Precinct Third Quarter Dividend and Business Update
08 May 2020
Precinct Properties New Zealand (Precinct) (NZX:PCT) is pleased to advise Precinct
shareholders will receive a third-quarter dividend of 1.575 cents per share plus imputation
credits of 0.289332 cents per share. Offshore investors will receive an additional
supplementary dividend of 0.131294 cents per share to offset non-resident withholding tax
(see Note 1). The record date is 28 May 2020 and payment will be made on 12 June 2020. See
Note 2 for Inland Revenue Department (IRD) change in relation to listed PIE income.
Precinct also advises, consistent with its announcement of 24 March, that it reaffirms its
dividend guidance for the FY20 year of 6.3 cents per share, which is consistent with Precinct’s
FY20 AFFO (see Note 3 for a definition of AFFO). Like many landlords, Precinct has proactively
engaged with its occupier base and has implemented a range of initiatives to support its
occupiers through this difficult time. Engagement with occupiers has generally been positive
and constructive and Precinct appreciates the support of its clients and strength of
relationships at this time. Notwithstanding these initiatives and recognising that around 50% of
its office occupiers have a credit rating of AA- or higher, Precinct remains confident of
meeting its full year dividend guidance.
Pleasingly construction has re-commenced at Commercial Bay, with completion targeted for
June. Prior to the lockdown, the total project cost had increased by around 2.5% ($20 million)
due to delays and dispute settlements. It is anticipated that there will be a further increase in
the total project cost due to impacts associated with Covid-19 including support for retailers.
The total increase is not yet known however it is not expected to materially affect the project’s
Following a recent review of future development projects, Precinct advises that the One
Queen Street redevelopment project in Auckland will be deferred. This period of deferral will
enable us to more reliably assess the long term impacts on the tourism market and broader
economy and to position One Queen Street so as to ensure the eventual redevelopment
maximises returns. Precinct continues to engage positively with the stakeholders in the project
regarding the deferral.
On a fully committed basis after allowing for all committed projects, Precinct’s gearing will
reduce to 29% and Precinct’s funding commitments decrease by around $200 million.