Focused Strategy. Chairman’s report.
The 2018 financial year has been both an active and defining period for Precinct. Significant progress has been made on our major initiatives and we have seen the business take substantial steps forward.
Craig Stobo, Precinct Chairman
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, increasing the value of Precinct’s portfolio to around $2.5 billion.
This has contributed to a net profit after tax of $254.9 million, up 57.2%. Net operating income also increased by 2.5% to $76.6 million or 6.32 cents per share (cps). This was in line with guidance. Full year dividend to shareholders was 5.80 cps, representing a 3.6% increase. We are pleased with our strong result this year and the performance achieved across our business. On behalf of the Board of Precinct, we are pleased to present investors with our 2018 Annual Report.
"FY18 has been a period of intense focus on delivery of our major development projects. We are committed to ensuring their successful completion."
As we continue to focus on our long-term strategy as city centre specialists, we are particularly pleased with the strong position we are in. Our FY18 results reflect continued growth in earnings as well as the targeted lift in portfolio quality being achieved.
The Board continually focuses on Precinct's strategy, while monitoring risk and applying sound capital management. Focusing on a number of capital management initiatives during the year has resulted in a total of $250 million of capital raised through the completion of a convertible notes offer and a bond issue. We believe these initiatives are well suited to Precinct’s strategy and provides the necessary available capital to match our development commitments.
The recent post balance date refinancing of Precinct's $760 million bank debt facility in July 2018 further supports our committed developments by providing sufficient funding capacity to deliver these projects.
Precinct has circa $300 million of development spend remaining. With a number of development milestones reached during the year, the Board is very pleased with the progress achieved to date on each of our projects.
Net profit after tax
Non bank funding secured
Increase in dividend YoY
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
FY18 Results Webcast
Thursday, August 16, 2018, 10:00am NZT