Precinct Third Quarter Dividend and Business Update

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 – 8 May 2020
Precinct Third Quarter Dividend and Business Update

Precinct Properties New Zealand (Precinct) (NZX:PCT) is pleased to advise Precinct
shareholders will receive a third-quarter dividend of 1.575 cents per share plus imputation
credits of 0.289332 cents per share. Offshore investors will receive an additional
supplementary dividend of 0.131294 cents per share to offset non-resident withholding tax
(see Note 1). The record date is 28 May 2020 and payment will be made on 12 June 2020. See
Note 2 for Inland Revenue Department (IRD) change in relation to listed PIE income.
Precinct also advises, consistent with its announcement of 24 March, that it reaffirms its
dividend guidance for the FY20 year of 6.3 cents per share, which is consistent with Precinct’s
FY20 AFFO (see Note 3 for a definition of AFFO). Like many landlords, Precinct has proactively
engaged with its occupier base and has implemented a range of initiatives to support its
occupiers through this difficult time. Engagement with occupiers has generally been positive
and constructive and Precinct appreciates the support of its clients and strength of
relationships at this time. Notwithstanding these initiatives and recognising that around 50% of
its office occupiers have a credit rating of AA- or higher, Precinct remains confident of
meeting its full year dividend guidance.
Pleasingly construction has re-commenced at Commercial Bay, with completion targeted for
June. Prior to the lockdown, the total project cost had increased by around 2.5% ($20 million)
due to delays and dispute settlements. It is anticipated that there will be a further increase in
the total project cost due to impacts associated with Covid-19 including support for retailers.
The total increase is not yet known however it is not expected to materially affect the project’s
return metrics.
Following a recent review of future development projects, Precinct advises that the One
Queen Street redevelopment project in Auckland will be deferred. This period of deferral will
enable us to more reliably assess the long term impacts on the tourism market and broader
economy and to position One Queen Street so as to ensure the eventual redevelopment
maximises returns. Precinct continues to engage positively with the stakeholders in the project
regarding the deferral.

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
On a fully committed basis after allowing for all committed projects, Precinct’s gearing will
reduce to 29% and Precinct’s funding commitments decrease by around $200 million.
Ends

For further information, please contact:
Scott Pritchard
Chief Executive Officer
Mobile: +64 21 431 581
Email: scott.pritchard@precinct.co.nz

George Crawford
Chief Operating Officer
Mobile: +64 21 384 014
Email: george.crawford@precinct.co.nz

Richard Hilder
Chief Financial Officer
Mobile: +64 29 969 4770
Email: richard.hilder@precinct.co.nz

About Precinct (PCT)
Precinct is New Zealand’s only listed city centre specialist investing predominately in premium
and A-grade commercial office property. Listed on the NZX Main Board, PCT currently owns
Auckland’s PwC Tower, AMP Centre, ANZ Centre (50%), Jarden House, HSBC House, Mason
Bros. Building, 12 Madden Street, 10 Madden Street and Commercial Bay; and Wellington’s
AON Centre, NTT Tower, No. 1 and No. 3 The Terrace, Mayfair House and Bowen Campus.
Precinct owns Generator NZ, New Zealand’s premier flexible office space provider. Generator
currently offers 13,600 square metres of space across four locations in Auckland.
Note 1
A supplementary dividend is paid to non-resident shareholders to offset the amount of non-resident withholding
tax (“NRWT”) that New Zealand companies are required to deduct from dividends paid to non-resident
shareholders. A supplementary dividend is paid to ensure equitable treatment between non-resident shareholders
and resident shareholders (whose dividends are not subject to NRWT). There’s no disadvantage to Precinct or our
shareholders, and non-resident shareholders don’t get a larger cash dividend than an equivalent New Zealand
resident shareholder.
Note 2
As listed PIEs are taxed at 28%, any investor who has a resident withholding tax (“RWT”) rate lower than this will
have to manually add this PIE income to their annual tax returns. All other investment income will be automatically
provided to the IRD. You are required to include the Gross dividend in your income tax return (and claim a credit

Precinct Properties New Zealand Limited Head Office Wellington Office
E hello@precinct.co.nz Level 12, 188 Quay Street, Auckland 1010 T 0800 400 599 Level 19, 157 Lambton Quay, Wellington T 0800 400 599
W www.precinct.co.nz PO Box 5140, Auckland 1141, New Zealand F +64 9 927 1655 PO Box 2, Wellington 6140, New Zealand F +64 4 494 2267
for the imputation credits) unless you are an individual or trustee investor. If you are an individual or trustee investor
you can choose whether to include this amount in your income tax return. Individual or trustee investors on lower
than the 30% marginal tax rate may choose to do so to gain the benefit of the imputation credits attached. The
excluded income should not be included in your tax return. All shareholders should seek independent advice if
you have any queries regarding the tax treatment of your payment.
Note 3
AFFO (adjusted funds from operations) is a non-GAAP financial measure that shows the organisation's underlying
and recurring earnings from its operations and is considered industry best practice for a REIT. This is determined by
adjusting statutory net profit (under IFRS) for certain non-cash and other items.

---

Distribution Notice
Name of issuer
Financial product name/description
NZX ticker code
ISIN
Full yearQuarterlyX
Half yearSpecial
DRP applies
Record date
Ex-date
Payment date (and allotment date for DRP)
Total monies associated with the distribution
1
Source of distribution
Currency
Gross distribution
2
Gross taxable amount
3
Supplementary distribution amount
X
If fully or partially imputed, please state imputation rate as %
applied
6
28.00%
Imputation tax credits per financial product
Resident Withholding Tax per financial product
DRP % discount
Start date and end date for determining market price for DRP
Date strike price to be announced (if not available at this
time)
Specify source of financial products to be issued under DRP
programme (new issue or to be bought on market)
DRP strike price per financial product
Last date to submit a participation notice for this distribution
in accordance with DRP participation terms
Name of person authorised to make this announcement
Contact person for this announcement
Contact phone number
Contact email address
Date of release through MAP
3. "Gross taxable amount" is the gross distribution minus any excluded income.
5. The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is fully imputed the
imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute advice as to whether or not RWT needs to
be withheld.
$0.01033329
6. Calculated as (imputation credits/gross taxable amount) x 100. Fully imputed dividends will be 28% as a % rate applied.
Type of distribution
1. Continuous issuers should indicate that this is based on the number of units on issue at the date of the form
2. “Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product.
4. “Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT. This should include any
excluded amounts, where applicable to listed PIEs.
Section 2: Distribution amounts per financial product
$0.01864332
$0.00131294
Section 3: Imputation credits and Resident Withholding Tax
5
28/05/2020
27/05/2020
12/06/2020
$20,691,784
Section 1: Issuer information
Precinct Properties New Zealand Limited
Precinct Properties New Zealand Limited Shares
PCT
NZAPTE0001S3
Retained earnings
NZD
N/A
Is the distrbution imputed
Fully imputed
Partial imputation
No imputation
$0.00289332
N/A
Section 4: Distribution re-investment plan (if applicable)
N/A
N/AN/A
Total cash distribution
4
Total cash distribution
+64 21 111 8898
hello@precinct.co.nz
8/05/2020
N/A
N/A
N/A
Section 5: Authority for this announcement
Richard Hilder
Steph How
$0.01575000
Imputed component
Excluded component$0.00831003
$0.00743997