PCT 1H22 result and new investment partnership established

Precinct Properties New Zealand Limited (Precinct) (NZX: PCT) reported strong first half leasing momentum with Net Property Income (NPI) of $61.1 million, up 1.5% on the previous comparable period (1H20: $60.2 million).

This has contributed to net operating income before tax of $45.5 million, up 6.3% (1H20: $42.8 million).

Total comprehensive income after tax of $40.7 million compares to $167.9 million for the same period last year, with the difference due to the significant portfolio revaluation gain of $148.5 million reported in the previous comparable period.

The business has also conditionally agreed the formation of a new real estate investment partnership with Singapore sovereign wealth fund GIC, initially acquiring five assets from Precinct’s existing portfolio totalling around $590 million.

Adjusted funds from operations (AFFO) for the first half of the 2022 financial year was 3.22cps (1H21: 3.34cps).

Dividend guidance of 6.70 cps for FY22 was reaffirmed.