Superior performance. Chairman’s report.
Precinct’s strong performance in the 2019 financial year has been underpinned by another active period for our business. We have advanced key initiatives while maintaining a strong balance sheet through our conservative approach to capital management.
Craig Stobo, Precinct Chairman
A high quality investment and development portfolio has delivered a portfolio revaluation gain of $161.7 million or 6.1% for the period.
This has resulted in total comprehensive income after tax of $190.1 million. In line with guidance, net operating income increased to
$79.4 million or 6.37 cents per share (cps), up 3.7%. Full year dividend to shareholders is 6.00 cps, representing a 3.4% increase.
Our business is in a fortunate position of being able to help shape the cities that we are invested in. We are committed to the long term prosperity of both Auckland and Wellington city centres.
Total comprehensive income after tax
Increase in dividend YoY
Strategic execution drives PCT annual results.
Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) reported its financial results for the 12 months ended 30 June 2019 today. A strong revaluation gain contributed to total comprehensive income after tax of $190.1 million. This compares with $254.9 million last year, with the difference mainly attributable to the movement in financial instruments and the prior period revaluation gain.
Net operating income, which adjusts for a number of non-cash items, was up 3.7% to $79.4 million (June 2018: $76.6 million) or 6.37 cps. Net operating income before performance fees were 6.62 cps, in line with guidance.
Dividends paid and attributed to the 2019 financial year totalled 6.00 cps and reflected a year on year increase of 3.4%. Importantly the dividend matched Adjusted Funds From Operations (AFFO) for the year of 6.02 cps. This is consistent with Precinct's intention to transition towards paying out approximately 100% of AFFO as dividends.
Gross rental revenue was $135.8 million, 3.9% higher than the previous year (June 2018: $130.7 million). This increase was primarily due to the acquisition in February of the remaining 50% interest in Generator. After allowing for Generator, the sale of a 50% interest in the ANZ Centre, the completion of Bowen Campus Stage One and other transactions, like for like gross rental income was 3.8% higher than the previous period. After adjusting for development projects and sales, like for like NPI growth was 3.9% higher than the previous comparable period. The Auckland portfolio saw an increase of 6.1%, while Wellington was flat.
As at 30 June 2019 Precinct’s portfolio totalled $2.8 billion (2018: $2.5 billion), with Precinct’s NAV per share at balance date increasing 6.4% to $1.49 (2018: $1.40). The increase in NAV is due to the revaluation gain and is partly offset by the fair value loss in financial instruments.Read the full announcement
FY19 Results Webcast.
Friday, August 16, 2019, 10:00am NZT