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 over 25,000 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%.

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

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

Financial highlights

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

• Total comprehensive income after tax was $3.2 million lower than the prior period, 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).

• Earnings from the investment portfolio declined 4.8% to $69.2 million; underlying earnings up 1.8% after adjustments.

• Dividends paid totaled $58.0 million for the period, with a payout ratio to FFO at 106% for the half-year.

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.

• Second half FFO expected to be materially higher, driven by contributions from new developments and settlements.

• 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.