Precinct delivers solid profit of $39.1 million and progresses developments
Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) reported its six-month results to 31 December 2016 today, with a net profit after tax (NPAT) of $39.1 million. This compared with $34.8 million for the same period last year, with the increase mainly attributable to lower interest and tax expense, and a fair value gain in financial instruments. Net operating income, which adjusts for a number of non-cash items, increased $3.1 million to $38.8 million (31 December 2015: $35.7 million) or 3.20 cents per share.
Scott Pritchard, Precinct’s CEO, said we achieved a number of milestones across our business and have significantly advanced our long term strategy.
“We committed to and commenced works at Bowen Campus in Wellington, progressed works at Commercial Bay including the demolition of the old shopping centre, enjoyed leasing success at Commercial Bay and completed the Mason Brothers building at Wynyard Quarter Stage One.”
“The completion of the Mason Brothers Building is a major milestone for the business as it is the first project to be completed and sees Precinct begin to transform its portfolio,” he said.
Leasing momentum at Commercial Bay continues. Global law firm DLA Piper committed to 2,700 square metres within the new tower taking office pre-leasing, by income, to 64%. “Importantly this commitment comes from outside the portfolio and illustrates the attraction of this CBD waterfront precinct.” Scott Pritchard, Precinct’s CEO, said.
In December the agreement to acquire Queen Elizabeth Square from Auckland Council became unconditional. The land is now formally incorporated into the Commercial Bay retail development due to open in late 2018. This provides certainty to allow the retail leasing programme to advance responding to significant interest from retailers.
In addition to these milestones, Precinct can today announce the conditional acquisition of a 50% interest in Generator. Generator, established in 2011, operates 3,000 square meters of co-working space over three sites within the Britomart precinct in Auckland’s CBD.
“Generator is well aligned with Precinct’s values and its strategy of being a city centre specialist. It has a strong management team and offers the opportunity to enhance the amenity and service levels that Precinct can offer its clients. It will also enable Precinct to expand its traditional client base with smaller businesses, helping to grow occupancy and demand,” he said.
Read the full announcement here