Preliminary FY23 valuation movement

Precinct Auckland Head Office Wellington Office
E hello@precinct.co.nz Level 12, 188 Quay Street, Auckland 1010 T 0800 400 599 Generator, 30 Waring Taylor Street, 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 – 7 July 2023

Preliminary FY23 valuation movement

Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) today reported a draft
revaluation loss on its property portfolio of approximately $250 million, a decrease of 7.1%
(2022: $19 million gain). The forecast valuation movement will decrease the value of Precinct’s
portfolio to around $3.2 billion at 30 June 2023 and is expected to reduce net tangible assets
by 16 cents per share.
Draft asset valuations at 30 June 2023 were undertaken by independent valuers, are subject
to final audit, finalisation of year end book values and will be confirmed in the financial results
for the year ending 30 June 2023, expected to be announced on 23 August 2023.
On a like for like basis, asset valuations decreased by around 8.6% and 5.3% in Auckland and
Wellington respectively, compared with 30 June 2023 forecast book values. The decrease
across the property portfolio was mainly attributable to an expansion in capitalisation rates.
Scott Pritchard, Precinct’s Chief Executive, said, “We have continued to see the rising interest
rate environment place increasing pressure on investment returns and impact property
valuations across all real estate sectors. For Precinct, this has resulted in a forecast $250 million
reduction in Precinct’s property assets for the full year.”
“While property valuations are being impacted by expanding capitalisation rates, we
continue to observe significant demand for Precinct’s assets and our view is that premium-
grade real estate will continue to outperform. Precinct’s portfolio is benefiting from strong
market rental growth being achieved across our leasing transactions which has partially offset
the impact of the capitalisation rate expansion on our asset valuations.”
The weighted average capitalisation rate of Precinct’s portfolio is forecast to be 5.6%,
compared to 4.9% at 30 June 2022.

Ends

Precinct Auckland Head Office Wellington Office
E hello@precinct.co.nz Level 12, 188 Quay Street, Auckland 1010 T 0800 400 599 Generator, 30 Waring Taylor Street, 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 further information, please contact:
Scott Pritchard
Chief Executive Officer
Mobile: +64 21 431 581
Email: scott.pritchard@precinct.co.nz

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

About Precinct (PCT)
Listed on the NZX Main Board under the ticker code PCT and ranked in the NZX top 30, Precinct
is the largest owner, manager and developer of premium inner-city real estate in Auckland
and Wellington. Precinct is predominantly invested in office buildings and also includes
investment in Generator, Commercial Bay retail, third party capital partnerships, and a multi-
unit residential development business. For information visit: www.precinct.co.nz
On 1 July 2023, Precinct effected a restructuring to create a stapled group structure. A stapled
group comprises two listed parent companies whose shares are held by the same shareholders
in equal proportions. The shares in each parent company can only be transferred or dealt with
together.
Shareholders in Precinct Properties Group (“Precinct”) hold an equal number of shares in
Precinct Properties New Zealand Limited (“PPNZ”) and Precinct Properties Investments Limited
(“PPIL”) and these shares can only be dealt with together. The stapled issuers are described as
“Precinct Properties NZ Ltd & Precinct Properties Investments Ltd (NS)” on NZX systems and the
ticker code for the stapled shares remains PCT.