Quarterly Report December 2018

2018hasbeenanotheryearofstrongresultsfor
Precinct. Wecontinuetoenhanceourportfolioand
haveprogressedourmajorinitiatives.
Wideningourinvestmentintoothercitycentrereal
estatetoincluderetail,hotelsandco-workingspace,is
offeringgreateropportunityforPrecincttocreatevalue
forshareholders.
ASSET RECYCLING
Duringthequarter,Precinctsold$191millionofassets.
Thisincludesthesaleofa50%interestoftheANZ
CentreinAucklandfor$181million,toa fundcontrolled
byInvescoandthedisposalof10BrandonStreetin
Wellington. Thesesaleshavefurtherstrengthenedthe
balancesheetandreducedPrecinct’sdebt. Bothsales
havenowsettled.
ANNUALGENERALMEETING(AGM)
TheAGMofshareholderswasheldatTheMaritime
RoominAucklandon1 November2018.It wasgreatto
seesomanyofourshareholdersattendthemeeting
thisyear. Anexampleofchangesmadefollowing
shareholderfeedback,votingattheAGMwas
conductedbywayofa pollthisyear.
Shareholderspassedallfourresolutionswhichwere
consideredontheday. ThisincludedbothDonHuse
andGraemeWongbeingre-electedasindependent
directors.Precinctwelcomesanyfeedbackfrom
shareholdersin advanceofit’s2019AGM.
OUTLOOK
TheBoardexpectsfullyearearningsforthe2019
financialyearofapproximately6.60cps,before
performancefeesandexpectstopayadividendof
6.00cps. Thisrepresentsa 3.4%increaseindividendto
shareholders.
Precinct’s2019interimresultsarescheduledtobe
announcedonthe19
th
February2019.Onbehalfofthe
boardandexecutiveteam,I wouldliketothankyou,
ourshareholders,foryourcontinuedinvestmentin
Precinct. Welookforwardtoanothersuccessfulyear
ahead. MerryChristmasanda veryhappynewyear.
Yoursfaithfully,
CraigStobo,Chairman
DEAR SHAREHOLDER,
Quarterly update
December 2018
Financialinformationis shownasat30September2018
Artists impression of the proposed
Wynyard Quarter development
PRECINCT KEY METRICS (30.09.18)
$2.6bn99%8.6years
Portfolio valueOverall occupancyWeighted average lease term
$1.7bn5.8%75%
Market capWeighted average cap rateWeighting to Auckland(by value)
Payment date3 December 2018
Excluded dividend per share0.79 cents per share (cps)
Fully imputed dividend per share0.71 cps
Cash dividend per share1.50 cps
Imputation credits0.002754 cps
DIVIDEND
Proposed
2nd Quarter 2019 financial year19 March 2019
3rd Quarter 2019 financial year7 June 2019
INDICATIVE DIVIDEND PAYMENT DATES
ThesedatesrepresentthecurrentexpectationofPrecinct(PCT)asatthe
dateofpublication,aresubjecttoPCTboardapproval,maychange
withoutnoticeandarenota guaranteeorwarrantyastothepaymentof
a dividendortheactualpaymentdates.
Year to date (Unaudited)
Dividends declared1.50 cps
Full year forecast operating earnings per share
(before performance fees)
6.60 cps
Full year forecast dividend per share6.00 cps
FINANCIAL SUMMARY
as at 30.09.2018
Balance sheet
Unaudited
30 September 18
Audited
30 June 18
Total assets$2,600.3 m$2,561.7 m
Net equity$1,686.1 m$1,690.7 m
Number of shares on issue1,211.1 m1,211.1 m
Net tangible assets per share$1.39$1.40
Bank covenant gearing (%)26.4%25.0%
Total gross returnPrecinct (NZX: PCT)Listed Property
September quarter7.7%5.7%
SHAREHOLDER RETURNS
Returns are based on close price, and assume reinvestment of dividend
(returns exclude imputation credits). Listed property is the S&P/NZX All Real
Estate Gross index. Source IRESS
WYNYARD
QUARTER

DISCLAIMER:TheinformationandopinionsinthisreportwerepreparedbyPrecinctPropertiesNewZealandLimited(PCT). PCTmakesnorepresentationor
warrantyastotheaccuracyorcompletenessoftheinformationinthisreport. Opinionsincludingestimatesandprojectionsinthisreportconstitutethecurrent
judgmentofPCTasatthedateofthisreportandaresubjecttochangewithoutnotice. Suchopinionsarenotguaranteesorpredictionsoffuture
performance. Thisreportis providedforinformationpurposesonlyanddoesnotconstituteinvestmentadvice.
NeitherPCT,noranyofitsBoardmembers,officers,employees,advisers(includingAMPHaumiManagementLimited)orotherrepresentativeswillbeliablefor
anydamage,lossorcostincurredbyanyrecipientofthisreportorotherpersonin connectionwiththisreport.
Pleasecontactourregistrar,Computershare
•Tochangeinvestmentdetailssuchasname,postaladdressormethodofpayment,and
•Forquestionsonyourdividendandshareholding
REGISTRAR: Computershare Investor Services Limited. T +64-9-488-8777 Email:
enquiry@computershare.co.nz
If you have any questions please feel free to email us at hello@precinct.co.nz
DEVELOPMENT UPDATE
COMMERCIALBAY
ONEQUEENSTREET
InAugustweannouncedourcommitmenttoPrecinct’snextmajorinvestment,OneQueenStreet. The$298million
redevelopmentwillenhancetheCommercialBayareaandprovidea furtherdynamicusetothisprecinct,bringing
thewaterfronttolife.
OneQueenStreetis currentlyHSBCHouse. It willcomprisea luxuryhotel,premiumofficeaccommodationabove
anda varietyofuniquefoodandbeverageoptionsincludinga roof-tophospitalityvenue. Thenewflagshiphotelwill
beknownasInterContinentalAuckland,managedandoperatedbyInterContinentalHotelsGroup(IHG).
WYNYARDQUARTER
Duringthequarter,wearealsopleasedtohaveannouncedthat
PrecincthasnowcommittedtothedevelopmentofWynyard
QuarterStageTwo,advancingthenextstageatWynyard's
InnovationPrecinct.
ThesecondstageofWynyard,10MaddenStreet,is beingdeveloped
onanuncommittedbasis. It willcomprisea singlelevelbasementand
sevenupperlevelsprovidinganetlettableareaof8,290square
metres.
HavingdevelopedTheMasonBros.buildingduringStageOneonan
uncommittedbasis,wehaveconfidencethatthequalityand
locationofthisdevelopmentwillattractoccupierswiththemajorityof
tenanciesexpectedtobecommittedpriortocompletion. Weare
alreadyseeinggoodlevelsofenquiryfrombusinesseswantingtobe
locatedin theInnovationPrecinct.
ThedevelopmentwillbeundertakenbyPrecinctinpartnershipwith
PanukuDevelopmentAuckland. Leadingconstructioncompany,
Hawkins,willbethemaincontractorforthisdevelopmentundera
fixedpriceconstructioncontract.
Constructionisexpectedtobeginlaterthismonthwithpractical
completionprogrammedfortheendof2020.
SPARK
NewZealand’sleadingdigitalservices
company,Spark,willopenitsflagshipstore
in late2019withinCommercialBay.
Thenewflagshipstorewillbeacrossthree
levelsandwillofferleadingedge
technologysolutions.
LocatedonCustomsStreetandLittle
QueenStreet,Sparkwillusethispremium
locationtoredefinetheexperienceof
visitingaSparkstoreprovidingits
customerswitha uniqueoffering.
WeareexcitedtowelcomeSparkto
CommercialBayandpleasedtobe
addinganothersignificantretailertothe
diverseofferingavailabletoconsumersat
theprecinct.