page 23
Portfolio metrics
8.8 years
Weighted average lease term
(including development pre-leasing)
99%
Occupancy
11.8%
of Auckland portfolio has a market event over the
next 12 months
72%
weighting to Auckland
Occupancy
Lease expiry profile by Area (including pre-commit)
*Excludes Commercial Bay Retail
0%
20%
40%
60%
80%
100%
% of building NLA
AucklandWellington
2.6%
9.9%
11.8%
4.3%
5.1%
4.7%
4.0%
2.2%
3.3%
2.0%
49.8%
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
2018201920202021202220232024202520262027Beyond
WellingtonAuckland

FY18 INTERIM RESULTS
Page 24Page 24
Auckland
Portfolio

FY18 INTERIM RESULTS
Page 25
Auckland CBD office market
OccupierDemand
According to Colliers research, total Auckland CBD
vacancy has not exceeded 6.0% since the middle of 2015.
The recent rise to 5.9% stems from vacancy arising in both
Viaduct Harbourand Victoria Quarter. Premium grade
vacancy remains low at 1.8%.
Supply
With premium vacancy rates remaining low, evidence of
over-occupancy driven by lack of available space, and
minimal supply in the market, the 60,000 sqm of new supply
due to be completed over the next two years is expected
to be comfortably absorbed by the market.
Forecast vacancy (JLL, Dec 2017)
Forecast net effective rent growth (JLL, Dec 2017)
60,000
Sqm of office space set for
completion over the next
two years
5.9%
Total Auckland CBD office
vacancy rate as at 31
December 2017
-6.00%
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
201720182019202020212022
Net effective rental growth pa
PremiumA Grade
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
201720182019202020212022
Vacancy Rate %
PremiumA grade

FY18 INTERIM RESULTS
Page 26Page 26
Wellington
Portfolio
Bowen Campus
1 -3 The Terrace
Pastoral House
Mayfair House
Dimension Data
House
State Insurance
Tower
10 Brandon St
Bowen Campus
StageTwo

FY18 INTERIM RESULTS
Page 27
Wellington CBD office market
Forecast vacancy (JLL, December 2017)
Forecast net rent growth (JLL, December 2017)
OccupierDemand
With the loss of nearly 100,000sqm of office space,
vacancy has hit record lows, indicating continued strong
demand for office space.
Supply
The completion of several new buildings has done little to
meet the demand, with most of the developments being
near 100% pre-committed, resulting in an undersupply of
CBD office space.
100,000
Sqm of office stock removed from
the market by the November 2016
earthquake.
38,800
Sqm of office stock brought to
the market in 2017 with little or
no impact to the occupier
market.
-4.00%
-2.00%
0.00%
2.00%
4.00%
6.00%
201720182019202020212022
Net effective rental growth pa
Prime
Prime
0.0%
5.0%
10.0%
15.0%
20182019202020212022
Vacancy Rate %
A GradeB Grade

FY18 INTERIM RESULTS
Page 28
10 Brandon Street
■A number of options for the building have been explored to
date:
–Strengthen existing
–Strengthen with façade upgrade
–Full office redevelopment
–Student accommodation
–Apartments
–Office/Apartment hybrid
■Preferred option is to strengthen with façade upgrade
■Commencement of work to be demand led
Full redevelopmentOffice/Apartment hybridStudent accommodation
10 Brandon
Street

FY18 INTERIM RESULTS
Page 29
Generator update
■Generator now manage circa 12,000 sqm of co-working space over three
locations
■Stanbeth& Excelsior
–Established location with stable operations in heritage Britomart buildings
–Recently expanded and facilities upgraded to total 340 desks
■10 Madden Street and Mason Brothers
–Launched September 2017
–Wynyard Quarter location as part of ATEED’s GridAKLInnovation Precinct
–A total of 560 desks over two buildings with state of the art events and
meeting facilities
–Occupancy ahead of expectations and strong demand for event
facilities
■Generator House
–Launching May 2018
–Circa 270 desks with events and meeting spaces over the upper levels of
the Britomart East building

Section 5
Conclusion and
outlook

FY18 INTERIM RESULTS
Page 31
Conclusion and outlook
■Global economic growth continues to improve
■Strengthening markets
–Signs of post election stability emerging
–Strong occupier and investment markets
■New Zealand is well placed to continue to grow
■Precinct well positioned
–Strong balance sheet
■Precinct has a clear strategy
–City centre specialisation
–Targeted approach to our markets
■Increased confidence
–Performance of our investment portfolio
–Outlook for both committed and uncommitted developments

Thank you

Precinct settlement of Queen Elizabeth Square SPH Notice – ANZ

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.

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