Quarterly Report December 2020

01
Precinct Quarterly Update
December 2020
Precinct Quarterly Update
Dear Shareholders,
Welcome to the December
edition of our quarterly update.
Commercial Bay, Auckland
Annual General Meeting (AGM)
The AGM of shareholders was held at our Generator Commercial
Bay Meeting & Event Suites on 17 November 2020. This year we
adopted a hybrid meeting. So, in addition to the in-person
meeting, shareholders, proxies and guests were able to attend
the meeting online via a live webcast. Voting was conducted by
poll and shareholders passed all three resolutions.
Any feedback from shareholders is welcome in advance of our
2021 AGM.
Outlook
While there is a high level of uncertainty within the New Zealand
economy, Precinct remains confident in its strategy, supported
by high occupancy levels, a long weighted average lease term
and high quality clients, will continue to deliver returns for
shareholders and reaffirms its dividend guidance of 6.50 cps for
FY21. This represents an increase of 3.2% over the FY20 period.
On behalf of my Board colleagues, Management and wider
Precinct team, I would like to thank you for your continued
investment in Precinct during what can only be described as an
extraordinary year. Merry Christmas and wishing you all a happy
and safe new year.
Yours faithfully,
Craig Stobo, Independent Director and Chair
Dividend
Payment date10 December 2020
Excluded dividend per share1.616712 cents per share (cps)
Fully imputed dividend per share0.008288 cps
Cash dividend per share1.625 cps
Imputation credits0.003223 cps
Indicative dividend payment dates
2nd Quarter 2021 financial year26 March 2021
3rd Quarter 2021 financial year11June 2021
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 2020
Portfolio value
$3.0 billion
Overall occupancy98%
Weighted average lease term8.0 years
Market capitalisation$2.22 billion
Weighted average cap rate5.3%
Weighting to Auckland (by value)73%
Financial Summary
as at 30 September 2020
Year to date (Unaudited)
Dividends declared1.625 cps
Full year forecast dividend per share6.50 cps
Balance sheet
Unaudited
30 Sept 20
Audited
30 June 20
Total assets$3,220.8 m$3,185.2 m
Net equity$1,893.7 m$1,908.4 m
Number of shares on issue1,313.8 m1,313.8 m
Net asset value per share$1.44$1.45
Bank covenant gearing29.6%28.8%
Shareholder returns
Shareholder returns
Total gross returnPrecinct (NZX: PCT)Listed Property
September quarter8.6%13.3%
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
2020 Interim Results
Precinct’s 2020 interim results are scheduled to be announced
on the 25th February 2021.

02
Precinct Quarterly Update
Precinct Quarterly Update (Continued)
44 Bowen Street
During the quarter, we are pleased to have announced our
commitment to 44 Bowen Street, the second office building of
the Bowen Campus Stage Two development in Wellington. The
project will be undertaken on a pre-committed basis with leasing
to KPMG secured across two floors or 25% of office space on a
15-year term. Taking into account the existing pre-commitments
from EY, Fujitsu, and Generator at 40 Bowen Street, the
aggregate pre-commit across Bowen Campus Stage 2 totals
10,000 sqm, around 50% of the combined office space.
44 Bowen Street will occupy the western portion of the site on
land formerly occupied by the Charles Fergusson Annex building
which was demolished during the redevelopment of Bowen
Campus Stage 1. The new building will provide for eight levels of
office accommodation totalling approximately 11,549 sqm of
office NLA including the ground floor. Including 40 Bowen Street,
the development provides a total of around 21,000 sqm of office
space. In addition to office accommodation, both buildings will
provide a small amount of retail/F&B as well as storage, end of
trip facilities and bike parks. Both buildings will be 5 Star Green
Star rated and will share a common entrance lobby and
basement facilities including carparking. The total project cost
for 40 & 44 Bowen Street is expected to be around $195m and is
expected to yield 6.6% once fully leased.
Bowen Campus Stage 2 Render
Sustainability at Precinct
As a business, we continue to make good progress across our
sustainability efforts. Most recently, this includes our 2020 GRESB
score. Precinct achieved a benchmark score of 83. Pleasingly,
our result was again above the global average which was 70 this
year and we are now inline with our NZ/AUS peers. The Australia
and New Zealand real estate sector continue to lead globally in
Environmental, Social and Governance (ESG) performance.
GRESB is considered the global standard for ESG benchmarking
and reporting for real estate and remains our core ESG indices
performance benchmark.
Another area of focus has been on the risks and opportunities
presented by climate change. By partnering with Toitū
Envirocare, Precinct has verified our carbon footprint and as a
result received Toitū carbonzero certification. This means we
have been able to accurately measure our greenhouse gas
emissions and put in place strategies to manage and reduce
impacts. We are also reducing the portfolios carbon intensity.
Our goal is to ensure all our office buildings have a minimum
NABERSNZ rating greater than 3. Currently five buildings in
Precinct’s investment portfolio have a certified NABERSNZ
building energy efficiency rating of 3.5 star or above.
We continue to strive to improve our reporting and reduce our
emissions further. We have submitted to the Carbon Disclosure
Product (CDP) and have now published our own Climate related
Financial Disclosures document. This document identifies
Precinct's risks related to both physical climate impacts and
transitional climate impacts resulting from the transition to a low
carbon economy based on the TCFD (or Task Force on Climate-
related Financial Disclosures) recommendations. This can be
found on the Precinct website under our sustainability section.
A comprehensive response to all Precinct’s ESG factors material
to our business can be found in Precinct’s 2020 annual report.
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