Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Precinct Properties portfolio value increases on Auckland

Precinct Properties portfolio value increases on Auckland buildings

By Suze Metherell

July. 9 (BusinessDesk) - Precinct Properties New Zealand, the country's third-biggest listed property investor by market value, expects to recognise a 5.5 percent gain in its portfolio's value as Auckland real estate prices continue to climb.

A revaluation gain in its property portfolio of some $47 million is expected in the year ended June 30, boosting its portfolio to $1.73 billion, from $1.64 billion the previous year, the Auckland-based landlord said in a statement. Auckland valuations have climbed 5.9 percent while Wellington has slipped 1.4 percent.

"The Auckland increases were mainly attributable to an increase in market rents, leasing success and increased positive sentiment due to a continued firming investment market," Precinct said in a statement. "The main contributors to the Wellington decreases were the uncertainty associated with the government's future accommodation plans and a softening of gross market rentals, which was partly offset by insurance cost savings."

Auckland's rising valuations haven't translated into increased rents, and the company said its portfolio weighted average, by income, capitalisation rate fell to 7.3 percent from 7.5 percent.

The company will report full-year earnings to the market on Aug. 13. In February it said net profit rose 67 percent to $39.5 million in the six months ended Dec. 31, as net property income in Auckland surged almost 19 percent to $18.2 million in the first half, while income from Wellington properties edged up just 0.4 percent to $25.2 million.

Precinct shares rose 0.9 percent to $1.085 and have advanced 9.6 percent this year, outperforming the NZX 50 Index's 8.3 percent gain. The stock is rated an average of 'hold' according to six analysts survey by Reuters, with a median price target of $1.05.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Revenue Renewal: Tax Modernisation Programme Launched

Revenue Minister Todd McClay today released the first two in a series of public consultations designed to modernise and simplify the tax system. More>>

ALSO:

Scoop Business:
NZ Puts Seven New Oil And Gas Areas Put Up For Tender

A total of seven new areas will be opened up to oil and gas exploration under its block offer tendering system, as the New Zealand government seeks to concentrate activity in a few strategically chosen areas. More>>

ALSO:

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news