Quarterly Report December 2019

01
Precinct Quarterly Update
December 2019
Precinct Quarterly Update
Dear Shareholders,
Welcome to the December
edition of our quarterly update.
Bowen Campus in Wellington
Annual General Meeting (AGM)
The AGM of shareholders was held at The Maritime Room in
Auckland on 20 November 2019. We were delighted to again
see many of our shareholders in attendance.
Shareholders passed all three resolutions which were considered
on the day. This included the election of Anne Urlwin as an
Independent Director. Any feedback from shareholders is
welcome in advance of our 2020 AGM.
Outlook
The Board expects full year earnings for the 2020 financial year of
approximately 6.80 cps, before performance fees and expects
to pay a dividend of 6.30 cps. This represents a 5.0% increase in
dividend to shareholders.
Precinct’s 2019 interim results are scheduled to be announced
on the 20th February 2020. On behalf of my Board colleagues
and the Management team, we wish you all a Merry Christmas
and happy new year, and we look forward to delivering on
another successful year in 2020.
Yours faithfully,
Craig Stobo, Independent Director and Chair
Dividend
Payment date12 December 2019
Excluded dividend per share1.535662 cents per share (cps)
Fully imputed dividend per share0.039338 cps
Cash dividend per share1.575 cps
Imputation credits0.015298 cps
Indicative dividend payment dates
2nd Quarter 2020 financial year26 March 2020
3rd Quarter 2020 financial year19 June 2020
These dates represent the current expectation of Precinct(PCT) as at the date of
publication, are subject to PCT board approval, may change without notice and
are not a guarantee or warranty as to the payment of a dividend or the actual
payment dates.
Key metrics at 30 September 2019
Portfolio value
$2.8 billion
Overall occupancy99%
Weighted average lease term8.6 years
Market capitalisation$2.45 billion
Weighted average cap rate5.7%
Weighting to Auckland (by value)75%
Financial Summary
as at 30 September 2019
Year to date (Unaudited)
Dividends declared1.575 cps
Full year forecast operating earnings
per share (before performance fees)
6.80 cps
Full year forecast dividend per share6.30 cps
Balance sheet
Unaudited
30 Sept 19
Audited
30 June 19
Total assets$2,938.4 m$2,893.4 m
Net equity$1941.7 m$1,954.9 m
Number of shares on issue1,313.7 m1,313.7 m
Net tangible assets per share$1.48$1.47
Bank covenant gearing24.2%22.4%
Shareholder returns
Shareholder returns
Total gross returnPrecinct (NZX: PCT)Listed Property
September quarter6.2%8.6%
Returns are based on close price for the quarter, and assume reinvestment of
dividend (returns exclude imputation credits). Listed property is the S&P/NZX All
Real Estate Gross index. Source IRESS

02
Precinct Quarterly Update
Precinct Quarterly Update (Continued)
Development update
Bowen Campus
The first stage of the Bowen Campus redevelopment is now
complete. This is a major achievement for our business and all
those who have been involved in transforming the government
precinct. The Charles Ferguson Building reached practical
completion in December 2018 and is now occupied by Ministry
of Primary Industries. At Defence House, New Zealand Defence
Force is now in occupation.
We are pleased to have completed these projects with return
metrics that have been ahead of our feasibility due to increased
rent, lower capitalisation rates and higher occupancy.
Commercial Bay
Commercial Bay in Auckland is now 98% leased across the retail
space and we are delighted with the composition and mix of
retailers, and excited to bring some new entrants to the New
Zealand market. Total office commitments are around 82% with
a number of leases under negotiation. The office tower
continues to attract good interest from the market where
occupiers are looking to locate in a world class modern
workspace with remarkable views across the harbour.
As outlined in August of this year, our opening dates are March
2020 for the retail centre and April 2020 for the PwC Tower.
Wynyard Quarter Stage 2
Stage Two at Wynyard Quarter has significantly advanced over
the last 12 months. The office space is now fully leased, one year
ahead of practical completion. This reinforces the quality of 10
Madden Street and our ability to attract occupiers to this prime
location.
Construction is also progressing well with the 6
th
floor slab
complete and roof structure now being installed. Pleasingly, we
remain on budget and have advanced works slightly ahead of
programme.
Sustainability at Precinct
GRESB
Precinct received a 2019 GRESB score of 77. We are very
pleased to have increased this from a score of 69 last year. We
are now trending ahead of the global average of 72 and we
rate a public disclosure level B against the global average of C.
Global Real Estate Sustainability Benchmark (GRESB) assesses a
company’s performance against environmental, social and
corporate governance and it is the overarching measure for
Precinct to benchmark its sustainability performance. This year
GRESB included 964 participants globally, representing USD 4.5
trillion in gross asset value.
Partnerships and community
During the quarter, we are extremely proud to have partnered
with Mates in Construction, a charity established to reduce the
high level of suicide in the construction industry. Originally set up
in Australia, Precinct has been a key member of the steering
group established locally. Working together with Mates in
Construction and alongside other corporates in the industry, the
initiative was formally launched in New Zealand on 30 October
2019.
Sadly, each year approximately 600 New Zealanders die from
suicide, of which 75% are men, with construction workers having
the highest rate by occupation of suicide. Mates in Construction
recognises the importance of raising the general awareness of
mental health, wellbeing and suicide risk of workers on site. It is
about creating a pathway to professional help for those who are
most vulnerable. As a team, Precinct is committed to supporting
this initiative.
Other social investments in the past year were made by Precinct
to Auckland and Wellington City Mission, Keystone Trust, Tuputoa
and the Tania Dalton Foundation. Our current annual
memberships include NZ Green Building Council, Property
Council, GRESB, Council on Tall Buildings & Urban Habitats, Heart
of the City and Diversity Works.
Please contact our registrar, Computershare:
• To change investment details such as name, postal address or method of payment, and
• For questions on your dividend and shareholding
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
Disclaimer: The information and opinions in this report were prepared by Precinct Properties New Zealand Limited (PCT). PCT makes no representation or warranty as to the
accuracy or completeness of the information in this report. Opinions including estimates and projections in this report constitute the current judgment of PCT as at the date of this
report and are subject to change without notice. Such opinions are not guarantees or predictions of future performance. This report is provided for information purposes only and
does not constitute investment advice. Neither PCT, nor any of its Board members, officers, employees, advisers (including AMP Haumi Management Limited) or other
representatives will be liable for any damage, loss or cost incurred by any recipient of this report or other person in connection with this report.