Quarterly Report June 2021

01
Precinct Quarterly Update
June 2021
Precinct Quarterly Update
Welcome to the June edition of
our quarterly update.
Level 2 at Commercial Bay, Auckland
Precinct Internalisation Agreement
In March 2021, the Independent Directors of Precinct reached
an agreement with the Manager, AMP Haumi Management
Limited, to terminate the Management Services Agreement and
internalise the management of Precinct. The internalisation is
expected to provide significant benefits to Precinct and its
shareholders. We expect cost savings from the transaction of
$14.6 million per annum and 6.0% accretive to adjusted funds
from operations per share on a pro forma basis. As the
Independent Directors needed to act quickly and with certainty
given competing interest, and to ensure Precinct was able to
secure all the benefits of internalising management, an NZX
waiver was obtained so that the transaction did not require a
shareholder vote. Importantly, Precinct has retained key
management personnel.
We are committed to the long-term success of Precinct. We
believe internalising the management of Precinct positions our
business to deliver on the next phase of its strategy. The Board
would like to reaffirm Precinct’s full year dividend of 6.50 cps. This
represents a 3.2% year on year increase in dividend to
shareholders.
Precinct's FY21 annual results are scheduled for 12 August 2021.
Yours faithfully,
Craig Stobo, Independent Director and Chair
Dividend
Payment date11 June 2021
Excluded dividend per share1.625 cents per share (cps)
Fully imputed dividend per share0 cps
Cash dividend per share1.625 cps
Imputation credits0 cps
Indicative dividend payment dates
4th Quarter 2021 financial year24 September 2021
1st Quarter 2022 financial year10 December 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 31 March 2021
Portfolio value
$3.1 billion
Overall occupancy98%
Weighted average lease term7.6 years
Market capitalisation$2.1 billion
Weighted average cap rate4.9%
Weighting to Auckland (by value)74%
Financial Summary
as at 31 March 2021
Year to date (Unaudited)
Dividends declared4.875 cps
Full year forecast dividend per share6.50 cps
Balance sheet
Unaudited
31 March 21
Audited
30 June 20
Total assets$3,423.9 m$3,185.2 m
Net equity$1,834.7 m$1,908.4 m
Number of shares on issue1,313.8 m1,313.8 m
Net asset value per share$1.40$1.45
Bank covenant gearing37.5%28.8%
Shareholder returns
Shareholder returns
March Quarter1 Yr3 Yr5 Yr
Precinct (NZX: PCT)
6.8%(0.6%)42.7%58.9%
Listed Property
17.8%25.6%49.9%58.8%
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 for
the remaining 50% interest in the ANZ Centre in Auckland.

02
Precinct Quarterly Update
Precinct Quarterly Update (Continued)
Construction start on One Queen Street
We are very excited to have announced that following
completion of a comprehensive re-design, construction of the
One Queen Street redevelopment has now commenced.
Building on the success of Commercial Bay since opening almost
one year ago, this second stage will comprise a luxury hotel,
premium office accommodation and a variety of unique food
and beverage options. Importantly, the revised scheme remains
fully integrated into the Commercial Bay retail precinct.
One Queen Street occupies one of the most prominent positions
within Auckland’s city centre so ensuring the building is
contributing to the city centre and to Commercial Bay has been
a priority for Precinct.
Construction will be undertaken by LT McGuinness on a fixed
price contract with completion due in late 2023. The total project
cost is expected to be around $305 million with an expected
yield on cost of 6.2% once complete.
Bowen Campus
Precinct has secured a 12 year term lease with Waka Kotahi NZ
Transport Agency who will occupy 6 contiguous floors across the
ground and levels 1 to 5, totalling 8,660 sqm of space at 44
Bowen Street in Wellington. We are delighted to have secured
such a high quality large occupier like Waka Kotahi NZ Transport
Agency into Precinct’s Wellington portfolio. Precinct committed
to the 44 Bowen Street project on a pre-committed basis with
leasing to KPMG secured at the end of last year. With Waka
Kotahi NZ Transport Agency secured the building will now be
100% leased.
Construction at both buildings at the Bowen Campus Stage Two
development continue to advance well, tracking to programme
and on budget. Practical completion of 40 Bowen and 44
Bowen Street is expected in September 2022 and May 2023,
respectively.
Carbon Performance
With a goal to create
sustainable value through city
centre real estate, Precinct
recognises the importance of
working together with Carbon
Disclosure Project (CDP), a
not-for-profit charity that runs the global disclosure system for
investors, companies, cities, states and regions to manage their
environmental impacts. Each year CDP supports thousands of
companies to measure and manage their risks and opportunities
on climate change, water security and deforestation. CDP’s
climate questionnaires are fully aligned with the TCFD (or Task
Force on Climate related Financial Disclosures)
recommendations. We are pleased to update investors and
share that Precinct has received a B- for 2020, higher than both
the Oceania regional and Global average of C. Looking
forward, we hope to improve on our current score towards
environmental leadership.
Green Bond
In May 2021, Precinct successfully issued a six year secured, fixed
rate green bond offer of NZ$150 million. This includes
oversubscriptions of $50 million to institutional investors and New
Zealand retail investors. There was no public pool for the offer,
with all the Green Bonds reserved for clients of the Joint Lead
Managers, NZX participants and other approved financial
intermediaries. The net proceeds of the offer are intended to be
earmarked in accordance with Precinct’s Sustainable Debt
Framework dated 2020 to finance or refinance energy efficient
buildings.
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 Precinct Properties
Holdings 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