Precinct Properties NZ Ltd & Precinct Properties Investments (PCT) H2 2025 earnings summary

Executive summary

• Achieved strong operational performance with investment portfolio occupancy at 97% and a weighted average lease term of 6.0 years, driven by premium office market outperformance.

• Advanced capital management by refinancing over $500 million of debt, recycling $200 million from asset sales, and executing major capital partnerships.

• Commenced New Zealand's largest purpose-built student accommodation project and launched the Pillars luxury residential project in Auckland.

• Maintained focus on capital partnerships, targeting up to 20% of the balance sheet and $4-5 billion in partnerships over the medium term.

• Confirmed FY26 dividend guidance of 6.75cps, reflecting a stable payout policy.

Financial highlights

• Comprehensive income after tax was $3.1 million, a turnaround from a $30 million loss last year, mainly due to lower fair value losses.

• FFO from the investment portfolio rose 3.7% to $150.3 million; operating profit before indirect expenses increased 1.2% to $152.3 million.

• Net profit after tax attributable to equity holders was $11.0 million, up from a loss of $22.1 million last year.

• Commercial Bay retail FFO up 8.3%, occupancy at 97%, and moving annual turnover up 3.7%.

• Net tangible assets per security at $1.21, down $0.08 year-over-year.

Outlook and guidance

• FY26 funds from operations forecast at $7.5 per share, with a dividend payout ratio of 90%.

• Dividend for the next 12 months maintained at $6.75 per share, reflecting confidence in strategy and market conditions.

• Positive near-term outlook underpinned by economic recovery, lower interest rates, and completed developments.

• Premium office market expected to remain strong, with constrained supply and continued outperformance.

• Targeting $4-5 billion in capital partnerships over the medium term.