Precinct Properties NZ & Precinct Properties Investments Ltd

Overview

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

Precinct was originated as AMP NZ Office Trust, which was floated and listed on NZX under the symbol of APT since December 1997. In November 2010 it changed its legal structure from a unit trust into a corporate. The company name was changed to AMP NZ Office Limited (ANO) at the same time. In September 2012 the company's name was changed to Precinct Properties New Zealand Limited, with the ticker code PCT.

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.

Precinct’s investments and income that qualify for the purposes of Portfolio Investment Entity (PIE) status (such as long-term holding of commercial real estate assets) will mainly be undertaken by PPNZ and its subsidiaries, while investments and income that do not qualify for PIE status (such as management income and operational businesses) will mainly be undertaken by PPIL and its subsidiaries.

Performance

The following information was extracted from Precinct Properties New Zealand Limited's Full Year Results, released 27 August 2026:

FY26 RESULTS SUMMARY

Financial results

• Investment property funds from operations of $149.9 million (FY25: $150.3 million), up $1.9 million after adjusting for one-off items.

• Total comprehensive income after tax of negative $12.6 million (FY25: $3.1 million), including a negative fair value movement across Precinct’s properties of $109.7 million including inventories (FY25: $27.6 million negative fair value movement).

• Funds from operations (FFO) of 7.31 cps (FY25: 7.10 cps) (note 1).

• Net tangible assets (NTA) of $1.13 per stapled security (FY25: $1.21).

• Loan to value ratio of 29% on a pro forma basis (FY25: 41.6%) (note 2).

• FY26 full-year dividend of 6.75 cents per stapled security, reflecting a FFO payout ratio of 92%.

Operating performance

• Portfolio occupancy remained high at 97%, with weighted average lease term increased to 7.1 years (FY25: 6.0 years).

• Record year of leasing volume with transactions completed across 37,850 square metres of investment properties, achieving 9.9% growth on new office leases.

• Rent reviews delivered an average uplift of 3.3% across 156,090 square metres or more than 60% of the investment portfolio.

• Commercial Bay retail sales up 5.6% on prior year and nine new retailers introduced to the centre.

• Operations simplified with the exit of Commercial Bay Hospitality business and InterContinental Hotel sale completed.

Strategic execution

• Partnership with global institutional investor, GIC, expanded through the $205 million acquisition of ASB North Wharf in Wynyard Quarter.

• Established a new $600 million investment partnership for a 50% interest in the PwC Tower with PAG, a leading global investment firm and existing capital partner.

• Co-invested capital partnerships grown by approximately $800 million in the year.

• Total capital partnerships increased to $2.2 billion on a committed basis.

• More than $1 billion of capital management initiatives completed, including a $325 million equity raise, settlement of the InterContinental Auckland hotel sale, settlement of the 22 Stanley Street student accommodation partnership with Keppel, and the PwC Tower transaction.

• 55 Molesworth Street development completed, delivering a landmark Wellington office asset underpinned by a 21-year weighted average lease term anchored by the Ministry of Foreign Affairs and Trade (MFAT).

• Commenced construction at 256 Queen Street, taking total purpose-built student accommodation beds under construction to approximately 1,600 across two projects.