Frequently asked questions

On 1 July 2023, Precinct effected a restructuring to create a stapled group structure. A stapled group comprises two listed parent companies whose shares are held by the same shareholders in equal proportions. The shares in each parent company can only be transferred or dealt with together.

Shareholders in Precinct Properties Group (“Precinct”) hold an equal number of shares in Precinct Properties New Zealand Limited (“PPNZ”) and Precinct Properties Investments Limited (“PPIL”) and these shares can only be dealt with together. The stapled issuers are described as “Precinct Properties NZ Ltd & Precinct Properties Investments Ltd (NS)” on NZX systems and the ticker code for the stapled shares remains PCT.

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

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]

Recognising a dividend policy should optimise long term sustainable returns for Precinct’s shareholders, the Board reviewed Precinct's dividend policy in 2019. Accordingly, Precinct intends to transition towards paying out approximately 100% of Adjusted Funds From Operations (AFFO) as dividends, with the retained earnings being used to fund the capital expenditure required to maintain the quality of Precinct’s property portfolio.

Aligning dividends with AFFO is considered to be best practice in a global context for real estate entities. It is consistent with the objectives of the current dividend policy, but more explicitly adjusts for maintenance capital expenditure and incentives. AFFO best reflects the sustainable cash flow produced by our portfolio. The Board is of the view that this updated dividend policy will provide a stable long term profile, in line with executing Precinct's strategy. The updated policy will be phased in over the next two years and has been considered in relation to our FY20 dividend guidance.

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.

Currently there is no dividend reinvestment plan.

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.

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.

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

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.

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.

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

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]

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.

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...

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.