Quarterly Report June 2022

01
Precinct Quarterly Update
June 2022
Precinct Quarterly Update
Welcome to the June edition of
our quarterly update.
Establishment of new strategic investment partnership
Earlier this year in February 2022, Precinct announced the
conditional establishment of a new strategic investment
partnership with Singapore sovereign wealth fund GIC. The
partnership will initially acquire five assets from Precinct’s existing
portfolio totalling around $590 million, comprising 3 Wellington
and 2 Auckland assets, with the ability to grow to around
$1.0 billion. Precinct will own a minority 24.9% interest in the
partnership.
Establishing a new collaborative and committed partnership with
a global investor of this scale and quality represents a strategic
step forward for our business, following the internalisation of
Precinct last year. The partnership with GIC provides access to
capital with an aligned partner and fully supports the execution
of Precinct’s future growth. This strategic decision to establish this
platform increases Precinct’s liquidity and strengthens its
balance sheet, provides diversification of capital sources and is
expected to enhance earnings to deliver further long-term value
to Precinct’s shareholders.
Outlook
Our business has continued to advance over the last 6 months
and we are focused on the next stage in Precinct’s strategic
evolution.
Precinct will continue to leverage the quality and resilience of its
portfolio and its people. Our strategy is evolving and while we
remain committed to owning a high quality portfolio of city
centre assets, we recognise that through the use of third party
capital, we are able to further extend our participation in
opportunities and drive higher returns from our capital.
Consistent with earlier guidance provided, the Board expects no
change to Precinct’s full year FY22 dividend of 6.70 cps to be
paid, representing a 3.1% year-on-year growth in total cash
dividends to shareholders.
Yours faithfully,
Craig Stobo, Independent Director and Chair
Dividend
Payment date10 June 2022
Excluded dividend per share1.675 cents per share (cps)
Fully imputed dividend per share0 cps
Cash dividend per share1.675 cps
Imputation credits0 cps
Indicative dividend payment dates
4th Quarter 2022 financial year23 September 2022
1st Quarter 2023 financial year16 December 2022
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 2022
Portfolio value
$3.1 billion
Overall occupancy98%
Weighted average lease term7.3 years
Market capitalisation$2.5 billion
Weighted average cap rate4.9%
Weighting to Auckland (by value)71%
Financial Summary
as at 31 March 2022
Year to date (Unaudited)
Dividends declared5.025 cps
Full year forecast dividend per share6.70 cps
Balance sheet
Unaudited
31 March 22
Audited
30 June 21
Total assets$3,751.8 m$3,456.4 m
Net equity$2,424.4 m$2,220.6 m
Number of shares on issue1,585.4 m1,458.5 m
Net asset value per share$1.53$1.52
Bank covenant gearing32.6%28.2%
Shareholder returns
Shareholder returns
March Quarter1 Yr3 Yr5 Yr
Precinct (NZX: PCT)
(5.0%)0.4%12.8%57.1%
Listed Property
(6.2%)0.8%21.9%61.7%
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
FY22 Annual Results
Precinct’s FY22 annual results are scheduled to be announced
on 18 August 2022.

02
Precinct Quarterly Update
Precinct Quarterly Update (Continued)
Wynyard Quarter Stage 3 commenced
At the end of 2021, Precinct announced the commencement of
the development of 124 Halsey Street and the Flowers Building,
which is the third stage of the master-planned Wynyard Quarter
Innovation Precinct. The project has an expected total project
cost of around $157 million and will generate a yield on cost of
circa 5.75% once the building is fully leased.
Investment in sustainable design continues to follow the market-
leading sustainability outcomes achieved in delivering net
positive environmental, social and economic value from the
developments completed at the innovation precinct to date.
The buildings are targeting 6-star Green Star and 5-star NABERSNZ
ratings on completion. The design for Wynyard Quarter Stage 3
showcases the latest in sustainable timber construction
innovation, a first for Precinct’s development projects with the
Flowers Building featuring a timber-frame structure. The overall
development will be carbon neutral, with the remaining CO2
emissions unable to be eliminated in design offset through
carbon credits.
The development will be undertaken by Precinct in partnership
with Eke Panuku Development Auckland. Market leading
construction firm, Hawkins have been appointed the main
contractor for this development which is expected to complete
in late 2024.
Artist’s impression of the Flowers Building at
Wynyard Quarter Stage 3, Auckland
Environmental, Social and Governance (ESG)
Our business continues to make good progress across our ESG
performance. Precinct have undertaken a comprehensive ESG
review including a pathway for improvement and review of our
current targets. We look forward to sharing more with you in our
upcoming Annual Report.
Precinct retail green bond
Following a successful bookbuild process, Precinct issued six year
secured, fixed rate $175 million of Green Bonds (including
oversubscriptions of $50 million) in May 2022. 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 this offer are intended to be earmarked in
accordance with Precinct’s Sustainable Debt Framework dated
2020 to finance or refinance energy efficient buildings.
New bank debt facilty secured
Precinct secured a new $300 million bank debt facility in
December 2021. The new facility is for a term of 5 years and
provides sufficient funding capacity to deliver the first phase of
the development commitment of Wynyard Stage 3 and also
refinance the $75 million senior secured fixed rate bonds
(PCT010) which matured on 17 December 2021.
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