PCT delivers strong profit result and launches One Queen Street
Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) reported its financial results for the 12 months ended 30 June 2018 today, with net profit after tax (NPAT) up 57.2% to $254.9 million (2017: $162.1 million). The quality of Precinct’s portfolio including its active development pipeline has resulted in a significant portfolio revaluation gain of $208.7 million or 9.0% for the period. This has contributed to our increase in NPAT this year.
Net operating income (distributable earnings) which adjusts for a number of non-cash items has also increased by 2.5% to $76.6 million over the period (2017: $74.7 million). On a cents per share (cps) basis, this equates to 6.32 cps and was in line with guidance (2017: 6.17 cps).
Revenue growth of 3.6% was primarily due to the completion of Wynyard Quarter Stage One which was partially offset by foregone income related to development activity and 10 Brandon Street. After allowing for these transactions and activity, on a like for like basis gross rental income was 3.7% higher than the previous period. This growth has driven an uplift in NPI by 5.4% to $95.3 million (2017: $90.4 million).
As at 30 June 2018, Precinct’s portfolio value increased to around $2.5 billion following the strong revaluation gain during the period. Precinct’s NTA per share was up 12.9% to $1.40 (2017: $1.24).
Read the full announcement here