Precinct announces $202 million revaluation gain

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 – 25 June 2018
Precinct announces $202 million revaluation gain
Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) today reported a draft
revaluation gain on its property portfolio of approximately $202 million (2017: $77.5 million) or
8.8% uplift, increasing the value of Precinct’s portfolio to around $2.5 billion. Precinct’s NTA per
share will increase from $1.23 to around $1.41 cents per share.
Draft asset valuations at 30 June 2018 were carried out by independent valuers, are subject to
final audit, finalisation of year end book values and will be confirmed in the financial results for
the year ending 30 June 2018, to be announced on 16 August 2018.
The development portfolio contributed significantly to the revaluation gain, reflecting
development profit recognition and capitalisation rate firming on these projects.
On a like for like basis, Auckland asset valuations increased by around 13% compared with 30
June 2018 forecast book values and Wellington has remained largely unchanged. The
increase recorded in Auckland was mainly attributable to a firming in capitalisation rates
supported by recent asset sales evidence, together with market rental growth.
In Wellington, while rentals and capitalisation rates have further improved over the last 12
months, this has been offset by additional operating expenses, mainly insurance premiums
and rates.
Scott Pritchard, Precinct’s CEO said, “This strong result reflects Precinct’s active management
approach with the investment portfolio value increasing by around $100 million and the
current development projects benefitting from a $100 million gain.”
“Forecast net profit, which considers a project’s status and estimated cost to complete, from
both Commercial Bay and Bowen Campus developments has increased to $313 million. This
follows Commercial Bay’s value on completion increasing to just over $1.0 billion. Pleasingly,
based on current project metrics there remains a further $125 million of unrecognised profit
which is expected to materialise on completion of these projects which would add a further
10 cents per share to proforma NTA,” he said.
ends-

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
For further information, please contact:
Richard Hilder
Chief Financial Officer
Office: +64 9 927 1645
Mobile: +64 29 969 4770
Email: richard.hilder@precinct.co.nz



About Precinct (PCT)
Precinct is New Zealand’s only listed city centre specialist investing predominately in premium
and A-grade commercial office property. Listed on the NZX Main Board, PCT currently owns 14
New Zealand buildings – Auckland’s PwC Tower, AMP Centre, ANZ Centre, Zurich House, HSBC
House, Mason Brothers Building, 12 Madden Street and Commercial Bay; and Wellington’s AON
Centre, Dimension Data House, No. 1 and No. 3 The Terrace, Pastoral House, Mayfair House and
Bowen Campus.
Scott Pritchard George Crawford
Chief Executive Officer Chief Operating Officer
Office: +64 9 927 1640 Office: +64 9 927 1641
Mobile: +64 21 431 581 Mobile: +64 21 384 014
Email: scott.pritchard@precinct.co.nz Email: george.crawford@precinct.co.nz