Precinct Properties New Zealand Limited/Announcement

PCT delivers strong profit result and launches One Queen St

Full Year Results15 August 2018PCTReal Estate

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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 – 16 August 2018
PCT delivers strong profit result and launches One Queen Street
Performance summary for the 12 months ended 30 June 2018
Delivering strong results
• Net profit after tax increased by 57.2% to $254.9 million (2017: $162.1 million).
• Net property income (NPI) increased by 5.4% to $95.3 million (2017: $90.4 million).
• Net operating income
1

increased to $76.6 million, up 2.5% (2017: $74.7 million).
• Full year dividend of 5.80 cps, up 3.6% (2017: 5.60 cps), representing a 100% payout ratio (AFFO).
• Strong property revaluation gain of $208.7 million or 9.0% (2017: $77.5 million).
• NTA per share increased by 12.9% to $1.40 (2017: $1.24).
• Earnings guidance for FY19 net operating income of approximately 6.60 cps, with the FY19
dividend expected to increase by 3.4% to 6.00 cps.
Capital management
• $191 million of asset sales
2
providing capacity for new projects.
• $250 million non bank funding secured.
• Post balance date refinancing of $760 million bank debt facility.
• Strong financial position with gearing of 25.0% (2017: 25.1%); pro forma gearing reduced to
19.4% at balance date following asset sales.
Development update
Launch of One Queen Street, announced today
• Precinct will undertake a $298 million redevelopment of One Queen Street (currently HSBC
House) in Auckland.
• Redevelopment comprises a luxury hotel, premium office accommodation above and a
variety of unique food and beverage options integrating with Commercial Bay.
• Appointment of InterContinental Hotels Group (IHG) as the hotel operator for the new hotel,
InterContinental Auckland.
• Signed heads of agreement
3
over 3,700 square metres of the office premises which results in
the overall project being 75% precommitted, with an expected yield on cost of 7.0% once
complete.
• Entering into a 50% fixed price construction contract with LT McGuinness.
• Construction is scheduled to commence in 2020.
Commercial Bay
• Advancing retail commitments to 76% (2017: 46%) and office commitments to 78% (2017: 66%).

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.

2
The sale of the 50% interest in ANZ Centre sale remains subject to Overseas Investment Office approval and the sale of 10 Brandon Street is
conditional on ground lessor approvals and is due to settle in August 2018.
3
Signed heads of agreement records all commercial terms agreed subject to negotiation and execution of binding documentation.

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
• Yield on cost remains unchanged at 7.5% with an increased profit on cost following the
revaluation of 41% (June 17: 31%) or $283 million.
• Phase one of the retail remains on schedule with H&M opening its flagship 3,800 square metre
store on 30 August 2018.
• A revised completion programme has recently been provided.
Bowen Campus
• Charles Fergusson Tower on track for completion in December 2018 and occupation by Ministry
of Primary Industries.
• Bowen State Building to be occupied by New Zealand Defence Force with lease commencing
April 2019.
• Yield on cost of 7.0%+ with an increased profit to 18%.
Future development opportunities
• Design has advanced for Wynyard Quarter development stages two, three and four with the
second stage of the development anticipated to commence in the next 6 months.
• Building design and marketing underway for pre-commitment leasing for the remaining
development land at Bowen Campus.
Investment portfolio performing well with Auckland fully leased
• Occupancy of 99% (2017: 100%) and a weighted average lease term (WALT) across the portfolio
maintained at 8.7 years (2017: 8.7 years)
• Positive leasing momentum with 41 transactions completed during the period, encompassing
over 21,900 square metres and 598 car parks.
• Strong demand for space with QBE expiring floors leased ahead of vacancy and 3 floors of IAG
expiry leased at Aon Centre, Wellington.
• Strong like for like income growth of 3.0% on the previous comparable period, with Auckland
increasing by 3.1% and the Wellington portfolio achieving an uplift of 2.9%.
• Generator occupancy of 73%, well above expectations
- With 75% (9,500 square metres) of its space launched during the year, the business recorded
a loss, as anticipated for this trading-up period.

Note: Further information can be found within the 2018 Annual Report and results presentation. You can find these at
www.precinct.co.nz/annual-report-2018
Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) reported its financial results for
the 12 months ended 30 June 2018 today, with net profit after tax (NPAT) up 57.2% to $254.9
million (2017: $162.1 million). The quality of Precinct’s portfolio including its active development
pipeline has resulted in a significant portfolio revaluation gain of $208.7 million or 9.0% for the
period. This has contributed to our increase in NPAT this year.
Net operating income (distributable earnings) which adjusts for a number of non-cash items
has also increased by 2.5% to $76.6 million over the period (2017: $74.7 million). On a cents per
share (cps) basis, this equates to 6.32 cps and was in line with guidance (2017: 6.17 cps).

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
Revenue growth of 3.6% was primarily due to the completion of Wynyard Quarter Stage One
which was partially offset by foregone income related to development activity and 10
Brandon Street. After allowing for these transactions and activity, on a like for like basis gross
rental income was 3.7% higher than the previous period. This growth has driven an uplift in NPI
by 5.4% to $95.3 million (2017: $90.4 million).
As at 30 June 2018, Precinct’s portfolio value increased to around $2.5 billion following the
strong revaluation gain during the period. Precinct’s NTA per share was up 12.9% to $1.40
(2017: $1.24). Further financial information can be found within the 2018 Annual Report at
www.precinct.co.nz/annual-report-2018
.
Scott Pritchard, Precinct’s CEO, said “The last financial year has delivered another strong result
for our business. As we moved forward with our strategy, we progressed a number of initiatives
and achieved key milestones during the year. We have continued to take an active
management approach with both our investment portfolio and our development pipeline,
leveraging Precinct’s market position”.
Focusing on a number of capital management initiatives during the year has resulted in a
total of $250 million of capital raised through the completion of a convertible notes offer and
bond issue. Progressing the sale of a 50% interest in ANZ Centre in Auckland and the sale of
10 Brandon Street in Wellington are other examples that demonstrate Precinct's active
management approach. These assets totalled $191 million of capital recycled during the
period.
Scott Pritchard, Precinct’s CEO, said “We believe these initiatives are well suited to Precinct’s
strategy and provides the necessary available capital to match our development
commitments. The post balance date refinancing of Precinct's $760 million bank debt facility
in July 2018 further supports this by providing sufficient funding capacity to deliver these
projects”.
At year end our investment portfolio has continued to benefit from strong occupier markets.
Achieving a high overall portfolio occupancy of 99% at year end and weighted average
lease term of 8.7 years demonstrates this. Our Auckland portfolio has performed particularly
well with occupancy sitting at 100% reflecting demand for premium inner-city office space.
In Wellington, we have also reduced vacancy increasing occupancy levels through active
leasing during 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
In both Auckland and Wellington we have successfully leased major expiries well ahead of
vacancy. At AMP Centre in Auckland, the QBE expiry has been fully leased at a premium of
17% to previous rentals. At Aon Centre in Wellington, 3 floors have been leased on the former
IAG tenancy, with two remaining floors becoming available in early 2019.
Development update
One Queen Street
Precinct has today announced it will proceed with the $298 million redevelopment at One
Queen Street (currently HSBC House). As a second stage of the Commercial Bay project, the
mixed use redevelopment of the building comprises a luxury hotel, premium office
accommodation above and a variety of unique food and beverage options including a roof-
top hospitality venue. The development will be fully integrated into the Commercial Bay retail
precinct, providing a further and complementary demand driver especially for the weekend,
evening and holiday trading periods.
The hotel will operate across 11 levels of the building and provide a total of 244 guest rooms
and suites, together with an all-day dining restaurant, meeting suites, health club and club
lounge facilities. The commercial office space will encompass 8,700 square metres across 7
levels.
The mixed use redevelopment of One Queen Street significantly enhances Commercial Bay
for retail, business and visitors alike. To have such a large area operating seamlessly under
single ownership and management provides a unique opportunity to generate strong
synergies between the uses. We believe this offering will further support the Commercial Bay
retail precinct, particularly food and beverage.
The Auckland hotel market is experiencing unprecedented levels of growth in demand, which
is forecast to persist through further growth in tourism numbers through to at least 2025. While
a number of new hotel projects have been announced in the last 24 months, the increase in
supply is expected to still fall short of demand over the short term and reach equilibrium over
the medium to long term. This is expected to underpin robust room and occupancy rates
moving forward.
Scott Pritchard, Precinct’s CEO, said “The launch of One Queen Street is further evidence of
Precinct’s role in creating a world class waterfront destination on par with other global cities.

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
Securing InterContinental, one of the world’s most recognised luxury hotel brands, reflects the
high demand from operators for this unparalleled waterfront location”.
The overall project is 75% precommitted with a management agreement entered into with
IHG and a signed heads of agreement
4
across 3,700 square metres of the office premises. The
One Queen Street development will be funded through Precinct’s existing debt facilities. On
completion, the project is expected to generate a stabilised yield on cost of 7.0% and a profit
on cost of 15%.
LT McGuinness will be the main contractor for the One Queen Street development. With a
proven record of delivering projects on time and to the highest standard, we are confident
about the delivery of this project. Construction is scheduled to commence in Q1 2020.
Precinct are pleased with LT McGuinness’s performance to date on site at Bowen Campus in
Wellington and with their work in Wynyard Quarter in Auckland.
Commercial Bay
Commercial Bay continues to achieve a good level of leasing enquiry and we have secured
a number of additional occupiers during the period, advancing retail commitments to 76%
and office commitments to 78%. With retail enquiry levels remaining elevated, we expect
leasing momentum to continue into 2019. Across the office tower, securing commitments from
a number of occupiers outside the existing portfolio is a great outcome.
Phase one of the retail remains on schedule with H&M opening its flagship 3,800 square metre
store on 30 August 2018, marking an important development milestone.
Commercial Bay remains on track to deliver a yield on cost of 7.5% and an increased profit
on cost of 41% (June 17: 31%) or $283 million. Based on current project metrics, there remains
a further $100 million of unrecognised development profit expected to materialise on
completion.
Construction has reached several key milestones during the period, with the completion of
key tower structural elements, retail construction out of the ground and completion of the first
phase of façade installation.

4
Signed heads of agreement records all commercial terms agreed subject to negotiation and execution of binding documentation.

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
Up until this point, Precinct has estimated the completion programme from independent
advice. Following considerable engagement with the main contractor, Fletcher Construction,
a revised completion programme has recently been provided.
The completion programme provided by Fletcher Construction has been reviewed by
Precinct’s expert programmer, RCP, who have confirmed the revised dates are achievable,
subject to the main contractor’s performance. The revised completion dates for the
Commercial Bay retail and the new PwC office tower are September 2019 and December
2019, respectively.
Scott Pritchard, Precinct’s CEO, said “While any delay in a project is disappointing, we believe
Fletchers are maintaining a very high standard of quality during a very challenging period
within the construction industry”.
Precinct remains confident with the provisions of its construction contract, which protect
Precinct from losses due to contractor delay. Liquidated damages will effectively mitigate the
impact on Precinct from any loss of income and other costs over the delayed period.
Precinct continues to work closely with retailers at Commercial Bay to communicate the
revised occupation dates. For those occupiers coming into the new PwC office tower, all
have existing lease terms which extend beyond the revised completion dates of the office
tower.
Bowen Campus
In Wellington, construction works have continued to progress well over the last 12 months. We
have now completed the facade installation at Charles Fergusson Tower with on floor works
continuing. All works are targeted for completion late December 2018.
At Bowen State Building we have completed the majority of the structural works for the
building including the north and south shear walls. The façade is now 90% complete for the
building, installed from Level 1 to 10. On floor works are also underway to all levels.
Occupation of Bowen State Building by New Zealand Defence Force is expected in Q3 2019
.
Future opportunities
Preliminary designs for the remaining development land at Bowen Campus are being
progressed and marketing for leasing pre-commitment has been launched. With potential to
accommodate up to 20,000 square metres of commercial office space, it is considered

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
suitable for both Crown and corporate occupiers. The Annex Building which was previously
on the site has now been demolished.
At Wynyard Quarter with the first stage now complete, design has advanced for stages two,
three and four. Precinct is able to develop a further 30,000 square metres of office space on
the site and will draw on the land when it wishes to proceed with each stage. Precinct has
continued to engage with potential occupiers for the type of space within the Innovation
Precinct and is encouraged by the extent of ongoing interest. Precinct anticipate
commencing the second stage of the development in the next six months.
Dividend payment
Precinct shareholders will receive a fourth-quarter dividend of 1.45 cps plus imputation credits
of 0.2473 cps. Offshore investors will receive an additional supplementary dividend of 0.1122
cps to offset non-resident withholding tax (see note 2). The record date is 14 September 2018
with payment to be made on 28 September 2018.
Outlook and guidance
The long-term outlook for the Auckland market remains strong, with solid demand drivers for
city centre real estate across the office, retail, hotel and residential markets.
The office market in particular is supported by increased growth in the working age
population, with continued elevated visitor growth projected to underpin hotel demand. With
demand forecast to grow with limited supply evident, constraints in the construction market
are expected to continue placing upwards pressure on replacement costs. Similarly, outlook
for the Wellington market has significantly improved in contrast to previous years.
We are committed to our long-term strategy as city centre specialists. This strategy is
progressing well and is reflected in our strong results this year.
The Board expects full year earnings for the 2019 financial year of approximately 6.60 cps,
before performance fees and expects to pay a dividend of 6.00 cps. This represents a 3.4%
increase in dividend to shareholders.
Ends
Further financial information can be found within the 2018 Annual Report. You can find this at
www.precinct.co.nz/annual-report-2018
.

---

Page 1 of 1
Precinct Properties New Zealand Limited

Results for announcement to the market

Reporting Period
12 months to 30 June 2018
Previous Reporting Period
12 months to 30 June 2017

Amount NZD ($m) Percentage change
Revenue from ordinary
activities
$ 130.7 3. 6%
Profit (loss) from ordinary
activities after tax attributable
to security holders
$ 254.9 57.2%
Net profit (loss) attributable to
security holders
$ 254.9 57.2%

Dividend Amount per security Imputed amount per security
Final $NZ 0.01450 $NZ 0.002473
Record Date 14

September 2018
Dividend Payment Date 28 September 2018

Comments:
1. Audited annual financial statements of Precinct Properties New Zealand Limited are
included within the 2018 Annual Report (attached to this announcement) together with
the auditor’s report to those financial statements.
2. The annual report can also be found at www.precinct.co.nz/annual-report-2018

---

APPENDIX 7 – NZSX Listing Rules
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EMAIL: announce@nzx.com
Precinct Properties New Zealand Limited
Richard HilderBoard Resolution
+64 9 927 1645 +64 9 927 165515082018
Notice of event affecting securities
NZAPTE0001S3
In dollars and cents
Retained Earnings
$0.006359
Precinct Properties New Zealand Limited Shares
$0.008141
Enter N/A if not
applicable
NZD$0.00112218
Up to $17,561,249.64
Date Payable
28 September, 2018
$$0.002473
$
14 September, 201828 September, 2018

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Precinct Properties New Zealand
Annual Results
August 2018
Creating
City Centre
Precincts

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 2
Agenda
Highlights / Major themes / Strategy overview
Pages 2-5
Section 1 –Financial results and capital management
Page 6
Section 2 –One Queen Street development
Page 14
Section 3 –Developments
Page 21
Section 4 –Market
Page 30
Section 5 –Operations
Page 38
Section 6 –Conclusion & outlook
Page 46
Precinct Properties New Zealand Limited
Scott Pritchard, CEO
George Crawford, COO
Richard Hilder, CFO
Note: All $ are in NZD

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 3
Highlights
■$254.9 m NPAT (+$92.8 m)
■$208.7 m revaluation gain
■Operating earnings 6.32 cps (+2.5%)
■$191 m capital recycling
–Sale of 50% interest in ANZ Centre
–Divestment of 10 Brandon Street
■$250 m non bank funding secured
■$760 m bank debt facility
refinanced (post balance date)
■Strong leasing success across
developments and stabilised
portfolio
Commitment to One Queen
Street development (August 2018)
85%
Development portfolio
committed
12.9%
NTA uplift to 1.40

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 4
■City centres will outperform
–Growth in resident population
–Higher GDP
–Auckland as a gateway city
–Wellington is the capital city and benefits from strong demand from the Crown
–Benefits of agglomeration
■Strong correlation between population, working age population, city centre
employee numbers and demand for office space
–Demand forecast to grow with limited supply evident
■Construction market difficulties will continue leading to replacement costs
exceeding market value
–Underpins market values
■Auckland activity levels remain elevated
–Population growth
–Infrastructure investment
–Strong demand for Auckland assets
–Tourism and leisure growth
Major themes

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 5
Strategy overview
Our People
■Focus on advancement for high-performing individuals;
–26 internal promotions made during FY17 & FY18.
■Strong focus on diversity and inclusion;
–Overall gender diversity improving by 14% (now 43% female)
–10% at the Senior Leadership team level (now 40% female)
■Commercial Bay has driven 5 new roles to be placed during FY19
Operational Excellence
■99% occupancy (100% AKL; 98% WLG) and WALT of 8.7 years
■$191 m sold in FY19 with $565 m sold over past 4 years
■$250 m capital sourced with 36% of debt facilities non-bank
■Portfolio to contain $1.3 b Green Star rated buildings
Developing the Future
■Commercial Bay: Occupier commitments increased to 75-80%
■Bowen Campus: On programme and budget and 100% leased (office)
■Commitment to One Queen Street development with appointment of
InterContinental Hotels Group as operator
Precinct is a specialist city centre real estate investment company. It invests in high quality
strategically located city centre real estate with a focus on sustainability.
Our strategy is focused on concentrated ownership of real estate in Auckland and Wellington creating spaces to
thrive, adopting a long term view and offering our occupiers high quality service.
Strategy progress FY18Sustainability framework

Section 1
Financial results
and capital
management

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 7
Net EPS Reconciliation
Financial performance
■Operating profit before tax increased by
7.4% demonstrating strong operating
result
■2.5% increase in operating income after
tax to6.32 cps
–Strong lift in net property income
■Revaluation gain driven by development
profit recognition contributed to an
increase in net profit after tax
■Higher tax expense due to higher pre tax
profit, lower level of leasing fees and
disposal of depreciable assets
For the 12 months ended30 June 201830 June 2017
($m)AuditedAuditedMovement
Investment portfolio
$74.4 m $71.7 m + $2.7 m
Transactions and Developments
$20.9 m $18.7 m + $2.2 m
Operating income before indirect expenses
$95.3 m $90.4 m + $4.9 m
Indirect expenses
($2.2 m)($2.1 m)($0.1 m)
Manager's performance fees
Manager's base fees
($8.0 m)($7.7 m)($0.3 m)
EBIT
$85.1 m $80.6 m + $4.5 m
Net interest expense
($2.2 m)($3.4 m)+ $1.2 m
Operating profit before tax
$82.9 m $77.2 m + $5.7 m
Current tax expense
($6.3 m)($2.5 m)($3.8 m)
Operating profit after tax
$76.6 m $74.7 m + $1.9 m
Deferred tax (expense) / benefit
($17.0 m)($1.9 m)($15.1 m)
Unrealised net gain / (loss) in value of investment and
development properties
$208.7 m $77.5 m + $131.2 m
Share of profit or (loss) of joint ventures
($2.3 m)($2.3 m)
Unrealised net gain / (loss) on financial instruments
($11.1 m)$11.8 m ($22.9 m)
Net profit after tax and unrealised gains
$254.9 m $162.1 m + $92.8 m
Net operating income before tax -gross
6.84 cps6.37 cps+ $0.47 cps
Net operating income after tax -post performance fees
6.32 cps6.17 cps+ $0.16 cps
Net operating income after tax -pre performance fees
6.32 cps6.17 cps+ $0.15 cps
Dividend
5.80 cps5.60 cps+ $0.20 cps
Payoutratio to operating profit after tax
91.7%90.8%0.9%
AFFO payoutratio
100.0%103.1%(3.1%)
5.50 c
6.00 c
6.50 c
7.00 c
FY17Wynyard
Stage 1
Auckland
Portfolio
Wellington
Portfolio
Tax ExpenseOtherFY18

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 8
Net property income (NPI)
■NPI increased $4.9 m to $95.3 m (+5.4%)
■After allowing for developments and non
recoverable earthquake costs, like for like
income growth was 3.0%higher than
previous comparable period.
–Rental growth increased Auckland NPI
by 3.1%
–Improved occupancy increased
Wellington NPI by 2.9%
Reconciliation of movement in net property income
For the 12 months ended
$m
30 June
2018
30 June
2017
D
AMP Centre$9.5 $9.2 + $0.3
PwC Tower$17.4 $16.7 + $0.6
ANZ Centre$18.2 $17.9 + $0.3
Zurich House$4.8 $4.6 + $0.3
Auckland total$49.9 $48.4 + $1.5
Pastoral House$4.5 $4.3 + $0.1
157 Lambton Quay$7.6 $6.5 + $1.1
Aon Centre$9.1 $9.3 ($0.2)
Mayfair House$3.4 $3.2 + $0.1
Wellington total$24.6 $23.4 + $1.2
Investment portfolio$74.4 $71.7 + $2.7
Transactions and Developments
HSBC House$6.3 $8.1 ($1.9)
Commercial Bay$0.0 ($0.1)+ $0.1
Mason Brothers$2.3 $1.3 + $1.0
12 Madden Street$4.5 $0.1 + $4.5
Bowen Campus$0.3 $2.0 ($1.7)
10 Brandon Street$2.1 $1.1 + $1.0
No 1 The Terrace$5.4 $6.1 ($0.8)
Total$95.3 $90.4 + $4.9
$80.0 m
$85.0 m
$90.0 m
$95.0 m
$100.0 m

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 9
■Moved to a sustainable AFFO based policy in
2011
■Over the past 5 years the FFO payoutratio
has averaged 84%, retaining $62.9 m
–Averaged 101% AFFO payoutratio
■FY18 FFO grew by 3.1% to 6.89 cps
■FY18 AFFO grew by 6.8% to 5.80 cps
■Dividend and AFFO growth has been
supported by disposal of non-core assets,
development completions and rental growth
Sustainable dividend
Dividend summary
2018201720182017
Funds from operations$83.4 m $80.9 m 6.89 cps6.68 cps
Amount retained($13.1 m)($13.0 m)(1.09 cps)(1.08 cps)
Cash dividend paid$70.3 m $67.9 m 5.80 cps5.60 cps
Dividend payoutratio
Funds from operations84%84%
Adjusted funds from operations100%103%
Funds from operations (FFO)
70%
80%
90%
100%
110%
$20.0 m
$40.0 m
$60.0 m
$80.0 m
$100.0 m
20142015201620172018
FFO payout ratio
Funds from Operations
Dividend paidFFO retainedFFO Payout ratio
Adjusted funds from operations
$40.0 m
$60.0 m
$80.0 m
20142015201620172018
Adjusted funds from operationsDividend paid

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 10
$1,600 m
$1,800 m
$2,000 m
$2,200 m
$2,400 m
$2,600 m
Balance sheet
■Revaluation of $208.7 m or 9.0%
–Attributable largely to cap rate compression
and development profit recognition
–Investment properties cap rate compressed
from 6.2% to 5.8%
■Contributed to 12.9% increase in NTA to $1.40
■Active development properties “on
completion” values increased by around $77 m
Change in asset valuations
Portfolio valuation
Cap rateValuation
Revaluation
▲
▲%
Total Investment Properties
Wellington6.8%$435.8 m $0.1 m 0.0%
Auckland5.4%$1,232.8 m $108.3 m 9.6%
Subtotal5.8%$1,668.6 m $108.4 m 6.9%
Total Development Properties
Bowen Campus Stage One6.0% $178.6 m $2.2 m 1.2%
Bowen Campus Stage Two$11.5 m ($3.0 m)-20.7%
10 Brandon Street$10.2 m ($12.9 m)-55.8%
Commercial Bay4.9% $648.0 m $114.0 m 21.3%
Subtotal5.5%$848.3 m $100.3 m 13.4%
Total properties5.7%$2,516.9 m $208.7 m 9.0%
Movement in net tangible assets per share
100.0
120.0
140.0
160.0
NTA per share

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 11
Capital management
Key metricsJune 2018June 2017
Debt drawn ($m)
1
751.4452.1
Gearing -Banking Covenant
25.0%25.1%
Weighted facility expiry (years)
3.34.0
Weighted average debt cost (incl fees)
5.3%5.6%
% of debt hedged
84.5%65.3%
ICR (previous 12 months)
2.4 times3.9 times
Weighted average hedging (years)
3.22.7
Total debt facilities ($m)
1,1831,033
■Total borrowings increased to $751 m related to
development spend at Bowen Campus and Commercial
Bay
■$250 m of non bank funding secured in period
–$150 m 4 year subordinated convertible note
–$100 m 7 year senior secured bond
■36% funding sourced from non bank sources
■Gearing as measured under borrower covenants is 25%
■Weighted average interest rate of 5.3%
Funding diversity
Bank debt
64%
USPP
8%
Conv ertible
Note
13%
NZ Bonds
15%
Debt capital
markets
36%
0.0%
50.0%
100.0%
FY 19FY 20FY 21FY 22FY 23
Av erage hedging
Policy RangeAverage Hedging
Hedging profile
1 Excludes the USPP note fair value adjustment of $15.0 m (June 2017: $8.8 m). Interest
bearing liabilities are detailed in Note 15 of the Financial Statements.

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 12
■Non bank funding secured in period provides valuable tenor and
funding diversity
■Post balance date, Precinct successfully refinanced its $760 m bank
debt facility which was due to expire in 2020
–Significantly reduces November 2020 refinance risk
–Ladders and extends weighted facility expiry from 3.3 years to
4.1 years
■Over $400 m of funding liquidity
■$191 m of assets sales announced in the period
–Provides funding liquidity to deliver future developments
–Reduces proforma gearing as at 30 June 2018 to 19.4%
Capital management supporting strategy
Funding liquidity as at 30 June 2018
19.4%
Proforma gearing,
following asset sales
Debt maturity profile (post refinance)
$100 m
$200 m
$300 m
$400 m
Jun 19Jun 20Jun 21Jun 22Jun 23Jun 24Jun 25Jun 26Jun 27>Jun 28
Debt Facility Expiry Profile
Year ending
Bank debtUSPPNZ BondsConvertible Note
$100 m
$200 m
$300 m
$400 m
$500 m
Undrawn
faciltity
Committed
Dev. capex
FY19 salesExcess
capacity
Funding capacity ($m)

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 13
FY19 Earnings and dividend guidance
■Earnings growth consistent with the earnings pathway provided in 2014 and 2016
■Lift in dividend based on confidence in earnings growth and execution of strategy
–Completion of Charles Fergusson Tower in December 2018. Bowen Campus office 100%
pre-committed to Crown
–Leasing progress at Commercial Bay
–99% occupancy of the investment portfolio
–Confidence in occupier demand for Auckland and Wellington markets
–Potential for under supplied office market
–Under-renting of 6.4% providing strong reversionary potential
–Contribution of H&M following opening on 30 August
+3.4%
Increase in dividend
6.60 cps
FY19 net operating
income after tax,
before performance
fees
6.00 cps
FY19 dividend
guidance

Section 2
One Queen Street
development

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 15
One Queen St –Commercial Bay Stage Two
■Major mixed-use development comprising:
–Luxury 244 room waterfront hotel
–Premium office totaling 8,700 sqm
–Iconic rooftop hospitality venue
–Fully integrated into Commercial Bay retail
■InterContinental Auckland
–15 year management agreement with IHG
–Precinct returns based on hotel
performance
■Premium office
–Boutique offer over upper 7 floors
–Unparalleled views
–Heads of Agreement
1
signed over 3,700
sqm, which lifts commitment to 75%
1
Signed heads of agreement records all commercial terms agreed subject
to negotiation and execution of binding documentation

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 16
■Increases size of building by 2,200 sqm
■Commercial office totals 8,700 sqm
–Ground floor Queen Street lobby with
dedicated office floor lift provision
–Highly efficient 1,260 sqm floor plate
■Hotel occupies around 11,600 sqm or 57%
by area
–Ground floor corner Queen Street entry
–First floor comprises lobby, meeting suite
and hotel F&B, connection to
Commercial Bay retail
–Level 3 –13 hotel rooms and suites
■Construction scheduled to commence H1
2020:
–Hotel opening early 2022
–Office/rooftop F&B –opening mid 2022
■Fixed price lump sum construction contract
with LT McGuinness
–Significant experience (Bowen Campus,
Wynyard Quarter)
One Queen St –Commercial Bay Stage Two

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 17
Funding
■Development is to be fully funded from
existing debt facilities
■Sale of 50% interest in ANZ Centre at
5.25% yield maintains strong balance
sheet
■Committed gearing will increase from
29% to 34%
One Queen St –Funding and return metrics
Financial metrics
■Total project cost of $298 million
■Expect stabilisedprofit on cost of 15%
■Capital reinvested at c. 7% yield
–Spread to ANZ Centre allows 0.20
cps or 3.0% EPS accretion
■Value on completion of $342 million
■Capitalisation rates:
–5.125% office and 6.625% hotel

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 18
Indexed hotel RevPaR
0
250
500
750
1,000
1,250
1,500
1,750
2,000
05060708091011121314151617
Rental Index (2007: 1000)
RevPAR*
RugbyWorld Cup
GFC
Lions Tour
Source: Tourism Industry Aotearoa
* RevPAR = Revenue per Available Room = Average Daily Rate x Occupancy Rate
Mixed-use benefits
■Leverage One Queen St’s unique waterfront
location to gain exposure to NZ’s no. 1 export
industry (tourism)
■Hotel use will increase and de-risk retail
turnover at Commercial Bay
■Highly complementary to corporate office, as
well as driving evening and weekend demand
for retail and F&B
■Increased earnings diversity with the hotel
forecast to contribute approx. 13% of the
Commercial Bay precinct’s income once
complete and stabilized
■The Auckland hotel sector has significantly
outperformed post-GFC, driven by strong
international visitor demand
■Demand growth forecast to continue. Supply
response has begun, but constrained by
construction cost pressures
One Queen St –Commercial Bay Stage Two
Commercial Bay income by use
59%
23%
5%
13%
Office incomeRetail incomeCarparking incomeHotel income

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 19
Auckland hotel market
Auckland is expected to
capture the majority of
the forecast growth in
inbound visitation (5.1
million p.a.by 2024)
0.00 m
1.00 m
2.00 m
3.00 m
4.00 m
5.00 m
6.00 m
Jun-98Jun-99Jun-00Jun-01Jun-02Jun-03Jun-04Jun-05Jun-06Jun-07Jun-08Jun-09Jun-10Jun-11Jun-12Jun-13Jun-14Jun-15Jun-16Jun-17Jun-18
Dec-18Dec-19Dec-20Dec-21Dec-22Dec-23Dec-24
International Visitor Arrivals to NZ (Actual and Forecast)
NZ TotalAuckland
Source: MBIE
101,000
Additional annual guest nights
expected to be generated by
the New Zealand International
Convention Centre
214,569
Guest nights attributed to event
attendees when America’s Cup
was held in 2003 -similar impact
likely in 2021
51%
Of guest nights in Auckland
hotel accommodation
attributed to domestic travellers
3.0% p.a.
Continued GDP growth
expected to underpin domestic
guest nights and occupancy
rates

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 20
Auckland hotel market
Auckland hotels have
achieved significant
growth in occupancy
(+9%) and room rates
(+53%) since 2013 due
to imbalance in
demand and supply
0%
20%
40%
60%
80%
100%
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
Jun-98Jun-99Jun-00Jun-01Jun-02Jun-03Jun-04Jun-05Jun-06Jun-07Jun-08Jun-09Jun-10Jun-11Jun-12Jun-13Jun-14Jun-15Jun-16Jun-17Jun-18
Auckland Hotel Market KPI’s –Rolling 12 Month Averages
ADRRevPAROccupancy
Rugby World Cup
Lions Tour
Lions Tour
Note 1: ADR = Average Daily Rate = average price paid per room per night (ex taxes/commission)
Note 2: RevPAR = Revenue per Available Room = Average Daily Rate x Occupancy Rate
Source: Tourism Industry Aotearoa
33%
Increase in Auckland hotel/
motel/ serviced apartment guest
nights between 2008 and 2017
5%
Net change in stock over the
same period (source: Stats NZ)
4,000
Additional rooms required to
cater for current demand
projections according to NZTE
~1,000
Projected shortfall in required new stock
based on current construction activity
and probability-weighted future supply

Section 3
Developments

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 22
Commercial Bay
CommencementCurrentChange
Total project cost$681 m$685 m$4 m
Value oncompletion$853 m$1,011 m$158 m
Return on cost19.4%41.0%21.6%
Since launch, $158 m increase in
value on completion to $1 billion
$283 m expected profit on completion
7.5% expected yield on cost
Overall development 75-80%
committed for retail and office
Successful hand-over of retail phase one
–H&M to open 30 August
Financial metrics
$1.0 b
Value on
completion
Indicativeand actual
spend
To date FY19FY20
$409 m $236 m $41 m

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 23
■Strong retail leasing progress achieved
advancing commitments to 76% (2017:
46%)
■Enquiry levels remain elevated and expect
leasing momentum to continue into 2019
–F&B well advanced
–Fashion retail advancing
Commercial Bay retail
H&M
H&M will be the first Commercial Bay flagship store
when it opens on 30 August 2018 encompassing
3,800 sqm over four levels.
Located on the corner of Customs and Queen
Street the four-level shop will be the biggest H&M
to date and will feature women’s, men’s, kids and
the homeware collection.

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 24
Commercial Bay office
Office commitments progressed to 78% (2017: 66%)
■All commitments from outside of the portfolio:
–Terms agreed are generally consistent with feasibility
and valuation
–Excluding small suite offer (see below), just 6,000 sqm
left to lease
Small suites
■Advancing small suites offer across two floors
■Tower well positioned to capture this market
■Efficient floor plate offers ability to create suites aligned
with tenant space requirements
Research:
■Expiry profile for sub 500 sqm occupiers between 2019 and
2022 totals 31,400 sqm across 104 occupiers in prime grade
■60% or 32,000 sqm of vacancy take up between June 16 –
Dec 17 was for space between 0-400 sqm
–7.6% in A-grade stock, 0% in premium stock
–Low figures illustrate the lack of prime space available
0%
5%
10%
15%
20%
25%
30%
Auckland CBD vacancy take up June 2016
-Dec 2017
Source: Colliers International
Research

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 25
■Following considerable engagement with the main contractor, Fletcher Construction, a
revised completion programme has now been provided.
■The programme provided has been independently reviewed by Precinct’s expert
programmer, RCP.
–Confirmed revised dates are achievable, subject to main contractor’s performance
■Revised completion dates:
–Commercial Bay retail September 2019
–New PwC TowerDecember 2019
■Precinct remains confident with the provisions of its construction contract, which protect
Precinct from losses due to contractor delay.
–Liquidated damages will effectively mitigate the impact on Precinct from any loss of
income and other costs over the delay period.
■Precinct continue to work closely with retailers and occupiers to communicate the revised
occupation dates.
Commercial Bay programme update

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 26
Bowen Campus
Uplift in as-if complete value to $240 m providing
for a profit on cost of $37 m(18%)
Charles Fergusson Tower
■On target for December 2018 completion
■Rent commencing on 4 floors already
Bowen State Building
■Occupation on target for NZDF in Q3 2019
■Rent to commence April 2019
■Targeted yield reduced through increases in
insurance and rates
Financial metrics
CommencementCurrentChange
Total project cost$203m$203 m-
Value onCompletion$229 m$240 m$11 m
Return on cost13%18%5%
Yield on cost7.5%+7%(~0.5%)
Bowen State Building
Charles Fergusson Tower

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 27
■Design advanced for Stages Two, Three
and Four
■Opportunity to develop a further 30,000
sqm of office space
■Will draw on the land when proceeding
with each stage
■Potential exists for Stage Two to meet
occupier demand in 2021
■Anticipate commencing the Stage Two
in the next 6 months
Wynyard Quarter
Stage 2Stage 3&4
Timing20182019+
Total project cost$70 m$150 m
UseOfficeOffice
Stage 3 & 4
Stage 2

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 28
Bowen Balance Land
Timing:2019+Estimated Cost:$160 mUse:Office
■Design process advancing
■Potential accommodation for up to 20,000 sqm of commercial office space
■Considered suitable for both Crown and corporate occupiers
■Designed to offer higher seismic resilience for occupiers

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 29
Development summary
Current (inclOne Queen St)
■Return metrics further improved
–Blended profit of +30%
–Blended yield on cost of +7.3%
■c. 85,000 sqmadditional office NLA
–Currently 84% committed
■85% weighting to Auckland
Pipeline
■Wynyard Quarter –stages 2, 3 and 4
■Bowen Campus Stage Two
■Potential for up to c. 45,000 sqmof office
area
Targeted pipeline returns
15%
Targeted profit on cost
+7%
Yield on cost
5%
10%
15%
20%
25%
30%
35%
40%
45%
$500 m
$1,000 m
$1,500 m
$2,000 m
$2,500 m
$3,000 m
$3,500 m
$4,000 m
Development as % of Total Assets
Total Assets
Development BV as % of Total Assets
Investment assetsDevelopment AssetsDevelopment as % of Total Assets

Section 4
Market

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 31
Auckland city centre economy
60%
Of employment increase occurred
within CBD office industries
4.6% p.a
Annualised growth since 2010
in top 5 industries (3.7% AKL /
2.3% NZ)
- 2,000 4,000 6,000 8,000 10,000
Professional, Scientific and Technical
Services
Financial and Insurance Services
Accommodation and Food Services
Administrative and Support Services
Education and Training
All others
CBD employment change -Top 5 industries (2010 -2017)
Auckland city centre
leads growth in key
economic drivers since
2010
Source: Ecoprofile
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
GDP GrowthEmployment GrowthPopulation growth
Growth pa
Key economic drivers (2010-2017)
New ZealandAucklandAuckland City Centre

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 32
Auckland city centre demand drivers
Auckland driversCity centre impact
▪Additional30,000+ inner city residents
expected over the next 10 years
▪Further underpins activity levels in the city centre and
demand for office, retail and leisure, and residential
market
▪50%increase in working age population
(WAP) expected by 2043
▪Historical positive correlation between WAP and office
stock
▪Growth is applying pressure to office stock
▪$28 billion infrastructure spend over 2018-
2028 with a city centre focus
▪Improved city centre accessibility
▪Increasing size of labour force
▪Investment driven activity, demand for services
-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
20012002200320042005200620072008200920102011201220132014201520162017
Growth YoY
Auckland regional GDP and office employment growth
Auckland GDP GrowthAuckland office employment
20,000 sqm
Annual net demand over next 5 years
(based on forecast WAP growth)
WAP and city centre stock both grew by 35%over
1996 –2013 period
Over last 5 years -WAP growth: 15.4% / City centre
stock growth: 1.2% (density ratio increased)
Strong relationship between GDP and office
employment growth. Forecast GDP expected to
grow office employment by ~10,000 city centre
workersby 2021
Equivalent to 100,000 sqm (assuming 1:10 sqm ratio)

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 33
Supply outlook
20172018
Supply risk
change
Construction
costs
Elevated
Elevated
Decrease
Construction
capacity
Constrained
Highly
Constrained
Decrease
Land values
Stabilised
Elevated
Decrease
Funding
availability
Constrained
Stabilised
Neutral
Funding costs
Increasing
Stabilised
Neutral
Outlook for
supply
Limited
Very limited
Decreased
Number of factors
limiting city centre
supply
Construction market
■Sustained growth forecast for building and
construction nationally. Peak now not
expected until past 2023 (MBIE National
Construction Pipeline Report 2018)
■Construction market under significant
pressure through cost increases and labour
shortages
■Limited options for local credible tier 1
contractors

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 34
Auckland city centre office supply pipeline
DevelopmentDeveloperSubmarketNLATiming (PCT)
Timing
(CBRE)
34 Sale Street
Russell
Group
Viaduct6,400 m²20182018
Commercial BayPCTCBD Core39,000 m²20192019
155 Fanshawe St.MansonsViaduct15,000 m²20202020
Building 5BPCTViaduct8,600 m²20212020
136 Fanshawe StreetMansonsViaduct22,000 m²20222021
Building 6BPCTViaduct7,900 m²Beyond2021
One QueenPCTCBD Core8,700 m²20222022
1 Mills LaneMansonsCBD Core30,000 m²BeyondBeyond
Building 6APCTViaduct14,000 m²Beyond2022
Supply to 202299,700 m²
Stock removal
HSBCPCTCBD(18,200 m²)
4 Viaduct HarbourViaduct(7,000 m²)
22 Fanshawe StViaduct(8,000 m²)
500 Queen StCBD(2,600 m²)
Datacom BuildingCBD(2,600 m²)
54 Cook StCBD(3,750 m²)
Total Stock removal(42,150 m²)
Net Supply to 202257,550 m²
Forecast net change in prime stock
Net supply change –Developer and location (2022)
11,500 sqm
Annual net supply over next 4-5 years
CBD Core -PCT,
29,500 m²
Viaduct -PCT,
8,600 m²
CBD -Market,
(23,950 m²)
Viaduct -
Market, 43,400
m²
0 m²
5,000 m²
10,000 m²
15,000 m²
20,000 m²
25,000 m²
30,000 m²
35,000 m²
40,000 m²
45,000 m²
20182019202020212022
PCT viewCBRE forecast

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 35
■Over past 20 years net absorption in Auckland has
averaged 23,000 sqm
–50% of absorption in CBD core
–65% gone to premium grade stock
–Attributable to relocations from secondary
stock
Density
■Has already occurred (ref: Colliers 2016)
■10 sqm for largest PCT portfolio occupier
■Since 2016 50% of Auckland CBD leasing has been
to sub 400 sqm occupiers
Net absorption and density
-5,000 5,000 15,000 25,000 35,000
PremiumGrade ASecondary
Colliers occupier survey density
Annual net absorption by quality (99-17)
23,000 sqm
Annual net absorption since 1999
Firm size density
5
10
15
20
25
30
35
Up to 2021-100101+Total
Office density (m2/person)
Organisation Size (staff)
Auckland CBD (Colliers)Auckland CBD (PCT Portfolio)
-
5.0
10.0
15.0
20.0
25.0
GovtPremiumA GradeB GradeC Grade
Area per office person
20102016
0

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 36
■City centre office employment growth forecast to grow by 10,000 workers to 2021
■Assuming 1:10 sqm, growth in workers will require 100,000 sqm of space
■Anticipated stock withdrawals equal to ~40,000 sqm
■Demand and stock withdrawals equivalent to 140,000 sqm
■Current Prime vacancy (30,000 sqm), committed supply equivalent to 100,000 sqm
■Potential undersupply of close to 40,000 sqm after all existing space is leased
(including existing vacancy)
Precinct believe the Auckland office market could be under-supplied in 2021-2023
Auckland city centre supply/demand summary

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 37
Wellington city centre
■Centralisedcity with public transport
infrastructure in place
■Government remains active seeking to
increase occupier footprint
■Vacancy at record lows indicating strong
demand for office space
■Recently completed developments are fully
leased with further unsatisfied occupier
demand.
■Positive employment growth expected to
increase worker city centre population by
5,600 by 2021 indicating demand 60,000
sqm
100,000 sqm
Sqm of office stock contraction
38,800 sqm
Office stock supply introduced to
the market in 2017
Wellington city centre has now largely recovered to post-quake levels. Sector outlook remains
positive.
1.0%
Prime CBD office vacancy rate

Section 5
Operations

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 39
Portfolio activity
Major portfolio leasing has underpinned portfolio performance, captured
reversionary potential and maintained high occupancy
99%
Portfolio occupancy
Portfolio leasing deals in the period
■3,700 sqm of office space leased at the
AON Centre (1 Willis Street)
–12% uplift on previous passing rental
■NZTArelocation from HSBC House to the
AMP Centre agreed
8.7 years
Weighted average lease term
$1.7 b
Investment portfolio value
■2,400 sqm of future PwC Tower (188 Quay
Street) vacancy mitigated
■New 10 year lease agreed for extended
Kindercarein the AMP Centre

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 40
Portfolio activity
Leasing activity
■41 leasing transactions totalling 22,000 sqm
or $12.5 m in contract rent
–Secured on a 6.1 year WALT
■Compared with previous contract rent
–Auckland leasing showed growth of 8%
–Wellington leasing showed growth of 15%
■Government portfolio
–Works at No 1 The Terrace podium have
commenced
–Pastoral House works expected to
commence in February 2019
AucklandNumber
1
NLA
Uplift on
contract
1
WALT
1
Leasing Transactions30
16,780 m²
7.9%
5.8 years
Market Reviews3
5,186 m²
11.1%
Wellington
Leasing Transactions11
5,146 m²
15.4%
6.7 years
Market Reviews8
7,827 m²
3.8%
Portfolio
Leasing Transactions41
21,926 m²
10.6%
6.1 years
Market Reviews11
13,013 m²
6.6%
598 Carparks
Leased at Mayfair House, Dimension
Data House and the ANZ Centre
1
Includes major carparking transactions

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 41
FY15
$8.3 m
AMP Centre –active management case study
12.1%
Increase on previous passing rent
across leasing deals done in FY18
FY20
$10.5 m
Forecast
26.5%
Forecast increase in rent roll
between 2015 and 2020
Note: All years including the forecast are at 100% occupancy
■Active management and value add investment driving
strong rental growth
■Majorleasing deals across 8,600 sqm
–NZTA
–Kindercare
■QBE lease expires September 2018 across 3,300 sqm
–2 floors already leased, with an average increase of 17%
on passing
■Capex completed and planned from FY15 to FY20 totaling
$15.4 m
–Total rental increase expected of $2.2 m, yielding 14%
(including maintenance capex)
–Capital expenditure such as the chiller replacement has
kept OPEX low, increasing around 1% pa
FY18
$9.0 m
Office and
retail rent roll

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 42
17%
20%
63%
MarketCPIFixed
Lease events
■52% of portfolio subject to review
event in FY19. Of this 17% subject
to market review.
■3.2% or 9,509 sqm expiring in 2019
■112,300 sqm of leasing events
including rent reviews
PropertyClient
Area
AMP CentreQBE
3,300 m
2
PwC TowerServcorp
1,300 m
2
DimensionData HouseForsyth Barr
1,000 m
2
Total5,600 m
2
Major expiries FY19
FY19 event profileEvent compositionLease expiry
1
Excludes NZTA expiry in HSBC House & The Treasury in No.1 The Terrace,
due to being positioned for redevelopment
Note: Includes committed development leasing, ad excludes Commercial Bay retail
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
Wellington Current Lease ExpiryAuckland Current Lease Expiry
4.8%
44%
51.7%
Next ExpiryNo eventReview

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 43
■Around 30,000 sqm of uncommitted office space at 30 December 2015
–8.5% of PCT portfolio and 2.0% of CBD office market
■Mitigated over 20,000 sqm through leasing by 30 June 2018
■Committing to One Queen Street and post pre-commitment, assumed uncommitted office
space totals 11,800 sqm (4.0% of PCT portfolio, 0.8% of CBD office market)
Movement in uncommitted office NLA

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 44
Generator investment
■Precinct have a 50% interest in Generator:
–Co working
–Dedicated desks and/or small suites
–Event space
■Generator provides businesses with fewer
employees high quality space and
service/amenity that they otherwise
couldn’t access
■Generator now manages 13,000 sqm of
space
■Generatormarket share in Auckland city
centre ~50%
■Generator has grown from a single
location to three main locations at
StanbethHouse, Grid AKL and Britomart
Place
■Provides pipeline of growth occupiers as
well as attractive financial returns
Factors driving growth
1.New business (startupsand new entrants)
2.Flexibility, ease and speed of setup
3.Corporate market using space as part of
real estate strategy
4.Lease accounting changes
5.Growth in technology sector
6.Millennial workforce
Factors driving multinationals’ use of third
party space (CBRE)
0%20%40%60%
Access to new services &
amenities
Attract and retain talent
Acquire remote office spaces
Promote networking /
collaboration
Need a short term space solution
Promote innovation
Increase leasing flexibility
Reduce costs

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 45
■Precinct has funded $9 m to fund expansion to two new sites totalling 9,762 sqm
■New sites in stabilisation phase resulting in $2.3 m (50%) loss. This reflects rent expense and
leasing commissions etc expensed for start-up period
■New sites have performed well and ahead of expectations
■Around 900 members across almost 200 companies
Generator performance
PropertyStanbeth& Excelsior
Grid AKLBritomart Place
Opening date
2011, expanded Oct
2017
September 2017June 2018
Area2,893 sqm
6,656 sqm3,106 sqm
Current Occupancy (Aug
2018)
73%
81%59%
■Focus for current year on stabilisation of new sites. Allowing for Britomart Place trade-up, a
break-even performance is anticipated

Section 6
Conclusions and
Outlook

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 47
■Precinct has a clear strategy which is supported by its markets
■Strategy of active management is proving successful as newly developed real estate is of
highest quality and margins are increasing
■Strategy of being a city centre specialist enhancing returns as city centres outperform
globally (higher GDP contribution)
■Construction cost escalation will underpin growth in market values as replacement costs
exceed market values
■Occupier demand to continue to grow with potential for under supply in Auckland due to
inability to develop
■Auckland emerging as NZ’s gateway city attracting $28 billion of public investment leading
to long term outperformance
Conclusion

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 48
■Precinct well positioned through:
–Clear strategy with market share
–Capable team –in-house and external
–Successful execution of capital management initiatives
–Committed opportunities in premium locations
–High quality investment portfolio with an extended WALT
■Strong balance sheet
■Earnings track maintained with FY19 guidance of 6.60 cps and dividend of 6.00 cps
■Precinct establishing an enviable track record of creating world class developments with
world class returns
Outlook

Appendices

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 50
Financial summary
($ millions unless otherwise stated)
20182017
Change
Operating income before indirect expenses95.390.45.4%
Operating profit after tax 76.674.72.5%
Operating profit after tax (cents per share)6.326.172.4%
Net profit after income tax254.9162.157.2%
Net distribution (cents per share)5.805.603.6%
FFO (cents per share)6.896.683.1%
FFO Payoutratio 84.2%83.8%0.5%
FFO yield (based on period end price) 5.1%5.4%
AFFO (cents per share)5.805.436.8%
AFFO Payoutratio 100.0%103.1%-3.0%
Weighted average cost of debt5.3%5.6%-5.4%
Total assets2,561.72,079.223.2%
Total liabilities871.0573.651.8%
Total equity1,690.71,505.612.3%
Shares on issue (million shares)1,211.11,211.10.0%
NTA (cents per share)14012412.9%
Gearing ratio at balance date (%)25.0%25.1%-0.4%
Total borrowings751.4452.166.2%
Hedging at year end84.5%65.3%29.4%
Interest coverage ratio (previous 12 months) 2.43.9-37.4%

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 51
Balance sheet
Financial Position as at 30 June 201830 June 2017
($m) AuditedAuditedMovement
Assets
Development properties$838.1 $509.2 + $328.9
Investment properties$1,487.6 $1,535.4 ($47.8)
Investment properties held for sale$191.2 + $191.2
Fair value of derivative financial instruments$18.2 $12.8 + $5.4
Other$26.6 $21.8 + $4.8
Total Assets$2,561.7 $2,079.2 + $482.5
Liabilities
Interest bearing liabilities$761.7 $456.9 + $304.8
Deferred tax liability$40.3 $23.3 + $17.0
Fair value of derivative financial instruments$33.8 $23.8
Other$35.2 $69.6 ($34.4)
Total Liabilities$871.0 $573.6 + $297.4
Equity$1,690.7 $1,505.6 + $185.1
NIBD to Total Assets29.3%21.7%7.6%
Liabilities to Total Assets -Loan Covenants25.0%25.1%-0.1%
Shares on Issue (m)1,211.1 m 1,211.1 m
Net tangible assets per security $1.40 $1.24
0.15

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 52
Borrowing movement
$100 m
$200 m
$300 m
$400 m
$500 m
$600 m
$700 m
$800 m
NIBD 2017Net cash inflow
from operating
activities
Capital
expenditure on
investment
properties
Capital
expenditure on
development
properties
DistributionsOtherNIBD 2018
Tot al I nterest Bearing liabilit ies

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 53
Tax expense reconciliation
■FY18 effective tax rate of 7.6%
–Higher than previous guidance
due to lower level of leasing fees
and lower level of deductible
disposals
■FY19 expected effective tax rate to
range between 4 and 6%
–Dependent on level of leasing
activity and disposal of
depreciable assets
■Future tax profile will continue to be
impacted by deductible costs
associated with developments activity
–Capitalised interest
–Leasing costs
–Rates
30 June 201830 June 2017
Net profit after tax and unrealised gains $254.9 m $162.1 m
Depreciation recovered on sale
Deferred tax benefit$17.0 m $1.9 m
Current tax expense$6.3 m $2.5 m
Net profit before taxation$278.2 m $166.5 m
Less non assessable income
Unrealised net gain / (loss) in value of investment and
development properties
($208.7 m)($77.5 m)
Net realised loss on sale of investment properties
Share of profit or (loss) of joint ventures$2.3 m
Unrealised net (gain) /loss on financial instruments$11.1 m ($11.8 m)
Operating profit before Tax$82.9 m $77.2 m
Other deductible expenses
Depreciation($19.9 m)($18.4 m)
Leasing fees and incentives in the period($1.6 m)($12.4 m)
Capitalised interest on development properties($31.2 m)($17.5 m)
Disposal of depreciable assets($3.6 m)($18.4 m)
Other deductibles($4.1 m)($1.4 m)
Taxable income$22.6 m $9.1 m
Tax at 28%$6.3 m $2.5 m
Current tax expense$6.3 m $2.5 m
Effective tax rate7.6%3.3%

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 54
FY18-19 insurance renewal
Insurance change year on year
■Insurance costs increased to $4.8 m from $3.5 m
–Represents an increase of 37%
■Increase due to:
–Increase in the Fire Service Levy (effective
from July 2017)
–Replacement costs increasing by 16%
–Larger portfolio (completion of 12 Madden)
–Higher market insurance costs
■Wellington insurance costs increased more than
Auckland’s reflecting seismic risk
FY18-19FY17-18Change
Investment property$4.0 m $3.1 m 29.8%
Fire service levy$0.8 m $0.4 m 92.1%
Total Premium$4.8 m $3.5 m 37.2%
Total$21 /m²$16 /m²31.3%
Insurance increase breakdown
29%
10%
27%
34%
Fire service levyAdditions / Disposals
Change in replacement valueMarket change

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 55
5 year income summary
($ millions unless otherwise stated)
20142015201620172018
Financial performance
Gross rental revenue
165.4170.5146.0126.2130.7
Less direct operating expenses
(47.1)(48.9)(41.5)(35.8)(35.4)
Operating profit before indirect expenses
118.3121.6104.590.495.3
Net interest expense
(33.2)(31.4)(11.0)(3.4)(2.2)
Other expenses
(12.6)(10.4)(10.1)(9.8)(10.2)
Operating income before income tax
72.579.883.477.282.9
Non operating income / (expense)
Unrealised net gain in value of investment properties
47.564.881.277.5208.7
Other non operating income
10.9(13.5)(19.1)11.8(11.1)
Net profit before taxation
130.9131.1145.5166.5280.5
Current tax expense
(8.7)(11.5)(10.6)(2.5)(6.3)
Depreciation recovered on sale expense
(3.8)(10.0)
Deferred tax benefit / (expense)
(5.0)6.613.3(1.9)(17.0)
Share of profit or (loss) of joint ventures
(2.3)
Net profit after taxation
117.2122.4138.2162.1254.9

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 56
Funds from operations and dividend
($ millions unless otherwise stated)
20142015201620172018
Dividends
Net dividend (cents)
5.405.405.405.605.80
Net operating income
Operating income before income tax
72.579.883.477.2
82.9
Less: Current tax expense
(8.7)(11.5)(10.6)(2.5)
(6.3)
Net operating income after tax
63.868.372.874.7
76.6
Net operating income after tax per share (cents)6.106.196.016.17
6.32
Dividendpayoutratiotonetoperatingincomeaftertax(%)88.587.289.990.8
91.8
Funds from operations (FFO)
Net operating income after tax63.868.372.874.7
76.6
Adjusted for:
Amortisations6.27.36.46.4
7.2
Straightline rents(0.5)(1.1)(0.5)(0.2)
(0.4)
Funds from operations
69.574.578.780.9
83.4
Funds from operations (cents)6.646.756.506.68
6.89
DividendpayoutratiobasedonFFO(%)81.380.083.183.8
84.2
Adjusted funds from operations (AFFO)
Less: Maintenance capex(6.3)(6.6)(11.1)(5.8)
(4.9)
Less: Incentives and leasing costs(8.7)(7.1)(3.0)(9.3)
(8.3)
Swap close outs-1.6--
-
Adjusted funds from operations
54.562.464.665.8
70.2
Adjusted funds from operations (cents)5.215.665.335.43
5.80
DividendpayoutratiobasedonAFFO(%)10495101103
100.0

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 57
5 year balance sheet
($ millions unless otherwise stated)
20142015201620172018
Financial position
Total investment assets
1,728.11,687.81,513.71,535.4
1,678.8
Total development assets
190.4509.2
838.1
Other assets
19.465.434.534.6
44.8
Total assets
1,747.51,753.21,738.62,079.2
2,561.7
Interest bearing liabilities
572.0340.0234.1456.9
761.7
Other liabilities
68.774.993.6116.7
109.3
Total liabilities
640.7414.9327.7573.6
871.0
Total equity
1,106.81,338.31,410.91,505.6
1,690.7
Number of shares (m)
1059.71211.11211.11211.1
1211.1
Weightedaveragenumberofshares(m)1046.61103.11211.11211.1
1211.1
Net tangible assets per share (cps)
1.041.111.171.24
1.40
Share price at 30 June ($)
1.071.141.251.24
1.35
Covenants
Loan to value ratio (%)
33.820.114.425.1
25.0
Interest coverage ratio
3.2 x3.5 x6.9 x3.9 x
2.4 x
Key portfolio metrics
Average portfolio cap rate (%)
7.37.06.56.2
5.8
Weighted average lease term (years)
5.45.06.38.7
8.7
Occupancy (% by NLA)
989898100
99
Net lettable area (sqm)
322,115 304,485 225,613 224,430
221,513
Number of investment properties
17.015.013.012.0
12.0

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 58
Investment
portfolio
Auckland Wellington
WALT
1
8.7 years
7.5 years10.9 years
Occupancy
99%
100%98%
Investment Portfolio Value ($m)
$1,668.6m
$1,232.8m$435.8m
Weighted average market cap
rate
5.8%
5.4%6.8%
NLA (m²)
221,513 m²
132,198 m²89,315 m²
Under Renting position
6.4%
6.5%6.1%
8.7 years
Weighted average lease term
99%
Portfolio occupancy
Investment portfolio overview
Occupancy
Key metrics
Portfolio metrics
1
Includes development leasing
0%
20%
40%
60%
80%
100%
% of building NLA
AucklandWellington

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 59
Asset level valuations
Cap Rates %ValuationsValue Movement
FY18FY17FY18FY17
Additions/
Disposals
Revaluation%
InvestmentProperties
DimensionData House6.8%6.9%(13 bps)$118.3 m$114.3m$1.9 m$2.1 m1.8%
Mayfair House6.5%6.6%(13 bps)$44.4 m$40.8 m$0.3 m$3.3 m8.0%
No.1 The Terrace6.8%7.0%(20 bps)$67.0 m$70.5 m$1.6 m($5.1 m)(7.1%)
No.3 The Terracen/an/an/a$11.6 m$11.7m($0.1 m)(0.9%)
Pastoral House6.5%6.6%(13 bps)$45.0 m$42.9 m$3.2 m($1.1 m)(2.4%)
AON Centre6.9%7.0%(10 bps)$149.5 m$144.5 m$4.0 m$1.0 m0.7%
Wellington6.8%6.9%(13 bps)$435.8 m$424.7 m$11.0 m
$0.1 m 0.0%
AMP Centre5.9%6.3%(38 bps)$179.0 m$163.4 m$4.0 m $11.6 m6.9%
ANZ Centre5.3%5.9%(63 bps)$362.0 m$324.0 m$2.2 m $35.8 m11.0%
HSBC House6.1%6.4%(25 bps)$91.0 m$93.8 m$4.0 m ($6.8 m)(7.0%)
PricewaterhouseCoopers Tower5.1%5.8%(63 bps)$376.0 m$329.0m$1.0 m $46.0 m 13.9%
Zurich House5.6%6.1%(50 bps)$106.0 m$95.5m($0.6 m)$5.5 m 15.0%
12 Madden Street5.5%6.0%(50 bps)$76.7 m$67.8 m$2.6 m $6.3 m 8.9%
Mason Brothers Building5.5%6.0%(50 bps)$42.1 m$37.2 m$0.7 m $9.8 m 10.2%
Auckland5.5%6.0%(55 bps)$1,232.8 m$1,110.7 m
$13.8 m$108.3 m 9.6%
Subtotal -Investment Properties5.8%6.2%(45 bps)$1,668.6 m$1,535.4m
$24.8 m $108.4 m 6.9%
Development Properties
Bowen Campus Stage One6.0%6.5%(50 bps)$178.6 m$108.5m$67.9 m$2.3 m1.3%
Bowen Campus Stage Twon/an/an/a$11.5 m$10.5 m$4.0 m($3.0 m)(20.7%)
10 Brandon Streetn/a8.3%n/a$10.2 m$20.2m$2.9 m($12.9 m)(55.8%)
Commercial Bay Development Site4.9%5.4%(47 bps)$648.0 m$370.0m$164.0 m$114.0 m21.3%
Subtotal -Development Properties5.2%5.6%(49 bps)$848.3 m$509.2 m$238.8 m$100.3 m13.4%
Total5.6%6.1%(52 bps)$2,516.9 m$2,044.6m$263.6 m$208.7 m9.0%
Note 1: Adopted capitalisation rates for Government RFP Assets reflect new long term leases to Crown
Note 2: Sale and purchase agreements in place for 10 Brandon Street ($10.2 m) and 50% of ANZ Centre ($181.0 m) however 2017 additions/disposals have not been adjusted due to settlement
taking place post balance date
Note 3: The table may not add due to rounding

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 60
CBD office market
$150
$200
$250
$300
$350
$400
$450
$500
$550
$600
20012003200520072009201120132015201720192021
Net Face Rents
AucklandWellingtonJLL Forecast
Colliers ForecastCBRE Forecast
Auckland CBD prime
vacancy rate of 5.3%
Prime
Vacancy
Wellington CBD prime
vacancy rate of 0.11%
* Colliers and CBRE forecasts rebased using JLL data
CBD prime face rent*
** JLL and CBRE forecasts rebased using Colliers data
CBD prime vacancy**
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
20012003200520072009201120132015201720192021
Vacancy Rate
Auckland Prime VacancyWellington Prime Vacancy
Colliers ForecastJLL Forecast
CBRE Forecast
$489
Average Auckland CBD face rent
2%
Forecast Auckland annual growth rate
$368
Average Wellington CBD face rent
4%
Forecast Wellington annual growth rate

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 61
Auckland CBD retail market
Auckland CBD prime
retail vacancy rate of
2.6%
Prime Net
Face Rent
Prime
Vacancy
Auckland 16 year
average vacancy rate
of 3.2%
0%
1%
2%
3%
4%
5%
6%
7%
200120032005200720092011201320152017
Vacancy Rate
Retail - Prime CBDAverage
Source: JLL December 2017
Source: JLL December 2017
Auckland CBD prime face rent
Average prime net face rent
of $2,955 psm, with average
annual growth to 2021
forecast to be 2%
The retail rental spread
continues to diverge
International brands
continue to seek exposure
$0
$1,000
$2,000
$3,000
$4,000
$5,000
-10.0%
0.0%
10.0%
20.0%
30.0%
40.0%
200120032005200720092011201320152017
Rent range (rhs)Rent growth (lhs)Average rent (rhs)

PRECINCT PROPERTIES, ANNUAL RESULTS PRESENTATION -Page 62
Disclaimer
The information and opinions in this presentation were prepared by Precinct Properties New Zealand Limited or
one of its subsidiaries (Precinct).
Precinct makes no representation or warranty as to the accuracy or completeness of the information in this
presentation.
Opinions including estimates and projections in this presentation constitute the current judgment of Precinct as at
the date of this presentation and are subject to change without notice. Such opinions are not guarantees or
predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of
which are beyond Precinct’s control, and which may cause actual results to differ materially from those expressed
in this presentation.
Precinct undertakes no obligation to update any information or opinions whether as a result of new information,
future events or otherwise.
This presentation is provided for information purposes only.
No contract or other legal obligations shall arise between Precinct and any recipient of this presentation.
Neither Precinct, nor any of its Board members, officers, employees, advisers (including AMP Haumi Management
Limited) or other representatives will be liable (in contract or tort, including negligence, or otherwise) for any direct
or indirect damage, loss or cost (including legal costs) incurred or suffered by any recipient of this presentation or
other person in connection with this presentation.

---

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
A N N U A L R E P O R T 2 0 1 8

04
Chairman's
Report
06
Management
Report
08
Results Overview
14
Development
Portfolio
20
Our Business and
Strategy
22
Sustainabilty at
Precinct
36
GRI Index
38
Flexible Space
40
Board of
Directors
42
Executive Team
44
5 Year Summary
46
Corporate
Governance
60
Investor Information
64
Remuneration
Report
69
The Numbers
93
Directory
Cover page image: Artist's impression of Commercial Bay and One Queen Street
More information can be found at
www.precinct.co.nz

04
CHAIRMAN'S REPORT
CHAIRMAN'S REPORT
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
CRAIG STOBO, CHAIRMAN
HIGHLIGHTS
$ 254.9173
M
Net profit after tax
$ 208.7
173
M
Revaluation gain
$ 250.0173
M
Non bank funding secured
+ 3.6
6.7
%
Increase in dividend YoY
FOCUSED STRATEGY
The 2018 financial year has been both an active and defining
period for Precinct. Significant progress has been made on our
major initiatives and we have seen the business take substantial
steps forward.
The quality of Precinct’s portfolio including its active
development pipeline has resulted in a significant portfolio
revaluation gain of $208.7 million or 9.0% for the period,
increasing the value of Precinct’s portfolio to around $2.5 billion.
This has contributed to a net profit after tax of $254.9 million, up
57.2%. Net operating income also increased by 2.5% to
$76.6 million or 6.32 cents per share (cps). This was in line with
guidance. Full year dividend to shareholders was 5.80 cps,
representing a 3.6% increase.
We are pleased with our strong result this year and the
performance achieved across our business. On behalf of the
Board of Precinct, we are pleased to present investors with our
2018 Annual Report.
As we continue to focus on our long-term strategy as city centre
specialists, we are particularly pleased with the strong position
we are in. Our FY18 results reflect continued growth in earnings
as well as the targeted lift in portfolio quality being achieved.
The Board continually focuses on Precinct's strategy, while
monitoring risk and applying sound capital management.
Focusing on a number of capital management initiatives during
the year has resulted in a total of $250 million of capital raised
through the completion of a convertible notes offer and a bond
issue. We believe these initiatives are well suited to Precinct’s
strategy and provides the necessary available capital to match
our development commitments.
The recent post balance date refinancing of Precinct's
$760 million bank debt facility in July 2018 further supports our
committed developments by providing sufficient funding
capacity to deliver these projects.
Precinct has circa $300 million of development spend remaining.
With a number of development milestones reached during the
year, the Board is very pleased with the progress achieved to
date on each of our projects.
“
FY18 HAS BEEN A PERIOD OF INTENSE
FOCUS ON DELIVERY OF OUR MAJOR
DEVELOPMENT PROJECTS. WE ARE
COMMITTED TO ENSURING THEIR
SUCCESSFUL COMPLETION.”
>> Craig Stobo, Chairman.

05
CHAIRMAN'S REPORT
INCREASED DISCLOSURE
This year Precinct has prepared its annual report in accordance
with the Global Reporting Initiative (GRI) Standards. We are
pleased with the progress made over the year. As part of this
year’s annual report we have taken a more robust approach in
expanding our reporting on sustainability which encompasses
Environmental, Social and Governance (ESG) factors material to
Precinct. By reporting to GRI Standards we are providing greater
clarity and accountability around our material sustainability
issues including how we are responding to them.
Notable achievements during the year include:
• Establishing a Sustainability Committee to act as custodian for
Precinct’s sustainability strategy
• Becoming a member of and participating in the Global Real
Estate Sustainability Benchmark (GRESB), the global ESG
benchmark for real estate
• Disclosing a written Diversity and Inclusion policy for Precinct
• Progressing initiatives to increase overall client wellbeing
• Achieving a 5 stars NABERSNZ Energy Base Building rating at
the Mason Bros. building, demonstrating market leading
performance in energy efficiency
• Improving electricity and gas use efficiency at a portfolio
level in both Auckland and Wellington.
The Board is focused on our material ESG issues, which extends
beyond reporting on them. We recognise that sustainability is an
important part of Precinct's business activities. It's strategy has
therefore been designed in parallel with Precinct's broader
business strategy.
You are welcome to read more about Precinct's material issues
in detail on pages 22 to 34.
6.00 CPS
FY19 dividend guidance
Our next Annual General Meeting of Shareholders is
scheduled to be held on 1 November 2018. We encourage
all shareholders to attend. It is a great forum for us to meet
with you, our shareholders, to discuss these results and
answer any questions during the meeting that you may
have.
More details on the meeting including time and venue will
be provided to shareholders in the coming months.
GOVERNANCE
The Board of Precinct understands the importance of its role and
responsibilities. It is something we take very seriously. We are
committed to reviewing, monitoring and assessing the overall
strategy and activities across the business, including the
developments currently underway. We significantly enhanced
our corporate governance when we corporatised in 2011 and
have continued to refine our ongoing strategy in order to grow
shareholder value.
Ensuring Precinct maintains best practice governance structures
and the highest ethical standards are key objectives for Precinct
and the Board. In accordance with best practice, Precinct
reviewed its corporate governance manual during the year. It
incorporates (to the extent relevant) the NZX listing rules relating
to corporate governance and the NZX Corporate Governance
Code 2017 and Guidelines.
We recognise an effective board comprises a balance of
independence, skills, knowledge, experience and perspectives
amongst directors. We are a member of Diversity Works New
Zealand and proud to support The Women’s Empowerment
Principles, a joint initiative of the UN Global Compact and UN
Women. The Board continues to assess the diversity of the Board
and Officers of Precinct. We have set clear targets to improve
gender diversity across Precinct and will report on this annually.
You can find out more about our diversity and inclusion policy in
the corporate governance section of this annual report.
OUTLOOK AND DIVIDEND GUIDANCE
The Board expects full year earnings for the 2019 financial year of
approximately 6.60 cps, before performance fees and expects
to pay a dividend of 6.00 cps. This represents a 3.4% increase in
dividend to shareholders.
With supportive capital markets and both occupier and
investment markets remaining strong, we believe Precinct is well
positioned to advance our city centre strategy and increase
shareholder value in 2019 and beyond. We have a clear strategy
with a targeted approach to our markets and remain confident
about both the New Zealand economy and the performance of
our investment and development portfolio.
Thank you to my Board colleagues and Management for their
support, the Precinct team for their on-going work during
another successful year, and also you, our shareholders, for your
continued investment in our business. We look forward to
delivering more strong results as we execute our long-term
strategy for continued future growth.
CRAIG STOBO, CHAIRMAN

06
MANAGEMENT REPORT
MANAGEMENT REPORT
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
DELIVERING RESULTS
The last financial year has delivered another strong result for our
business. As we moved forward with our strategy, we progressed
a number of initiatives and achieved key milestones during the
year. We have continued to take an active management
approach with both our investment portfolio and our
development pipeline, leveraging Precinct’s market position.
Major milestones achieved during the year include:
• $191 million of capital recycled through asset sales
1
• $250 million non bank funding secured
• $760 million bank debt facility refinanced (July 2018)
• 100% portfolio occupancy in Auckland
• Uplift in Commercial Bay forecast value on completion to just
over $1 billion
• Development commitment of One Queen Street (Aug 2018).
Precinct’s financial performance highlights for FY18 include:
• Net profit of $254.9 million
• 3.6% increase in dividend to shareholders
• Revaluation gain of $208.7 million
• Gearing of 25.0%.
Further details on this year’s financial performance is provided in
the results overview section on page 08.
$191173
M
Capital recycling through asset sales during the year
CAPITAL RECYCLING
Progressing the sale of a 50% interest in ANZ Centre in Auckland
and the sale of 10 Brandon Street in Wellington are further
examples that demonstrate Precinct's active management
approach.
The sale of the 50% interest in ANZ Centre was to a fund
controlled by Invesco for $181 million which is consistent with the
30 June 2018 independent valuation and reflects a 12% premium
to 30 June 2017 valuation on a pro-rata basis. Acquired by
Precinct in 1997, ANZ Centre has performed well since it became
part of the portfolio generating a property level IRR of 9.0%.
Precinct completed a $76 million upgrade in 2013. We remain
committed to maintaining this building as one of New Zealand’s
premium office towers through our 50% stake and ongoing
management.
These sales are in line with our business strategy and enable
Precinct to recycle capital into higher yielding development
opportunities. The ANZ sale transaction remains subject to
Overseas Investment Office approval and the sale of 10 Brandon
Street for $10.2 million is conditional on ground lessor approvals
and is due to settle in August 2018.
1 Sale of 10 Brandon Street and 50% interest in ANZ Centre are conditional. Refer
to Note 8 in the Notes to the Financial Statements for more detail.
DEVELOPMENT UPDATE
Over the past 12 months, the Board and Management of
Precinct have considered a range of development opportunities
for One Queen Street in Auckland. Post balance date, Precinct
announced that it will proceed with the $298 million
redevelopment at One Queen Street (currently HSBC House). As
a second stage of the Commercial Bay project, the mixed use
redevelopment of the building comprises a luxury hotel, premium
office accommodation above and a variety of unique food and
beverage options including a roof-top hospitality venue.
Construction is scheduled to commence in 2020.
Commercial Bay continues to achieve a good level of leasing
enquiry and we have secured a number of additional occupiers
during the period, advancing retail commitments to 76% and
office commitments to 78%.
Phase one of the retail remains on schedule with H&M opening
its flagship 3,800 square metre (sqm) store on 30 August 2018,
marking an important development milestone.
Commercial Bay remains on track to deliver a yield on cost of
7.5% and an increased profit on cost of 41% (June 17: 31%) or
$283 million. Based on current project metrics, there remains a
further $100 million of unrecognised development profit
expected to materialise on completion.
Construction has reached several key milestones during the
period, with the completion of key tower structural elements,
retail construction out of the ground and completion of the first
phase of façade installation.
Up until this point, Precinct has estimated the completion
programme from independent advice. Following considerable
engagement with the main contractor, Fletcher Construction, a
revised completion programme has recently been provided.
The completion programme provided by Fletcher Construction
has been reviewed by Precinct’s expert programmer, RCP, who
have confirmed the revised dates are achievable, subject to the
main contractor’s performance. The revised completion dates
for the Commercial Bay retail and the new PwC office tower are
September 2019 and December 2019, respectively.
Precinct remains confident with the provisions of its construction
contract, which protect Precinct from losses due to contractor
delay. Liquidated damages will effectively mitigate the impact
on Precinct from any loss of income and other costs over the
delayed period.
Precinct continues to work closely with retailers at Commercial
Bay to communicate the revised occupation dates. For those
occupiers coming into the new PwC office tower, all have
existing lease terms which extend beyond the revised
completion dates of the office tower.
In Wellington, construction works have continued to progress at
Bowen Campus with the façade installation at Charles Fergusson
Tower now complete. At Bowen State Building we have
completed the majority of the structural works for the building
and the façade is now 90% complete.

07
MANAGEMENT REPORT
INVESTMENT PORTFOLIO
At year end our investment portfolio has continued to benefit
from strong occupier markets. Achieving a high portfolio
occupancy of 99% at year end and a weighted average lease
term (WALT) of 8.7 years demonstrates this.
Our Auckland portfolio has performed well with occupancy
sitting at 100% reflecting demand for premium inner-city office
space. A key focus during the year has been to reduce portfolio
vacancy. We successfully leased all of the existing PwC Tower
and reduced vacancy exposure at HSBC House and ANZ Centre
through redevelopment and capital transactions. In Wellington,
we have also reduced vacancy increasing occupancy levels
through active leasing during the year.
OUTLOOK
Following the successful execution of our capital management
initiatives over the past 12 months, we have a strong balance
sheet to take our business forward. We are confident Precinct is
well positioned relative to our markets. Our portfolio is
demonstrating the benefits of owning premium quality real
estate in strategic locations.
The long-term outlook for the Auckland market remains strong,
with solid demand drivers for city centre real estate across the
office, retail, hotel and residential markets.
The office market in particular is supported by increased growth
in the working age population, with continued elevated visitor
growth projected to underpin hotel demand. Similarly, outlook
for the Wellington market has significantly improved in contrast
to previous years.
We are committed to our long-term strategy as city centre
specialists. This strategy is progressing well and is reflected in our
strong results this year.
Scott Pritchard, CEOGeorge Crawford, COO
Richard Hilder, CFO
FROM LEFT TO RIGHT, GEORGE CRAWFORD (COO), SCOTT PRITCHARD (CEO) AND RICHARD HILDER (CFO)

08
RESULTS OVERVIEW
RESULTS OVERVIEW
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
FY18 RESULTS
High occupancy levels and a significant revaluation gain of
$208.7 million recorded during the period contributed to net
profit after tax increasing to $254.9 million (June 2017:
$162.1 million).
Net operating income, which adjusts for a number of non-cash
items, was up 2.5% to $76.6 million or 6.32 cps, and was in line
with guidance (June 2017: $74.7 million).
Dividends paid and attributed to the 2018 financial year totalled
5.80 cps. The dividend paid matched adjusted funds from
operations (AFFO) of 5.80 cps which is considered to align with
international 'best practice' for real estate entities.
$76.6173
M
Net operating income
RECONCILIATION OF NET OPERATING INCOME
(Amounts in $ millions)20182017
Net profit after taxation
254.9
162.1
Unrealised net (gain) / loss in value of
investment and development properties
(208.7)
(77.5)
Unrealised net loss /(gain) on financial
instruments
11.1
(11.8)
Deferred tax expense / (benefit)
17.0
1.9
Share of (profit) / loss of joint venture
2.3
0.0
Net operating income76.674.7
Note: 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 above. 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.
Funds from operations (FFO)
FFO and AFFO are measures used by real estate entities to
describe the underlying performance from their operations.
Aligning dividends with AFFO is generally considered to be
best practice for real estate entities. FFO and AFFO are
defined in more detail on page 44.
FFO for the year increased $2.5 million to $83.4 million (June
2017: $80.9 million) or 6.89 cps. This represented an FFO
payout ratio of 84%. AFFO for the year was $70.2 million, or
5.80 cps, matching the dividend paid.
PRECINCT'S AFFO PAYOUT RATIO OVER THE PAST 5 YEARS HAS
AVERAGED 101%
Gross rental revenue was $130.7 million, 3.6% higher than the
previous year (June 2017: $126.2 million). This increase was
primarily due to the completion of Wynyard Quarter Stage One
which was partially offset by foregone income related to
development activity and 10 Brandon Street. On a like for like
basis gross rental income was 3.7% higher than the previous
period.
Property expenses of $35.4 million were consistent with the
previous period (June 2017: $35.8 million).
Net property income increased to $95.3 million (June 2017:
$90.4 million). After adjusting for development projects and non
recoverable earthquake costs, like for like income growth was
3.0% higher than the previous comparable period. The Auckland
portfolio saw an increase of 3.1% and Wellington achieved an
uplift of 2.9%.
Development spend at Bowen Campus and Commercial Bay
saw total borrowings increase in the period resulting in a
corresponding lift in interest expense. This was offset by
capitalised interest associated with developments and interest
income, which resulted in net expense for the period of
$2.2 million (June 2017: $3.4 million).
Precinct recorded a 16.3% shareholder total return for the year to
30 June 2018. This outperformed the benchmark New Zealand
listed property sector return (excluding Precinct) of 8.9%. Due to
previous under performance and in line with the agreed process
for recognising outperformance of the market no performance
management fees were paid.
Overall indirect expenses were $10.2 million, 4.1% higher than the
previous period reflecting an increase in management fees paid
following the completion of Wynyard Stage One.
Current tax expense increased by $3.8 million to $6.3 million
(June 2017: $2.5 million). This was a result of a lower level of
deductible leasing costs and the disposal of depreciable assets
at Bowen Campus in the 2017 financial year.
The fair value loss in financial instruments of $11.1 million
compared with a gain of $11.8 million the previous year. The loss
resulted from a fall in market interest rates during 2018.
The valuation gain of $208.7 million (2017: $77.5 million) reflected
valuations increasing by $108.4 million across Precinct's
investment portfolio and recording a $100.3 million gain on its
current development projects due to development profit
recognition and capitalisation rate firming. On a like for like basis,
Auckland asset valuations increased by 9.6% 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.
The deferred tax expense of $17.0 million related primarily to a
change in estimate for determining the provision for deferred tax
consequences of a sale of investment property at market value.
The provision now better reflects the net sale price allocation
process that occurs at the point of sale.
The strong valuation gain increased Precinct’s portfolio value to
$2.5 billion (June 2017: $2.04 billion) and was the key contributor
for the 16 cps uplift in Precinct’s NTA per share to $1.40 (June
2017: $1.24).

09
RESULTS OVERVIEW
TIRAMARAMA WAY, WYNYARD QUARTER IN AUCKLAND - LANEWAY BETWEEN MASON BROS. BUILDING AND 12 MADDEN STREET
KEY FINANCIAL INFORMATION
(Amounts in $ millions unless otherwise stated)20182017Change (%)
Rental revenue
130.7
126.23.6
Operating income before indirect expenses
95.3
90.45.4
Operating income before tax
82.9
77.27.4
Net operating income
1
76.6
74.72.5
Net profit after income tax
254.9
162.157.2
Earnings per share based on operating income before tax (cents)
6.84
6.377.4
Earnings per share based on operating income after tax (cents)
6.32
6.172.4
Gross distribution (cents per share)
2
6.29
6.35(1.0 )
Net distribution (cents per share)
2
5.80
5.603.6
Payout ratio (%)
91.8
90.81.1
Total assets
2,561.7
2,079.223.2
Total liabilities
871.0
573.651.8
Total equity
1,690.7
1,505.612.3
Shares on issue (million shares)
1,211.1
1,211.10.0
NTA (cents per share)
140
12412.9
Gearing ratio at balance date (%)
3
25.0
25.1(0.5 )
The information set out above has been extracted from the financial statements set out on pages 70 to 89.
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.
2 Dividend paid and proposed relating to financial year.
3 For loan covenant purposes deferred tax losses, fair value of swaps and subordinated debt are not included in the calculation of gearing ratio.

10
RESULTS OVERVIEW
RESULTS OVERVIEW (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
CAPITAL MANAGEMENT
At balance date total borrowings (including convertible notes)
increased to $751.4 million (June 2017: $452.1 million). The
increase related to the development spend at Bowen Campus
and Commercial Bay. Gearing as measured under borrower
covenants, which disregards subordinated debt as at 30 June
2018 is 25.0% (June 2017: 25.1%).
A key focus of Precinct's capital management approach has
been to continue to diversify its funding sources that are well
suited to its current strategy and opportunities. As at 30 June
2018, 56% of drawn debt was sourced from non bank sources.
During the period, a total of $250 million of non bank funding has
been secured. This includes $150 million of four-year, fixed-rate
subordinated convertible notes and $100 million of senior
secured seven year bonds. Both issues have further strengthened
Precinct's capital management position. In particular, the
convertible notes provide a flexible funding option giving
Precinct the available capital to match development
commitments while ensuring that earnings are not diluted in the
short term.
Post balance date, Precinct successfully refinanced its
$760 million bank debt facility which was due to expire in
November 2020. The refinance extends $460 million of the
existing facilities in two new tranches expiring in July 2022 and
July 2023, with the balance of the facility expiring in November
2020.
The refinance in July 2018 extends the tenor of the existing
facilities, reducing refinancing risk and improves the weighted
average term to expiry out from 3.3 years at 30 June 2018 to over
4 years (June 2017: 4.0 years). Funding continues to be provided
by Precinct’s existing lenders ANZ, BNZ, CBA, HSBC and Westpac.
Precinct has total debt facilities of $1.18 billion and remains
within its borrowing covenants and is in a strong financial position
with sufficient funding capacity to deliver its committed
developments.
“
OUR NEW BANK DEBT FACILITY REDUCES
REFINANCING RISK TO OUR BUSINESS
AND PROVIDES SUFFICIENT FUNDING
CAPACITY TO DELIVER OUR COMMITTED
DEVELOPMENTS.”
>> Richard Hilder, CFO .
As at 30 June 2018, Precinct was 85% hedged through the use of
interest rate swaps (June 2017: 65%). Average hedging for the
2019 financial year will be around 80% as forward swaps
commence in the period. The weighted average interest rate
including all fees was 5.3% at 30 June 2018 (June 2017: 5.6%).
19.4
6.7
%
Pro forma gearing as at 30 June 2018, following asset sales
CAPITAL MANAGEMENT METRICS
20182017
Debt drawn ($ millions)
1
751.4
452.1
Gearing - banking covenant (%)
25.0
25.1
Weighted average term to expiry (years)
3.3
4.0
Weighted average debt cost (incl fees) (%)
5.3
5.6
% of debt hedged (%)
84.5
65.3
Weighted average hedging (years)
3.2
2.7
Interest coverage ratio (previous 12 months)
2.4 x
3.9 x
Total debt facilities ($ millions)
1,183
1,033
1 Excludes the USPP note fair value adjustment of $15.0 million (June 2017:
$8.8 million). Interest bearing liabilities are detailed in Note 15 of the Financial
Statements.
ANZ CENTRE, AUCKLAND

11
RESULTS OVERVIEW
OPERATIONAL UPDATE
Our investment portfolio has continued to perform well over the
last financial year and we have achieved strong metrics as a
result. At 30 June 2018, overall portfolio occupancy was 99%
(June 2017: 100%) and WALT was maintained at 8.7 years (June
2017: 8.7 years).
Positive leasing momentum has continued with a total of 41
leasing transactions completed, encompassing over 21,900 sqm
and 598 car parks on a WALT of 6.1 years. Overall leasing
transactions were secured at a 1.4% premium to valuation
rentals.
In Auckland, we achieved 100% occupancy. Leasing highlights
include signing a 7 year lease with the New Zealand Transport
Agency at the AMP Centre, totalling around 2,200 sqm.
In Wellington, the carparking facilities for both Mayfair House and
Dimension Data House secured new leases with Care Park and
Wilson Parking. This represents a total of 458 carparks and was
secured on a 6.7 year WALT.
In the period, Precinct settled 13,000 sqm of market rent reviews
at a 3.3% premium to the 30 June 2017 valuation rentals. In total,
including structured rent reviews, Precinct settled 85,600 sqm of
reviews at a 3.9% premium to previous contract rental and 3.5%
premium to 2017 valuations.
The portfolio is now under-rented by 6.4% (June 2017: 4.7% under-
rented). We expect to reduce the remaining vacant office
space in the portfolio and achieve further market rental growth
going forward.
Generator, Precinct’s 50% owned co-working space provider has
achieved occupancy of 73%, well above expectations. With 75%
(9,500 sqm) of its space launched during the year, the business
recorded a loss, as anticipated for this trading-up period. With
900 Generator members and the launch of its new innovation
focused co-working space at GridAKL in Wynyard Quarter and
premium site at Britomart Place, we are seeing continued growth
across this investment.
Generator, Britomart Place at 11 Britomart Place, Takutai Square
is the newest site to join Generator’s co-working offering and
brings the total square metres managed by Generator to 12,000
sqm across three locations.
You can read more about flexible space on page 38 of this
annual report.
“OUR INVESTMENT PORTFOLIO HAS
PERFORMED WELL OVER THE LAST 12
MONTHS WITH RENT REVIEWS ACHIEVED
AT A PREMIUM TO BOTH PREVIOUS
CONTRACT RENTAL AND 2017
VALUATIONS.”
>> George Crawford, COO.
2019 LEASING EVENTS BY NLA
76%
15%
8%
Fixed review
Market review
Expiry
LEASE EXPIRY PROFILE BY OFFICE NLA
Financial year
% of net lettable area
WellingtonAuckland
Vacant1920212223242526Beyond
0
20
40
60
80
100
Lease expiry includes all committed office developments and excludes Commercial Bay retail

12
RESULTS OVERVIEW
RESULTS OVERVIEW (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
OUR MARKETS
AUCKLAND CBD
CBD Office
Latest JLL Research reported prime grade (premium plus A Grade) vacancy rates increased marginally to 5.3% as at 30 June 2018
(June 2017: 4.8%) with prime stock increasing by approximately 38,900 sqm, largely in the Viaduct and Wynyard precinct, following
completion of developments such as 46 Sale Street and 12 Madden Street, which are offset by strong net absorption totalling 33,792
sqm over the 12 month period. Over the same period, rents in both the premium and A Grade markets have further risen, albeit growth
rates have slowed. Looking ahead, continued economic growth and growing employment are anticipated to drive both occupier
demand for office space and underpin rental rates despite new supply being added to the market over the short term.
CBD Retail
Robust retail expenditure and a lack of quality retail premises have resulted in a tightening in the CBD retail market. JLL Research has
vacancy reducing to 2.1% as at 30 June 2018 (June 2017: 2.6%) and virtually no vacant premises available at the waterfront end of
Queen Street and within Britomart. While online retail spend is anticipated to grow at a faster pace than expenditure at physical stores,
demand for retail premises are expected to prevail based on the positive outlook for fundamentals such as net migration, inbound
tourism arrivals and growth in the CBD resident and worker populations.
WELLINGTON CBD
CBD Office
The Wellington CBD office market has now largely recovered to post-quake levels in terms of the overall stock in operation.
Notwithstanding this, occupier demand continues to remain near record highs with prime vacancy at 1.0% as at 30 June 2018 (June
2017: 1.2%) with overall vacancy at 5.4% (June 2017: 5.3%) across the wider CBD according to JLL Research. While some developers
have delivered a supply response subsequent to the Kaikoura earthquake, net absorption and rental growth is anticipated to remain
strong given the current supply pipeline is largely pre-committed together with there being a number of government agencies actively
seeking additional space.
AUCKLAND CITY CENTRE

13
DEVELOPMENT PORTFOLIO
Artist's impression of 1 Queen Street, Auckland

14
DEVELOPMENT PORTFOLIO
DEVELOPMENT PORTFOLIO
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
ONE QUEEN STREET
Post balance date, Precinct announced that it will proceed with
the $298 million redevelopment of One Queen Street (currently
HSBC House). As a second stage of the Commercial Bay project,
the mixed use redevelopment of the building comprises a luxury
hotel, premium office accommodation above and a variety of
unique food and beverage options including a roof-top
hospitality venue.
The development will be fully integrated into the Commercial
Bay retail precinct, providing a further and complementary
demand driver especially for the weekend, evening and holiday
trading periods. The hotel will operate across 11 levels of the
building and provide a total 244 guest rooms and suites, together
with an all-day dining restaurant, meeting suites, health club and
club lounge facilities. The commercial office space will
encompass 8,700 sqm across 7 levels.
The mixed use redevelopment of One Queen Street will
significantly enhance Commercial Bay for retail, business and
visitors alike. To have such a large area operating seamlessly
under single ownership and management provides a unique
opportunity to generate strong synergies between the uses. We
believe this offering will further support the Commercial Bay retail
precinct, particularly food and beverage.
Construction is scheduled to commence in H1 2020. The hotel is
expected to open in early 2022 and the commercial office and
hospitality space to open in mid 2022.
LT McGuinness will be the main contractor for the One Queen
Street development. With a proven record of delivering projects
on time and to the highest standard, we are confident about the
delivery of this project. We are pleased with their performance to
date on site at Bowen Campus in Wellington and with their work
in Wynyard Quarter in Auckland.
Warren and Mahoney are the lead architect on this project with
interior design to be completed by international design firm,
AvroKO.
Level 1 and 2 of One Queen Street are currently being
integrated seamlessly into Commercial Bay stage one forming
the food and beverage offering, Harbour Eats, and will open as
part of Commercial Bay in 2019.
The project will be funded through Precinct’s existing debt
facilities. On completion, the project is expected to generate a
stabilised yield on cost of 7.0% and a profit on cost of 15%.
INTERCONTINENTAL AUCKLAND
Following a comprehensive international hotel operator
selection process, Precinct is pleased to announce the
appointment of InterContinental Hotels Group (IHG) as the
hotel operator for the One Queen Street hotel under their
flagship InterContinental brand and to be known as
InterContinental Auckland.
Securing InterContinental, one of the world’s most
recognised luxury hotel brands, reflects the high demand
from operators for this unparallelled waterfront location.
HIGHLIGHTS TO DATE:
• Overall project is 75% precommitted.
• Commitment includes a signed heads of agreement
2
across 3,700 sqm for the office premises.
• Appointing IHG, one of the world’s largest hotel
operators with more than 5,400 hotels, to manage the
new hotel as InterContinental Auckland.
• Entering into a 50% fixed price construction contract with
LT McGuinness.
PROJECT INFORMATION
HotelOfficeHospitality
Expected completionLate 2021Mid 2022Mid 2022
Key commitment to dateIHG43%
1
Net lettable area244 rooms8,700 sqm400
2
sqm
1 Signed heads of agreement
2 Excludes the level 1 and 2 food and beverage offering which will open as part
of the Commercial Bay retail centre in 2019.
“THE LAUNCH OF ONE QUEEN STREET IS
FURTHER EVIDENCE OF PRECINCT'S ROLE
IN CREATING A WORLD CLASS
WATERFRONT DESTINATION ON PAR
WITH OTHER GLOBAL CITIES.”
>> Scott Pritchard, CEO .
$298173
M
Estimated total project cost
7.0
6.7
%
Expected yield on cost
15
6.7
%
Expected stabilised profit on cost
2 Signed heads of agreement records all commercial terms agreed subject to
negotiation and execution of binding documentation.

15
DEVELOPMENT PORTFOLIO
HOTEL MARKET OVERVIEW
Dean Humphries, National Director Hotels, Colliers International
The Auckland hotel market is experiencing unprecedented levels of growth in demand, which is forecast to persist through further
growth in tourism numbers through to at least 2025. While a number of new hotel projects have been announced in the last 24 months,
the increase in supply is expected to still fall short of demand over the short term and reach equilibrium over the medium to long term.
This is expected to underpin robust room and occupancy rates moving forward.
• According to MBIE, annual visitor arrivals are projected to grow 4.6% per annum reaching 5.1 million by 2024, up 37% from 3.7 million
in 2017.
• Based on current forecasts, the Auckland hotel market will likely require up to circa 4,000 new hotel rooms by 2025 to cater for
current demand projections. Based on recent supply estimates, these rooms should be delivered to meet this unprecedented
demand. However a constrained construction sector could well see some of these projects being deferred which will then add
further pressure to existing hotel stock.
• The Auckland hotel sector has significantly outperformed other commercial property sectors post-GFC, and has according to
market research achieved the second highest ADR growth in Asia Pacific since 2011, second only to Osaka where occupancy
consistently reached 90 percent over the past three years.
“COMMERCIAL BAY IS SET TO TRANSFORM AUCKLAND’S CITY CENTRE AND RESHAPE
THE WATERFRONT AREA IN THE HEART OF THE CITY, SO IT IS ABSOLUTELY FITTING THAT
ONE OF THE WORLD’S BEST-KNOWN LUXURY BRANDS FORMS PART OF THIS WORLD-
CLASS DEVELOPMENT. THE ADDITION OF THE INTERCONTINENTAL AUCKLAND
FURTHER SOLIDIFIES COMMERCIAL BAY’S STATUS AS THE HEART OF AUCKLAND, AND
WE ARE VERY PROUD TO PARTNER WITH PRECINCT TO BRING THIS FLAGSHIP
PROPERTY TO LIFE.”
>> Leanne Harwood, Managing Director - Australasia & Japan, InterContinental Hotels Group (IHG).
AERIAL VIEW OF AUCKLAND CITY CENTRE WITH ARTIST'S IMPRESSION OF COMMERCIAL BAY AND ONE QUEEN STREET

16
DEVELOPMENT PORTFOLIO
DEVELOPMENT PORTFOLIO (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
COMMERCIAL BAY
During the year strong retail leasing has been achieved with over
35 leasing transactions secured, advancing commitments across
the retail centre to 76% (June 2017: 46%). With retail enquiry levels
remaining elevated, we expect leasing momentum to continue
into 2019.
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.
Also joining the food precinct, 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.
Ollie Simon and David Lee will also be part of the dining precinct
with their new eatery in Commercial Bay. It is expected to be an
extension of their Simon & Lee eatery in Parnell, but will focus on
higher-end lunch, dinner and drink offerings.
“WE WERE INITIALLY ATTRACTED TO
COMMERCIAL BAY AS IT IS THE FIRST
PRECINCT OF ITS KIND IN NEW ZEALAND.
IT WILL BRING TOGETHER THE BEST
HOSPITALITY AND RETAIL AND ACT AS A
HUB FOR LOCALS AND VISITORS ALIKE.
WE CAN’T WAIT TO BE PART OF THIS
REINVIGORATED SPACE AND BRING
WHAT WE LOVE TO THE AREA.”
>> Ollie Simon and David Lee, Simon & Lee.
PROJECT INFORMATION
AnnouncementCurrent ProjectionsVariance
Retail committed0%76%76%
Office committed52%78%26%
Total project cost$681 m$685 m$4 m
Value on completion$853 m$1,011 m$158 m
Yield on cost7.5%7.5%-
Retail completion
date
October 2018September 2019
Office completion
date
Mid 2019 (July)December 2019
$1.0 B
Expected value on completion
76
6.7
%
Retail commitments by net lettable area
In March of this year, Precinct also welcomed its first wave of
fashion store clients, bringing together a carefully curated mix of
established local favourites and first-to-market global brands.
Furla, Superette, Hershel Supply Co, and a Rodd & Gunn
bespoke Lodge Bar and fashion concept will all be landmark
stores at Commercial Bay in 2019.
We expect to announce more leading local and international
fashion retailers in the coming months who remain confidential
at this stage.
H&M remains on schedule to be the first Commercial Bay
flagship store to open on 30 August 2018 encompassing 3,800
sqm over four levels. Located on the corner of Customs and
Queen Streets the four-level shop will be the biggest H&M to
date and feature women’s, men’s, kid's and the homeware
collection.
Office commitments has also increased progressing to 78% (June
2017: 66%). Securing commitments from a number of occupiers
outside of the existing portfolio is a great outcome. New clients
to the office tower include Marsh and expanded offer to IWG
under their Spaces brand.
During the period the Commercial Bay project recorded a
significant uplift of $70 million, increasing the value on
completion to just over $1.0 billion following the 30 June 2018
valuation update (June 2017: $941 million). Based on current
project metrics there remains a further $100 million of
unrecognised development profit expected to materialise on
completion.
Construction is progressing with the construction of the City Rail
Link tunnels approximately 75% complete. The primary steel for
the office tower is now erected to level 28 with a further jump
sequence to level 31 commencing. Floor slabs have been fully
poured through to level 16 and part poured on levels 17 to 19.
The retail centre podia is now rapidly forming across the site with
the basement substantially complete and the retail buildings
now reaching level 1 on parts of the site.
Works are well advanced on the lower levels of 1 Queen Street
with demolition of the lower floors complete and construction of
the floor slab extensions advancing well.

17
DEVELOPMENT PORTFOLIO

18
DEVELOPMENT PORTFOLIO
DEVELOPMENT PORTFOLIO (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
BOWEN CAMPUS
Construction works have continued to progress well over the last
12 months. We have now completed the facade installation at
Charles Fergusson Tower with tenancy fitout works continuing. All
works are targeted for completion late December 2018.
At Bowen State Building we have completed the majority of the
structural works for the building including the north and south
shear walls. The façade is now 90% complete for the building,
installed from Level 1 to 10. Tenancy works are well underway to
all levels. Occupation of Bowen State Building by New Zealand
Defence Force is expected in Q3 2019.
We continue to work closely with our contractor, LT McGuinness.
We are pleased with work completed to date.
Preliminary designs for the remaining development land at
Bowen Campus are being progressed and marketing for leasing
precommitment has been launched. With potential to
accommodate up to 20,000 sqm of commercial office space, it
is considered suitable for both Crown and corporate occupiers.
The Annex Building which was previously on the site has now
been demolished.
100
6.7
%
Leased across office space
16.9 YEARS
Weighted average lease term
BOWEN CAMPUS, WELLINGTON

19
DEVELOPMENT PORTFOLIO
WYNYARD QUARTER
With the first stage of Wynyard Quarter now complete, design has advanced for stages two, three and four. Precinct is able to develop
a further 30,000 sqm of office space on the site and will draw on the land when it wishes to proceed with each stage.
Precinct has continued to engage with potential occupiers for the type of space within the Innovation Precinct and is encouraged by
the extent of ongoing interest.
Precinct anticipate commencing the second stage of the development in the next six months.
ARTIST'S IMPRESSION OF WYNYARD QUARTER STAGE TWO, AUCKLAND

20
OUR BUSINESS AND STRATEGY
OUR BUSINESS AND STRATEGY
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
WHO WE ARE
WITH A PORTFOLIO VALUE OF OVER $2.5 BILLION, PRECINCT IS THE LARGEST OWNER OF PREMIUM INNER-CITY
BUSINESS SPACE IN AUCKLAND AND WELLINGTON. WE FOCUS ON QUALITY SPACE AND QUALITY SERVICE.
Last year marked 20 years as a listed company on the New Zealand Stock Exchange for Precinct. When we first listed back in 1997, we
were a unit trust and owned just 6 properties. Today, Precinct owns 14 properties and is ranked in the NZX top 25.
We adopted our new name in 2012 to reflect our evolution as a business, and have since grown to become a city centre specialist real
estate investment company.
Precinct invests predominately in high quality strategically located city centre office, retail and leisure real estate which thrive through
co-location.
While office real estate is at the heart of Precinct’s portfolio structure, we believe in order to be a specialist in a city centre context
considering a broader mix of real estate offers greater opportunity for Precinct to create value for shareholders. This includes, from time
to time, investment in other city centre real estate including hotels, land, car park buildings, and lower quality properties where value
can be created through active management and development.
PRECINCT AT 30 JUNE 2018
$ 2.5 B
Portfolio value
99
6.7
%
Portfolio occupancy
200 +
Clients
50 +
In-house Precinct team
OUR APPROACH
Precinct understands that the operational aspects of its business,
as an owner, a developer and a manager of property, are
responsible for having an external impact on a number of
environmental, social and economic issues. By recognising this,
and that we operate in a changing global environment, Precinct
aims to conduct its business as a responsible corporate citizen
and therefore places great importance on operating in the most
sustainable way it can.
We want to create precincts that our clients thrive working
within, and that city centre residents, visitors and wider
communities enjoy being in. We want our office buildings to be
the preferred places to work in the Auckland and Wellington city
centres.
Our strategy is reviewed annually and continually refined. It has
evolved materially since 1997 when the company was first
established. Our current strategy provides clear direction for the
Precinct team and shareholders.
Moving to a more active management approach has resulted in
Precinct preferring to now create its own real estate which we
are seeing through its extensive development activities.
During 2017 management developed further its strategic
perspective and refined its focus into three distinct areas.
Precinct’s strategy provides a clear and targeted approach to
our markets. We are now realising the benefits of its strategic
design.
We are able to measure our progress relative to both our
strategy and to our three areas of focus, our people, our portfolio
and our developments.

21
OUR BUSINESS AND STRATEGY
THREE ESSENTIAL ELEMENTS
OUR PEOPLE
Working together in a great team culture, providing
excellent client service, valuing our occupiers, supporting
our community and focusing on their well-being are all core
principles to what makes Precinct successful.
OPERATIONAL EXCELLENCE
Operational excellence involves superior performance of
both our people and assets. Our people strive to perform. By
investing in high quality assets we get the best operational
performance from them, whilst proactive maintenance
helps provide sustainable returns.
DEVELOPING THE FUTURE
Through our projects we are helping to regenerate
Auckland's and Wellington’s city centres. We are driving
growth through partnerships and joint ventures. Whether it is
creating new environments, or transforming existing places,
our people are inspired every day by realising the
possibilities our cities hold.
STRATEGY PROGRESS TO DATE
Our People
• Sourcing retail management team for Commercial Bay
• Diversity and Inclusion policy disclosed
• Intern program completed
Operational Exellence
• 99% portfolio occupancy
• Conditional sale of a 50% interest of ANZ Centre
• $250 million non bank funding secured
• $760 million of bank debt facilities refinanced
• Third location secured for Generator
• Portfolio WALT maintained at 8.7 years
Developing the Future
• Commercial Bay: 76% retail commitments
• Commercial Bay: 78% office commitments
• Bowen Campus: 100% office leased
• Development commitment of One Queen Street
SUPPORTING OUR COMMUNITY
As a city centre specialist and one of the largest real estate
investors in Auckland and Wellington city centres, we understand
it's about people and supporting the communities in which we
operate in. We recognise the importance of conducting
Precinct's business as a responsible corporate citizen. Helping to
strengthen the communities in which we operate in is therefore a
key focus for Precinct.
You can read more about how Precinct works in partnership with
certain community organisations in the sustainabilty section of
this report under partnerhips and community on page 30.
“
PRECINCT ARE CITY CENTRE
SPECIALISTS. WE UNDERSTAND IT'S
ABOUT PEOPLE AND WE RECOGNISE
SUCCESS CAN ONLY BE SUSTAINED BY A
CONTINUED FOCUS ON OUR CLIENTS’
NEEDS AND SUPPORTING THE
COMMUNITIES IN WHICH WE OPERATE.”
>> Scott Pritchard, CEO.
GEORGE CRAWFORD, COO AND LAUREN JOYCE, HR MANAGER

22
SUSTAINABILTY AT PRECINCT
SUSTAINABILTY AT PRECINCT
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
OUR APPROACH
We have defined
sustainability
at Precinct as enabling sustainable and successful business, improving our operational performance
and incorporating sustainable design across our portfolio of properties.
At the heart of Precinct is a business model that is designed to generate, and regenerate sustainable value. We are city centre
specialists dedicated to enabling sustainable and successful businesses. This means we want to create value through designing and
delivering exceptional spaces for our clients and communities, in which they can thrive.
In line with our long-term view we are seeking to deepen our understanding of sustainability and future-proof our business. We have
undertaken a number of initiatives in the last year to strengthen how we define sustainability and clarify the related material risks and
opportunities. As part of this year’s annual report, we are presenting shareholders with Precinct’s material sustainability issues and how
we are responding to them. We have made some notable achievements and also identified areas where we can further improve.
Our focus on material issues extends beyond reporting on them. We are developing plans of action with targets to achieve our goal of
creating sustainable value through city centre real estate. Our sustainability committee leads this work and includes staff from key roles
across the business.
We are learning what the core drivers of sustainability are as we progress. Three key themes that have emerged are industry leadership
in sustainable design, interdependence between the functions of Precinct’s assets (e.g. commercial office space, leisure, retail,
community and tourism) and strengthening the communities and businesses of the cities in which Precinct operates.
Our 2018 annual report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards (core option). The GRI
Standards are the world’s most widely used sustainability reporting standard.
“AT THE HEART OF PRECINCT IS A BUSINESS MODEL THAT IS DESIGNED TO GENERATE,
AND REGENERATE SUSTAINABLE VALUE.”
>> Scott Pritchard, CEO.
OUR SUSTAINABILITY FRAMEWORKOUR OPERATING CONTEXT
As an owner, a developer and a manager of property, Precinct
generates environmental, social and economic value, including
external impacts. Like many other industries, the architecture,
building and real estate sectors are exploring ways to create a
sustainable future.
Globally the built environment accounts for 30-40% of
greenhouse gas emissions, consumes 40% of the worlds raw
materials and potable water and generates 35-40% of global
energy demand
3
.
At a national level, buildings in New Zealand are now considered
to be a significantly higher proportion of the country’s carbon
footprint than was previously thought - up to 20% according to a
recent report
4
.
Fundamentally, and at a very local and personal level, we spend
the majority of our lives in the built environment. The spaces we
live, work, shop and recreate in shape the way we think, interact
and ultimately, they influence the quality of our lives.
3 Journal of Earth Science and Climate Change, 2015
4 New Zealand Green Building Council, 2018

23
SUSTAINABILTY AT PRECINCT
SUSTAINABILITY PERFORMANCE BENCHMARKS
Over the past few years a number of local and international sustainability certifications and standards have been introduced for the
built environment which can be applied to Precinct’s activities.
Precinct is a member of the New Zealand Green Building Council (NZGBC). Precinct works in partnership with the NZGBC on a wide
range of our business activities with the aim to adopt market-based green building practices.
A key tool Precinct uses for rating the energy efficiency of its office buildings is NABERSNZ. It is an independent tool, backed by the New
Zealand Government. NABERSNZ allows buildings to be rated and then re-rated, resulting in improvements in their energy efficiency
from year to year. Precinct also uses the New Zealand Green Building Council’s Green Star building rating tool for assessing the
sustainability of buildings.
The overarching measure we currently use to benchmark our sustainability performance is the Global Real Estate Sustainability
Benchmark (GRESB). Being able to measure Precinct’s sustainability operational performance and having measurable long-term
targets is a key priority. Precinct became a member of GRESB in March 2018.
The assessments are guided by what investors and the industry consider to be material issues in the sustainability performance of real
estate investments. GRESB is considered the global standard for ESG benchmarking and reporting for real estate.
With the growth in GRESB coverage, Precinct believe that GRESB is the most appropriate external assessment tool for our business to
report against annually. Precinct was one of the 850 property companies and real estate funds in 62 countries to complete the GRESB
Real Estate Assessment in 2017, representing a combined total of 77,000 assets and over USD 3.7 trillion in value.
Precinct achieved a GRESB score in 2017 that was in line with the average score for first time submitters, but below the GRESB average
and peer average. Improving on this score in 2018 and beyond is a key objective for Precinct. Submission for our 2018 GRESB score is
currently underway and results will be disclosed in our 2019 annual report.

24
SUSTAINABILTY AT PRECINCT
SUSTAINABILTY AT PRECINCT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
OUR MATERIAL ISSUES
We engaged an independent consultant to undertake an analysis of material sustainability issues facing our business. The analysis
considered our local operating context, industry standards, publicly available reporting of our peers in New Zealand and Australia,
media coverage and the opinions of sustainability experts.
The analysis identified a long-list of topics which were validated and aggregated through engagement with key internal stakeholders
and against the feedback received from external stakeholders.
The method of determining material topics for reporting followed the GRI 101 Standard, including the principles of materiality and
stakeholder inclusivity. Precinct’s key stakeholders include our people and partners, clients and people using our spaces, contractors
and service providers, funding providers, shareholders, industry bodies and Government (Central and Local).
THE FOLLOWING TOPICS WERE DETERMINED TO BE MATERIAL TO PRECINCT, IN ORDER OF PRIORITY:
Material TopicTopic Component
Client wellbeing
• Client wellbeing and productivity
• Quality space
• Client satisfaction
Health and safety
• Health and safety
Financial
performance
• Occupancy rates/weighted average lease term
• Earnings outlook
• Commercial and investment returns
• Flexible financing for Green Building
• Investment due diligence
Partnerships and
community
• Partnerships with Mana Whenua, local and central government,
and council-controlled organisations
• Sponsorships, financial and in-kind donations
• Strengthening communities
Sustainable design
• Efficient design
• Contributing to urban vibrancy/prosperity
Ethical business
practice
• Code of ethical conduct
• Whistle-blower policy
Diversity
• Diversity
Building
environmental
performance
• Carbon emissions
• Waste reduction
• Water use
• Greenstar/NABERSNZ ratings

25
SUSTAINABILTY AT PRECINCT
PRECINCT'S MATERIALITY MATRIX:
“OUR STRATEGY INCLUDES THE INTEGRATION OF SUSTAINABILITY ACROSS ALL AREAS
OF OUR BUSINESS. ONE OBJECTIVE IS TO CREATE OUTPERFORMING SUSTAINABLE
VALUE FROM CITY CENTRE REAL ESTATE.”
>> Richard Hilder, CFO and Chair of Sustainability Committee.

26
SUSTAINABILTY AT PRECINCT
SUSTAINABILTY AT PRECINCT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
OUR MATERIAL ISSUES IN DETAIL
CLIENT WELLBEING
Client wellbeing is critical to the long-term success of our business. It's our goal to create environments in which our clients can thrive.
As a key goal, client wellbeing drives our lease renewal rates, the ability to attract and retain clients and the longevity of leases,
making it a highly material issue.
Precinct treats its occupiers as valued clients. We consider their wellbeing to include economic success, positive social outcomes and
benefiting from a healthy occupational environment. Our client focused approach applies through the full range of client interactions.
This is from parking and concierge services, presentation of lobbies through to dealings in lease negotiations. Implementing our inhouse
concierge team in February 2017 enabled us to be more responsive to our clients’ needs.
Independently-run client satisfaction surveys are typically undertaken every 2 years, the last being completed in 2017. We actively seek
and record feedback from our clients about their wellbeing and levels of satisfaction within our properties. We pride ourselves in
knowing and understanding our client’s needs.
A key initiative for this financial year was increasing the number of bike racks and showers across the portfolio. Feedback from clients
has helped us to understand that there is a clear correlation between high quality end of trip facilities and overall client wellbeing. We
have taken a number of steps to improve indoor fresh air quality and a range of initiatives to promote a healthier indoor environment.
Feedback received through the satisfaction survey also informed a decision to focus capital expenditure toward initiatives and
redevelopments which create warmer and more enjoyable lobby environments, particularly in Wellington where high winds are
experienced frequently. In the colder months the cleaning contractors undertake additional sanitising to prevent the spread of cold,
flu germs and viruses. This includes applying anti-bacterial solutions on lift buttons, escalator rails and door handles twice daily.
PERFORMANCE MEASURES
Our key measures of client wellbeing include the things we work to deliver to enhance client satisfaction, such as amenities, service
levels and location, and the things that our clients tell us are important to their wellbeing. Based on client feedback we continue to
develop our understanding of things our clients value.
We are developing and refining measures and systems for monitoring and reporting on client wellbeing. These will be included in our
2019 Annual Report.
“
WITH OVER 200 CLIENTS IN OUR PORTFOLIO, WE VALUE ALL OUR OCCUPIERS AND
ARE COMMITTED TO PROVIDING EXCELLENT CLIENT SERVICE. IT IS PART OF OUR
BUSINESS MODEL.”
>> Scott Pritchard, CEO.

27
SUSTAINABILTY AT PRECINCT

28
SUSTAINABILTY AT PRECINCT
SUSTAINABILTY AT PRECINCT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
HEALTH AND SAFETY
OUR APPROACH
Health and safety is one of our core corporate values and is principally about looking after people and ensuring all workers go home
healthy and safe. We believe in health and safety being embedded into all parts of our business and it being everybody's responsibility
to improve practices throughout the industry.
We are striving to entrench this into the culture of Precinct and all workers under our direct and indirect control. We recognise our
influence on the wider industry and public, who work and visit our portfolio and active developments. The construction industry remains
one of the four industry sectors with the worst injury rates in New Zealand. The sector therefore remains a key area of focus for Precinct
with current development activity increasing the numbers of workers on sites. Precinct works alongside its main contractors on
development sites to champion the importance of health and safety. As a corporate value and legislative requirement, health and
safety is a material topic which we and our key stakeholders are committed to addressing.
A key development during the year is our increased categorisation of incidents to enable advanced trend identification and ensure
appropriate focus and resources are directed at those areas that are the highest risk and impact, which is reflected in our
performance measures on the next page.
REPORTING STRUCTURE
Reporting process
123
Health and Safety
Committee
►
Audit and Risk
Committee
►
Precinct Board
On-line reporting - Precinct uses MangoLive, an online live reporting and incident management system to report all incidents and
observations on Precinct controlled workplaces. This includes client fit out and development sites under the direct control of a Precinct
appointed contractor. The system allocates all incidents to the appropriate party for close out and has an escalation process in place
with all priority incidents reported directly to the CEO. The MangoLive system also has the following further capabilities:
• repository for all health and safety documentation
• management system for all health and safety related training
• risk assessment data base
• staff emergency contact register
• audit and monitoring register and results
Audit and monitoring - Precinct actively audits and monitors live sites both through management staff and third party consultants Work
Safety Limited and Construct Health Limited. Any issues are allocated to the appropriate party for close out with priority items
escalated directly to the CEO.
Internal review - Precinct's Health and Safety (H&S) Committee meets monthly and provides oversight on all H&S matters. The H&S
Committee has representation from all parts of the business including the senior executive team and management employee
representatives from both the property and development portfolios. Workplace Safety Limited, an independent third party consultant,
also sits on the H&S Committee to provide external input and advice. The H&S Committee review all incidents, observations, audit and
monitoring reports. They also monitor annual H&S compliance by ensuring that H&S policies and processes are delivered, reviewed and
improved where relevant.
Management and oversight - The H&S Committee reports directly to Precinct's Audit and Risk Committee and the Precinct Board.
External review - In addition to external audit and monitoring by Workplace Safety Limited and Construct Health Limited, Precinct also
instigates annual third party reviews of its processes by Aon and ICSafety Solutions. Aon undertook this external review in 2018 with no
health and safety issues identified. Precinct also holds ACC Workplace Safety Management Practices tertiary status (the highest level
of accreditation) commending the strong health and safety policies in place and recognising Precinct's commitment to continued
improvement.
HEALTH AND SAFETY POLICIES
Our Health and Safety policy guides our management approach and includes the following requirements:
•
Training - All Precinct management staff receive regular training including external accreditation where relevant to their role.
•
KPI's - All Precinct management staff have health and safety objectives included in their performance reviews.
•
Contractor pre-qualification - Each contractor engaged by Precinct is required to be pre-qualified by Workplace Safety Limited or
Construct Health Limited.
•
Hazard and asbestos registers - Registers identify the observed hazards at each site. These are live registers subject to constant
internal review and are reviewed annually by independent experts.
•
Audit and monitoring - Precinct actively monitors live sites to ensure oversight of health and safety matters.

29
SUSTAINABILTY AT PRECINCT
PERFORMANCE MEASURES
Incidents - We recorded 246 health and safety incidents in the year compared to 242 reported in FY17. Precinct recorded
incidents include observations, near misses, first aid injuries, medical treatment injuries and lost time injuries. There were no
significant injuries during the period with approximately 75% of recorded incidents being classified as minor (for example, rolled
ankles, minor cuts and grazes). 62 recorded incidents occurred on our stabilsed property portfolio representing an approximate
22% decrease in incidents compared to FY17.
75% of our recorded incidents occurred on our development sites which are under the direct control of a Precinct appointed
main contractor. Precinct actively incentivises health and safety observations to enable them to be reviewed and improvements
made where relevant. Observations have significantly risen during FY18 as a result of this policy (34 compared to 10). This is in
addition to the main contractors own internal observation policies.
Audit and Monitoring - Over 225 additional principal audit and monitoring inspections were undertaken during FY18. This is in
addition to regular internal contractor health and safety practices and includes internal and external principal audits and
inspections, pre Project Control Group H&S meetings and specific H&S workshops. 184 of these were in relation to our
development sites given the weighting of both number and severity of incidents to our development portfolio and the number of
workers on site. This included 36 external audits by Construct Health Limited, with audit scores averaging 91% for Commercial Bay
and 95% for Bowen Campus during the year.
“THE BOARD RECOGNISES PRECINCT’S INFLUENCE ON HEALTH AND SAFETY ACROSS
THE BUSINESS AND WIDER INDUSTRY. IT IS SOMETHING WE ARE VERY FOCUSED ON.”
>> Craig Stobo, Chairman.
MEMBERS OF THE BOARD OF PRECINCT ON SITE AT BOWEN CAMPUS IN WELLINGTON

30
SUSTAINABILTY AT PRECINCT
SUSTAINABILTY AT PRECINCT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
FINANCIAL PERFORMANCE
Disclosure of our financial performance can be found in the
results overview section on page 08 and in Precinct's financial
statements on pages 70 to 89.
PARTNERSHIPS AND COMMUNITY
Precinct is a city centre specialist and one of the largest
commercial real estate investors in Auckland and Wellington.
The way we invest and develop, and the partnerships we foster
are vital to the development of strong relationships within the
communities where we operate. We see our business activity as
a platform for strengthening communities and for creating
environments in which people can thrive. The quality of our
relationships with key partners and our communities are critical
to our own success and the sustainable development outcomes
we aspire to. This makes the topic of Partnerships and
Community a material one for Precinct.
We are building strong and enduring relationships with Iwi, local
government, council-controlled entities and community-based
organisations. The strength of these partnerships enables us to
create positive social, economic and environmental value and
they are integral to our business model. We view the granting of
our social licence to operate as a key business asset and one
that we value and carefully maintain to ensure our ongoing
ability to operate and achieve our business outcomes.
Alignment of our business outcomes with value creation that
benefits both Precinct and our partners and communities is
critical to our long-term sustainable success.
During 2018, Precinct continued to support both Auckland City
Mission and Wellington City Mission. In addition to financial
support, Precinct actively works together with both Missions on
fundraising initiatives throughout the year. This includes the One
Can - Two Can annual appeal which collects non-perishable
food items and funds for the Mission’s emergency food parcels.
Last year Precinct was one of the 158 organisations who
participated, collecting around 30,000 cans for the Mission in
Auckland.
During Christmas, gifts and non-perishable food items are also
collected by Precinct to help both Mission's in Auckland and
Wellington distribute thousands of food parcels and christmas
presents.
More recently, Precinct have accepted an invitation from
Auckland City Mission to increase it's financial contribution per
annum over the next five years, working in partnership with the
Mission to deliver on their project, HomeGround, the multi-million
dollar project which will see 80 new studio and one-bedroom
units built on the Auckland City Mission’s current site.
Our partnership with community organisations such as City
Mission is based on our belief that we have a role to play in
strengthening communities in the areas where we operate. Our
support of City Mission is aligned with our overarching focus on
partnerships and community initiatives that create positive social
value.
DAVID JOHNSON, COMMERCIAL BAY PROJECT DIRECTOR, TALKING TO THE
KEYSTONE TRUST STUDENTS ABOUT THE COMMERCIAL BAY PROJECT IN AUCKLAND
OLIVIA HEIGHTON, PRECINCT INTERN, ASSISTING WITH THE AUCKLAND CITY
MISSION'S ONE CAN - TWO CAN ANNUAL APPEAL

31
SUSTAINABILTY AT PRECINCT
SUSTAINABLE DESIGN
Developing and delivering sustainable designs for our built spaces is a learning journey for Precinct. Our ambition is to create spaces
which generate environmental, social and economic benefits for a sustainable future. We define sustainable design in our operational
context as the process for creating built spaces which deliver net positive environmental, social and economic value. It encompasses
building and interior design, master planning and systems thinking about the inter-dependencies of our built assets and the ecology of
their location. For Precinct, this thinking is underpinned with a fundamental consideration of the people that will inhabit the spaces we
create. Our clients and the communities in which we operate are increasingly looking to us to shape the sustainability conversation
and lead the development of sustainable and enriching built spaces. Our analysis of current building trends and feedback from our
key stakeholders indicates that sustainable design is a highly material issue for the future-proofing of our business.
We have taken the first steps on our sustainability journey by increasing our understanding of what sustainability means within the
context of the built environment. We are assessing the sustainability performance of our current designs and establishing our vision and
target-setting for future designs. It is not a static process. The evolution of technologies and practices in sustainable design and
construction sectors are evolving at an accelerating pace. Our focus on sustainable design extends to demonstrating its value to
building occupiers and ensuring our buildings can perform within the ranges of current and predicted future climatic extremes.
Our Mason Bros. building completed in 2017 provides a case study on page 34 of our approach to sustainable design and the
outcomes achieved.
PERFORMANCE MEASURES
In our current portfolio Mason Bros. building and Zurich House in Auckland have Green Star design ratings. Both Zurich House and
Mason Bros. building are rated of five out of six stars, considered as New Zealand excellence. Precinct is currently reviewing
opportunities to achieve a six star as-built rating, considered to be World leadership in sustainable design. 12 Madden Street at
Wynyard Quarter is also targeting five-star design and as-built ratings which Precinct expects to achieve in the 2019 financial year.
12 MADDEN STREET, WYNYARD QUARTER, AUCKLAND

32
SUSTAINABILTY AT PRECINCT
SUSTAINABILTY AT PRECINCT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
ETHICAL BUSINESS PRACTICES
Disclosure on our ethical business practices, including our Code of Ethics and Financial Product Dealing Policy is reported on in the
corporate governance section of this report on page 46. Our Code of Ethics includes a whistle-blowing clause for reporting unethical
or unlawful behaviour and the full code can be found on our website at www.precinct.co.nz, along with our Financial Product Dealing
Policy and other key governance documents.
DIVERSITY
Precinct understands the business and cultural benefits of achieving a diverse and highly inclusive workforce. We are committed to
promoting and improving diversity and inclusion at all levels across our business.
Diversity includes, but is not limited to gender, age, disability, ethnicity, marital or family status, socio-economic background, religious or
cultural background, sexual orientation and gender identity. Our core values, stakeholder expectations and NZX reporting
requirements make diversity a material topic.
Our approach to managing diversity is guided by our Diversity and Inclusion Policy (available on our website www.precinct.co.nz). We
use a number of internal management policies to support diversity including our Equal Opportunities Policy, Health and Wellbeing
Policy, Recruitment and Selection Policy and Remuneration Policy. We are also guided by our Culture Charter, adopted in 2016.
Precinct’s human resources manager takes a proactive approach toward promoting Diversity and Inclusion within the business and
has recently been appointed to the newly established Diversity Committee formed by the NZ Property Council. The committee was
created with a focus to increase the number of women in leadership roles and to build a diverse and inclusive property industry.
Precinct provides a generous parental leave entitlement over and above the Government legislative requirements for both primary
and secondary caregivers. We also encourage flexible working in the form of offering flexible working hours and the ability to work
remotely, providing assistance to employees of all genders to meet domestic responsibilities.
Kindercare Learning Centres Limited have been a client of Precinct’s since 2002, occupying ground floor space in the AMP Centre and
providing early childhood care and education for over 100 children. Increases in the city centre residential population, combined with
the upcoming completion of the new PwC Tower and wider Commercial Bay retail development, has resulted in the expansion of our
early childhood care and education offering. We have recently agreed a new 10 year lease over ground and part of level 2 of the
AMP Centre, allowing us to accommodate 200 children once the fitout is completed. Precinct and Kindercare are currently underway
with planning and expect to open in early 2019.
Alongside our internal values and targets, we enable environments in which diversity can thrive for our clients. Measures to advocate
and enable greater diversity include:
• Providing ease of access and comfort for those with physical disabilities including hearing and vision impaired wayfinding,
particularly in relation to using lifts
• All Precinct staff, including Concierge understand the importance of being welcoming, inclusive and treating all people with
respect
• Precinct values are strongly aligned with LGBTQIA, this is explicit within several internal policies, but also expressed publicly through
social media channels. During times of awareness and individuality celebration such as Rainbow week, Precinct partner with clients
and create lift screens and other collateral to raise this awareness across the portfolio.
We are proud to be a member of Diversity Works New Zealand and proud to support The Women’s Empowerment Principles, a joint
initiative of the UN Global Compact and UN Women.
Precinct also supports TupuToa, a program launched in 2016 by the Maori and Pasifika corporate pathways project in conjunction with
support from Global Women. Since it's inception, Precinct has recruited interns through this programme which has been very
successful.
PERFORMANCE MEASURES
We are committed to reviewing and reporting the performance of Precinct against its diversity and inclusion policy in conjunction with
human resources and Board members on an annual basis. Precinct has made progress in improving gender diversity during the year
and has an ongoing focus on inclusion and making making further progress across wider diversity metrics.
We have made positive progress in improving gender diversity across both our senior management and all management employees.
There has been no change in Precinct Board gender diversity, however the 2020 targets remain unchanged.
Our management approach and diversity performance are reported in the corporate governance section of this report on page 46.
You can also read more about our measurable objectives in our Diversity and Inclusion Policy on our website.

33
SUSTAINABILTY AT PRECINCT
BUILDING ENVIRONMENTAL PERFORMANCE
Growing awareness of buildings’ environmental impacts and clients’ increased expectations, make the environmental performance of
our buildings a material issue. The environmental performance of our buildings includes the energy they consume, the waste they
generate and their operational carbon footprints. To manage our buildings’ environmental performance we’ve taken a disciplined
approach to meeting our clients’ expectations around optimal operating conditions while maintaining a focus on energy efficiency.
Our Facilities Management (FM) team maintain and upgrade our buildings’ plant and building management systems (BMS) on an
ongoing basis. Monthly monitoring and tuning meetings are held by our FM team in collaboration with engineers and contractors to
ensure our buildings are constantly being tested and fine-tuned to achieve their optimum environmental performance levels. Effective
software is critical for the successful implementation of our building management strategy. In 2017 we deployed a new analytical
software package across our Auckland portfolio to integrate functions of their BMS while providing real-time fault finding capability.
The new software system has delivered significant operational improvements, enhancing our ability to identify potential or actual faults
and respond to them in much shorter timeframes. We’ve named the new software DC Analytics and it proved its worth in the smooth
and seamless commissioning of our new Wynyard Quarter development, 12 Madden Street.
Currently three buildings in our portfolio have a NABERSNZ building energy efficiency rating, ranging from three to five out of six stars.
Ratings across the balance of the portfolio are underway. The recently completed Mason Bros. building has also achieved a 5 stars
NABERSNZ Energy Base Building rating, demonstrating market leading performance in energy efficiency.
PERFORMANCE MEASURES
Energy use intensity
kWh/m²Variance
Base year
(2016)
20172018
to base yearto 2017
Auckland portfolio average135.5139.4123.3-8.9%-11.5%
Wellington portfolio average132.2120.8114.6-13.3%-5.1%
Total portfolio average133.7130.1119.0-11.0%-8.5%
Carbon emission intensity
kgCO
2
e /m²Variance
Base year (2016)20172018to base yearto 2017
Auckland portfolio average21.322.119.5-8.9%-12.1%
Wellington portfolio average22.020.319.1-13.3%-5.8%
Total portfolio average21.721.219.3-11.2%-9.1%

34
SUSTAINABILTY AT PRECINCT
SUSTAINABILTY AT PRECINCT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
MASON BROS. BUILDING CASE STUDY
Originally built as a warehouse in the 1920s for the Mason Bros.
Engineering company, Precinct redeveloped the building into a
contemporary three level workplace with 4,910 sqm of net
lettable commercial office space located in the Wynyard
Quarter Innovation Precinct of Auckland. The redevelopment
has created a stunning character building, ready for its second
lifetime as a collaboration and innovation hub for Auckland.
The building boasts a 5 Green Star Design rating representing
New Zealand Excellence for sustainable building design and is
now targeting a 6 star Green Star As-Built rating which would
reflect the building’s world leading sustainability credentials. The
building has also achieved a 5 stars NABERSNZ Energy Base
Building rating, demonstrating market leading performance in
energy efficiency.
Precinct implemented a comprehensive sustainable design and
development strategy with long-term operational efficiency,
durability, flexibility, occupier comfort and amenity as key
objectives. Collaborating with land owner Panuku Development
Auckland as well as consultants, the sustainable design
approach has added value while celebrating the building’s
heritage and innovation.
A good example of adding value through sustainable design
comes from our knowledge that building facades and services
typically contribute around 40% of up front capital costs and
directly influence the major share of operational costs for a
building. By engaging with our engineers, Mott MacDonald NZ
Limited, early in the process we were able to undertake
advanced energy and daylight analysis to achieve an optimal
energy efficient design. Attention to detail and constant
refinement was applied during the design of all of the building’s
systems. Upon completion of design we had modeled a 30%
decrease in energy consumption when compared to a standard
office building. Now in operation, we are experiencing energy
reductions even greater than estimates.
We focused on creating a building with increased amenity and
comfort to enable higher productivity for it's occupants. Our
post-occupancy survey indicates that on average occupants
perceive Mason Bros. to increase their personal productivity by
8.5%. In comparison, occupiers surveyed within the New Zealand
sample set for the same survey perceived that their buildings
reduced their productivity by 0.7% on average. One business
confirmed a 25% reduction in absenteeism since relocating to
the Mason Bros. building.
Sustainable solutions that enable productivity increases were
prioritised over short-term cost implications and included cyclist
facilities, showers and change rooms; no on-site carparking to
promote public transport, walking or cycling; improved indoor air
quality through the use of high efficiency air filters.
Studies estimate it can take 20 to 30 years for energy and
emissions from a building to exceed the embodied energy
contained within the building’s materials. This provides the Mason
Bros. re-development with a significant lifecycle benefit when
compared to an equivalent new building. An assessment of the
building using a tool developed by BRANZ has shown the Mason
Bros. building has 50% less lifecycle impacts than a new building.
NABERSNZ
NABERSNZ is a ratings scheme to measure and rate the
energy performance of office buildings in New Zealand. The
scheme is based on National Australian Building
Environmental Rating System (NABERS) and takes into
consideration the climatic conditions in which the building
operates, the building size and occupancy, hours of use, the
level of services it provides and the energy sources (e.g.
electricity and gas) it uses. By comparing a building’s
energy performance data against NABERSNZ benchmark
data, a star rating is calculated that reflects the building’s
performance and enables robust comparison with other
buildings.
GREEN STAR
Green Star is an internationally-recognised rating system for
the sustainable design, construction and operation of
buildings, fitout and communities. Green Star supports
stakeholders in the property and construction sectors to
design, construct and operate projects in a more
sustainable, efficient and productive way. It provides
occupiers with a trusted mark of independent verification to
support decision-making.

35
SUSTAINABILTY AT PRECINCT

36
GRI INDEX
GRI INDEX
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
As worldwide focus on integrated annual reporting grows Precinct has chosen to prepare its 2018 Annual Report in accordance with
the Global Reporting Intiative (GRI) Standards (core option). The GRI Standards are the world's most widely used sustainability reporting
standard.
We have transitioned our reporting from following the GRI G4 Guidelines to meeting the GRI Standards providing greater clarity and
accountability around our material sustainability issues including how we are responding to them.
The GRI reference table below shows where in this report information can be found about the indicators that are relevant to our
business operations.
GENERAL DISCLOSURES
Disclosure TitleGRILocation or Reference
Name of the organisation 102 - 1 Precinct Properties New Zealand Limited
Activities, brands, products and services 102 - 2
Page 20
https://www.precinct.co.nz/about-us/
Location of headquarters 102 - 3 Page 93
Location of operations 102 - 4 Page 93
Ownership and legal form 102 - 5
Page 74, Limited Liability Company
registered in New Zealand
Markets served 102 - 6 Page 12
Scale of the organisation 102 - 7 Page 20
Information on employees and other workers 102 - 8 Page 47
Supply chain 102 - 9 Pages 06, 14, 18, 20 and 34
Significant changes to the organisation and its supply chain 102 - 10 None
Precautionary principle approach 102 - 11
Precinct employs the precautionary principle
through its complaince with consents
obtained under the Resource Management
Act (RMA), in which the principle is
embedded
External initiatives 102 - 12 Page 32
Membership of associations 102 - 13 NZGBC, GRESB
Statements from senior decision-maker 102 - 14 Page 05, 22 and 25
Values, principles, standards, and norms of behaviour 102 - 16
https://www.precinct.co.nz/assets/PCT-
CORPORATE-GOVERNANCE-MANUAL.pdf
Governance and structure 102 - 18 Pages 46 - 48
List of stakeholder groups 102 - 40 Page 24
Collective bargaining agreements 102 - 41 None
Identifying and selecting stakeholders 102 - 42 Page 24
Approach to stakeholder engagement 102 - 43 Page 24
Key topics and concerns raised 102 - 44 Page 24
Entities included in the consolidated financial statements 102 - 45 Page 74
Defining content and topic Boundaries 102 - 46 Page 24
List of material topics 102 - 47 Page 24
Restatements of information 102 - 48 None
Changes in reporting 102 - 49 None
Reporting period 102 - 50 July 1, 2017 – June 30, 2018
Date of most recent report 102 - 51 2017 Annual Report (August 2017)
Reporting cycle 102 - 52 Annual
Contact point for questions regarding the report 102 - 53 hello@precinct.co.nz
Claims of reporting in accordance with the GRI standards 102 - 54 GRI Standards (Core option)
GRI content index 102 - 55 Pages 36 and 37
External assurance 102 - 56 None

37
GRI INDEX
TOPIC SPECIFIC DISCLOSURES
Disclosure TitleGRILocation or Reference
Energy
Disclosure on management approach 103 Pages 31, 33 and 34
Energy intensity302-3 Page 33
Emissions
Disclosure on management approach 103 Pages 31, 33 and 34
GHG emissions intensity 305-4 Page 33
Occupational health & safety
Disclosure on management approach 103 Page 28
Types of injury and rates of injury, occupational diseases, lost days,
and absenteeism, and number of work-related fatalities
403-2 Page 29
Diversity and equal opportunity
Disclosure on management approach 103Page 32, 46 and 47
Diversity of governance bodies and employees 405-1 Page 47
Client wellbeing – non GRI
Disclosure on management approach 103 Page 26
Partnerships and community – non GRI
Disclosure on management approach 103 Page 30
Sustainable design – non GRI
Disclosure on management approach 103Page 31 and 34
Building environmental performance – non GRI
Disclosure on management approach 103 Page 33 and 34

38
FLEXIBLE SPACE
FLEXIBLE SPACE
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
CATERING TO THE DEMAND FOR FLEXIBLE SPACE
The traditional concept of heading to work to sit in an isolated office from nine to five is a thing of the past. Businesses today are
demanding flexibility, social interaction, work-life balance and digital connectivity. They are also attracted to being able to access a
level of service, quality of building and fit-out which has traditionally been the reserve of large-sale businesses.
According to Bayleys Co-working Research (2018), over the past two years co-working space in Auckland has doubled, now totalling
around 30,000 sqm with an additional 15,000 sqm in the pipeline. Of the total stock, around half is in the CBD and Wynyard precincts
with the remaining located around the suburbs.
Recognising the need to meet this growing demand in Auckland, Precinct is committed to creating workspaces that meet the
requirements of today's businesses with its acquisition of a 50% interest in Generator New Zealand Limited in 2017.
Precinct through its share in Generator currently have a significant presence in the CBD and Wynyard precincts, making up around
50% of the flexible/co-working market.
It’s no surprise that the work place is radically changing - it reflects the revolution in how we work. People are expecting more than just
financial reward from their workplace. Today, people want their workplace to align with their own outlook and values. Whether they
work for themselves, in a growing local business or for a global multi-national, what’s important to them is having a workplace that
offers flexibility, work-life balance, and an inspiring and positive work environment – an ethos that co-working perfectly caters to.
Precinct is proud to be part of that revolution.
FUTURE OF WORK
“OUR ACQUISITION OF A 50% SHARE OF
GENERATOR IN 2017 WAS A FURTHER
STEP IN HELPING TRANSFORM
AUCKLAND INTO A MODERN BUSINESS
ENVIRONMENT, COMPARABLE TO
LEADING INTERNATIONAL CORPORATE
HUBS. WE UNDERSTAND THE DESIRE FOR
NEW WORKING COMMUNITIES.”
>> Scott Pritchard, CEO.
CO-WORKING... WHAT IS IT?
Co-working is a style of work that involves multiple people, often
from different organisations, working together in a shared office
space. Co-workers are encouraged to share resources, ideas
and thought-starters, creating a highly interactive space with a
shared sense of community. The extent of shared space can
range from shared meeting rooms and amenities with private
offices, through to shared open plan hot desks.
The co-working trend started to emerge around 1996 and co-
working spaces began opening as an affordable office space
solution for start-ups and freelancers. Co-working is a cost-
effective solution for the limited budgets of these groups, and
early adopters quickly learnt that the spaces provided an
innovative environment for businesses to collaborate and
network together.
More recently, Precinct has seen a shift in the type of businesses
interested in co-working spaces. Increasingly, small and medium
sized businesses and even new to market large corporates are
attracted to the ability for smaller occupiers to access premium
levels of service and amenity. Recognising the value in co-
working, a range of corporate business users are now turning to
co-working as an optimal office space option.

39
FLEXIBLE SPACE
DEDICATION TO BUILDING COLLABORATIVE
COMMUNITIES
Established in 2011, Generator was one of the first co-working
spaces in New Zealand and the first to provide fully serviced
offices to its membership base. It has since expanded from one
floor in Stanbeth House to now operate over 12,000 sqm of co-
working space. This is over three locations in Auckland's city
centre, with GRID AKL at Wynyard Innovation Precinct opening
September 2017 and the recent opening at Britomart Place in
June 2018.
Up until the acquisition in early 2017, Precinct had no occupiers
less than 200 sqm - 300 sqm, which meant Precinct’s portfolio of
assets did not provide work spaces for the largest employment
base in New Zealand – small and medium sized businesses.
Generator gives Precinct exposure to this market, allowing it to
expand its traditional client base and to grow with this market
segment.
“RECOGNISING THE TREND TOWARD CO-
WORKING OVERSEAS AND THE
CHANGES IN WORKPLACE CULTURE
HERE IN NEW ZEALAND, WE BELIEVE
PRECINCT IS THE PERFECT PARTNER FOR
GENERATOR FOR THE NEXT STAGE IN ITS
EVOLUTION. GENERATOR PROVIDES A
UNIQUE OFFERING WITH SOMETHING
FOR EVERYONE AND WE ARE EXCITED
TO EXPAND AUCKLAND’S CO-
WORKING SPACE OFFERINGS WITH
PRECINCT.”
>> Ryan Wilson, Generator CEO and co-founder.

40
BOARD OF DIRECTORS
BOARD OF DIRECTORS
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
CRAIG HAMILTON STOBO
CHAIRMAN, DIRECTOR, INDEPENDENT BA (HONS) FIRST CLASS ECONOMICS
Educated at the University of Otago and Wharton Business School, Craig Stobo has worked as a diplomat, economist, investment
banker, and as CEO. He has authored reports for the Government on “The Taxation of Investment Income”, chaired the Government’s
International Financial Services Development group in 2010, and chaired the Establishment Board of the Local Government Funding
Agency in 2011.
Craig is a professional director and entrepreneur. In addition to chairing Precinct, he is chairman of the New Zealand Local
Government Funding Agency (LGFA) and director of AIG Insurance New Zealand Limited and a number of private companies
including Saturn Portfolio Management, Elevation Capital Management, Bureau Limited, and Biomarine Limited.
DONALD WILLIAM HUSE
DIRECTOR, INDEPENDENT BCA, FCA
Don Huse is a professional director. He is chair of OTPP New Zealand Forest Investments Limited and deputy chair of the Civil Aviation
Authority of New Zealand.
His previous roles include chief executive officer of Auckland International Airport Limited, chief financial officer of Sydney Airport
Corporation Limited, chief executive officer of Wellington International Airport Limited, chair of Crown Irrigation Investments Limited,
deputy chair of Transpower New Zealand Limited and a director of Cavalier Corporation Limited and TransAlta New Zealand Limited.
A chartered accountant, Don holds a degree in economics from Victoria University of Wellington, and is also a member of the Institute
of Directors in New Zealand and of the Australian Institute of Company Directors.
FROM LEFT TO RIGHT: DON HUSE, CHRIS JUDD, CRAIG STOBO (CHAIRMAN), LAUNA INMAN, GRAEME WONG, ROB CAMPBELL, ANTHONY BERTOLDI AND MOHAMMED AL
NUAIMI DURING A SITE VISIT TO BOWEN CAMPUS, WELLINGTON.

41
BOARD OF DIRECTORS
LAUNA INMAN
DIRECTOR, INDEPENDENT
Launa Inman has broad experience in retailing, multi-brand wholesaling, e-commerce, strategic planning, marketing and corporate
restructuring. Launa was managing director of Australia’s largest retailer of apparel, Target Australia, for 7 years and has also served as
managing director/CEO of Officeworks and Billabong International. She was the recipient of the Telstra Australian Businesswoman of
the Year award in 2003. In 2015 the Australian Marketing Institute awarded her the prestigious Sir Charles McGrath Award for her
significant contribution to the field of marketing and wider industry achievements in Australia.
Launa has completed an Advanced Executive Program at Wharton Business School and holds a Bachelor of Commerce Hons and a
Master of Commerce. She is currently a director of Super Retail Group and two Not for Profit organisations being the Alannah and
Madeline Foundation and the Virgin Australia Melbourne Fashion Festival.
GRAEME HENRY WONG
DIRECTOR, INDEPENDENT BCA (HONS) BUS ADMIN, INFINZ (FELLOW)
Graeme Wong has a background in stock broking, capital markets and investment. He was founder and executive chairman of
Southern Capital Limited which listed on the NZX Main Board and evolved into Hirequip New Zealand Limited. The business was sold to
private equity interests in 2006.
Previous directorships include New Zealand Farming Systems Uruguay Limited, Sealord Group Limited, Tasman Agriculture Limited,
Magnum Corporation Limited and At Work Insurance Limited and alternate director of Air New Zealand Limited.
Graeme is currently chairman of Harbour Asset Management Limited, director of CMT Industries Limited, Areograph Limited, Tourism
Holdings Limited, Southern Capital Partners (NZ) Limited together with a number of other private companies. He is also a member of
the Trust Board of Samuel Marsden Collegiate School and member of the Management Board of The Bible Society Development (New
Zealand) Incorporated.
CHRISTOPHER JAMES JUDD
DIRECTOR, MANAGER APPOINTEE
Chris Judd has over 28 years’ experience in the property industry including a 14 year association with property and property funds in
New Zealand. Chris is the Head of Property Funds Management for AMP Capital Australia with executive and governance
responsibilities in Australia, New Zealand and Singapore. He is director and chairman of AMP Haumi Management Limited and director
of AMP Capital (New Zealand) Limited and AMP Capital Property Portfolio Limited. He is a registered valuer being an Associate of the
Australian Property Institute. Chris was the inaugural chairman of the Property Council of Australia’s Unlisted Property Roundtable and is
a member of the International and Capital Markets Division Committee.
ROBERT JAMES CAMPBELL
DIRECTOR, SHAREHOLDER APPOINTEE
Rob Campbell is an appointee of Haumi Company Limited. He has over 30 years’ experience in investment management and
corporate governance.
Rob is currently chairman and director of SKYCITY Entertainment Group Limited, Summerset Group Holdings Limited, Tourism Holdings
Limited, WEL Networks Limited and UltraFast Fibre Limited. He is also a director of, or advisor to, a number of hedge and private equity
funds in a number of countries. Rob trained as an economist and has worked in a variety of capital market advisory and governance
roles over a long period.
MOHAMMED AL NUAIMI
5
DIRECTOR, MANAGER APPOINTEE, CFA
Mohammed is an Investment Manager in the Real Estate and Infrastructure Department at Abu Dhabi Investment Authority (ADIA). He
joined ADIA in January 2008 and moved to the Real Estate department in early 2012. He is in the AsiaPacific investment team covering
Australia, New Zealand and specific investments in China. He is a director of Haumi Company Limited, Haumi Development Auckland
Limited, HIP Company Limited and AMP Haumi Management Limited.
Mohammed has a Bachelor of IT Security from the United Arab Emirates University and he is a CFA charter holder since September
2011.
5 ANTHONY BERTOLDI IS THE ALTERNATE DIRECTOR FOR MOHAMMED AL NUAIMI. ANTHONY IS THE PORTFOLIO MANAGER – ASIA PACIFIC AT ADIA.

42
EXECUTIVE TEAM
EXECUTIVE TEAM
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
FROM LEFT TO RIGHT: NICOLA MCARTHUR, RICHARD HILDER, SCOTT PRITCHARD, ANDREW BUCKINGHAM, DAVIDA DUNPHY, GEORGE CRAWFORD, AND KYM BUNTING
OUTSIDE THE MASON BROS. BUILDING IN WYNYARD QUARTER, AUCKLAND.
SCOTT PRITCHARD
CHIEF EXECUTIVE OFFICER
Scott has led the team since 2010 being responsible for the overall strategy and operations of Precinct.
Scott has extensive experience in property funds management, development and asset management.
His previous experience includes various property roles with NZX-listed entities Goodman Property Trust, Auckland International Airport
Limited and Urbus Properties Limited.
Scott holds a Masters degree in Management from Massey University. He is a member of the Property Council’s national council and a
trustee of the Keystone Property Trust and the Tania Dalton Foundation.
GEORGE CRAWFORD
CHIEF OPERATING OFFICER
George joined Precinct in late 2010 as Chief Financial Officer and in 2015 was appointed as Precinct's Chief Operating Officer. George
leads the property team with responsibility for the performance of the investment portfolio, as well as taking a leading role in strategy,
development and major projects. He also retains responsibility for risk and compliance, human resources and provides input to
financial and capital management strategy.
After gaining experience with a large accountancy firm in the United Kingdom, George moved to New Zealand and worked for
Fonterra and PwC before joining Goodman Property Trust, where he was Chief Financial Officer.
George has a Bachelor of Science Honours degree from Edinburgh University and qualified as a Chartered Accountant in the United
Kingdom.

43
EXECUTIVE TEAM
RICHARD HILDER
CHIEF FINANCIAL OFFICER
Richard was appointed Chief Financial Officer in 2017, prior to this he held the role of General Manager of Finance. He is responsible for
investor relations, financial planning and analysis, the execution of capital management initiatives and treasury management
alongside leadership of the finance and analyst teams. He has been instrumental in developing and implementing Precinct’s long-
term strategy.
Prior to joining Precinct in 2010 Richard worked in the United Kingdom for Goodman Group’s European Funds Management business
where he gained experience in capital structuring, fund management and developments in both continental Europe and the United
Kingdom.
Richard has worked for Goodman Property Trust and Trust Investment Management Limited in New Zealand. Richard holds a Bachelor
of Commerce (Hons) (Finance and Economics) degree from University of Auckland.
KYM BUNTING
GENERAL MANAGER - TRANSACTIONS
Prior to joining Precinct in 2014, Kym worked for Brookfield Office Properties, a global owner, developer and manager of premier real
estate. Kym was responsible for management of all aspects of the company’s New Zealand operating platform.
With 30 years of institutional property knowledge Kym is highly experienced in portfolio strategy, and all aspects of asset/property
management, facilities management, and development. In particular, over the past 10 years Kym has developed a strong
transactional background through leading a large number of asset sales and acquisitions and large scale leasing projects.
DAVIDA DUNPHY
GENERAL COUNSEL AND COMPANY SECRETARY
Davida joined Precinct in 2014 and has more than 17 years legal experience in all aspects of commercial property both in New
Zealand and the United Kingdom. Davida is responsible for the provision of legal and compliance support to the business.
Prior to joining Precinct, Davida worked for Bell Gully (Auckland) and international firm Squire Patton Boggs (in its European offices).
Davida is a New Zealand and England & Wales qualified solicitor holding a Bachelor of Laws (Hons) and a Legal Practice (Post Dip).
She is also a Chartered Company Secretary (ACIS) and a member of the Institute of Directors.
ANDREW BUCKINGHAM
GENERAL MANAGER - DEVELOPMENT
Andrew has worked in the commercial property industry for the past 33 years both in Australia and New Zealand. He joined Precinct in
2014 and is responsible for leading Precinct’s development projects. Andrew has held previous senior roles at Kiwi Income Property
Trust, Westfield, St Lukes Group, CB Richard Ellis and Legal & General.
He was responsible for the development and delivery of the highly successful $400 million Sylvia Park shopping centre project and more
recently Andrew led the development of the award winning $134 million ASB North Wharf project on the Auckland waterfront. Andrew
is an Associate of the Australian Property Institute and a member of the Royal Institution of Chartered Surveyors.
NICOLA MCARTHUR
GENERAL MANAGER - MARKETING AND COMMUNICATIONS
Nicola joined Precinct in 2012 returning to New Zealand after 10 years working in a variety of marketing roles in the United Kingdom
and Australia.
Her role at Precinct is to lead the business’s marketing strategy, overseeing marketing activities for both our existing assets as well as the
development work. Another priority is to ensure we maintain optimum levels of communication with our clients, key stakeholders and
consumers.
Nicola has a Master of Marketing from Melbourne Business School, a Graduate Certificate of Corporate Management from Deakin
University and a Bachelor of Arts from Auckland University.

44
5 YEAR SUMMARY
5 YEAR SUMMARY
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
(Amounts in $ millions unless otherwise stated)20142015201620172018
Financial performance
Gross rental revenue165.4170.5146.0126.2
130.7
Less direct operating expenses(47.1)(48.9)(41.5)(35.8)
(35.4)
Operating profit before indirect expenses118.3121.6104.590.495.3
Net interest expense(33.2)(31.4)(11.0)(3.4)
(2.2)
Other expenses(12.6)(10.4)(10.1)(9.8)
(10.2)
Operating income before income tax72.579.883.477.282.9
Non operating income / (expense)
Unrealised net gain in value of investment and
development properties
47.564.881.277.5
208.7
Other non operating income10.9(13.5)(19.1)11.8
(11.1)
Net profit before taxation130.9131.1145.5166.5280.5
Current tax expense(8.7)(11.5)(10.6)(2.5)
(6.3)
Depreciation recovered on sale expense0.0(3.8)(10.0)0.0
0.0
Deferred tax benefit / (expense)(5.0)6.613.3(1.9)
(17.0)
Total taxation (expense) / benefit(13.7)(8.7)(7.3)(4.4)(23.3)
Share of profit or (loss) of joint ventures----
(2.3)
Net profit after taxation117.2122.4138.2162.1254.9
Dividends
Net dividend (cents)5.405.405.405.605.80
Net operating income
Operating income before income tax72.579.883.477.2
82.9
Less: Current tax expense(8.7)(11.5)(10.6)(2.5)
(6.3)
Net operating income after tax63.868.372.874.776.6
Net operating income after tax per share (cents)6.106.196.016.17
6.32
Dividend payout ratio to net operating income after
tax (%)
88.587.289.990.8
91.8
Funds from operations (FFO)
Net operating income after tax63.868.372.874.7
76.6
Adjusted for:
Amortisations6.27.36.46.4
7.2
Straightline rents(0.5)(1.1)(0.5)(0.2)
(0.4)
Funds from operations69.574.578.780.983.4
Funds from operations (cents)6.646.756.506.68
6.89
Dividend payout ratio based on FFO (%)81.380.083.183.8
84.2
Adjusted funds from operations (AFFO)
Less: Maintenance capex(6.3)(6.6)(11.1)(5.8)
(4.9)
Less: Incentives and leasing costs(8.7)(7.1)(3.0)(9.3)
(8.3)
Swap close outs-1.6--
-
Adjusted funds from operations54.562.464.665.870.2
Adjusted funds from operations (cents)5.215.665.335.43
5.80
Dividend payout ratio based on AFFO (%)103.695.4101.3103.1
100.0

45
5 YEAR SUMMARY
(Amounts in $ millions unless otherwise stated)20142015201620172018
Financial position
Total investment assets1,728.11,687.81,513.71,535.4
1,678.8
Total development assets--190.4509.2
838.1
Other assets19.465.434.534.6
44.8
Total assets1,747.51,753.21,738.62,079.22,561.7
Interest bearing liabilities572.0340.0234.1456.9
761.7
Other liabilities68.774.993.6116.7
109.3
Total liabilities640.7414.9327.7573.6871.0
Total equity1,106.81,338.31,410.91,505.6
1,690.7
Number of shares (m)1059.71211.11211.11211.1
1211.1
Weighted average number of shares (m)1046.61103.11211.11211.1
1211.1
Net tangible assets per share (cps)1.041.111.171.241.40
Share price at 30 June ($)1.071.141.251.24
1.35
Covenants
Loan to value ratio (%)33.820.114.425.1
25.0
Interest coverage ratio3.2 x3.5 x6.9 x3.9 x
2.4 x
Key portfolio metrics
Average portfolio cap rate (%)7.37.06.56.2
5.8
Weighted average lease term (years)5.45.06.38.7
1
8.7
1
Occupancy (% by NLA)989898100
99
Net lettable area (sqm)322,115304,485225,613224,430
221,513
Number of investment properties17.015.013.012.0
12.0
1 Includes developments.
Definition - Funds from operations (FFO) and Adjusted funds from operations (AFFO)
FFO and AFFO are a non-IFRS earnings measure developed for real estate entities.
Funds from operations (FFO)
FFO is the organisation’s underlying and recurring earnings from its operations. This is determined by adjusting statutory net profit
(under IFRS) for certain non-cash and other items. FFO has been determined based on guidelines established by the Property
Council of Australia and is intended as a supplementary measure of operating performance.
Adjusted funds from operations (AFFO)
AFFO is determined by adjusting FFO for other non-cash and other items which have not been adjusted in determining FFO.
A dividend payout ratio of 100% indicates a company is neither over or under paying dividend.
AFFO is considered a measure of operating cash flow generated from the business, after providing for all operating capital
requirements including maintenance capital expenditure, tenant improvement works, incentives and leasing costs.
While AFFO overcomes the limitations of FFO by considering the impact of capital requirements for operations, it can vary
dramatically year over year, depending on the lease expiry profile and level of activity in any one period.
Our dividend policy
Precinct’s dividend policy is to pay out approximately 90% of net operating income after tax as dividends, with the retained
earnings being used to fund the capital expenditure required to maintain the quality of Precinct’s property portfolio.
The payment of dividends is not guaranteed by Precinct and Precinct’s dividend policy may change from time to time.

46
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
INTRODUCTION
The board of directors is responsible for the governance of
Precinct and is committed to ensuring Precinct maintains best
practice corporate governance structures with the highest
ethical standards and integrity.
Precinct's Corporate Governance Manual guides both the
directors and the manager of Precinct. It includes a Code of
Ethics, Board and Committee Charters and Policies on Securities
Trading, Audit Independence, Diversity and Inclusion, Continuous
Disclosure, Takeover and Shareholder Communications.
This section of the Annual Report reflects the company’s
compliance with the requirements of NZX Corporate
Governance Code 2017. Precinct's Corporate Governance
Manual is available on Precinct’s website (www.precinct.co.nz)
in the News and Investor Information section together with a
statement of how Precinct's corporate governance policies,
practices and processes alter from the NZX Corporate
Governance Code 2017 as at 16 August 2018. If any investor
would like a copy sent to them, please contact Precinct investor
relations.
PRINCIPLE 1 – ETHICAL STANDARDS
Directors set high standards of ethical behaviour, model this
behaviour, and hold management accountable for these
standards being followed throughout the organisation.
Ensuring that Precinct is governed transparently and to the
highest of ethical standards and integrity is one of the key
priorities for the board. Precinct's Code of Ethics and Financial
Products Dealing Policy are set out in the Corporate
Governance Manual and are compliant in all respects with the
NZX Corporate Governance Code recommendations.
Code of Ethics - The purpose and intent of Precinct's Code of
Ethics is to guide directors, the manager, representatives and
subsidiaries of Precinct so that their business conduct is consistent
with high business standards. The Code is not intended to be an
exhaustive list of acceptable and non-acceptable behaviour,
rather it is intended to facilitate decisions that are consistent with
Precinct’s business standards, objectives and legal and policy
obligations.
Financial Product Dealing Policy - The Financial Product Dealing
Policy applies to all directors and officers of Precinct and
management employees. No director, officer or employee may
use their position of knowledge of Precinct or its business to
engage in dealing with any Precinct listed financial products for
personal benefit or to provide benefit to any third party.
PRINCIPLE 2 - BOARD COMPOSITION AND
PERFORMANCE
There is a balance of independence, skills, knowledge,
experience and perspectives among directors to ensure an
effective board.
Precinct has seven directors, the majority of whom are
independent (as defined by the NZX Listing Rules). Details of
each director's experience are set out in the Board of Directors
Section of this report. All Precinct directors are non-executive
and the board composition and performance is compliant in all
respects with the NZX Corporate Governance Code
recommendations.
Independent Directors - Craig Stobo, Don Huse, Graeme Wong
and Launa Inman were appointed by Precinct shareholders and
are required to retire by rotation. At this year’s annual general
meeting in November 2018, shareholders will again have the
opportunity to elect/re-elect two independent directors, as well
as vote on various other matters.
Non-Independent Directors – Rob Campbell, Mohammed Al
Nuiami and Chris Judd are non-independent. Rob was
appointed by Haumi Company Limited in 2012 pursuant to a
provision in the constitution which grants any security holder,
holding more than 15% of our shares, the right to appoint one
director. Mohammed and Chris were both appointed in 2013 as
directors by AMP Haumi Management Limited pursuant to a
provision in the constitution which grants the manager the right
to appoint up to two directors. Anthony Bertoldi acts as alternate
director for Mohammed. The non-independent directors are not
required by Precinct’s constitution (or by rule 3.3.11 of the NZX
Listing Rules) to retire by rotation.
Subsidiary Company Directors – A third subsidary was
incorporated during the year being Precinct Properties 1 Queen
Street Limited. The directors for each of Precinct's three subsidiary
companies are all executive appointments and as at 30 June
2018 are Scott Pritchard, George Crawford, Davida Dunphy and
Richard Hilder.
Board Charter - Precinct's Corporate Governance Manual
includes the Board's Charter which sets out the roles and
responsibilities of the board and management.
Board Appointment - The Remuneration and Nomination
Committee assists the board in planning its composition and is
responsible for nominating and appointing directors to the
board. All directors enter into a written agreement setting out
the terms of their appointment
Diversity and Inclusion Policy - Precinct 's Diversity and Inclusion
Policy is included in Precinct's Corporate Governance Manual
and includes measurable objectives which are assessed
annually. The board has developed this policy with
management to encourage a diverse and inclusive working
environment at all levels of the organisation to recruit and retain
the best talent from the widest pool of candidates and build a
culture where diversity of gender, age, ethnicity, background,
experience, skills, thought, ideas, styles and perspective are
leveraged and valued.

47
CORPORATE GOVERNANCE
The gender composition of directors, officers and management
employees is as follows:
30 June 201830 June 2017
FemaleMaleFemaleMale
Directors
1 (16.7%)6 (83.3%)
1 (16.7%)6 (83.3%))
Independent
directors
1 (25%)3 (75%)
1 (25%)3 (75%)
Senior
management
4 (40%)6 (60%)
3 (33.3%)6 (66.7%)
Officers
1 (25%)3 (75%)
1 (33.3%)2 (66.7%)
Management
employees
24 (43%)32 (57%)
21 (38%)34 (62%)
For the purposes of measuring and reporting gender diversity,
the term 'officers' is defined by those that report directly to the
Precinct Board. The term 'senior management' relates to those in
the business that sit on the executive management team,
and/or have a strong influence over the organisation and are
involved in key business decisions. To be considered as a senior
management role the person must have a direct reporting line
to the CEO, COO or CFO.
Supporting the efforts to increase diversity across the
management team are secondary policies and practices
including the Equal Opportunities, Recruitment and Selection,
Study Assistance and Remuneration Policies together with a
Culture Charter and biennial anonymous staff surveys. To ensure
workplace diversity continues to evolve and be built upon a
matrix of key objectives and monitoring is undertaken on an on-
going basis.
Measurable objectives30 June 201830 Jun 201730 June 2015
Ethnicity
% non NZ born
European
34% (19)25% (14)
16% (6)
Gender
% of female staff
43% (24)38% (21)
41% (15)
Age range21 - 6222 - 61
24 - 59
Board Performance - The Board regularly reviews its performance
including its collective skills, knowledge, experience and
perspectives to identify any shortcomings and ensure that it
effectively governs the company and monitors performance in
the interests of shareholders. This includes reviewing director
tenure to ensure the independence majority is maintained.
Meetings - A schedule of directors and their board meeting
attendance record for the year to 30 June 2018 is set out below.
BOARD OF DIRECTORS AND ATTENDANCE
Director
Independent
directorStatusDate of appointment
Board
meetings
Audit and Risk
Com.
meetings
Rem and Nom
Com. meeting
Number of meetings542
Craig StoboYesBoard Chairman4 May 2010542
Mohammed Al Nuaimi Director30 October 20134n/an/a
Anthony Bertoldi Alternate Director for Mohammed Al
Nuaimi
12 August 20145n/an/a
Rob Campbell Director2 April 2012542
Don HuseYesAudit and Risk Committee Chairman1 November 201054n/a
Launa InmanYesDirector18 November 201554n/a
Chris Judd Director29 April 20135n/a1
Graeme WongYesRem & Nom Committee Chairman1 November 20105n/a2

48
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
PRINCIPLE 3 – BOARD COMMITTEES
The board uses committees where this enhances effectiveness in
key areas while still retaining board responsibility.
For the year to 30 June 2018 there were two standing
committees of the board, being the Audit and Risk Committee
and the Remuneration and Nominations Committee. Our board
committees are compliant in all respects with the NZX Corporate
Governance Code recommendations. The charters that exist for
each committee can be found in the Precinct Governance
Manual together with Precinct's Takeover Policy.
The Audit and Risk Committee comprises Don Huse as Chairman,
Launa Inman, Craig Stobo and Rob Campbell. The committee
was established to assist the board in discharging its duties with
respect to financial reporting, compliance and risk
management.
The Remuneration and Nominations Committee comprises
Graeme Wong as Chairman, Craig Stobo and Rob Campbell.
Chris Judd was appointed during the year. The committee's
purpose is to:
- provide guidance to the board when approving directors’
remuneration; and
- assist the board in planning the board’s composition,
evaluating competencies required of prospective directors and
to make relevant recommendations to the board.
The Due Diligence Committee is an ad hoc committee that is
established by the board from time to time to provide guidance
and recommendations to the Board on the due diligence for
any transaction of a significant size and/or complexity. A Due
Diligence Process Memorandum is agreed each time the
Committee is established setting out its duties, responsibilities and
scope. The Due Diligence Committee was established three
times during the year and comprised Don Huse as Chairman,
Craig Stobo, Rob Campbell and Graeme Wong.
PRINCIPLE 4 – REPORTING AND DISCLOSURES
The Board demands integrity in financial and non financial
reporting and in the timeliness and balance of corporate
disclosures.
The Board is committed to ensuring the highest standards are
maintained in financial and non financial reporting and
disclosure of all relevant information and is compliant in all
respects with the NZX Corporate Governance Code
recommendations. A copy of Precinct's Continuous Disclosure
Policy can be found in the Precinct Governance Manual.
The Audit and Risk Committee oversees the quality and
timeliness of all financial reports, including all disclosure
documents issued by the company or any of its subsidiaries.
Precinct has moved toward integrated reporting and the annual
report includes information on Precinct's;
• Business model
• Strategy and key performance indicators
• Risk management, and
• Sustainability framework.
Precinct now reports against the Global Reporting Initiative (GRI)
Standards, shown in the Sustainability Section.

49
CORPORATE GOVERNANCE
PRINCIPLE 5 – REMUNERATION
The remuneration of directors and executives is transparent, fair
and reasonable.
The board policy is for directors’ remuneration to increase
annually in line with inflation and to be reviewed every two years
to ensure that it remains at market levels to attract and retain
high quality independent directors.
Our remuneration practices are compliant with the NZX
Corporate Governance Code recommendations with the
exception of having a written policy outlining the relative
weightings of remuneration components and relevant
performance criteria (recommendation 5.2) and disclosing the
same in relation to the CEO (recommendation 5.3). This is
because CEO remuneration, together with all management
remuneration, is an external management expense.
While management remuneration is not an expense of Precinct,
the board of Precinct believes that it is important for shareholders
to understand the structure of management remuneration as it is
an important determinant of management retention, motivation
and alignment between management and shareholders.
Under the Management Services Agreement, the board of
Precinct must be consulted on management remuneration.
More information on remuneration of directors, executives and
the management company can be found within the
Management Fee Structure and Remuneration Report.
It is proposed that the director remuneration review process is
updated during FY19 to provide further transparency to
shareholders by setting aside the existing director pool fee cap
and instead putting director remuneration to shareholders for
annual approval. Such annual approval would apply to both
directors base fees and additional committee fees and allow the
board to recruit new directors during the year if appropriate for
succession planning. Shareholders will be given the opportunity
to vote on this change at the AGM in November and further
information on this proposal will be included in the notice of
meeting.
PRINCIPLE 6 – RISK MANAGEMENT
The board has a sound understanding of the material risks faced
by the business and how to manage them. The board regularly
verifies that the company has appropriate processes that identify
and manage potential and material risks.
The Board has a risk management and reporting framework in
place that identifies and manages risk that may impact the
business and complies with the NZX Governance Code
recommendations in all respects.
Risk Register - A Risk Register is maintained which identifies key
risks to the business, records the likelihood and impact of each
risk and steps to mitigate the same. The Audit and Risk
Committee oversees the risk register and reviews it regularly with
management to track existing risks and the emergence of new
risks. The results of each review are reported to and reviewed by
the Board. The Risk Register is further reviewed when required in
the event the Due Diligence Committee is formed.
Financial Risk Management Policy - Our Financial Risk
Management Policy details our approach to managing financial
risks and the policies and controls that are required to mitigate
the likelihood of financial risks resulting in an adverse outcome.
This policy is reviewed by the Board annually.
Insurance - Insurance cover is in place for insurable liability and
general business risk. The primary objective of our annual
insurance programme is to protect shareholders from material
loss in the value of assets as a result of events such as fire, natural
disaster or accidental damage. This approach protects creditors
and bondholders as well.
Audit - Ernst & Young are engaged during the year to audit and
review our financial statements.
Heath and Safety - Health and safety policies are embedded
throughout the business and overseen by the Health and Safety
Committee. Reporting and escalation processes are in place to
the Audit and Risk Committee and the Board.
More detail on how Precinct manages its key business risks can
be found under Risk Management in this section.

50
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
PRINCIPLE 7 – AUDITORS
The board ensures the quality and independence of the external
audit process.
Oversight of Precinct’s external audit arrangements is the
responsibility of the Audit and Risk Committee. We do not have
an internal audit function. Ensuring that external audit
independence is maintained is one of the key aspects in
discharging this responsibility. The Policy on Audit Independence,
detailed in the Corporate Governance Manual, has been
adopted by the committee. This policy is compliant with the NZX
Corporate Governance Code and covers the following areas:
• Provision of related assurance services by Precinct’s external
auditors;
• Auditor rotation; and
• Relationships between the auditor and Precinct.
The Audit and Risk Committee shall only approve a firm to be
auditor if that firm would be regarded by a reasonable investor
with full knowledge of all relevant facts and circumstances as
capable of exercising objective and impartial judgement on all
issues encompassed within the auditor’s engagement.
The external auditors shall annually confirm their compliance with
professional standards and ethical guidelines of Chartered
Accountants Australia and New Zealand (CA ANZ) to evidence
their competence.
PRINCIPLE 8 – SHAREHOLDER RIGHTS AND
RELATIONS
The board respects the rights of shareholders and fosters
constructive relationships with shareholders that encourage them
to engage with the company.
The Board is committed to achieving best practice investor
relations. Financial and operational information and key
corporate governance information (including Precinct's
Shareholder Communications Policy) can be accessed at
www.precinct.co.nz.
An annual investor relations plan has been established and is
reviewed annually. This plan details the investor relations
approach to e-communications, roadshows, investor briefings,
site visits, blackout periods, financial reporting and other items.
Enquiries from shareholders can be voiced at the Annual
General Meeting, or emailed through using the contact details
on our website. A key objective of the plan is to ensure accurate
continuous disclosure to the NZX.
We have previously conducted our AGM voting by poll in
advance and by show of hands (of those shareholder who
attend the AGM on the day). This allowed minority shareholders
the opportunity to register their vote in front of the directors and
management. In doing so we retained the right to demand a
final poll in the event that the show of hands vote went against
those votes cast in advance (which to date has never
occurred). In accordance with NZX Corporate Governance
recommendation 8.4 however, voting at the upcoming AGM in
November will instead be conducted by poll only.

51
CORPORATE GOVERNANCE
RISK MANAGEMENT
OUR APPROACH
Precinct has carried out a robust risk assessment process and is committed to providing a clear risk management and reporting
framework for the business to operate under to achieve its objectives, whilst ensuring all risks are understood and managed.
REPORTING FRAMEWORK
Responsible group
Description of responsibility
Precinct board
• Determine the nature and extent of the risks it is willing to take to
achieve the business strategy
• Establish the parameters for each risk
Audit and risk
committee
• Delegated authority in assessing effectiveness of internal controls
and risk management processes
• Delegated authority to regularly oversee and review the Risk
Register
Executive
• Input into Board's process for setting risk parameters
• Lead management's approach to risk
• Oversee reporting and identification of emerging risks
Development
control group
Operational
management
Health and safety
committee
• Implement and maintain risk management policies
• Create an environment that embraces risk management
• Actively audit and monitor all live sites
ContractorsEmployeesOther
• Day-to-day responsibility of managing risk
• Report and maintain internal risk and hazard registers
KEY BUSINESS RISKS
EXTERNAL
Risks and impactsHow we manage the riskMovement in the period
Economy and property market
Market risk arises from adverse changes
in the New Zealand economic
environment, regulatory environment
and the broader investment market.
Changes may result in an impact in
property value and amount of income
generated from them.
Maintain a proactive and strategic
approach to manage property risks it
can influence.
Providing quality premises matched by
high service levels and building strong
relationships.
Undertake annual business planning
process to review the portfolio and
help mitigate these risks.
►
Contributing factors in the New
Zealand economy and property
market remains strong and positive for
Precinct with expectation they will
continue for the near term.
Occupier market and client default
A weakening occupier market through
lack of business activity and investment,
as well as unanticipated client default,
can directly impact the income and
value of each individual asset.
Insurance risk
The risk of being unable to continue to
obtain insurance cover, or following an
event, not having sufficient cover in
place to repay creditors. This could
result in significant business interruption.
Engage directly with a wide range of
local and international insurers.
Ensure the insurance market has a
good understanding of the portfolio
and its risks.
▲
The impact from the Kaikoura
earthquake and fire service levies has
largely been accounted for within
recent insurance renewals.

52
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
INTERNAL
Risks and impactsHow we manage the riskChangeMovement in the period
Development
Development risk
Development projects are inherently
subject to uncertainties. They are
entered into on the basis of assumed
future costs, values and income levels.
An increased level of development risk
has the potential to make meeting
covenant obligations and overall
solvency challenging.
Ensure expected returns from
developments adequately
compensate Precinct for the level of
risk undertaken before each project is
approved.
Through due diligence, we understand
the project risks before commitment.
Before commitment, ensure sufficient
funding is in place and committed
gearing is maintained within
acceptable levels.
Establishing a procurement plan and
engaging contractors early to mitigate
cost escalation or contractor default.
Undertake substantial pre-leasing prior
to commencement of development.
▼
The risk profile of the remaining
developments continues to decrease
as pre-commit leasing progresses
through the period. Remaining
commitments also reduce as projects
near completion.
Exposure to the construction market
escalation remains minimal with fixed
construction contracts agreed.
Financial
Interest rate management
Interest rate risk arises through changes
in interest rate market conditions
leading to earnings volatility or breach
of interest cover covenant levels.
Manage by aligning the interest rate
re-pricing profile with the re-pricing
profile of Precinct's gross rental
income.
Establish interest rate swaps to
manage exposure within a band
reviewed by the Board annually and
monitored by the audit and risk
committee and board quarterly.
►
Floating interest rates have remained
low during the year.
Market expect rates to remain low in
the short to medium term.
Refinancing risk (liquidity)
Having insufficient funds to refinance
debt when it falls due and sustain the
ongoing operations of the business.
Implemented a Financial Risk
Management Policy in 2011 which is
reviewed annually providing a clear
framework in which to operate under
whilst ensuring risks are managed and
understood.
Diversified funding away from sole
reliance on bank funding through
alternative sources.
Staggering the maturity profile of
facilities providing adequate time to
pursue alternatives to refinancing.
▼
New bank debt facility secured in July
2018 reduces refinancing risk providing
sufficient funding capacity to deliver
our committed developments.

53
CORPORATE GOVERNANCE
Risks and impactsHow we manage the riskChangeMovement in the period
Gearing levels
An increase in gearing levels outside
suitable industry standards could
increase the risk of breaching financing
covenants and may increase
borrowing costs.
Implemented a Financial Risk
Management Policy in 2011 which is
reviewed annually.
Ensure no capital commitment is
entered into without sufficient funding
in place.
Maintain adequate headroom in
relation to gearing covenants to
withstand portfolio devaluations which
may be anticipated through the
property cycle.
▲
Gearing levels continue to increase as
existing developments progress
throughout the year. Funding strategy
in place to ensure current levels remain
within internal policy parameters.
People
Staff
Staff are critical to ongoing success
and execution of strategy. Failure to
maintain a high level of experience
and skill could impact business
performance.
Ensure a strong focus on team
engagement and enhancement.
Maintain ongoing succession planning
and retention structures within the
company.
Regularly review performance
appraisals of employees and directors
and benchmark remuneration
packages with the wider market.
▲
Human resource remains a key focus
for the business as the company
continues to grow and execute on its
long term strategy.
Health and safety
Unsafe work environments may lead to
accidents (employees, clients,
contractors and visitors) resulting in
financial loss and/or business continuity.
Provide ongoing individual, group and
industry training.
Maintain a hazard register that
identifies hazards where contractors
are required to take precaution.
Registers are subject to annual review.
Actively monitor any live sites to ensure
oversight of Health and Safety matters.
Ensure contractor pre-qualification.
Recognise training and KPI's for all
Precinct staff.
▲
As developments progress and near
completion, health and safety is
increasing and remains a strong focus
for the business.
Appropriate monitoring and reporting
policies are in place to mitigate any
potential risk.
Further information on Health and
Safety is included in the Sustainability
section.

54
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
MANAGEMENT FEE STRUCTURE
MANAGEMENT SERVICES AGREEMENT
The management services agreement with AMP Haumi
Management Limited was entered into on corporatisation in
2010 (
the Management Agreement
). The Management
Agreement details the material services that are to be
performed, and fees charged, by AMP Haumi Management
Limited in its capacity as manager of Precinct. The Management
Agreement was amended in 2011 and 2016.
A copy of the Management Services Agreement as amended is
available on the Precinct website.
MANAGEMENT SERVICES FEE
The manager is entitled to three fees under the Management
Agreement:
• a base management services fee;
• a performance fee; and
• additional services fees.
BASE MANAGEMENT SERVICES FEE
The base management services fee is payable in three tiers and
calculated by reference to the Value of Investment Property.
Value of Investment Property ("VIP") means, the total value of all
real property assets owned or leased by Precinct as determined
in accordance with GAAP. Adjustments for revaluations, capital
expenditure, acquisitions and disposals are made on a pro rata
basis each month.
Development properties, including land, are excluded from the
VIP. A property is classified as a development property if it is
under construction or is vacant and undergoing (or likely to
undergo) refurbishment work during the year. This classification is
for the purposes of calculating AMP Haumi Management's
limited base management services fee only and does not in any
way classify the tenantability or otherwise of a property.
Refurbishment work includes all design and other pre-contract
investigation and consultant work.
The base management services fee is payable in respect of
these properties upon receipt of a certificate of practical
completion for each property.
The three tiers of payment are as follows:
• 0.55% per annum of the VIP to the extent that the VIP is less
than or equal to $1billion; plus
• 0.45% per annum of the VIP to the extent that the VIP is
between $1,000,000,001 and $1.5billion; plus
• 0.35% per annum of the VIP to the extent that the VIP
exceeds $1.5billion;
plus GST (if any).
The base management services fee is paid to the manager
monthly in arrears in cash.
PERFORMANCE FEE
The performance fee is based on Precinct’s relative
outperformance over other NZX listed property entities. Key
features of the performance fee are:
• The performance fee is payable quarterly in arrears and in
cash.
• Precinct’s quarterly performance (expressed as a percentage
return) is determined, based on the 5 day volume weighted
average Precinct share price movement on NZSX at the open
and close of that quarter plus gross distributions paid in the
quarter (“Shareholder Return”).
• Precinct’s quarterly performance is then benchmarked
against an NZX Property Index (excluding Precinct) return
(calculated including the value of imputation credits of
constituent members of that index), also expressed as a
percentage return (“Benchmark Return”).
• “Outperformance” (or “underperformance”) is determined,
being the difference between the Shareholder Return and
the Benchmark Return.
An “Initial Amount” (or “Deficit”) is then determined, being 10%
of that Outperformance (or underperformance) multiplied by an
amount reflecting Precinct’s market capitalisation for that
quarter. The Initial Amount (or Deficit) is then credited to the
“Carrying Account”.
• The performance fee for any quarter is then equal to the
credit balance (if any) in the Carrying Account at that time,
subject to two limitations:
- the performance fee in any quarter is limited to the
“Performance Cap”, which is, effectively, 0.125% of an
amount reflecting Precinct’s market capitalisation for that
quarter. The extent to which the performance fee would
otherwise have exceeded the Performance Cap will
remain in the Carrying Account and be carried forward to
the following quarter; and
- no performance fee is payable in respect of a quarter if
Precinct’s absolute Shareholder Return in that quarter is
negative, even if it is above the Benchmark Return. Rather,
the Initial Amount (calculated by reference to the
Outperformance in that quarter) will be credited to the
Carrying Account and carried forward to the following
quarter. Any Initial Amount credited to the Carrying
Account which is not used up in paying performance fees
or in off-setting subsequent Deficits will effectively expire
two 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 two years after it is
debited against the Carrying Account.

55
CORPORATE GOVERNANCE
MANAGEMENT SERVICES
BASE MANAGEMENT SERVICES
The base management services to be provided by the manager
include:
• Corporate and fund management services, being, in general,
those services which are necessary as part of the day-to-day
management of a major corporate enterprise including the
provision of support to the board, company secretarial
matters, reporting, engaging and dealing with advisers,
managing payments and accounts, financial management
and reporting, record keeping, Listing Rules and regulatory
compliance, capital management and research and
monitoring.
• Portfolio and asset management services, being, in general,
those services which are necessary as part of managing a
major property portfolio including identifying opportunities,
submitting proposals to the board, managing the
implementation of board approved proposals, performance
monitoring, budgeting, reporting, relationship management,
development and implementation of annual asset
management plans and documentation management.
The manager is permitted to sub-contract some or all of the base
management services, but only with the board’s consent (not to
be unreasonably withheld). The manager will continue to be
responsible for delivery of any sub-contracted services.
ADDITIONAL SERVICES
In addition to the base management services, the manager is
also responsible for providing additional services to Precinct,
relating to property and facilities management, leasing,
development management, project management and delivery
and property acquisition and divestment services (additional
services).
The additional services may be provided by the manager or any
person approved by the manager, provided such party has
sufficient expertise and resources available to it to perform the
service. No person may be engaged to perform additional
services without board approval or authorisation under
delegated authorities approved by the board.
The additional services are not included within the base
management services fee payable under the Management
Agreement and are subject to a market review every two years.
The next market review is due in September 2018. The fees for
these services are payable by Precinct and are detailed within
the Remuneration Report.
REIMBURSEMENT OF COSTS
The manager is also entitled to be reimbursed for specified items
of expenditure incurred on Precinct’s behalf (these costs are not
included within the fees payable under the Management
Agreement).
RESOURCING
Precinct does not employ any staff, including senior executives.
All personnel, including Precinct’s Chief Executive Officer, Chief
Operating Officer and Chief Financial Officer, are provided by
the manager – which is responsible for providing access to, or
otherwise employing, all staff necessary to perform its obligations.
Although Precinct does not employ its own staff, the manager
must consult with the board regarding the appointment, removal
and remuneration of the Chief Executive Officer, Chief
Operating Officer and Chief Financial Officer. Furthermore, the
manager must:
• Ensure that certain key personnel are dedicated to, and work
exclusively in providing services to, Precinct, unless agreed
otherwise by the board.
• Ensure that the employment or secondment arrangements
relating to certain key personnel require them to act in the
best interests of, and for the benefit of, Precinct and its
subsidiaries.
TERM AND TERMINATION
The Management Agreement has no fixed term and may be
terminated in the following ways:
By either party if the other party commits or is or becomes
subject to a default event. The default events are insolvency
type situations and circumstances which lead to a party’s
unremedied material breach of the Management Agreement. In
the case of the manager, a material breach:
• is a breach or series of related breaches which in aggregate
have a material and adverse effect on Precinct’s financial
performance, business or assets and which is unremedied or
not compensated for within 30 business days following
delivery of a detailed notice to the manager by Precinct;
• is deemed to include fraud by the manager which has a
material adverse effect on Precinct which is incapable of
compensation; and
• is deemed to include a change of control which results in a
party (other than AMP Capital Investors (New Zealand)
Limited or Haumi Development Limited Partnership, or any of
their related parties) acquiring the power to exercise or
control the exercise of 75% or more of the voting securities of
the manager, without Precinct’s written consent. Provided
that in each case Precinct may only exercise this right of
termination if the termination has been approved by a
special resolution of Precinct's shareholders (not including the
manager or its “Associated Persons”).
• by the manager on six months’ written notice to Precinct.
Precinct does not have a unilateral right to terminate the
Management Agreement at its discretion.
If requested by Precinct, the manager will provide
disengagement services to Precinct following termination in
certain circumstances to assist in the transition to a new
manager or self-management.

56
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
If the Management Agreement is terminated then the manager
will not be paid any fees upon termination (other than any
accrued and unpaid fees and costs up to the termination date).
CALL OPTION
(Transfer of manager’s interests in the Management Agreement)
Any person who acquires (or acquires the right or power to
exercise or control the votes attached to) 50% or more of the
voting securities of Precinct, has a six-week period to exercise an
option to purchase the manager’s interests in the Management
Agreement (subject to certain terms and conditions as set out in
the Management Agreement). If the consideration for the
assignment of the Management Agreement cannot be agreed,
it will be set by expert determination.
BOARD APPOINTMENT RIGHTS
The manager is entitled to appoint up to two directors to the
board and to substitute or remove such directors by notice in
writing.
This director appointment right has been exercised and is subject
to the Listing Rules (and the requirements of any ruling granted
by the NZX from time to time). Further information on the
manager appointed directors is set out in the Corporate
Governance Section of this report (see Principle 2 - Board
Composition and Performance).
TAKEOVER CODE EXEMPTIONS
INTRODUCTION
This section contains information required by the Takeovers Code
(AMP NZ Office Limited) Exemption Notice 2010 which was
obtained when Precinct corporatised from a unit trust in 2010.
Unless otherwise stated, the information provided in this section
of the report is as at 30 June 2018.
Any term capitalised in this section but undefined has the
meaning given to it in the above 2010 Exemption Notice.
PRE-EMPTIVE ACQUISITIONS
AMP Capital Investors International Holdings Limited (AMPCI)
and Haumi Company Limited (as general partner of the Haumi
(NZ) Limited Partnership (HNZLP)) are the current parties to a
deed dated 27 September 2010, which records certain pre-
emptive rights arrangements in respect of Precinct voting
securities held by HNZLP and AMPCI (in its own right – not in its
capacity as manager of a fund) (the
Pre-emptive
Arrangements
). The Pre-emptive Arrangements are as follows:
• If HNZLP wishes to sell, transfer or dispose of all or any of its
Precinct voting securities (or any interest (whether legal or
beneficial) in them) to any third person, or AMPCI wishes to
sell, transfer or dispose of all or any of its Precinct voting
securities held by it in its own right, and not in its capacity as a
manager of a fund, (or any interest (whether legal or
beneficial) in them) to any third person, then HNZLP or AMPCI
must first offer to sell those Precinct voting securities to the
other party at a price specified by the offeror. The offeree has
15 working days to decide whether to accept the offer.
• If the other party does not accept the offer or give notice
within the 15 working day period, then the party wishing to
sell, transfer or otherwise dispose of its Precinct voting
securities can sell the relevant Precinct voting securities to a
third party within 90 working days, provided that such sale
must be for a price and on terms no more favourable than
those offered to AMPCI or HNZLP (as the case may be).
• In addition, in the event of a “change of control”, or if a
“relevant event” occurs in respect of either HNZLP or AMPCI,
then that party is deemed to have offered to sell its Precinct
shares to the other at either an agreed price, or, if no such
agreement can be reached, such amount, per Precinct
voting security, as is equal to the volume weighted average
price of Precinct voting securities traded on the NZSX during
the period of five trading days immediately preceding the
date on which the relevant sale notice is given. In the case of
AMPCI, it will only be deemed to have offered to sell its
Precinct shares held by it in its own right, and not in its
capacity as manager of a fund.
• These Pre-emptive Arrangements cease to apply if AMP
Haumi Management Limited ceases to be manager of
Precinct.
Information on the number of voting securities that have been
acquired by the Combined AMPCI Parties under the Pre-emptive
Acquisitions, the percentage of all voting securities on issue that

57
CORPORATE GOVERNANCE
are held or controlled by the AMPCI Parties, and the maximum
number and percentages of voting securities after the Pre-
emptive Acquisitions is set out below. Further information on the
maximum number and percentages of voting securities that may
be held by the AMPCI Parties (and their Associates) after the
acquisition of voting securities under the Combined Transactions
is set out on the following page.
FUNDS MANAGEMENT ACQUISITIONS
A reference in this section of the report to a Funds Management
Acquisition is any acquisition of Precinct voting securities by a
Managed Fund. A Managed Fund is any investment fund, entity
or scheme managed by AMPCI or any subsidiary of AMPCI in the
ordinary course of the funds management business of AMPCI (or
a subsidiary), and includes any manager, trustee, or custodian of
any such fund.
The persons whose increase in voting control results or may result
from any Fund Management Acquisition are:
• the AMPCI Parties;
• any trustee or custodian of a Managed Fund; and
• in certain circumstances, where a Managed Fund is operated
for the benefit of a single client, that client (as a result of
having the ability, under the investment management
arrangements with the relevant AMPCI Party, to direct the
exercise of voting rights controlled by the relevant AMPCI
Party in respect of that Managed Fund).
The percentage of Precinct voting securities at any time held or
controlled by the AMPCI Parties as a result of the Funds
Management Acquisitions has not exceeded 4.9% of the total
Precinct voting securities on issue.
Information on the maximum numbers and percentage of all
voting securities on issue that may be held or controlled by the
AMPCI Parties (and their Associates) after any Fund
Management Acquisition or after the acquisition of voting
securities under the Combined Transactions is set out on the
following page.
EMPLOYEE SHARE SCHEME ACQUISITIONS
The manager has established the AMP Haumi LTI Bonus Scheme
(
LTI Scheme
) as a long term incentive scheme for selected
employees of the manager (
Eligible Employees
) who are
engaged in operating Precinct’s business. The key terms of the
LTI Scheme are:
• Eligible Employees are invited to borrow an interest free
amount (Loan) from the manager. The Loan amount is
determined based on the agreed performance criteria for
the LTI Scheme (which is based on the performance of
Precinct and the manager).
• The Loan is advanced to AMP Haumi LTI Trustee Limited (the
Employee Share Scheme Administrator), who uses the Loan to
purchase Precinct shares on-market (the Employee Share
Scheme Acquisitions), and then holds those Precinct shares
on trust for the Eligible Employees in accordance with the
rules of the LTI Scheme.
• Participants who remain employed by the manager for the
duration of the Loan period receive a bonus equal to the
amount of the Loan, which may be used to repay the Loan.
The rules of the LTI Scheme contain a mechanism which
protects participants from changes in market value of the
Precinct shares.
• Participants are entitled to Precinct shares held for them by
the Employee Share Scheme Administrator only once they
have satisfied the vesting requirements of the LTI Scheme.
• Participants who cease to be employed by the manager
before satisfying the vesting requirements of the LTI Scheme
are not entitled to the Precinct shares held for them by the
Employee Share Scheme Administrator. Those participants are
required to repay their Loan when their employment
terminates, but the Employee Share Scheme Administrator will
sell the Precinct shares held for that participant and use the
sale proceeds towards repayment of the Loan.
Employee Share Scheme Acquisitions will or may result in the
Employee Share Scheme Administrator, the manager or the
Eligible Employees increasing their voting control of Precinct.
The percentage of voting securities at any time held or
controlled by the Employee Share Scheme Administrator and the
manager as a result of the Employee Share Scheme has not
exceeded 1% of the total voting securities on issue.
Information on the maximum percentages of voting securities
that may be held or controlled by the Employee Share Scheme
Administrator or the manager (and their Associates) after any
Employee Share Scheme Acquisition is set out on the following
page. Further information on the maximum percentage of voting
securities that may be held by the Employee Share Scheme
Administrator or the manager (and their Associates) after the
Combined Transactions is set out on the following page.

58
CORPORATE GOVERNANCE
CORPORATE GOVERNANCE (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
DISCLOSURE OF NUMBERS AND PERCENTAGES OF VOTING SECURITIES
Pre-emptive arrangements
The number of voting securities that have been acquired by the AMPCI Parties under the Pre-emptive Arrangements as at 29 June
2018, the percentage of voting securities on issue that are held or controlled by the AMPCI Parties as at 29 June 2018, and the potential
maximum numbers and percentages of voting securities that could be held or controlled by the AMPCI Parties after the Pre-emptive
Acquisitions are as follows:
Exempted person
Number of voting
securities that have been
acquired under the Pre-
emptive Acquisitions
% of voting securities on
issue that are held or
controlled
% of all voting securities
on issue that are held or
controlled with Associates
Maximum % of all voting
securities on issue that
could be held or
controlled after the Pre-
emptive Acquisitions
Maximum % of all voting
securities on issue that
could be held or controlled
with Associates after the
Pre-emptive Acquisitions
AMPCI Parties Zero
1
2.24
2
21.23
2
21.3521.411
These figures are calculated on the basis that only the Corporatisation Transfer and the Pre-emptive Acquisitions occur, and that there is no change in the number of
voting securities on issue after 29 June 2018.
1 The figure is calculated on the basis that no voting securities in Precinct have been acquired under the Pre-emptive arrangements.
2 These figures are calculated on the basis of the total holdings of voting securities in Precinct by the AMPCI Parties (and their Associates, as applicable) as at 29 June
2018 and that there is no change in the number of voting securities on issue after 29 June 2018.
Fund management acquisitions
The potential maximum numbers and percentages of voting securities that could be held or controlled by the AMPCI Parties after the
Funds Management Acquisitions are as follows:
Exempted person
Maximum % of all voting securities on issue that could be
held or controlled as a result of Funds Management
Acquisitions
Maximum % of all voting securities on issue that could be
held or controlled with Associates as a result of Funds
Management Acquisitions
AMPCI Parties4.900024.961
The figures in this table are calculated on the basis that only the Corporatisation Transfer and the Fund Management Acquisitions occur, and that there is no change in
the number of voting securities on issue after 29 June 2018.
Employee share scheme acquisitions
The potential maximum numbers and percentages of voting securities that could be held or controlled by the manager and the
Employee Share Scheme Administrator as a result of the Employee Share Scheme Acquisitions are as follows:
Exempted person
Maximum % of all voting securities on issue that could be
held or controlled as a result of the Employee Share
Scheme Acquisitions
Maximum % of all voting securities on issue that could be
held or controlled with Associates as a result of the
Employee Share Scheme Acquisitions
Employee Share Scheme Administrator1.000022.35*
The manager1.000022.35*
Total1.000022.35
The figures in this table are calculated on the basis that only the Corporatisation Transfer and the Employee Share Scheme Acquisitions occur, and that there is no
change in the number of voting securities on issue after 16 August 2017. The figures marked * are made on the basis that the Employee Share Scheme Administrator and
the manager are not Associates of each other.
Combined transactions
The potential maximum numbers and percentages of voting securities that could be held or controlled by the AMPCI Parties, the
Employee Share Scheme Administrator, the manager and the Employee Share Scheme and the manager combined are as follows:
Exempted person
Maximum % of all voting securities on issue that could be
held or controlled as a result of all transactions
Maximum % of all voting securities on issue that could be
held or controlled with Associates as a result of all
transactions
AMPCI Parties24.900025.9000
Employee Share Scheme Administrator1.000025.9000*
The manager1.000025.9000*
Employee Share Scheme Administrator
and the manager (combined)
1.000025.9000
The figures marked * are made on the basis that the Employee Share Scheme Administrator and the manager are not Associates of each other.
The maximum % shown in the above tables are calculated on the basis of the Takeovers Code exemption including that there is no
change to the total number of voting securities on issue after 16 August 2018. Details of which can be fund in Precinct’s Corporation
Proposal Information Pack dated 5 October 2010.

59
CORPORATE GOVERNANCE
NZX RULINGS AND WAIVERS
This section contains information required by NZX Markets
Supervision Waiver Decisions.
2010 CORPORATISATION
This section contains information required by NZX Markets
Supervision Waiver Decisions.
NZX granted, subject to a number of conditions, waivers from,
and made rulings in respect of, the following Listing Rules in
respect of Precinct:
A waiver from Listing Rule 9.2, for any requirement for any
acquisition of the manager’s interest in the Management
Agreement pursuant to the right of any person (under the
Management Agreement) who acquires more than 50% of
Precinct shares, to be approved by an ordinary resolution of
shareholders under Listing Rule 9.2.1. This waiver is conditional on:
• the terms and conditions of the Management Services
Agreement not being materially altered as part of the
transaction, (unless such alterations are approved by an
ordinary resolution of shareholders under Listing Rule 9.2 or
otherwise made in accordance with any waiver granted by
NZX) and;
• the effects and conditions of the waiver, being set out in
each annual report, offer document or prospectus of
Precinct. It was also conditional on those details being set out
in the offer document for the proposal to corporatise ANZO,
and on the new management agreement being approved
by unit holders of ANZO.
A waiver from Listing Rule 3.3, to the extent required, to permit:
• the manager to appoint up to two directors, and those
directors to be excluded from the obligation to retire pursuant
to Listing Rule 3.3.11;
• to permit any shareholder holding more than 15% of Precinct
shares (15%+ Shareholder) to appoint one director, even if
that shareholder is an associate of the manager, and any
such director to be excluded from the obligation to retire
pursuant to Listing Rule 3.3.11;
• any director appointed by the manager to be excluded from
the number of directors upon which is based the calculation
of the number of directors required to retire under Listing Rule
3.3.11.
This waiver is conditional on the following:
• the ability of the manager to appoint two directors being
approved by unit holders of ANZO (at the meeting to
approve the trust converting to a corporate structure);
• Precinct’s constitution containing certain provisions, and
these remaining in effect and materially unaltered. These
included provisions to the effect that:
a. a majority of the directors must be independent of the
manager and persons who control the manager;
b. if a 15%+ Shareholder appoints a director, the board must
have a minimum of seven directors;
c. no 15%+ Shareholder who has exercised a right to appoint
a director shall have the right to vote on the election of
other directors (which was itself a separate condition);
d. any director appointed by a 15%+ Shareholder must be
included in the number of directors upon which is based
the calculation of the number of directors required to retire
under Listing Rule 3.3.11.
• the waiver, its effects and conditions are set out in each
annual report and offer document of Precinct;
• each director appointed by the manager is identified in
Precinct’s annual report as having been so appointed, and
as not being subject to retirement by rotation;
• if the manager elects not to appoint two directors (and
removes, or procures the resignation of, any directors
appointed by it), the conditions as to election of directors
independent of the manager shall not apply.
NON-STANDARD DESIGNATION
Pursuant to these waivers, Precinct’s constitution contains certain
provisions which are not ordinarily contained in the constitution
of a company listed on the NZX, including provisions allowing for
the appointment of directors by the manager and by any
shareholder holding more than 15% of Precinct shares. Precinct
has been given a non-standard designation by NZX due to the
inclusion of these provisions in its constitution.

60
INVESTOR INFORMATION
AS AT 30 JUNE 2018
INVESTOR INFORMATION
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
SHAREHOLDER INFORMATION
TWENTY LARGEST SHAREHOLDERS
RankShareholderNumber of shares% of shares
1.HSBC NOMINEES (NEW ZEALAND) LIMITED295,922,75024.43
2.ANZ WHOLESALE TRANS-TASMAN PROPERTY SECURITIES FUND80,800,2476.67
3.ACCIDENT COMPENSATION CORPORATION67,215,6905.55
4.FORSYTH BARR CUSTODIANS LIMITED60,817,5905.02
5.CITIBANK NOMINEES (NEW ZEALAND) LIMITED50,366,2444.16
6.FNZ CUSTODIANS LIMITED50,336,6964.16
7.HSBC NOMINEES (NEW ZEALAND) LIMITED A/C STATE STREET42,247,8973.49
8.ANZ CUSTODIAL SERVICES NEW ZEALAND LIMITED38,888,3843.21
9.INVESTMENT CUSTODIAL SERVICES LIMITED38,405,9573.17
10.BNP PARIBAS NOMINEES (NZ) LIMITED35,552,0362.94
11.ANZ WHOLESALE PROPERTY SECURITIES23,866,3691.97
12.CUSTODIAL SERVICES LIMITED23,131,2221.91
13.MFL MUTUAL FUND LIMITED19,361,6291.60
14.JPMORGAN CHASE BANK NA NZ BRANCH-SEGREGATED CLIENTS ACCT18,150,6881.50
15.BNP PARIBAS NOMINEES (NZ) LIMITED16,647,7811.37
16.CUSTODIAL SERVICES LIMITED12,222,1291.01
17.CUSTODIAL SERVICES LIMITED11,698,9040.97
18.TEA CUSTODIANS LIMITED CLIENT PROPERTY TRUST ACCOUNT8,711,4530.72
19.NEW ZEALAND DEPOSITORY NOMINEE LIMITED8,527,7320.70
20.PT (BOOSTER INVESTMENTS) NOMINEES LIMITED6,731,7620.56
Totals: Top 20 holders of Ordinary Shares909,603,16075.11
Source: Computershare
SHAREHOLDER DISTRIBUTION
RangeTotal holdersShares% of issued capital
1 - 9931320.00
100 - 19944350.00
200 - 4994312,9420.00
500 - 9998758,8850.00
1,000 - 1,999198267,1570.02
2,000 - 4,9996972,381,9090.20
5,000 - 9,9991,3039,356,0580.77
10,000 - 49,9993,98190,572,7827.48
50,000 - 99,99968945,969,5593.80
100,000 - 499,99935162,473,8005.16
500,000 - 999,9992315,161,0641.25
1,000,000 and over27984,865,94281.32
Total7,4061,211,120,665100.00
Source: Computershare

61
INVESTOR INFORMATION
SUBSTANTIAL FINANCIAL PRODUCT HOLDERS
Quoted financial product holder
Number of shares
held at date of
notice
%Date of notice
AMP Capital Investors International Holdings Limited (ACIIHL)
1
198,943,26118.77301.12.2014
ANZ New Zealand Investments Limited131,331,04910.84404.04.2018
ANZ Bank New Zealand Limited38,323,0253.16404.04.2018
Accident Compensation Corporation60,647,2015.00816.04.2018
Source: NZX Substantial shareholder notices
1 AMP Capital Investors International Holdings Limited substantial security holder notice includes the Precinct shares of Haumi Company Limited.
Quoted financial product holder
$ amount of
convertible notes
held at date of
notice
%Date of notice
Forsyth Barr Investment Management Limited24,553,90216.36929.09.17
Source: NZX Substantial shareholder notices
The total number of ordinary shares on issue as at 30 June 2018 was 1,211,120,665. The total principal amount of convertible notes on
issue as at 30 June 2018 was $150,000,000. Precinct's website (www.precinct.co.nz) contains a summary of all NZX waivers granted and
published by NZX within or relied on by Precinct within the 12 month period preceeding 30 June 2018.
The Group made donations of $20,000 during the year to 30 June 2018 to Auckland City Mission and Wellington City Mission.
BONDHOLDER INFORMATION
BONDHOLDER DISTRIBUTION - PCT010
RangeTotal holdersUnits% of issued capital
5,000 - 9,99937204,0000.27
10,000 - 49,9992575,198,0006.93
50,000 - 99,999673,964,0005.29
100,000 - 499,9996311,311,00015.08
500,000 - 999,9991500,0000.67
1,000,000 and over1153,823,00071.76
Total43675,000,000100.00
Source: Computershare
BONDHOLDER DISTRIBUTION - PCT020
RangeTotal holdersUnits% of issued capital
5,000 - 9,99940227,0000.23
10,000 - 49,9994158,839,0008.84
50,000 - 99,999834,812,0004.81
100,000 - 499,999457,055,0007.06
500,000 - 999,99952,877,0002.88
1,000,000 and over876,190,00076.19
Total596100,000,000100.00
Source: Computershare

62
INVESTOR INFORMATION
INVESTOR INFORMATION (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
CONVERTIBLE NOTEHOLDER INFORMATION
TWENTY LARGEST NOTEHOLDERS
RankShareholderNumber of notes% of notes
1.FORSYTH BARR CUSTODIANS LIMITED34,169,82722.78
2.CITIBANK NOMINEES (NEW ZEALAND) LIMITED11,174,0007.45
3.NATIONAL NOMINEES NEW ZEALAND LIMITED10,766,0007.18
4.NEW ZEALAND PERMANENT TRUSTEES LIMITED9,625,0006.42
5.FNZ CUSTODIANS LIMITED8,016,0005.34
6.ACCIDENT COMPENSATION CORPORATION6,381,5004.25
7.BNP PARIBAS NOMINEES (NZ) LIMITED3,781,9012.52
8.CUSTODIAL SERVICES LIMITED3,403,0002.27
9.FORSYTH BARR CUSTODIANS LIMITED3,108,0002.07
10.CUSTODIAL SERVICES LIMITED3,081,4252.05
11.CUSTODIAL SERVICES LIMITED2,973,1121.98
12.BNP PARIBAS NOMINEES (NZ) LIMITED2,755,0001.84
13.INVESTMENT CUSTODIAL SERVICES LIMITED1,997,0001.33
14.ARDEN CAPITAL LIMITED1,702,0001.14
15.MINT NOMINEES LIMITED1,500,0001.00
16.CUSTODIAL SERVICES LIMITED1,439,0000.96
17.JPMORGAN CHASE BANK NA NZ BRANCH-SEGREGATED CLIENTS ACCT1,350,0000.90
18.JML CAPITAL LIMITED1,200,0000.80
19.LEVERAGED EQUITIES FINANCE LIMITED1,010,0000.67
20.HUGH MCCRACKEN ENSOR890,0000.59
Totals: Top 20 holders of Notes110,322,76573.55
Source: Computershare
NOTEHOLDER DISTRIBUTION - PCTHA
RangeTotal holdersnotes% of issued capital
1,000 - 1,99956,0000.00
2,000 - 4,9991547,3000.03
5,000 - 9,999137774,1000.52
10,000 - 49,99967714,256,5009.50
50,000 - 99,9991407,935,0005.29
100,000 - 499,999679,900,7606.60
500,000 - 999,999106,592,5754.40
1,000,000 and over12110,487,76573.66
Total1,063150,000,000100.00
Source: Computershare

63
INVESTOR INFORMATION
DIRECTOR INTERESTS
DETAILS OF DIRECTOR INTERESTS IN PRECINCT SHARES (AS AT 30 JUNE)
20182017
DirectorNo. of sharesNo. of shares
Robert Campbell
957,002
941,602
Don Huse
571,428
571,428
Launa Inman
39,100
-
Graeme Wong
67,427
67,427
The following director interests were recorded in the interests register for the year to 30 June 2018.
Rob CampbellDon Huse
Purchased 15,400 ordinary Precinct shares
Appointed chairman of SKYCITY Entertainment Group Limited
Appointed director and chair of WEL Networks Limited and Ultrafast
Fibre Limited.
Appointed deputy chair of the Civil Aviation Authority of New
Zealand
Retired as director of Transpower New Zealand Limited
Graeme WongCraig Stobo
Purchased 40,000 of PCTHA convertible notesRetired as director and chairman of Fliway Group Limited
Chris JuddAnthony Bertoldi
Appointed as chairman of AMP Haumi Management LimitedCeased as chairman of AMP Haumi Management Limited
Launa Inman
Purchased 39,100 ordinary Precinct shares
Retired as director of Commonwealth Bank of Australia

64
REMUNERATION REPORT
REMUNERATION REPORT
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
REMUNERATION OF PRECINCT DIRECTORS
The remuneration of Precinct directors was established by the Remuneration Committee having reference to remuneration paid to
directors of comparable New Zealand listed entities. There is a cap on director remuneration of $580,000 per annum beginning
1 November. The actual fees paid for the year ending 31 October 2017 were $461,020 which is below this cap. The fees paid vary
according to the responsibilities and committee participation of each independent director.
The board policy is for directors’ remuneration to increase annually in line with inflation and to be reviewed every two years to ensure
that it remains at market levels to attract and retain high quality independent directors.
Only independent directors have received board remuneration from the company for their services as directors. Rob Campbell was
paid $3,698 for his services on sub committees during the year.
Role30 June 2018
1
30 June 2017
Sub committeeBoardSub committeeBoard
Craig StoboBoard Chair
3,698162,080
125161,387
Don HuseAudit and Risk Committee Chair
4,208101,300
(505)100,867
Graeme WongIndependent Director
3,69891,170
12590,780
Launa InmanIndependent Director
-91,170
8,12590,780
Robert CampbellDirector
3,698-
125-
Total15,300445,7207,995443,813
1 The annual fee cap applies to the 12 month period to the anniversary of corporatisation, rather than the financial year.
From time to time the board may establish further subcommittees to consider specific issues or transactions. Membership of these
committees may result in additional fees being payable at a rate ranging from $290 – $330 per hour. During the year ended 30 June
2018, $15,300 in committee fees were paid to the due diligence committee (30 June 2017: $7,995).
No other remuneration or benefit was provided by the group during the period to any director or former director of any group
member.
REMUNERATION OF THE MANAGER
The roles, responsibilities and remuneration of the manager are determined by the Management Services Agreement between
Precinct and the manager as outlined in the Additional Services section of this report. All additional services fees are approved by
independent directors on a fair and reasonable basis. The table below sets out these various services provided by the manager and
details the fees paid for those services in the period. A copy of the Management Services Agreement is available on the Precinct
website (www.precinct.co.nz).
FeeFee basisService provided
June 2018
($m)
June 2017
($m)
Base management
services fee
In accordance with clause 9.2 of the
MSA:
Overall management of Precinct to
deliver on the Board approved
business plans, budgets and strategies.
7.977.74
0.55% on the Value of Investment
Property to $1 billion.
0.45% on the Value of Investment
Property between $1 billion and
$1.5 billion.
0.35% on the Value of Investment
Property above $1.5 billion.
Development properties, including
land, are excluded from the Value of
Investment Property.

65
REMUNERATION REPORT
FeeFee basisService provided
June 2018
($m)
June 2017
($m)
Performance fee
In accordance with clause 9.4c of the
MSA:
10% of quarterly outperformance of
Precinct against the NZX/S&P Property
Index (excluding Precinct). Limited to
a cap of 0.125% of Precinct's opening
market capitalisation.
Investment outperformance.
The performance fee provides strong
alignment between the interests of
Precinct shareholders and the
manager by rewarding superior
performance and linking the returns of
the manager and Precinct
shareholders.
NilNil
Surrender fees
In accordance with Clause 4 of
Schedule 3 of the MSA:
A fee of up to 10% of the surrender
payments.
Surrender payments made during the
period totalling $0.01 million (2017:
$0.01m).
0.010.01
Development
management fees
In accordance with Clause 6 of
Schedule 3 of the MSA.
A fee of 3% of the total development
cost excluding land cost, incentives,
marketing, and finance costs.
A maximum fee (balance fee) of 1% of
the total development cost excluding
land cost, incentives, marketing and
finance costs for successful delivery of
a project.
Development management fees paid
in the period relate to the
development of Commercial Bay,
Bowen Campus (Stages One and
Two), No 1 The Terrace and No 1
Queen Street.
As detailed in Part C of Schedule 3 of
the MSA, overall management of the
development includes making
recommendations covering the
development and redevelopment of
property, consultant management,
co-ordination of design, procurement
of consents, development financing,
co-ordination and cost management,
construction contract tendering,
management of risks and ongoing
monitoring and reporting of the
project.
3.36
3.34
Acquisition and sale of
properties
In accordance with Clause 5 of
Schedule 3 of the MSA.
During the year Precinct committed to
sell a 50% share of ANZ Centre,
Auckland for $181.0m.
0.540.04
Where no external agent has been
engaged, a fee of up to 1% of the
purchase price or other consideration
to be provided by the purchaser.
Where an external agent has been
engaged, the amount of the fee will
be reflective of the manager's
contribution and the external agent's
scale of fees provided that the total
fee payable will not exceed 1% of the
purchase price or other consideration.
Managing the sale or purchase
including negotiation of the
commercial terms with the vendor or
purchaser, instruction of agents,
valuers and lawyers, financing and
coordination and conduct of due
diligence.
Property management
fees
In accordance with Property and
Facilities Management Services
Agreement.
The manager provided property and
facilities management services on a
cost recovery basis.
3.042.74

66
REMUNERATION REPORT
REMUNERATION REPORT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
FeeFee basisService provided
June 2018
($m)
June 2017
($m)
Leasing fees – new leases
In accordance with Clause 1 of
Schedule 3 of the MSA:
a) A minimum fee of $2,500 per
lease.
b) For leases with a term of less than
3 years, 11% of the annual rental.
c) For leases with a 3 year term, 12%
of the rental.
d) For leases with a term exceeding
three years, 12% of the annual rental
plus 1% for each year or part thereof ,
up to a maximum of 20% of annual
rental.
Leasing of vacant space comprising
annual rental of $24.9 million (2017:
$58.7 million) for a weighted average
term of 12.3 years (2017: 11.1 years).
Precinct engages the manager and
external agents to lease vacant
space.
The scale of leasing fees paid to the
manager is below the scale of leasing
fees paid to external agents. Fees
paid by Precinct to external agents
during the year totalled $1.9 million
(2017: $2.7 million).
Where both the manager and an
external agent are involved, the
manager's contribution is paid
according to the manager's agreed
scale of fees and the total fee paid by
Precinct is no greater than the external
agent's scale of fees.
If the fee payable to an external
agent is equal to or exceeds the
manager scale of fees, no fee is
payable to the Manager.
2.04
8.71
Leasing fees – renewals
In accordance with Clause 2 of
Schedule 3 of the MSA.
A fee of 25% to 75% of the leasing fee
for new leases on the following basis:
a) 25%: where the lessee exercises a
renewal with no material engagement
from the manager.
b) 50%: where a lessee exercises a
right of renewal and the rental
outcome is negotiated between the
parties.
c) 75%: where a lessee seeks market
responses and the manager secures
the lessee to renew.
Lease renewals were secured over
space comprising annual rental of
$8.7 million (2017: $10.7 million) for a
weighted average term of 1.9 years
(2017: 2.8 years).
0.441.09
Rent review fees
In accordance with Clause 3 of
Schedule 3 of the MSA.
a) For structured (non-market)
reviews and for any market review
which does not result in a rental
increase an administration fee of
$1,000 will be payable.
b) Open market reviews: 10% of the
rental increase achieved in Year 1 of
the review, subject to a minimum fee
of $1,000.
The manager managed the rent
review process for reviews totalling
annual rental of $4.8 million (2017:
$12.7 million). The balance of rent
reviews were managed by external
agents.
0.130.14
Total fees paid to
manager
17.5323.81

67
REMUNERATION REPORT
INSURANCE AND INDEMNITY
As permitted by the constitution and the Companies Act 1993, Precinct has indemnified its directors and officers, and the directors of
its subsidiaries against potential liabilities and costs they may incur for acts or omissions in their capacity as directors. During the
financial year, Precinct paid insurance premiums in respect of directors’ and officers’ liability insurance which covers risks normally
covered by such policies arising out of acts or omissions of directors and officers in their capacity as such. Insurance is not provided for
criminal liability or liability or costs in respect of which an indemnity is prohibited by law.
MANAGEMENT EXPENSE RATIO
Amounts in $ millions (unless otherwise stated)20182017
Base management fee8.07.7
Performance fee--
Audit and Directors0.70.7
Other expenses1.51.4
Total management expenses10.29.8
Average total property value2,280.81,874.4
Management expense ratio - excluding performance fee45 bps52 bps
Management expense ratio45 bps52 bps
Management expenses comprise the costs of managing Precinct as a corporate entity and exclude direct property expenses and capital expenditure.
MANAGEMENT REMUNERATION
Management remuneration is not an expense of Precinct as management are engaged by the manager and paid out of the fees
paid by Precinct described above. However, the board of Precinct believes that it is important for shareholders to understand the
structure of management remuneration as it is an important determinant of management retention, motivation and alignment
between management and shareholders. The disclosures set out below have therefore been made by the manager on a voluntary
basis in the interests of providing maximum transparency for Precinct shareholders.
Under the MSA, the board of Precinct must be consulted on management remuneration.
Remuneration of the CEO, COO and CFO comprises base salary, short term incentive payments (“STI”) and long term incentive
payments (“LTI”).
CEO REMUNERATION
Scott Pritchard was appointed Chief Executive Officer in September 2010. His remuneration for the year ended 30 June 2018 comprises:
• A fixed base salary which is benchmarked annually;
• A discretionary short-term incentive payment which was made in accordance with the description below under the heading short
term remuneration; and
• A long-term incentive payment (where vested) which is outlined in further detail on the following page.
The CEO's remuneration is approved by the Management Company Board and is paid in line with The Employee Remuneration Policy.
PwC was appointed by the Management Company Board in 2016 as a recognised independent party in order to undertake
remuneration benchmarking in respect to the CEO and other senior executive roles.
Although all remuneration is paid by AMP Haumi Management Limited (the Manager "AHML"), not Precinct. The CEO and AHML have
agreed to disclose the CEO’s remuneration to shareholders in the interest of best practice. Details of the nature and amount of each
element of the remuneration of the CEO is set out below. All amounts are in New Zealand dollars.
Short term remuneration 30 June 2018
Long term remuneration
30 June 2018
RemunerationBase salarySTISuperTotal paid
Maximum
achievable
GrantedVested
Scott PritchardCEO
510,000375,00097,350982,350
1,132,200
680,000306,000
SHORT TERM REMUNERATION
Short term remuneration comprises base salary, STI and contributions to superannuation.
STI payments are payable at the discretion of the board of the manager and are based on management achieving certain
operational objectives including, but not limited to: Precinct shareholder returns, Precinct earnings targets; portfolio objectives of

68
REMUNERATION REPORT
REMUNERATION REPORT (CONTINUED)
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
occupancy and WALT; treasury and capital management; major leasing initiatives; client satisfaction; manager earnings targets, major
development management and staff management objectives.
During the year ended 30 June 2018, the number of employees of the manager (including the CEO, COO and CFO) who received
short term remuneration with a combined total value exceeding $100,000 is set out below. The amounts in this table do not include the
value of shares granted under the LTI scheme.
The CEO's remuneration compared with the average pay for team members for the year ending 30 June 2018 was a ratio of 1 CEO :
5.75 team members.
Remuneration range# employees
$900,001 - $1,000,000
1
$750,001 - $800,000
1
$450,001 - $500,000
1
$400,001 - $450,000
1
$350,001 - $400,000
1
$300,001 - $350,000
2
$250,001 - $300,000
5
$200,001 - $250,000
3
$150,001 - $200,000
5
$100,001 - $150,000
12
Total32
LTI SCHEME
The manager operates an LTI scheme under which the CEO, COO, CFO and other senior executives are granted shares in Precinct,
which are held in trust and vest on the third anniversary of the grant subject to their continuing employment. The value of the grants
made under the LTI scheme are determined at the discretion of the board of the manager and are generally based on the
performance fee earned by the manager.
The board of Precinct considers that the LTI scheme strongly aligns management with the interests of shareholders through the
performance fee mechanism and through the LTI scheme grants being of shares in Precinct.
Allocation $Allocation shares
Scott PritchardCEO30 June 2018680,000TBD
1
30 June 2017630,000486,823
30 June 2016510,000393,125
George CrawfordCOO30 June 2018430,000TBD
1
30 June 2017420,000324,549
30 June 2016340,000262,083
Richard HilderCFO30 June 2018180,000TBD
1
30 June 2017150,000115,910
30 June 2016120,00092,500
1 For 30 June 2018 the value of the LTI allocation has been determined by the AHML board however the shares have not yet been acquired due to restrictions under
Precinct's Securities Trading Policy.
This annual report of Precinct Properties New Zealand Limited is dated 15 August 2018 and is signed on behalf of the board by:
CRAIG STOBO
CHAIRMAN AND INDEPENDENT
DIRECTOR
DON HUSE
CHAIRMAN AUDIT AND RISK
COMMITTEE AND INDEPENDENT
DIRECTOR

69
The Numbers
THE NUMBERS
PRECINCT PROPERTIES NEW ZEALAND LIMITED
FINANCIAL STATEMENTS 2018

70
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 30 June 2018
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
Amounts in $ millionsNotes30 June 201830 June 2017
Revenue
Gross rental income
130.7
126.2
Less direct operating expenses
(35.4)
(35.8)
Operating income before indirect expenses95.3
90.4
Indirect expenses / (revenue)
Interest expense
2.5
3.5
Interest income
(0.3)
(0.1)
Other expenses
10
10.2
9.8
Total indirect expenses / (revenue)12.4
13.2
Operating income before income tax82.9
77.2
Non operating income / (expenses)
Unrealised net gain / (loss) in value of investment and development properties
9
208.7
77.5
Unrealised net gain / (loss) on financial instruments
(11.1)
11.8
Total non operating income / (expenses)197.6
89.3
Net profit before taxation280.5
166.5
Income tax expense / (benefit)
Current tax expense
11
6.3
2.5
Deferred tax expense / (benefit) - financial instruments
11
(3.0)
3.3
Deferred tax expense / (benefit) - depreciation
11
20.0
(1.4)
Total taxation expense / (benefit)23.3
4.4
Share of profit or (loss) of joint ventures(2.3)
-
Net profit and total comprehensive income after taxation attributable to equity
holders12,14254.9
162.1
Earnings per share (cents per share)
Basic and diluted earnings per share
13
21.05
13.38
Other amounts (cents per share)
Operating income before income tax per share
6.84
6.37
Net operating income per share
12
6.32
6.17
The accompanying notes on pages 74 to 89 form part of these Financial Statements

71
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the year ended 30 June 2018
Amounts in $ millions unless otherwise statedCents
per share
Shares (m)Ordinary
shares
Retained
earnings
Total
equity
At 1 July 20161,211.11,046.7364.21,410.9
Total comprehensive income for the year162.1162.1
Distributions
Q4 final distribution (paid 29 Sep 2016)1.35(16.4)(16.4)
Q1 interim distribution (paid 8 Dec 2016)1.40(17.0)(17.0)
Q2 interim distribution (paid 16 Mar 2017)1.40(17.0)(17.0)
Q3 interim distribution (paid 8 Jun 2017)1.40(17.0)(17.0)
At 30 June 20171,211.11,046.7458.91,505.6
Total comprehensive income for the year
254.9254.9
Distributions
Q4 final distribution (paid 28 Sep 2017)
1.40(17.0)(17.0)
Q1 interim distribution (paid 1 Dec 2017)
1.45(17.6)(17.6)
Q2 interim distribution (paid 23 Mar 2018)
1.45(17.6)(17.6)
Q3 interim distribution (paid 8 Jun 2018)
1.45(17.6)(17.6)
At 30 June 20181,211.11,046.7644.01,690.7
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 74 to 89 form part of these Financial Statements

72
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2018
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
Amounts in $ millionsNotes30 June 201830 June 2017
Current assets
Cash
2.9
4.3
Debtors and other current assets
7.4
8.9
Provision for tax
-
1.9
Total current assets10.3
15.1
Investment properties held for sale
9
191.2
-
Non-current assets
Fair value of derivative financial instruments
16
18.2
12.8
Other assets
5.1
2.1
Investment in joint ventures
11.2
4.6
Development properties
9
838.1
509.2
Investment properties
9
1,487.6
1,535.4
Total non-current assets2,360.2
2,064.1
Total assets2,561.7
2,079.2
Current liabilities
Fair value of derivative financial instruments
16
0.9
2.9
Provision for tax
1.1
-
Accrued development capital expenditure
20.7
34.5
Acquisition settlement obligation
-
26.7
Other current liabilities
13.4
8.4
Total current liabilities36.1
72.5
Non-current liabilities
Interest bearing liabilities
15
761.7
456.9
Fair value of derivative financial instruments
16
32.9
20.9
Deferred tax liability
11
40.3
23.3
Total non-current liabilities834.9
501.1
Total liabilities871.0
573.6
Total equity1,690.7
1,505.6
Total liabilities and equity2,561.7
2,079.2

Signed on behalf of the Board of Precinct Properties New Zealand Limited, who authorised the issue of these financial statements on
15 August 2018.
CRAIG STOBO
CHAIRMAN
DON HUSE
CHAIRMAN AUDIT & RISK COMMITTEE
The accompanying notes on pages 74 to 89 form part of these Financial Statements

73
CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 30 June 2018
Amounts in $ millionsNotes30 June 201830 June 2017
Cash flows from operating activities
Gross rental income per statement of comprehensive income
130.7
126.2
Less: Current year incentives
(3.8)
(2.2)
Add: Amortisation of incentives
4.3
3.6
Add: Working capital movements
(1.2)
(1.4)
Cash flow from gross rental income130.0
126.2
Interest income
0.3
0.1
Property expenses
(37.4)
(43.8)
Other expenses
(10.1)
(9.9)
Interest expense
(4.4)
(2.4)
Income tax
(3.5)
(17.5)
Net cash inflow / (outflow) from operating activities
14
74.9
52.7
Cash flows from investing activities
Capital expenditure on investment properties
(17.5)
(18.2)
Capital expenditure on development properties
(245.7)
(172.8)
Capital expenditure on other assets
(3.0)
(1.5)
Investment in and advances to joint ventures
(8.5)
(4.6)
Capitalised interest on development properties
(31.2)
(17.5)
Net cash inflow / (outflow) from investing activities(305.9)
(214.6)
Cash flows from financing activities
Loan facility drawings to fund capital expenditure
266.2
192.5
Other loan facility drawings / (repayments)
1
(117.0)
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
(69.6)
(67.2)
Net cash inflow / (outflow) from financing activities229.6
163.6
Net increase / (decrease) in cash held(1.4)
1.7
Cash at the beginning of the year
4.3
2.6
Cash at the end of the year2.9
4.3
1 Loan facility drawings are net of repayments made throughout year.
The accompanying notes on pages 74 to 89 form part of these Financial Statements

74
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 30 June 2018
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
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 audited financial statements are those of Precinct, its three 100% owned subsidiaries and its joint venture (the Group). Precinct's
50% investment in the joint venture, 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 financial statements have been prepared in accordance with NZ GAAP. For the purposes of complying with NZ GAAP the Group is
a for-profit entity. The financial statements comply with New Zealand equivalents to International Financial Reporting Standards (’NZ
IFRS’). The financial statements also comply with International Financial Reporting Standards (‘IFRS’).
The financial statements have been prepared:
• On a historical basis except for financial instruments, 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.
3. BASIS OF CONSOLIDATION
The consolidated financial statements comprise Precinct, its subsidiary companies and its joint venture.
In preparing the consolidated financial statements, all inter-company balances and transactions, income and expenses and profit or
losses resulting from intra-group transactions have been eliminated in full.
4. NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS
Precinct has chosen not to early adopt the following standards that have been issued but are not yet effective:
• NZ IFRS 9 - Financial Instruments: Classification and Measurement (effective for annual periods beginning on or after 1 January 2018).
This standard replaces the current guidance in NZ IAS 39 Financial Instruments - Recognition and Measurement. NZ IFRS 9 addresses
the clasification, measurement and recognition of financial assets and financial liabilities.
Precinct has assessed the impact of this standard on the group and no significant changes to the recognition and reporting of
financial instruments compared with existing accounting policies will occur.
• NZ IFRS 15 - Revenue from Contracts with Customers (effective for annual periods beginning on or after 1 January 2018). This
standard establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and
uncertainty of revenue and cash flows arising from an entity’s contracts with customers.
Precinct has assessed the impact of this standard on the group and no significant changes to the recognition of revenue
compared with existing accounting policies will occur.
• NZ IFRS 16 - Leases (effective for annual periods beginning on or after 1 January 2019). This standard replaces the current guidance
in NZ IAS 17. NZ IFRS 16 requires a lessee to recognise a lease liability reflecting future lease payments and a 'right-of-use' asset for
virtually all lease contracts.
Lessor reporting
Precinct has assessed the impact of this standard on the group and no significant changes for reporting as a lessor (i.e. the owner of
buildings) compared with existing accounting policies will occur.
Lessee reporting
Whilst the majority of Precinct's buildings are freehold, there are two Wellington properties where Precinct is a lessee under
occupational ground leases. NZ IFRS 16 requires lessee's to recognise a 'right-of-use asset' representing the fair value of the
occupational ground leases and a lease liability reflecting the present value of future lease payments for the occupational ground
leases. Precinct is currently assessing the financial impact of this change. There will be no change to the cash flows recognised as a
result of the adoption of the new standard. Other financial impacts are not expected to be material.
5. CHANGES TO ACCOUNTING POLICIES AND DISCLOSURE OF SIGNIFICANT ACCOUNTING POLICIES
No changes to accounting policy have been made during the year and policies have been consistently applied to all years
presented.
Significant accounting policies have been included throughout the notes to the financial statements.
6. 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:

75
• 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).
7. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
In preparing Precinct’s financial statements, management continually makes 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 financial statements are in relation to:
i. Investment and development properties - refer note 9
ii. Deferred tax assets and deferred tax liabilities - refer note 11
8. SIGNIFICANT EVENTS AND TRANSACTIONS DURING THE YEAR
Precinct's financial position and performance was affected by the following events and transactions that occurred during the
reporting year:
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 15 for details.
ii. Senior secured bonds
On 27 November 2017, Precinct raised $100 million through a New Zealand public bond issue. Refer to Note 15 for details.
iii. Sale of 10 Brandon Street, Wellington
On 23 April 2018, Precinct entered into a conditional agreement for the sale of 10 Brandon Street, Wellington for $10.2 million. The sale is
subject to ground lessor approvals and is due to settle in August 2018.
iv. Sale of 50% interest in ANZ Centre, Auckland
On 29 June 2018, Precinct entered into a binding agreement for the sale of a 50% interest in ANZ Centre, Auckland for $181.0 million.
The sale transaction remains subject to Overseas Investment Office approval.

76
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2018
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
9. INVESTMENT AND DEVELOPMENT PROPERTIES
30 June 2018
Amounts in $ millions
ValuerNet lettable area sqmInitial yield %
1
Capitalisation rate %
1
Occupancy %WALT years
2
Valuation
30 June 2017
Capitalised incentivesAdditions / disposals
3
Revaluation gain / (loss)Carrying value
Investment properties
4
Auckland
AMP CentreColliers25,2655.9%5.9%100%5.0163.40.33.7
11.6179.0
ANZ Centre (50%)
5
JLL33,5745.3%5.3%100%7.8324.0(0.4)(178.4)
35.8181.0
HSBC HouseJLL18,1996.8%6.1%100%1.793.8(0.3)4.3
(6.8)91.0
PwC TowerCBRE31,2965.3%5.1%100%6.2329.0(0.1)1.1
46.0376.0
Zurich HouseJLL13,6925.3%5.6%100%3.995.5(0.1)0.8
9.8106.0
Mason Bros.CBRE4,9115.9%5.5%100%6.937.2-(0.6)
5.542.1
12 Madden StreetCBRE8,0045.7%5.5%100%10.767.80.52.0
6.476.7
Wellington
Dimension Data HouseColliers16,7567.2%6.8%100%4.4114.30.51.4
2.1118.3
Mayfair HouseColliers12,3327.6%6.5%100%16.640.80.10.2
3.344.4
No.1 and 3 The TerraceBayleys18,4623.3%6.8%100%9.970.5(0.2)1.8
(5.1)67.0
No.3 The Terrace
6
BayleysN/AN/AN/AN/A40.211.7--
(0.1)11.6
Pastoral HouseColliers15,52210.0%6.5%100%15.042.9-3.2
(1.1)45.0
Aon Centre
7
Bayleys26,6415.8%6.9%93%4.9144.50.93.1
1.0149.5
Market value (fair value) of investment properties
5.8%5.8%99%6.91,535.41.2(157.4)
108.41,487.6
Investment properties held for sale
4
ANZ Centre (50%)
5
JLL33,5745.3%5.3%100%7.8--181.0
-181.0
10 Brandon Street
8
N/A12,972N/AN/AN/AN/A--10.2
-10.2
Market value (fair value) of investment properties held for sale
--191.2
-191.2
Development properties
4
Commercial BayJLLN/AN/A4.9%N/AN/A370.00.1163.9
114.0648.0
Bowen Campus Stage OneCBREN/AN/A6.0%N/AN/A108.5-67.9
2.2178.6
Bowen Campus Stage TwoCBREN/AN/AN/AN/AN/A10.5-4.0
(3.0)11.5
10 Brandon Street
8
N/A12,972N/AN/AN/AN/A20.2-(7.3)
(12.9)-
Market value (fair value) of development properties
509.20.1228.5
100.3838.1
1 Total weighted average by market value. Capitalisation rate reflects long term lease commitments to those assets subject to the Government RFP.
2 Total weighted average lease term is weighted by income.
3 Additions arise from subsequent expenditure recognised in the carrying amount. Disposals relate to completed sales, unconditional contracts for sale at year-end and
transfers to other categories of property.
4 All properties are categorised as level 3 in the fair value hierarchy. All properties are CBD office properties with the exception of Commercial Bay and Bowen Campus
which are under development.
5 On 29 June 2018, Precinct entered into a binding agreement for the sale of a 50% interest in ANZ Centre, Auckland for $181 million. The sale transaction remains
subject to Overseas Investment Office approval.
6 No.3 The Terrace relates to the freehold title in respect to Precinct’s leasehold interest.
7 This property was previously known as State Insurance Tower.
8 Leasehold property on a perpetually renewable lease. This property was previously known as Deloitte House. On 23 April 2018, Precinct entered into a conditional
agreement for the sale of 10 Brandon Street, Wellington for $10.2 million. The sale is subject to ground lessor approvals and is due to settle in August 2018.
Accounting policies
Investment properties
Initially, investment properties are measured at cost including transaction costs. Subsequent to initial recognition investment
properties are stated at fair value. Gains or losses arising from changes in the fair values of investment properties are included in
profit or loss in the year in which they arise.
Development properties
Investment properties that are being constructed or developed for future use are classified as development properties. All costs
directly associated with the purchase and construction of a property and all subsequent capital expenditure is capitalised.
Subsequent to initial recognition development properties are stated at fair value. Gains or losses arising from changes in the fair
value of development properties are included in profit or loss in the year in which they arise.
Valuation of investment and development properties
External, independent valuers, having appropriate recognised professional qualifications and recent experience in the location
and category of the property being valued, value Precinct’s investment property portfolio at least every 12 months. The fair values
are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation
between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each
acted knowledgeably, prudently and without compulsion.

77
Amounts in $ millions
ValuerNet lettable area sqmInitial yield %
1
Capitalisation rate %
1
Occupancy %WALT years
2
Valuation
30 June 2017
Capitalised incentivesAdditions / disposals
3
Revaluation gain / (loss)Carrying value
Investment properties
4
Auckland
AMP CentreColliers25,2655.9%5.9%100%5.0163.40.33.7
11.6179.0
ANZ Centre (50%)
5
JLL33,5745.3%5.3%100%7.8324.0(0.4)(178.4)
35.8181.0
HSBC HouseJLL18,1996.8%6.1%100%1.793.8(0.3)4.3
(6.8)91.0
PwC TowerCBRE31,2965.3%5.1%100%6.2329.0(0.1)1.1
46.0376.0
Zurich HouseJLL13,6925.3%5.6%100%3.995.5(0.1)0.8
9.8106.0
Mason Bros.CBRE4,9115.9%5.5%100%6.937.2-(0.6)
5.542.1
12 Madden StreetCBRE8,0045.7%5.5%100%10.767.80.52.0
6.476.7
Wellington
Dimension Data HouseColliers16,7567.2%6.8%100%4.4114.30.51.4
2.1118.3
Mayfair HouseColliers12,3327.6%6.5%100%16.640.80.10.2
3.344.4
No.1 and 3 The TerraceBayleys18,4623.3%6.8%100%9.970.5(0.2)1.8
(5.1)67.0
No.3 The Terrace
6
BayleysN/AN/AN/AN/A40.211.7--
(0.1)11.6
Pastoral HouseColliers15,52210.0%6.5%100%15.042.9-3.2
(1.1)45.0
Aon Centre
7
Bayleys26,6415.8%6.9%93%4.9144.50.93.1
1.0149.5
Market value (fair value) of investment properties
5.8%5.8%99%6.91,535.41.2(157.4)
108.41,487.6
Investment properties held for sale
4
ANZ Centre (50%)
5
JLL33,5745.3%5.3%100%7.8--181.0
-181.0
10 Brandon Street
8
N/A12,972N/AN/AN/AN/A--10.2
-10.2
Market value (fair value) of investment properties held for sale
--191.2
-191.2
Development properties
4
Commercial BayJLLN/AN/A4.9%N/AN/A370.00.1163.9
114.0648.0
Bowen Campus Stage OneCBREN/AN/A6.0%N/AN/A108.5-67.9
2.2178.6
Bowen Campus Stage TwoCBREN/AN/AN/AN/AN/A10.5-4.0
(3.0)11.5
10 Brandon Street
8
N/A12,972N/AN/AN/AN/A20.2-(7.3)
(12.9)-
Market value (fair value) of development properties
509.20.1228.5
100.3838.1
1 Total weighted average by market value. Capitalisation rate reflects long term lease commitments to those assets subject to the Government RFP.
2 Total weighted average lease term is weighted by income.
3 Additions arise from subsequent expenditure recognised in the carrying amount. Disposals relate to completed sales, unconditional contracts for sale at year-end and
transfers to other categories of property.
4 All properties are categorised as level 3 in the fair value hierarchy. All properties are CBD office properties with the exception of Commercial Bay and Bowen Campus
which are under development.
5 On 29 June 2018, Precinct entered into a binding agreement for the sale of a 50% interest in ANZ Centre, Auckland for $181 million. The sale transaction remains
subject to Overseas Investment Office approval.
6 No.3 The Terrace relates to the freehold title in respect to Precinct’s leasehold interest.
7 This property was previously known as State Insurance Tower.
8 Leasehold property on a perpetually renewable lease. This property was previously known as Deloitte House. On 23 April 2018, Precinct entered into a conditional
agreement for the sale of 10 Brandon Street, Wellington for $10.2 million. The sale is subject to ground lessor approvals and is due to settle in August 2018.
Accounting policies
Investment properties
Initially, investment properties are measured at cost including transaction costs. Subsequent to initial recognition investment
properties are stated at fair value. Gains or losses arising from changes in the fair values of investment properties are included in
profit or loss in the year in which they arise.
Development properties
Investment properties that are being constructed or developed for future use are classified as development properties. All costs
directly associated with the purchase and construction of a property and all subsequent capital expenditure is capitalised.
Subsequent to initial recognition development properties are stated at fair value. Gains or losses arising from changes in the fair
value of development properties are included in profit or loss in the year in which they arise.
Valuation of investment and development properties
External, independent valuers, having appropriate recognised professional qualifications and recent experience in the location
and category of the property being valued, value Precinct’s investment property portfolio at least every 12 months. The fair values
are based on market values, being the estimated amount for which a property could be exchanged on the date of the valuation
between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each
acted knowledgeably, prudently and without compulsion.

78
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2018
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
30 June 2017
Amounts in $ millions
ValuerNet lettable area sqmInitial yield %
1
Capitalisation rate %
1
Occupancy %WALT years
2
Valuation
30 June 2016
Capitalised incentivesAdditions / disposals
3
Revaluation gain / (loss)Carrying value
Investment properties
4
Auckland
AMP CentreCBRE25,2656.1%6.3%100%3.9148.00.33.911.2163.4
ANZ Centre - AucklandJLL33,5745.8%5.9%100%8.6305.00.20.518.3324.0
HSBC House
5
JLL18,1996.9%6.4%100%2.7121.5(0.3)1.7(29.1)93.8
PwC TowerCBRE31,2965.9%5.8%100%6.1313.0(0.4)1.814.6329.0
Zurich House
5
JLL13,6925.9%6.1%100%3.7110.5(0.4)(0.2)(14.4)95.5
Mason Bros.
6
Colliers4,9116.5%6.0%100%7.9-1.734.31.237.2
12 Madden Street
6
Colliers8,0046.4%6.0%100%12.0-0.164.73.067.8
Wellington
Dimension Data House
7
Colliers16,7567.1%6.9%100%5.6109.01.53.70.1114.3
Bowen CampusN/AN/AN/AN/AN/AN/A58.0-(58.0)--
Deloitte House
8
N/AN/AN/AN/AN/AN/A45.0-(45.0)--
Mayfair HouseColliers12,3328.3%6.6%100%17.038.50.90.50.940.8
No.1 and 3 The TerraceBayleys18,4627.9%7.0%100%8.772.31.00.4(3.2)70.5
No.3 The Terrace
9
CBREN/AN/AN/AN/A41.710.9--0.811.7
Pastoral HouseColliers15,5229.9%6.6%100%15.141.01.12.0(1.2)42.9
State Insurance TowerBayleys26,6417.4%7.0%99%4.1141.01.03.3(0.8)144.5
Market value (fair value) of investment properties
6.5%6.2%100%7.21,513.76.713.61.41,535.4
Development properties
4
Wynyard Quarter Stage OneN/AN/AN/AN/AN/AN/A43.4-(43.4)--
Commercial Bay
10
JLLN/AN/A5.4%N/AN/A147.0(0.5)132.391.2370.0
Bowen Campus Stage One
11
ColliersN/AN/A6.5%N/AN/A--96.911.6108.5
Bowen Campus Stage TwoColliersN/AN/AN/AN/AN/A--11.1(0.6)10.5
Deloitte House
8
CBREN/AN/A8.3%N/AN/A--46.3(26.1)20.2
Market value (fair value) of development properties
0.0%0.0%--0.0%-190.4(0.5)243.276.1509.2
1 Total weighted average by market value. Capitalisation rate reflects new long term lease commitments to those assets subject to the Government RFP.
2 Total weighted average lease term is weighted by income.
3 Additions arise from subsequent expenditure recognised in the carrying amount. Disposals relate to completed sales, unconditional contracts for sale at year-end and
transfers to other categories of property.
4 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 Deloitte House which are under development.
5 The valuation of HSBC House and Zurich House exlcudes the value transferred from the retail (and carpark) levels which are to be incorporated into the proposed
Commercial Bay retail complex.
6 Subsequent to practical completion of the Mason Brothers building and 12 Madden Street buidling on 2 December 2016 and 15 June 2017 respectively the values
were transferred from development properties to investment properties.
7 This property was previously known as 157 Lambton Quay.
8 Deloitte House has been transferred from an investment property to a development property as a result of the works required to seismically upgrade and refurbish the
building. Leasehold property on a perpetually renewable lease.
9 No.3 The Terrace relates to the freehold title in respect to Precinct’s leasehold interest.
10 The valuation of Commercial Bay includes the value transferred from retail (and carpark) levels within HSBC House and Zurich House which are to be incorporated
into the proposed Commercial Bay retail complex. Additions include $26.7m for the recognition of the present value of the unconditional agreement to purchase
Queen Elizabeth Square from Auckland Council.
11 Additions include the transfer of Bowen Campus from investment properties and capitalised development costs relating to the redevelopment and refurbishment of
Bowen State Building and Charles Fergusson House. Precinct has entered into a Development Agreement with the New Zealand Government for a new 15 year lease
commitment as part of a full redevelopment of Bowen Campus.
Accounting policies (continued)
Investment property held for sale
Investment property is transferred to investment property held for sale when it is expected that the carrying amount will be
recovered principally through sale rather than from continuing use. The property is held at the relisable value.
Derecognition of investment properties
Investment properties are derecognised when they have been either sold or when the investment property is permanently
withdrawn from use and no future benefit is expected from its disposal. Any gains or losses on the derecognition of an investment
property are recognised in profit or loss in the year of derecognition.
Recognition of revenue from investment properties
Rental income from investment properties is recognised in the Statement of Consolidated Income on a straight-line basis over the
term of the lease.
Precinct capitalises leasing costs and lease incentives to the respective investment or development property in the Statement of
Financial Position and amortises them on a straight-line basis over the term certain life of the lease.

79
Amounts in $ millions
ValuerNet lettable area sqmInitial yield %
1
Capitalisation rate %
1
Occupancy %WALT years
2
Valuation
30 June 2016
Capitalised incentivesAdditions / disposals
3
Revaluation gain / (loss)Carrying value
Investment properties
4
Auckland
AMP CentreCBRE25,2656.1%6.3%100%3.9148.00.33.911.2163.4
ANZ Centre - AucklandJLL33,5745.8%5.9%100%8.6305.00.20.518.3324.0
HSBC House
5
JLL18,1996.9%6.4%100%2.7121.5(0.3)1.7(29.1)93.8
PwC TowerCBRE31,2965.9%5.8%100%6.1313.0(0.4)1.814.6329.0
Zurich House
5
JLL13,6925.9%6.1%100%3.7110.5(0.4)(0.2)(14.4)95.5
Mason Bros.
6
Colliers4,9116.5%6.0%100%7.9-1.734.31.237.2
12 Madden Street
6
Colliers8,0046.4%6.0%100%12.0-0.164.73.067.8
Wellington
Dimension Data House
7
Colliers16,7567.1%6.9%100%5.6109.01.53.70.1114.3
Bowen CampusN/AN/AN/AN/AN/AN/A58.0-(58.0)--
Deloitte House
8
N/AN/AN/AN/AN/AN/A45.0-(45.0)--
Mayfair HouseColliers12,3328.3%6.6%100%17.038.50.90.50.940.8
No.1 and 3 The TerraceBayleys18,4627.9%7.0%100%8.772.31.00.4(3.2)70.5
No.3 The Terrace
9
CBREN/AN/AN/AN/A41.710.9--0.811.7
Pastoral HouseColliers15,5229.9%6.6%100%15.141.01.12.0(1.2)42.9
State Insurance TowerBayleys26,6417.4%7.0%99%4.1141.01.03.3(0.8)144.5
Market value (fair value) of investment properties
6.5%6.2%100%7.21,513.76.713.61.41,535.4
Development properties
4
Wynyard Quarter Stage OneN/AN/AN/AN/AN/AN/A43.4-(43.4)--
Commercial Bay
10
JLLN/AN/A5.4%N/AN/A147.0(0.5)132.391.2370.0
Bowen Campus Stage One
11
ColliersN/AN/A6.5%N/AN/A--96.911.6108.5
Bowen Campus Stage TwoColliersN/AN/AN/AN/AN/A--11.1(0.6)10.5
Deloitte House
8
CBREN/AN/A8.3%N/AN/A--46.3(26.1)20.2
Market value (fair value) of development properties
0.0%0.0%--0.0%-190.4(0.5)243.276.1509.2
1 Total weighted average by market value. Capitalisation rate reflects new long term lease commitments to those assets subject to the Government RFP.
2 Total weighted average lease term is weighted by income.
3 Additions arise from subsequent expenditure recognised in the carrying amount. Disposals relate to completed sales, unconditional contracts for sale at year-end and
transfers to other categories of property.
4 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 Deloitte House which are under development.
5 The valuation of HSBC House and Zurich House exlcudes the value transferred from the retail (and carpark) levels which are to be incorporated into the proposed
Commercial Bay retail complex.
6 Subsequent to practical completion of the Mason Brothers building and 12 Madden Street buidling on 2 December 2016 and 15 June 2017 respectively the values
were transferred from development properties to investment properties.
7 This property was previously known as 157 Lambton Quay.
8 Deloitte House has been transferred from an investment property to a development property as a result of the works required to seismically upgrade and refurbish the
building. Leasehold property on a perpetually renewable lease.
9 No.3 The Terrace relates to the freehold title in respect to Precinct’s leasehold interest.
10 The valuation of Commercial Bay includes the value transferred from retail (and carpark) levels within HSBC House and Zurich House which are to be incorporated
into the proposed Commercial Bay retail complex. Additions include $26.7m for the recognition of the present value of the unconditional agreement to purchase
Queen Elizabeth Square from Auckland Council.
11 Additions include the transfer of Bowen Campus from investment properties and capitalised development costs relating to the redevelopment and refurbishment of
Bowen State Building and Charles Fergusson House. Precinct has entered into a Development Agreement with the New Zealand Government for a new 15 year lease
commitment as part of a full redevelopment of Bowen Campus.
Accounting policies (continued)
Investment property held for sale
Investment property is transferred to investment property held for sale when it is expected that the carrying amount will be
recovered principally through sale rather than from continuing use. The property is held at the relisable value.
Derecognition of investment properties
Investment properties are derecognised when they have been either sold or when the investment property is permanently
withdrawn from use and no future benefit is expected from its disposal. Any gains or losses on the derecognition of an investment
property are recognised in profit or loss in the year of derecognition.
Recognition of revenue from investment properties
Rental income from investment properties is recognised in the Statement of Consolidated Income on a straight-line basis over the
term of the lease.
Precinct capitalises leasing costs and lease incentives to the respective investment or development property in the Statement of
Financial Position and amortises them on a straight-line basis over the term certain life of the lease.

80
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2018
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
Fair value measurement, valuation techniques and inputs
Precinct’s properties were valued as at 30 June 2018 by independent registered valuers Colliers International, Bayleys, JLL and CBRE.
During the year there were no transfers of investment or development properties between levels of the fair value hierarchy. The
valuation techniques used in measuring the fair value of investment property, as well as the significant unobservable inputs used are as
follows:
Class of propertyValuation techniques usedInputs used to measure fair value
CBD office and retailIncome capitalisation approach,
discounted cash flow analysis and
residual approach
- Office gross market rent per sqm
- Retail gross market rent per sqm
- Core capitalisation rate
- Discount rate
- Terminal capitalisation rate
- Rental growth rate per annum
- Profit and risk allowance
Significant inputs used together with the impact on fair value of a change in inputs:
Range of significant unobservable inputs:Fair value measurement sensitivity:
Inputs used to measure fair value30 June 201830 June 2017to increase in inputto decrease in input
Office gross market rent per sqm
$250 - $738
$180 - $722IncreaseDecrease
Retail gross market rent per sqm
$160 - $1,850
$225 - $1,950IncreaseDecrease
Core capitalisation rate
4.9% - 6.9%
5.8% - 8.3%DecreaseIncrease
Discount rate
7.0% - 9.5%
7.4% - 9.5%DecreaseIncrease
Terminal capitalisation rate
5.5% - 7.3%
6.1% - 8.5%DecreaseIncrease
Rental growth rate per annum
2.1% - 2.8%
0.0% - 3.8%IncreaseDecrease
Profit and risk allowance
5% - 10%
5% - 17%DecreaseIncrease
Valuations reflect, where appropriate:
• The type of tenants actually in occupation or responsible for meeting lease commitments or likely to be in occupation after letting
vacant accommodation, and the market’s general perception of their creditworthiness;
• The allocation of maintenance and insurance responsibilities between Precinct and the lessee; and
• The remaining economic life of the property. When rent reviews or lease renewals are pending with anticipated reversionary
increases or decreases, it is assumed that all notices and where appropriate counter-notices have been served validly and within
the appropriate time.

81
Valuation methodologies
Income capitalisation approachDetermines fair value by capitalising the net income at a
capitalisation rate reflecting the nature, location and tenancy
profile of the asset. Subsequent near term capital adjustments
are then made which typically include letting-up allowances for
vacancy and pending expiries, capital expenditure allowances
and under/over renting reversions.
Discounted cash flow analysisA financial modelling methodology assessing the long-term return
that is likely to be derived from an asset. Explicit assumptions are
required for rental income growth, leasing up metrics on expiries
along with terminal value at the end of the cash flow period,
typically a 10 year horizon. A market-derived discount rate is then
applied to the assessed cash flows and discounted to a present
value to determine fair value.
Sales comparison approachFair value is determined by applying positive and negative
adjustments to recently transacted assets of a similar nature.
Residual approachA methodology normally used for property which is undergoing,
or is expected to undergo, redevelopment. Fair value is
determined by firstly calculating a gross realisation which
forecasts what a property is worth on completion and deducts all
costs associated with the development of the property. These
costs typically include letting and sale costs, a market required
profit and risk margin, construction costs and finance costs.
Unobservable inputs within the income capitalisation approach
Gross market rentThe estimated rental amount which a tenancy within a property
is expected to achieve under a new arm’s length transaction
including a share of the property operating expenses.
Core capitalisation rateThe income return produced by an investment expressed as a
percentage of the capital value. The capitalisation rate which is
applied to a property’s net market income is determined through
analysis of comparable sales transactions.
Unobservable inputs within the discounted cash flow analysis
Discount rateThe rate of return used to convert a property’s future cash flows
to present value. The discount rate is determined through analysis
of comparable sales.
Terminal capitalisation rateThe rate used to convert income into an indication of the
anticipated value of the property at the end of the cash flow
period.
Rental growth rateThe growth rate applied to the market rental over the cash flow
period.
Additional unobservable inputs within the residual approach
Profit and risk allowanceThe market level of return for a typical developer to receive on
their outlay in order to undertake the respective development
having regard to the relative risks (e.g. leasing progress, fixed
price contract, programme/staging) of the project at that point
in time.
Forecast development costsAll costs associated with the development of the property. These
costs typically include letting and sale costs, a market required
profit and risk margin, construction costs and finance costs.

82
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2018
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
10. OTHER EXPENSES
Amounts in $ millions30 June 201830 June 2017
Other expenses
Audit fees
1
0.2
0.2
Directors' fees and expenses
0.5
0.5
Manager's base fees
8.0
7.7
Manager's performance fees
-
-
Other
2
1.5
1.4
Total other expenses10.2
9.8
1 Fees paid to the Group's auditor comprise $143,500 for audit and review of financial statements (2017: $143,500) and $43,400 for other assurance services (2017:
$89,190). Other assurance services include trustee reporting ($4,000) and agreed upon procedures in respect of review of performance fee calculation ($17,000) and
operating expense statement review ($22,400).
2 Other includes valuation fees, share registry costs and annual report design and publication.
11. TAXATION
Amounts in $ millions30 June 201830 June 2017
Net profit before taxation280.5
166.5
At the statutory income tax rate of 28.0%78.5
46.6
Unrealised (gain) on value of investment and development properties
(58.4)
(21.7)
Disposal of depreciable assets
(0.8)
(4.0)
Capitalised interest
(9.2)
(4.9)
Other adjustments
1.8
(8.3)
Depreciation
(5.6)
(5.2)
Current tax expense / (benefit)6.3
2.5
Fair value of financial instruments
(3.0)
3.3
Depreciation - current year
20.0
(1.4)
Total deferred tax expense / (benefit)17.0
1.9
Total taxation expense23.3
4.4
Effective tax rate8%
3%
Precinct holds its properties on capital account for income tax purposes.
Precinct has no tax losses available to carry forward as at 30 June 2018 (2017: $nil)
Amounts in $ millions30 June 201830 June 2017
Deferred tax asset - fair value of financial instruments
(8.5)
(5.5)
Deferred tax liability - depreciation
48.8
28.8
Net deferred tax liability40.3
23.3

83
Deferred tax assets
Precinct has recognised deferred tax assets relating to the fair value of financial instruments.
Deferred tax liabilities
Precinct has recognised deferred tax liabilities relating to the depreciation claw-back which would arise on the sale of investment
properties at carrying value.
In estimating this deferred tax liability, Precinct has relied on independent valuers' assessments of the market value of the land and
improvements and an internal assessment of the market value of fixtures and fittings having regard to the useful lives of each category
of fixtures and fittings. Recent sales have suggested that the previous estimation process for the market value of fixtures and fittings did
not fully reflect the net selling price allocation process that occurs on sale of a property. During the year Precinct has revised the
process which has resulted in an increase to the deferred tax liability of $20.0 million.
Imputation credit account
Imputation credits available for use as at 30 June 2018 are $2,995,126 (2017: $1,943,448).
Accounting policy
Taxation
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss except to the extent
that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at
the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which
temporary differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be realised.
For deferred tax liabilities or assets arising on investment property measured at fair value, it is assumed that the carrying amounts of
investment property will be recovered through sale.
12. RECONCILIATION OF NET PROFIT AFTER TAX TO NET OPERATING INCOME
Net operating income is net profit after tax, before revaluations on investment 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 $ millions30 June 201830 June 2017
Net profit after taxation
254.9
162.1
Unrealised net (gain) / loss in value of investment and development properties
(208.7)
(77.5)
Unrealised net (gain) / loss on financial instruments
11.1
(11.8)
Deferred tax (benefit) / expense
17.0
1.9
Share of (profit) / loss of joint venture
2.3
0.0
Net operating income76.6
74.7
Weighted average number of shares for net operating income per share (millions)
1,211.1
1,211.1
Net operating income per share (cents)6.32
6.17
This additional performance measure is provided to assist shareholders in assessing their returns for the year.
13. EARNINGS PER SHARE
Amounts in $ millions
30 June 201830 June 2017
Net profit after tax for basic and diluted earnings per share ($millions)
254.9
162.1
Weighted average number of shares for basic and diluted earnings per share (millions)
1,211.1
1,211.1
Basic and diluted earnings per share (cents)21.05
13.38
There have been no new shares issued subsequent to balance date that would affect the above calculations.

84
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2018
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
14. RECONCILIATION OF NET PROFIT AFTER TAXATION WITH CASH INFLOW FROM OPERATING ACTIVITIES
Amounts in $ millions30 June 201830 June 2017
Net profit after taxation254.9
162.1
Add / (less) non-cash items and non operating items
Unrealised net (gain) / loss in value of investment and development properties
(208.7)
(77.5)
Unrealised net (gain) / loss on financial instruments
11.1
(11.8)
Deferred tax (benefit) / expense
17.0
1.9
Amortisation of leasing costs and incentives
7.1
6.2
Share of (profit) or loss of joint ventures
2.3
-
Movement in working capital
Increase / (decrease) in creditors
(11.5)
(12.4)
Income tax payable
2.8
(14.9)
(Increase) / decrease in debtors
(0.1)
(0.9)
Net cash inflow / (outflow) from operating activities74.9
52.7
15. INTEREST BEARING LIABILITIES
Amounts in $ millions30 June 201830 June 2017
Interest bearing liabilities
Bank loans
328.5
279.2
US private placement
97.9
97.9
NZ senior secured bond
175.0
75.0
Convertible note
150.0
-
Total drawn debt751.4
452.1
US private placement - fair value adjustments
15.0
8.8
Convertible note - embedded financial derivative and amortisation adjustment
1.6
0.0
Capitalised borrowing costs
(6.3)
(4.0)
Net interest bearing liabilities761.7
456.9
Breakdown of borrowings:
Amounts in $ millionsHeld atMaturity
1
Coupon
1
30 June 201830 June 2017
Bank loansAmortised costNov-20Floating
2
328.5
279.2
NZ senior secured bond (PCT010)Amortised costDec-215.54%
75.0
75.0
NZ senior secured bond (PCT020)Amortised costJan-224.42%
100.0
-
Convertible note (PCTHA)Amortised costFeb-224.80%
150.0
-
US private placementFair valueJan-254.13%
75.5
71.4
US private placementFair valueJan-274.23%
37.4
35.3
Total766.4
460.9
Weighted average term to maturity
3.3 years
4.0 years
Weighted average interest rate before swaps (including funding costs)
4.04%
3.58%
1 As at 30 June 2018.
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 (2017: $1,032.9 million) including the NZ retail bonds, convertible note and US private
placement.
All lenders (excluding convertible noteholders) 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.

85
To substantially remove currency risk, US private placement proceeds have been fully swapped back to New Zealand dollars.
Accounting policy
Interest bearing liabilities
Bank loans and the NZ retail bond are recognised initially at fair value less any attributable transaction costs. Subsequent to initial
recognition, these liabilities are stated at amortised cost using the effective interest method.
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.
The convertible note embedded financial derivate is recognised at fair value with any gains or losses recognised in the profit or
loss as they arise. This fair value is determined using the black-scholes model with observable inputs such as Precinct's share price
and it historic standard deviation, the convertible note strike price and the risk free rate . This measurement falls into level 2 of the
fair value hierarchy.
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of
the cost of that asset.
16. DERIVATIVE FINANCIAL INSTRUMENTS
Amounts in $ millions30 June 201830 June 2017
Fair value of derivative financial instruments
Current assets
-
-
Non-current assets
1
18.2
12.8
Current liabilities
(0.9)
(2.9)
Non-current liabilities
(32.9)
(20.9)
Total(15.6)
(11.0)
Notional contract cover (fixed payer)
1,085.0
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
84.5%
65.3%
Weighted average term to maturity (fixed payer)
3.77 years
3.98 years
Weighted average interest rate after swaps (including funding costs)
5.27%
5.59%
1 This includes the cross currency interest rate swap valuation of $11.8 million (June 2017: $8.3 million) and a net credit value adjustment of $0.6 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.
17. CAPITAL COMMITMENTS
Precinct has $233.6m of capital commitments as at 30 June 2018 (2017: $405.3m) relating to construction contracts.

86
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2018
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
18. OPERATING LEASE COMMITMENTS
Precinct has entered into investment property leases (as lessor) and ground leases (as lessee). Investment property leases have
remaining non-cancellable lease terms of between one and 40 years. Ground leases have remaining non-cancellable lease terms of
between one and 54 years.
Future minimum rentals receivable and payable under non-cancellable operating leases are as follows:
Commitments as lessor (receivable)Commitments as lessee (payable)
Amounts in $ millions30 June 201830 June 201730 June 201830 June 2017
Within one year
126.1
120.2
0.7
1.2
After one year but not more than five years
365.6
358.9
2.6
4.9
More than five years
411.6
439.4
13.5
34.7
Total903.3
918.5
16.7
40.8
The commitments above are calculated based on contract rates using the term certain expiry dates of lease contracts. Actual rental
amounts in future may differ due to rent review provisions within the lease agreements.
19. CONTINGENT LIABILITIES
There are no contingent liabilities as at 30 June 2018 (2017: $nil).
20. RELATED PARTY TRANSACTIONS
Fees paid and owing to the manager:
Amounts in $ millions30 June 201830 June 2017
Fees paidOwing at
30 June
Fees paidOwing at
30 June
Base management services fee
8.00.7
7.70.6
Performance fee
--
--
Leasing fees
2.60.9
9.91.2
Development manager fees
3.40.9
3.30.8
Acquisition and disposal fees
0.50.5
--
Property and facilities management fee
3.0-
2.7(0.1)
Total17.53.0
23.62.5
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. No performance fee is payable in quarters where equity total returns are negative. As at
30 June 2018 there is a notional performance fee deficit of $918,083 to be carried forward to the calculation of performance fees in
future quarters (2017: $11,388,088 deficit).
These fees are expensed through indirect other expenses in the year in which they arise.

87
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 investment 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 of $445,720
in 2018 (2017: $443,813).
Precinct received rental income from AMP Haumi Management Limited, AMP Capital Investors (New Zealand) Limited and AMP
Services (NZ) Limited, being the Manager or companies related to the Manager for premises leased in PwC Tower, AMP Centre and
Dimension Data House. Total rent received by Precinct from these parties during the year was $3,388,399 (2017: $3,223,101). As at
30 June 2018 an amount of $1,837 (2017: $208) was owing to Precinct from AMP Services (NZ) Limited and AMP Haumi Management
Limited.
h) Related party debts
No related party debts have been written off or forgiven during the year (2017: $nil).
21. CAPITAL MANAGEMENT
The Group's capital includes ordinary shares, retained earnings and interest bearing liabilities. When managing capital, management's
objective is to ensure Precinct continues as a going concern as well as to maintain optimal returns to share holders and benefits for
other creditors. Management also aims to maintain a capital structure that ensures the lowest cost of capital is available to Precinct.
Precinct meets its objectives for managing capital through its investment decisions on the acquisition and disposal of assets, dividend
policy, share buy backs and issuance of new shares.
Precinct’s banking covenants require total liabilities (excluding deferred tax, derivative financial instruments and sub-ordinated debt
liability) to not exceed 50% of total assets. Precinct has complied with this requirement during this year and the previous year.
Precinct’s policy in respect of capital management is reviewed regularly.

88
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
For the year ended 30 June 2018
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
22. FINANCIAL RISK MANAGEMENT
In the normal course of business through the use of financial instruments, Precinct is exposed to interest rate risk, credit risk and liquidity
risk. The Board agrees and reviews policies for managing each of these risks.
Financial instruments held:
Amounts in $ millions30 June 201830 June 2017
At amortised
cost
Fair value
through profit or
lossTotal
At amortised
cost
Fair value
through profit
or lossTotal
Financial assets
Cash
2.9-2.9
4.3-4.3
Debtors
2.2-2.2
5.1-5.1
Derivative financial
instruments
-18.218.2
-12.812.8
Total5.118.223.3
9.412.822.2
Financial liabilities
Other current liabilities
13.4-13.4
8.4-8.4
Interest bearing liabilities
653.5112.9766.4
354.297.9452.1
Derivative financial
instruments
-33.833.8
-23.823.8
Total666.9146.7813.6
362.6121.7484.3
a) Interest rate risk
Interest rate risk is the risk that fluctuations in interest rates impact the Group's financial performance, future cash flows or the fair value
of its financial instruments.
Precinct’s policy is to manage its interest rates using a mix of fixed and variable rate debt. Precinct’s policy is to keep at least 60% of its
interest bearing liabilities at fixed rates of interest. To manage this mix Precinct enters into interest rate swaps, in which Precinct agrees
to exchange, at specified intervals, the difference between fixed and variable rates for interest calculated by reference to an agreed-
upon notional principal amount. These swaps are designed to economically hedge underlying debt obligations.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on interest bearing liabilities, after the
impact of hedging with all other variables held constant.
Amounts in $ millions30 June 201830 June 2017
Effect on profit
or equity
Effect on profit
or equity
25 basis point increase
(0.3)
(0.4)
25 basis point decrease
0.3
0.4
b) Credit risk
Credit risk represents the risk that the counterparty to the financial instrument will fail to discharge an obligation and cause the Group
to incur a financial loss. Financial instruments which subject Precinct to credit risk principally consist of cash, debtors and derivative
financial instruments in an asset position. Precinct’s exposure to credit risk is equal to the carrying value of the financial instruments.
Precinct conducts credit assessments to determine credit worthiness prior to entering into lease agreements. In addition, debtor
balances are monitored on an ongoing basis with the result that Precinct’s exposure to bad debts is not significant.
There is no significant concentration of credit risk as financial assets are spread amongst a number of counterparties.
c) Liquidity risk
Liquidity risk is the risk that Precinct will experience difficulty in either realising assets or otherwise raising sufficient funds to satisfy
commitments associated with financial liabilities.
Precinct monitors and evaluates liquidity requirements on an ongoing basis and generates sufficient cash flows from its operating
activities to meet its obligations arising from its financial liabilities and has bank facilities available to cover potential shortfalls. The
Group’s approach to managing liquidity risk is to ensure it will always have sufficient liquidity to meet its obligations when they fall due
under both normal and stress conditions. The Group manages liquidity by maintaining adequate committed credit facilities and
spreading maturities in accordance with internal policy.
The tables below analyse Precinct’s financial liabilities (principal and interest) and net cash flows of derivative financial instruments into
relevant contracted maturity periods.

89
Amounts in $ millionsCarrying amount0 - 1 yr1-2 yrs2-5 yrs>5 yrsTotal contractual
cash flows
30 June 2018
Interest bearing liabilities
766.419.419.4588.7214.0841.5
Net derivative financial
instruments
15.615.618.235.07.276.0
Other current liabilities
13.413.4---13.4
Total795.448.437.6623.7221.2930.9
30 June 2017
Interest bearing liabilities452.115.115.1387.0112.2529.4
Net derivative financial
instruments11.02.42.57.42.414.7
Other current liabilities8.48.4---8.4
Total471.525.917.6394.4114.6552.5
Accounting policy
Derecognition of financial instruments
Financial assets are derecognised when the right to receive cash flows from the financial asset has expired or when the entity
transfers substantially all the risks and rewards of the financial asset. If the entity neither retains nor transfers substantially all of the
risks and rewards, it derecognises the asset if it has transferred control of the asset. Financial liabilities are derecognised when the
obligation has expired or been transferred.
23. SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.
The chief operating decision-maker has been identified as the Board of Directors. Precinct is internally reported as a single operating
segment to the chief operating decision-maker hence no further segments have been reported.
24. EVENTS AFTER BALANCE DATE
On 10 July 2018 the board approved a refinance of Precinct's bank borrowings which extended the weighted average term to expiry
of Precinct's bank facilities to over four years.
On 15 August 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 28 September 2018.
On 15 August 2018 Precinct committed to the $298 million redevelopment at One Queen Street (currently HSBC House).

90
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF PRECINCT PROPERTIES NEW ZEALAND LIMITED
Opinion
We have audited the financial statements of Precinct Properties New Zealand Limited (“the company”) and its subsidiaries (together
“the group”) on pages 70 to 89, which comprise the consolidated statement of financial position of the group as at 30 June 2018, and
the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of
cash flows for the year then ended of the group, and the notes to the financial statements including a summary of significant
accounting policies.
In our opinion, the consolidated financial statements on pages 70 to 89 present fairly, in all material respects, the financial position of
the group as at 30 June 2018 and its consolidated financial performance and consolidated cash flows for the year then ended in
accordance with New Zealand equivalents to International Financial Reporting Standards and International Financial Reporting
Standards.
This report is made solely to the company's shareholders, as a body. Our audit has been undertaken so that we might state to the
company's shareholders those matters we are required to state to them in an auditor's 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 audit work, for this report, or for the opinions we have formed.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand). Our responsibilities under those
standards are further described in the
Auditor’s responsibilities for the audit of the financial statements
section of our report.
We are independent of the group in accordance with Professional and Ethical Standard 1 (revised)
Code of Ethics for Assurance
Practitioners
issued by the New Zealand Auditing and Assurance Standards Board, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Ernst & Young provides other assurance and agreed upon procedures services to the group. 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. We have no other
relationship with, or interest in, the group.
Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, but we do not provide a separate opinion on these matters. For each
matter below, our description of how our audit addressed the matter is provided in that context.
We have fulfilled the responsibilities described in the
Auditor's responsibilities for the audit of the financial statements
section of the
audit report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying
consolidated financial statements.

91
Why significantEY Audit response
1. Valuation of investment and development properties
Information regarding the properties and their valuations is
included in Note 9 to the consolidated financial statements. As at
30 June 2018, investment properties are carried at $1,487.6 million,
development properties are carried at $838.1 million and
investment properties held for sale are carried at $191.2 million.
The investment property portfolio is important to our audit as it
represents a significant percentage of the total assets of the
group.
The valuation of the group’s investment property portfolio is
inherently subjective due to, among other factors, the individual
nature of each property, its location and the expected future
rental income for each property. The valuations are highly
dependent on forecasts and estimates. A small change in
individual property valuation assumptions when aggregated
could result in material misstatement of the financial statements.
We therefore identified the valuation of the property portfolio as a
significant audit risk.
Valuations are based on assumptions such as current and
forecast rental revenues and estimated capitalisation or discount
rates. These are used to determine a valuation range and from
this a point estimate is derived. In the case of properties which the
Group is developing or intends to develop significantly, and so
classifies as development properties, forecast development cost
and profit and risk allowance are further important assumptions.
There is also a greater level of estimation required in respect of
future rental amounts for these properties because there is a
greater percentage of tenancy area not yet subject to rental
agreements.
The group has adopted the assessed values determined by the
valuers.
In obtaining sufficient audit evidence we:
• evaluated the objectivity, independence and expertise of the
valuers.
• assessed the valuation conclusions. In doing so we considered
the valuation inputs used, including schedules of forecast
rental revenues and forecast development costs, and other
key assumptions such as capitalisation rates, rental growth
rates, discount rates and profit and risk allowances.
• involved our in-house property valuation experts to assist us in
critiquing a risk-based sample of the property valuations. This
included assessing whether key assumptions such as
capitalisation rates, rental growth rates, leasing up periods,
forecast development costs, profit and risk allowances and
discount rates fell within a reasonable range.
• assessed the adequacy of the disclosures made in respect of
the investment property portfolio valuation.
Information other than the financial statements and auditor's report
The directors of the company are responsible for the Annual Report, which includes information other than the consolidated financial
statements and auditor's report.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge
obtained during the audit, or otherwise appears to be materially misstated.
If, based upon the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Directors' responsibilities for the financial statements
The directors are responsible, on behalf of the entity, for the preparation and fair presentation of the consolidated financial statements
in accordance with New Zealand equivalents to International Financial Reporting Standards and International Financial Reporting
Standards, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible for assessing, on behalf of the entity, the group’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the group or cease operations, or have no realistic alternative but to do so.

92
PRECINCT PROPERTIES NEW ZEALAND LIMITED
ANNUAL REPORT 2018
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with International Standards on Auditing
(New Zealand) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of these consolidated financial statements.
A further description of the auditor's responsibilities for the audit of the financial statements is located as External Reporting Board's
website: https://www.xrb.govt.nz/standards-for-assurance-practitioners/auditors-responsibilities/audit-report-1. This description forms
part of our auditors report.
The engagement partner on the audit resulting in this independent auditor’s report is Emma Winsloe.
Chartered Accountants
Auckland
15 August 2018

93
DIRECTORY
DIRECTORY
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
Robert 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
REGISTRAR - Investors
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, North Shore City
Private Bag 92 119
Auckland 1142
Telephone:+64-9-488-8700
Email:enquiry@computershare.co.nz
Website:www.computershare.co.nz
Fax:+64-9-488-8787
Please contact our registrar;
• To change investment details such as name, postal address or method of payment.
• For queries on dividends and interest payments.
• To elect to receive electronic communication.

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
A N N U A L R E P O R T 2 0 1 8

---

Precinct Properties
New Zealand Limited
Investment Asset
Summary
June 2018
TiramaramaWay, Wynyard Quarter

Contents
Portfolio Overview4
Auckland Portfolio6
ANZ Centre7
PwCTower8
AMP Centre9
Zurich House10
HSBC House11
Mason Bros.12
12 Madden Street13
WellingtonPortfolio14
No. 1 The Terrace15
Pastoral House16
Dimension Data House17
Mayfair House18
Aon Centre19
The information and opinions in this presentation were prepared by Precinct Properties New Zealand Limited or one of its subsidi aries (Precinct).
Precinct makes no representation or warranty as to the accuracy or completeness of the information in this presentation.
Opinions including estimates and projections in this presentation constitute the current judgment of Precinct as at the date of this presentation and are subject to change
without notice. Such opinions are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of
which are beyond Precinct’s control, and which may cause actual results to differ materially from those expressed in this presentation.
Precinct undertakes no obligation to update any information or opinions whether as a result of new information, future eventsorotherwise.
This presentation is provided for information purposes only.
No contract or other legal obligations shall arise between Precinct and any recipient of this presentation.
Neither Precinct, nor any of its Board members, officers, employees, advisers (including AMP Haumi Management Limited) or other representatives will be liable (in
contract or tort, including negligence, or otherwise) for any direct or indirect damage, loss or cost (including legal costs)in curred or suffered by any recipient of this
presentation or other person in connection with this presentation.
Disclaimer
“As owner, developer
and manager of
property it’s important
that the environments
we create are flexible,
efficient and
sustainable.”
Scott Pritchard, Precinct CEO
Note: Excludes development properties such as Bowen Campus, 10 Brandon Street and Commercial Bay. More
information on our development properties can be found at www.precinct.co.nz

Industry Leaders
Precinct is New Zealand’s only
specialist listed investor in premium
office buildings. Our portfolios in
Auckland and Wellington are
arguably the best in both cities

Investment
Property
Portfolio
Key property information
(figures as at 30 June 2018 unless otherwise stated)
Notes:
-Excludes development properties such as Bowen Campus and Commercial Bay
-WALT includes the recent leases to the Government
PropertyCityNLA
Typical Floor
plate
Cap rates %ValuationWALTOccupancy
ANZ CentreAuckland33,574 m² 1,000 m² 5.25%$362 m 7.8 yrs 100%
PwC TowerAuckland31,296 m² 1,350 m² 5.13%$376 m 6.2 yrs 100%
AMP CentreAuckland25,265 m² 1,097 m² 5.88%$179 m 5.0 yrs 100%
Zurich HouseAuckland13,692 m² 912 m² 5.63%$106 m 3.9 yrs 100%
HSBC HouseAuckland18,199 m² 1,060 m² 6.13%$91 m 1.7 yrs 100%
Mason Bros.Auckland4,911 m² 1,500 m² 5.50%$42 m 6.9 yrs 100%
12 Madden StreetAuckland8,004 m² 1,250 m² 5.50%$77 m 10.7 yrs 100%
No.1 The TerraceWellington18,462 m² 1,300 m² 6.80%$79 m 9.9 yrs 100%
Pastoral HouseWellington15,522 m² 800 m² 6.50%$45 m 15.0 yrs 100%
Dimension Data
House
Wellington16,756 m² 1,000 m² 6.75%$118 m 4.4 yrs 100%
Mayfair HouseWellington12,332 m² 1,100 m² 6.50%$44 m 16.6 yrs 100%
Aon CentreWellington26,641 m² 1,050 m² 6.90%$150 m 4.9 yrs 93%
Total224,653 m² 5.50%$1,669 m 6.9 yrs 99%

Occupancy
Lease expiry profile
Portfolio events (by %)
74%
Weighting to Auckland
(by value)
8.7 yrs
Weighted Average Lease Term
(includes development properties)
17%
20%
63%
MarketCPIFixed
0%
10%
20%
30%
40%
50%
Vacant192021222324252627>27
% of NLA
Financial Year
AucklandWellington
46%
10%
44%
ReviewNext ExpiryNo event
0%
20%
40%
60%
80%
100%
% of building NLA
AucklandWellington

01.
ANZ Centre,
Albert Street
Auckland
Portfolio
02.
PwC Tower,
Quay Street
03.
AMP Centre,
Customs Street
04.
Zurich House,
Queen Street
05.
HSBC House,
Queen Street
06.
12 Madden Street
Commercial Bay
(Development)
07.
Mason Bros.
139 Pakenham Street
Zurich House
HSBC House
PWC Tower
AMP Centre
ANZ Centre
Mason Bros.
12 Madden Street
6
5
3
1
4
2
5

Logo
23-29 Albert Street, Auckland
ANZ Centre
ANZ
Commentary
Property detailsLease Expiry Profile
Construction1991
Refurbishment2013
Ownership
50%
Asset typePremium
Property Statistics
Total Lettable Area33,574 m²
Average Floor Plate1,000 m²
Car Parks 442 spaces
WALT 7.8 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $362.0 m
ANZ
$13.5 m23,280 m²
Value ($/sqm)$10,799Chapman Tripp
$3.0 m4,790 m²
Market Cap Rate5.3%
CBRE Limited
$0.9 m1,890 m²
Initial Yield5.3%
Regus
$0.7 m1,050 m²
ValuerJones Lang LaSalle
First NZ Capital Group Limited
$0.7 m1,050 m²
Vero Liability Insurance Limited
$0.6 m970 m²
ANZ_BLANZ_BR
A high rise office tower constructed in 1991 and is situated in the heart of the CBD
on the corner of Albert Street and Swanson Street.
The ANZ Centre is one of New Zealand's tallest buildings at approximately 153
metres. The tower provides 32 levels of office accommodation, 5 levels of car
parking, including 2 electric car parks, and various levels for plant and other use.
The exterior is characterised by polished Spanish granite and tinted glazing. With a
distinctive shape, the building is positioned to provide maximum views over the
Waitemata harbour and also westerly and easterly aspects of the city and
beyond.
The building underwent a $76 million dollar refurbishment repositioning it to a
premium standard. This included a new entry and enhanced lobby, improved
external outdoor amenity, specific engineering responses to seismic design and
new building management systems. The extent of the refurbishment resulted in the
ANZ Centre being awarded the New Zealand Property Council's Supreme Award.
Major occupiers include ANZ (ANZ Bank), Chapman Tripp and CBRE.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Logo
188 Quay Street, Auckland
PwC Tower
PwC
Commentary
Property detailsLease Expiry Profile
Construction2002
Refurbishment
Ownership
100%
Asset typePremium
Property Statistics
Total Lettable Area31,296 m²
Average Floor Plate1,350 m²
Car Parks 354 spaces
WALT 6.2 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $376.0 m
PWC Administration Limited
$6.4 m9,080 m²
Value ($/sqm)$12,015Buddle Findlay
$2.4 m3,580 m²
Market Cap Rate5.1%
Hesketh Henry
$1.2 m1,860 m²
Initial Yield5.3%
Todd Land Holdings Limited
$0.9 m1,350 m²
ValuerCBRE
Servcorp
$0.9 m1,350 m²
Crowe Horwath (NZ) Ltd
$1.0 m1,350 m²
PWC_BLPwC_BR
Located in the northern sector of the CBD, the property comprises a landmark
Premium Grade office tower occupying a prime 4,730 sqm freehold waterfront
corner site, affording unrivalled views of the Waitemata Harbour.
The building consists of 29 levels, comprising of 7 levels of car parking, storage,
ground level and lobby retail and 23 levels of office space.
With large size floor plates of circa 1,350 sqm and a central core, the building
allows for efficient subdivision into multiple tenancies, with minimal loss of area.
The tower is in close proximity to the amenities provided by the waterfront, Queen
Street retail, and Britomart Transport Centre, and accordingly experiences strong
occupier demand. With Commercial Bay & the City Rail Link well underway, the
tower is well positioned to integrate with the regeneration of the central city.
Major clients include PwC, Buddle Findlay, Servcorp, and Hesketh Henry
Partnership.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Logo
29 Customs Street West, Auckland
AMP Centre
AMP
Commentary
Property detailsLease Expiry Profile
Construction1980
Refurbishment1992
Ownership
100%
Asset typeA Grade
Property Statistics
Total Lettable Area25,265 m²
Average Floor Plate1,097 m²
Car Parks 100 spaces
WALT 5.0 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $179.0 m
AMP Services (NZ) Limited
$2.4 m4,420 m²
Value ($/sqm)$7,280QBE Insurance (Australia) Limited
$1.5 m3,290 m²
Market Cap Rate5.9%
The Partners of AJ Park Patent Attorneys
$1.1 m2,220 m²
Initial Yield5.9%
Aon New Zealand
$1.2 m2,220 m²
ValuerColliers International
Auckland Transport
$0.7 m1,380 m²
OCG Consulting Limited
$0.5 m1,100 m²
AMP_BLAMP_BR
Constructed in 1980, the property comprises a substantial 25 level office
development situated on the corner of Customs Street West and Lower Albert
Street.
The property is located on a prime CBD site in close proximity to the Viaduct
Harbour precinct which provides for a combination of entertainment areas, office
accommodation, apartment dwellings and a marina.
The building provides 21 levels of office accommodation, ground floor and lower
ground floor retail together with two levels of carparking.
Refurbishment in 1992 saw the buildings lifts, foyer and service areas upgraded. A
further refurbishment in 2002 was also undertaken which comprised of refurbishing
the exterior of the building by updating the lower level facades, installing granite
cladding to exterior piers, new tower lighting and upgrading the plaza balustrades.
Major clients include AMP Services (NZ) Limited, QBE Insurance Limited, Aon New
Zealand, Auckland Transport, and The Partners of AJ Park.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Logo
21 Queen Street, Auckland
Zurich House
Zurich
Commentary
Property detailsLease Expiry Profile
Construction2009
Refurbishment
Ownership
100%
Asset typeA Grade
Property Statistics
Total Lettable Area13,692 m²
Average Floor Plate912 m²
Car Parks
WALT 3.9 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $106.0 m
Guardians of New Zealand Superannuation
$1.6 m2,740 m²
Value ($/sqm)$8,295Zurich Financial Services Aust-NZ Branch
$0.8 m1,140 m²
Market Cap Rate5.6%
New Zealand Funds Management Ltd
$0.6 m990 m²
Initial Yield5.3%
Regus
$0.5 m910 m²
ValuerJones Lang LaSalle
Willis New Zealand Ltd
$0.5 m910 m²
GlaxoSmithKline NZ Limited
$0.5 m910 m²
Zurich_BLZurich_BR
Located in a prime position within Auckland's CBD, the building comprises a
modern premium quality office building providing ground floor and level 1 retail,
lobby areas plus 15 levels of office accommodation above.
The location provides excellent exposure to passing vehicle and pedestrian traffic.
An extensive upgrade through 2008-2009 saw the redevelopment incorporate the
construction of 4 new upper levels, new facade cladding and internal
modernisation with the latest technology services.
The building received a 5 star rating by the Green Building Council on completion.
Major clients include Guardians of New Zealand Superannuation, New Zealand
Funds Management and Zurich Financial Services.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Logo
1 Queen Street, Auckland
HSBC House
HSBC
Commentary
Property detailsLease Expiry Profile
Construction1972
Refurbishment1998
Ownership
100%
Asset typeB Grade
Property Statistics
Total Lettable Area18,199 m²
Average Floor Plate1,060 m²
Car Parks
WALT 1.7 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $91.0 m
NZ Transport Agency
$1.9 m3,920 m²
Value ($/sqm)$5,309Hongkong & Shanghai Banking Corp
$1.7 m3,180 m²
Market Cap Rate6.1%
Auckland Transport
$1.1 m2,120 m²
Initial Yield6.8%
Baldwin Holdings Limited
$0.6 m1,090 m²
ValuerJones Lang LaSalle
Rothbury Group Limited
$0.5 m1,090 m²
McVeagh Fleming
$0.5 m1,090 m²
HSBC_BLHSBC_BR
HSBC House occupies one of the most prominent positions within the Auckland
CBD, sitting at the front of Queen Street and fronting Quay Street.
The property was initially constructed in 1972 and was refurbished in 1998 to
provide Grade A office accommodation. The building comprises a 21 level
commercial office tower, 3 levels of car parking and ground level retail tenancies.
The car parking and retail areas are currently excluded from NLA, as they are
being used to accommodate works on Commercial Bay.
Situated on a prominent corner site with an excellent level of amenity provided in
the surrounding locality, the site experiences strong occupier demand.
The building has unobstructed views north and east towards the Waitemata
Harbour, with upper levels affording expansive views, amongst some of the best
available in the CBD. Lower levels still benefit from close quarter harbour views.
Major clients include HSBC Bank, NZTA Limited, Auckland Transport and Baldwins
Limited
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Logo
139 Pakenham Street, Auckland
Mason Bros.
Mason
Commentary
Property detailsLease Expiry Profile
Construction2016
Refurbishment
Ownership
100%
Asset typePremium
Property Statistics
Total Lettable Area4,911 m²
Average Floor Plate1,500 m²
Car Parks
WALT 6.9 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $42.1 m
Mott MacDonald New Zealand Limited
$1.1 m1,770 m²
Value ($/sqm)$8,812ATEED
$1.0 m1,560 m²
Market Cap Rate5.5%
Warren and Mahoney Architects Limited
$0.9 m1,440 m²
Initial Yield5.9%

ValuerCBRE

Mason_BLMason_BR
Mason Bros. is the first completed development by Precinct Properties within
Wynyard Quarter Innovation Precinct.
It is an adaptive reuse of a large character warehouse that dates to the 1920s. The
refurbishment has been designed by Warren and Mahoney and celebrates the
rich industrial heritage of the building while pushing the boundaries in terms of
contemporary workplace and the innovative environment.
The builing is leased to Warren and Mahoney Architecture, Mott MacDonald NZ
and ATEED.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Logo
12 Madden Street, Auckland
12 Madden Street
B5A
Commentary
Property detailsLease Expiry Profile
Construction2017
Refurbishment
Ownership
100%
Asset typePremium
Property Statistics
Total Lettable Area8,004 m²
Average Floor Plate1,250 m²
Car Parks 85 spaces
WALT 10.7 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $76.7 m
ATEED
$4.7 m7,990 m²
Value ($/sqm)$9,473

Market Cap Rate5.5%

Initial Yield5.7%

ValuerCBRE

B5A_BLB5A_BR
Recently developed and completed June 2017, the building comprises a new
eight level commercial building providing six levels of office accommodation
together with two levels of basement carparking.
Designed and developed with sustainability and innovation at the forefront,
together with Mason Bros., the building comprise Precinct's first completed
buildings within the Wynyard Quarter Innovation Precinct.
ATEED has taken a head lease over the entire building. 12 Madden Street will set
the theme for the innovation precinct and will house a new generation of New
Zealand’s most innovative businesses. 12 Madden Street will provide the platform
and the accommodation to see both start-ups and established business grow and
flourish.
ATEED appointed Generator to manage 12 Madden Street.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

01.
No.1 The Terrace,
The Terrace
02.
Pastoral House,
Lambton Quay
03.
D
imensionData House,
Lambton Quay
04.
Mayfair House,
The Terrace
06.
Aon Centre,
Willis Street
Wellington
Portfolio
Dimension
Data House
Aon Centre
3
5
Pastoral House
2
Mayfair House
4
1-3 The Terrace
1
Bowen Campus

Logo
No.1 The Terrace, Wellington
No.1 The Terrace
No1TT
Commentary
Property detailsLease Expiry Profile
Construction1979
Refurbishment2005
Ownership
100%
Asset typeA Grade
Property Statistics
Total Lettable Area18,462 m²
Average Floor Plate1,300 m²
Car Parks 26 spaces
WALT 9.9 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $78.6 m
HMQ
$3.5 m8,360 m²
Value ($/sqm)$4,258The Treasury
$3.3 m7,420 m²
Market Cap Rate6.8%
The Parliamentary Corporation
$0.8 m1,820 m²
Initial Yield3.3%
Norman Disney & Young Limited
$0.2 m410 m²
ValuerBayleys
Terrace Chambers Ltd
$0.1 m330 m²

No1TT_BLNo1TT_BR
The building, constructed in 1979, is located in a prime Wellington CBD location
close to the Government sector and The Beehive.
No. 1 The Terrace comprises an 18 level office tower of concrete construction with
16 office levels and two levels of basement storage accommodation.
The building has undergone major refurbishment in 1990 and was further
refurbished in 2004 and 2005 covering all office levels. The refurbishment
significantly upgraded the building and was carried out in conjunction with the
renewal of the lease to The Treasury over the major part of the building.
No. 3 The Terrace is a 4 level building with mezzanine and basement areas
completed in 2006. The building is fully integrated with No. 1 The Terrace. Works
are currently underway to refurbish the podium section of the building.
Major clients include The Treasury, Her Majesty the Queen Acting through the
Crown, and The Parliamentary Corporation.
Levels 1 to 4 will undergo a refurbishment as part of the Government
Accommodation Project.
Note: Statistics include No. 3 The Terrace, and WALT calculation includes the
recent lease to the Government
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Logo
94-98 Lambton Quay, Wellington
Pastoral House
Pastoral
Commentary
Property detailsLease Expiry Profile
Construction1977
Refurbishment
Ownership
100%
Asset typeB Grade
Property Statistics
Total Lettable Area15,522 m²
Average Floor Plate800 m²
Car Parks 39 spaces
WALT 15.0 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $45.0 m
Ministry for Primary Industries
$5.3 m14,030 m²
Value ($/sqm)$2,899BNZ Branch Properties Ltd
$0.2 m590 m²
Market Cap Rate6.5%
New Zealand Post Limited
$0.2 m450 m²
Initial Yield10.0%
Sercombe and Matheson Optometrists
$0.1 m300 m²
ValuerColliers International

Pastoral_BLPastoral_BR

Pastoral House comprises an 18-level office building providing ground floor
Lambton Quay retail and secondary retail on level 4, fronting The Terrace. The
office component comprises two large podium floors with the 15 level office tower
situated above.
Located at the northern periphery of the core CBD, directly to the south of the
main Parliament Buildings. The property enjoys dual frontage to The Terrace and
Lambton Quay which incorporates the main Wellington retail precinct.
Built in the 1970's, the property underwent an upgrade during the 1990's and a
complete retro-fit in 2003/4. The building now provides low A grade office
accommodation.
Major clients include Ministry for Primary Industries, Bank of New Zealand and NZ
Post.
This building will undergo a refurbishment as part of the Government
Accommodation Project.

Note: The WALT calculation includes the recent lease to the Government
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Logo
157 Lambton Quay, Wellington
Dimension Data House
VOTQ
Commentary
Property detailsLease Expiry Profile
Construction1996
Refurbishment2005
Ownership
100%
Asset typeA Grade
Property Statistics
Total Lettable Area16,756 m²
Average Floor Plate1,000 m²
Car Parks 331 spaces
WALT 4.4 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $118.3 m
Russell McVeagh
$1.3 m2,150 m²
Value ($/sqm)$7,096Forsyth Barr Limited
$1.2 m2,000 m²
Market Cap Rate6.8%
Dimension Data New Zealand Limited
$1.0 m1,990 m²
Initial Yield7.2%
Rabobank New Zealand Ltd
$0.9 m1,460 m²
ValuerColliers International
Servcorp Wellington Limited
$0.6 m1,000 m²
The Group Limited (Provoke)
$0.5 m1,000 m²
VOTQ_BLVOTQ_BR
Dimension Data House is a prestigious 25 level commercial podium and office
tower incorporating 10 levels of carparking, 15 levels of office accommodation
and is integrated with the former Police buildings now converted to office and
retail use and rebranded to Central on Midland Park.
The building is located within the Core Central Business District, directly opposite
the prime retail sector of the city and within close proximity of all central city
amenities including public transport plus the Government Centre and law courts a
short distance north.
A total of 8 lifts service the building with 5 of them servicing the office tower floors.
In addition, the building is equipped with a variable air volume air conditioning
system, fire sprinklers, and an emergency generator.
Major clients include Dimension Data, Russell McVeagh, Rabobank New Zealand
Limited and Tourism New Zealand.
0%
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VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Logo
54 The Terrace, Wellington
Mayfair House
Mayfair
Commentary
Property detailsLease Expiry Profile
Construction1988
Refurbishment2010
Ownership
100%
Asset typeB Grade
Property Statistics
Total Lettable Area12,332 m²
Average Floor Plate1,100 m²
Car Parks 247 spaces
WALT 16.6 years
Occupancy100%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $44.4 m
Department of Corrections
$4.5 m12,330 m²
Value ($/sqm)$3,596

Market Cap Rate6.5%

Initial Yield7.6%

ValuerColliers International

Mayfair_BLMayfair_BR
Situated on the north western periphery of the core Central Business District in
Wellington. The location is within close proximity to all central city amenities
including Lambton Quay retail, public transport plus the Government Centre and
law courts a short distance north.
Mayfair House, constructed in the late 1980s, is a 15 level tower comprising of 11
levels of office accommodation with two mezzanine floors at the upper levels and
4 levels of car parking. The carpark income is distributed under a shared
management agreement.
In 2010 the building underwent a refurbishment including the upgrade of the toilet
facilities, new destination control systems to the lifts and refurbished lift cars.
The entire building is leased to the Department of Corrections.
This building will undergo a refurbishment in 2018 as part of the Government
Accommodation Project.
Note: The WALT calculation includes the recent lease to the Government
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VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Logo
1 Willis Street, Wellington
Aon Centre
StateInsurance
Commentary
Property detailsLease Expiry Profile
Construction1988
Refurbishment2005
Ownership
100%
Asset typeA Grade
Property Statistics
Total Lettable Area26,641 m²
Average Floor Plate1,050 m²
Car Parks 196 spaces
WALT 4.9 years
Occupancy93%
Valuation (30 June 2018)Major ClientsTotal Rent (ex CP)NLA (m²)
Current Value $149.5 m
Chorus New Zealand Limited
$2.1 m4,200 m²
Value ($/sqm)$5,678Buddle Findlay
$1.6 m3,230 m²
Market Cap Rate6.9%
The Partners of AJ Park Patent Attorneys
$1.3 m2,150 m²
Initial Yield5.8%
Aon New Zealand
$0.9 m1,610 m²
ValuerBayleys
JB Hi-Fi Group Limited
$0.4 m1,080 m²
Booster
$0.5 m1,070 m²
StateInsurance_BLStateInsurance_BR
Recognised as one of the top 10 quality office buildings in Wellington, providing
two basement carpark levels, sub and ground floor retailing, and 22 levels of office
accommodation served by a central service core.
Occupying a large corner site at the northern end of Willis Street, the site offers
extended retail frontage to Willis Street, receives good natural light and expansive
harbour views for majority of the tower floors.
The Willis Street retail tenancies, constructed in 2002, provide modern retail
accommodation with excellent profile and display. The corner site ensures the
building enjoys good profile to passing foot and vehicular traffic.
Scheduled programmed works will ensure the building maintains its quality position
in the market.
The lobby was refurbished early 2016.
Major clients include Aon New Zealand, Buddle Findlay, Chorus and AJ Park.
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VacantFY18FY19FY20FY21FY22FY23
FY23 ≤
% of NLA

Directory
Directors of Precinct:
Craig Stobo– Chairman, Independent Director
Don Huse– Independent Director
LaunaInman – Independent Director
Graeme Wong – Independent Director
Chris Judd –Director
Mohammed Al Nuaimi – Director
Rob Campbell – Director
Precinct Properties New Zealand Limited
Level 12, PwC Tower
188 Quay Street
Auckland 1010
New Zealand
T: +64-9-927-1647
E: hello@precinct.co.nz
W: www.precinct.co.nz
Officers
Scott Pritchard, Chief Executive Officer
George Crawford, Chief Operating Officer
Richard Hilder, Chief Financial Officer
Davida Dunphy, General Counsel and Company Secretary
Manager
AMP Haumi Management Limited
Level 12,
188 Quay Street
Auckland, 1010
New Zealand
Bankers
ANZ New Zealand Bank
Bank of New Zealand
ASB Institutional Bank
Westpac New Zealand
The Hong Kong and Shanghai Banking Corporation
Auditor
Ernst & Young
2 Takutai Square
Britomart
Auckland 1010
New Zealand
REGISTRAR – Investors
Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, North Shore City
Private Bag 92 119
Auckland 1020
Telephone: +64-9-488-8700
Email: enquiry@computershare.co.nz
Website: www.computershare.co.nz
Fax: +64-9-488-8787
Please contact our registrar;
•To change investment details such as name, postal address or method of payment
•For queries on dividends.
•To elect to receive electronic communication
Security Trustee
Public Trust
Level 35, Vero Centre
48 ShortlandStreet
Auckland 1010
Bond Trustee
The New Zealand Guardian
Trust Company Limited
Level 15
191 Queen Street
Auckland 1010

Precinct refinances bank facilities Precinct settlement of 10 Brandon Street

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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