Frequently asked questions

  • Could you please explain if you are still a REIT from both a classification and tax perspective?

    Precinct is generally considered to be a REIT by REIT only investors and by MSCI and S&P .

    New Zealand does not have specific REIT legislation unlike many other jurisdictions, however qualifying real estate investment entities have the benefits of the tax benefits available to investors under the Portfolio Investment Entity (“PIE”) regime. Precinct is a listed PIE and therefore the 2010 change in structure from a unit trust to a company should not change Precincts status as a REIT.

    New Zealand shareholders benefit from the tax deductions of the company and will have no further tax to pay on their dividends. A component of dividends is excluded income for tax purposes and the balance is imputed at the company tax rate of 28%.

    Under the Global Industry Classification Standard (GICS) Precinct is also defined as an Office REIT with a GIC of 60101040. (Equity Real Estate Investment Trusts 601010).

    To read more about the GICS: Click here

  • Do Precinct's dividends carry imputation credits?

    Yes. Under the PIE regime, New Zealand shareholders benefit from the tax deductions of the company and will have no further tax to pay on their dividends. A component of dividends is excluded income for tax purposes and the balance is imputed at the company tax rate of 28%.

    For more information on your dividends and on the imputation credits you have received contact Computershare on 09 488-8700. Email: [email protected]

  • What is Precinct's dividend policy?

    The Board reviewed the dividend policy in 2011 and concluded that Precinct’s dividends in future should match the cash flow generated by operations, after taking into account recurring capital expenditure. This equates to a payout ratio of around 90% of annual distributable income, with retained earnings funding recurring capital expenditure at their expected long term average levels.

    The board considers this revised dividend policy represents a more sustainable approach to maximising long term returns for Precinct’s shareholders.

  • Can you explain what a supplementary dividend is?

    A supplementary dividend is paid to non-resident shareholders to offset the amount of non-resident withholding tax (“NRWT”) that New Zealand companies are required to deduct from dividends paid to non-resident shareholders. A supplementary dividend is paid to ensure equitable treatment between non-resident shareholders and resident shareholders (whose dividends are not subject to NRWT).

    There’s no disadvantage to Precinct or our shareholders, and non-resident shareholders don’t get a larger cash dividend than an equivalent New Zealand resident shareholder.

    We recommend that you seek professional tax advice on your own situation should you require more information.

  • Does Precinct have a dividend reinvestment scheme?

    Currently there is no dividend reinvestment plan.

  • Could you explain how imputation credits work under PIE?

    In general under the PIE regime, any dividend received by investors in Precinct will be excluded income provided the shareholder is a natural person who is a New Zealand resident. Therefore investors can elect not to include the dividend in their tax return.

    All New Zealand resident shareholders should seek independent advice if they have any queries regarding the tax treatment of their dividends.

    Precinct is not a tax advisor and makes no warranties or representations in respect of this tax advice.

  • How can I invest?

    We are a listed company and as such our shares trade on the NZ stock exchange. You can invest with us through your share broker or alternatively your bank may well provide a share trading service. Typically the difference will be that a share broker can advise you on the investment whereas the bank service is purely to execute your instructions.

    Noted below are a selection of New Zealand share brokers and banks that provide share trading services.

    Share brokers:
    Craigs Investment Partnership
    Forsyth Barr
    First NZ Capital

    Retail Banks:
    ASB Securities
    ANZ Bank

    Please be aware that we are not financial advisers and we recommend that you should contact a financial adviser before making investment decisions.

  • What are the contact details of the Registrar?

    Computershare Investor Services Limited
    Level 2, 159 Hurstmere Road
    Takapuna, Auckland
    Private Bag 92119
    Auckland 1142

    Tel: +64 9 488-8777
    Fax: +64 9 488-8787
    Email: [email protected]
    Website: www.computershare.co.nz

  • Can someone point me to information on how investment in Precinct by non-NZ residents is taxed?

    Dividends paid by Precinct comprise cash and imputation credits. In effect, non-resident investors' net position is that they receive the cash component of the dividend as their NZ tax paid return. They will then be subject to whatever tax applies in their country of residence.

    For non-resident investors non-resident withholding tax ("NRWT") is deducted and a supplementary dividend is paid. However these two amounts are equal and cancel each other out resulting in the non-resident investor receiving the cash portion of the dividend.

    Precinct is not a tax advisor and makes no warranties or representations in respect of this tax advice.

  • When are dividends paid?

    Precinct has a 30 June year end with dividends being paid quarterly and within three months of each quarter end. Typically dividends are paid in the months of September, November, March and May.

  • Do I need to provide Precinct my Prescribed Investor Rate (PIR)?

    Precinct does not require investors to provide their PIR due to Precinct being a listed Portfolio Investment Entity (PIE).

    Investors in a listed PIE do not need to notify the listed company (or listed unit trust) of their relevant PIRs. Instead, the listed PIE is taxed at the company tax rate and must fully impute any dividends to the extent that imputation credits are available.

    Additional information on PIRs and PIEs can be found on the IRDs website. The website addresses are as follows:
    Information on types of Portfolio Investment Entities can be found here
    Information on Prescribed Investor Rate can be found here

  • How do I change my investment details for example name, address or method of payment?

    You can manage your investment online via the Computershare investor centre. To change details such as name, postal address or method of payment, please click here

    Alternatively, you can contact our registrar, Computershare at:

    Computershare Investor Services Limited
    Level 2, 159 Hurstmere Road
    Takapuna, Auckland
    Private Bag 92119
    Auckland 1142
    Tel: +64 9 488-8700
    Fax: +64 9 488-8787
    Email: [email protected]

  • What is a CSN / Holder number and FIN?

    CSN/Holder Number:
    A "CSN" is a "Common Shareholder Number" and is a number allocated to shareholders by the New Zealand Stock Exchange. It is used to identify shareholders, who may have shares managed by more than one Share Registry, by way of a common number. You can find your CSN number on your most recent statement of your Security holdings.

    FIN:
    Your FIN (Faster Identification Number) is a security device, which operates in a similar way to a PIN on a bank account. You should keep your FIN in a safe place or commit it to memory. You will, however, be required to advise your Sharebroker of your FIN, when you wish to sell some shares.

    If you believe that your FIN may have fallen into the wrong hands or if you wish to change your FIN for any other reason, you should contact your sharebroker and ask them to change it. You may either specify the 4 digit number you wish to have as your new FIN or you may allow FASTER to generate a new random number for you. In either case we shall mail confirmation of the new FIN to the address we have recorded for you on the register.

    If you have lost your FIN, please contact us at [email protected]

    You can find your CSN number on your most recent statement of your Security holdings.

  • Where can I find more information on NZ Tax?

    Additional information on PIEs, PIR and RWT can be found on Craigs Investment Partners website. Alternatively you can refer to the IRD website. The website addresses are as follows:
    http://www.craigsip.com/Invest...

    Information on types of Portfolio Investment Entities
    http://www.ird.govt.nz/industr...

  • What is the tax treatment of different types of PIEs and their investors?

    Portfolio listed companies continue to be taxed as if they were not PIEs, except for the exemption from tax for gains on sale of New Zealand and Australian listed shares. They maintain an imputation credit account, and any losses are carried forward to be used against income in future years.

    There is a significant change for their shareholders, which is the taxation of dividends. Unimputed dividends are excluded from income. Imputed dividends are also excluded for a New Zealand resident, unless the person elects to include them in their tax return. The only persons who would generally do so are natural persons on a 19.5% tax rate, who would be able to reduce the tax on their other income.

    This benefit has clearly been recognised in relation to listed property trusts, whose units have experienced a significant increase in value with the enactment of the PIE legislation. As a result of accelerated tax depreciation deductions, property trusts are often in a position where their distributable cash-flow is considerably higher than their taxable income. Under the current tax regime, distribution of the untaxed cash flow is an unimputed dividend which gives rise to additional tax to the shareholders, at their marginal tax rate. This will not be the case for property trusts which elect into the PIE regime.