Sharechat Logo

Precinct Third Quarter Dividend and Business Update

Friday 8th May 2020

Text too small?

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 return metrics.

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.

Source: Precinct Properties New Zealand (Precinct)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

COMVITA LIMITED Announces NZ$50 Million Equity Raising to improve balance sheet flexibility and build resilience
GMT’s delivers statutory profit of $284.4 million before tax
U.S. Can Destroy Huawei, Part Two
Green Recovery Could Create 850,000 British Jobs, Report Finds
RBNZ Warns Banks’ Ability to Absorb Shocks ‘Is Not Unlimited’
Trustpower makes solid progress in challenging year
Air New Zealand liquidity and 2020 earnings update
THL begins New Zealand Restructuring process
The customer is always right
The modern era of globalisation is in danger

IRG See IRG research reports