Sharechat Logo

Precinct first-half operating income falls 1.5 percent as costs rise

Tuesday 19th February 2013

Text too small?

Precinct Properties New Zealand, formerly known as AMP NZ Office, posted a 1.5 percent decline in first-half net operating income as costs rose and occupancy fell. It lifted its first-half dividend for the first time since 2008.

Operating profit, which excludes some non-cash items and is used as the basis of dividend policy, was $26.2 million in the six months ended Dec. 31 from $26.6 million a year earlier, the Auckland-based company said in a statement. Gross rental income rose 6.8 percent to $68.9 million. Net profit rose to $23.6 million from $20.4 million.

The shares fell 1.4 percent to $1.025. Operating profit about matched a forecast from brokerage Forsyth Barr, while the dividend increase, to 2.56 cents from 2.5 cents was a tad below the forecast 2.6 cents. Precinct kept its full-year operating earnings forecast unchanged at 5.8 cents a share, before performance fees.

The increase in rental income came from Precinct's Bowen Campus and Downtown Shopping Centre properties the leasing at Zurich House which is now at 100 percent, the company said.

Property expenses rose about 11 percent to $21.3 million, reflecting the company's enlarged portfolio, and higher costs for insurance and council rates. Interest costs climbed 16 percent to $12.1 million, reflecting acquisitions and the redevelopment of Auckland's ANZ Centre.

Administrative expenses rose 9.8 percent on higher management and performance fees.

Precinct's gearing rose to 33.5 percent as at Dec. 31 from 27 percent six months earlier, largely reflecting the acquisition of the Downtown Shopping Centre and ANZ Centre redevelopment, it said.

The company's weighted average lease term, or WALT, slipped to 5.5 years from 5.9 years six months earlier.

 

BusinessDesk.co.nz

Father's Day SOON! Crazy Deals on ALL IRG Yearbooks - More than 50% OFF - $19.99 for 44th IRG Yearbook 2018-2019


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Precinct Properties boosts full-year earnings on acquisitions, higher rental income
Precinct Properties reports no major Wellington damage, hires assessor
Precinct buys Queen St's HSBC Tower for $103M, signals funding review
Precinct Properties NZ misses out on first round of govt property review