Precinct Properties NZ Ltd & Precinct Properties Investments (PCT) H1 2026 earnings summary

Executive summary

• Portfolio occupancy remained high at 97% with a weighted average lease term of 6.1 years, supported by over 25,000 sqm of new leasing, particularly in Auckland offices.

• Funds from operations for the investment portfolio reached $69.2 million, up 1.8% year-over-year after adjusting for one-off income.

• Major capital initiatives included a $325 million equity raise, significant property sales, and the acquisition of ASB North Wharf in partnership with GIC.

• Dividend guidance for FY26 is maintained at 6.75 cps, with FFO guidance at 7.30–7.50 cps.

• Net profit after tax attributable to equity holders was $2.9 million, down from $9.2 million in the prior period.

Financial highlights

• Net tangible assets per share decreased to $1.18 from $1.21 as of June 2025.

• Total comprehensive income after tax was down $3.2 million year-over-year, mainly due to valuation movements.

• FFO per share was 3.18 cps, down from 3.47 cps year-over-year; AFFO per share was 2.76 cps, down from 3.23 cps.

• Dividend payout ratio to FFO increased to 106% for the half-year.

• Net interest expense fell by $4.1 million due to higher capitalised interest and proceeds from the equity raise.

Outlook and guidance

• Full-year FFO guidance remains at 7.30–7.50 cps, with dividend guidance at 6.75 cps and payout ratio expected at 90–92%.

• Near-term earnings outlook is supported by lower funding costs, new asset completions, and student accommodation profits.

• Target of $4–5 billion in capital partnerships over the next 3–5 years remains on track.

• Updated IRD binding ruling extends tax certainty for stapled structure through November 2030.