Quarterly Report June 2020

01
Precinct Quarterly Update
June 2020
Precinct Quarterly Update
Dear Shareholders,
Welcome to the June edition of
our quarterly update.
PwC Tower Commercial Bay, Auckland
Business continuity and outlook through COVID-19
During the quarter, we have all been presented with a number
of challenges as a result of the COVID-19 pandemic. Precinct
focused on our business continuity. This involved planning ahead
and adjusting our operations to operate safely under different
COVID-19 alert levels as the New Zealand Government
announced changes. Ensuring the right procedures and suitable
precautionary measures were in place to protect the health and
wellbeing of all our people, while restricting any negative
impacts on the business was a key priority. Like many landlords,
Precinct proactively engaged with its occupier base and
implemented a range of initiatives to support its occupiers during
this time.
While uncertainty within the economy remains, Precinct’s high
quality client base, high occupancy and long term weighted
average lease term gives us confidence of meeting our full year
dividend guidance. The Board would like to reaffirm Precinct’s
full year dividend of 6.30 cps. This represents a 5.0% year on year
increase in dividend to shareholders.
Precinct's FY20 annual results are scheduled for 13 August 2020.
Yours faithfully,
Craig Stobo, Independent Director and Chair
Dividend
Payment date12 June 2020
Excluded dividend per share0.831003 cents per share (cps)
Fully imputed dividend per share0.743997 cps
Cash dividend per share1.575 cps
Imputation credits0.289332 cps
Indicative dividend payment dates
4th Quarter 2020 financial year25 September 2020
1st Quarter 2021 financial year11 December 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 31 March 2020
Portfolio value
$2.9 billion
Overall occupancy98%
Weighted average lease term8.6 years
Market capitalisation$2.24 billion
Weighted average cap rate5.7%
Weighting to Auckland (by value)75%
Financial Summary
as at 31 March 2020
Year to date (Unaudited)
Dividends declared4.725 cps
Full year forecast dividend per share6.30 cps
Balance sheet
Unaudited
31 March 20
Audited
30 June 19
Total assets$3,217.8 m$2,893.4 m
Net equity$1964.9 m$1,954.9 m
Number of shares on issue1,313.8 m1,313.8 m
Net asset value per share$1.50$1.49
Bank covenant gearing27.2%22.4%
Shareholder returns
Shareholder returns
Total gross returnPrecinct (NZX: PCT)Listed Property
March quarter(6.2%)(20.4%)
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
Sales transaction update
During the quarter, we are pleased to have settled the sale of
Pastoral House in Wellington.

02
Precinct Quarterly Update
Precinct Quarterly Update (Continued)
Development projects update
Pleasingly construction re-commenced at Commercial Bay last
month following the closure of construction sites in March 2020 as
a result of being placed in COVID-19 Alert Level 4 by the New
Zealand Government. The closure of the construction site
inevitably resulted in delays to the completion of Commercial
Bay. Completion is now targeted for June 2020. While it is
anticipated that there will be an increase in the total project
cost due to impacts associated with COVID-19 including support
for retailers, the total increase which is not yet known is not
expected to materially affect the project’s return metrics.
Following a recent review of future development projects,
Precinct advised in May 2020 that the One Queen Street
redevelopment project in Auckland will be deferred. The 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.
Construction also re-commenced at 10 Madden Street last
month. Construction is progressing well and despite the impacts
of COVID-19, the programme for completion remains 2020.
Lease expiry profile by office NLA
Financial year
% of net lettable area
AucklandWellington
Vacant
20
21
22
23
24
>24
0
20
40
60
80
Quality delivers earnings security
While the long-term impacts of COVID-19 continue to evolve at
both a local and global level, we have been able to restrict the
negative impacts on our business. This reflects the high quality of
our assets and the high quality clients we attract and retain
within our portfolio. Successfully executing our long-term strategy
in recent years has ensured Precinct remains in a strong position
and is able to be confident of meeting its full year dividend
guidance. Precinct’s earnings security is underpinned by the
stable and secure income our portfolio generates. Our
investment portfolio metrics include a high occupancy level of
98% and a weighted average lease term of around 9 years
which illustrates the average remaining term for all leases to
expire in the portfolio. Precinct also benefits from its structured
leases. The portfolio is under-rented by 5.2%.
Precinct has a high quality client base with around 50% of all
office revenue considered investment grade having a credit
rating of AA- or higher and around one third of Precinct’s
revenue is generated from Government/Crown entities providing
a high level of income certainty. As a result, Precinct was able to
receive the majority of its rent which was due over the last two
months while also being able to support those occupiers who
needed assistance.
Precinct occupier credit ratings by office revenue
AA credit rating
AAA credit rating
AA- credit rating
A credit rating
NR (No rating)
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
judgement 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.
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