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

Executive summary

• Portfolio occupancy remained high at 97% as of December 2025, with a weighted average lease term of 6.1 years, and strong leasing momentum in Auckland offices underpinning 25,001 sqm of leasing completed.

• Funds from Operations (FFO) for the investment portfolio reached $69.2 million, up 1.8% year-over-year after adjusting for one-off income, while operating profit before income tax was stable at $45.1 million.

• Major equity raises totaling up to $325 million were completed, supporting debt repayment and future growth initiatives, with pro forma gearing at 33.7%.

• 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 $2.9M, down from $9.2M 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 attributable to equity holders was down $3.2 million year-over-year, mainly due to valuation movements.

• FFO per weighted security was 3.18 cps (down from 3.47 cps), and AFFO per weighted security 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, supported by new rent commencements, student accommodation profits, and management fee income.

• Dividend payout ratio for the full year is expected to be between 90% and 92% of FFO.

• Near-term earnings outlook is buoyed by lower funding costs, growth in capital partnerships, and income from completed developments.

• Equity raise intended to fund growth strategy, including new developments and flexibility for future opportunities.

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