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

 


Precinct annual profit rises 9.4% on stronger Auckland

Precinct Properties annual profit rises 9.4% as Auckland rentals strengthen

By Suze Metherell

Aug. 13 (BusinessDesk) - Precinct Properties New Zealand, formerly known as AMP NZ Office, said annual earnings rose 9.4 percent as its Auckland rentals continued to strengthen and Wellington occupancy remained static.

Operating profit, which excludes some non-cash items and is used as the basis of dividend policy, increased to $63.8 million, or 6.10 cents per share, in the 12 months ended June 30, from $58.3 million, or 5.85 cents, a year earlier, the Auckland-based company said in a statement. That was in line with Forsyth Barr’s forecast profit of $63.8 million. Gross rental income rose 12 percent to $165.4 million.

"We are very pleased that the portfolio is close to being fully let, with continuing leasing success in Auckland and Wellington," chief executive Scott Pritchard said. "The previous 12 months have seen continued progress as the business was further positioned to execute on a strategy of improving portfolio quality, increased its weighting to Auckland and delivering a long term improved earnings outlook."

Precinct has been expanding its Auckland holdings, including entering into a development agreement for a commercial office at the new Wynyard Quarter.

Auckland vacancy in city office buildings is at a 20-year low, falling to 1.4 percent from 5.8 percent a year earlier, as New Zealand’s biggest city has benefited from strong population growth, translating to rental demand for businesses, Precinct said. Its Wellington portfolio was 98 percent occupied.

The property investor recognised a 5.5 percent, or $47.5 million, gain in its portfolio’s value taking it to $1.73 billion as at June 30, with Auckland valuations up 5.9 percent. Precinct's Wellington property portfolio's value fell 1.4 percent, with commercial properties in the capital under pressure in part due to the government's attempts to use its buying power to lower prices.

The company will pay a fourth-quarter dividend of 1.35 cents per share taking the 2014 full-year dividend to 5.40 cents, up from 5.12 cents in 2013. Precinct forecast a 2015 dividend of 5.4 cents per share, consistent with its 90 percent dividend policy.

Separately, the company said Robert Walker has resigned as the alternate director for Mohammed Al Nuaimi effective today, to be replaced by Anthony Bertoldi, following approval by the board.

Shares of Precinct fell 0.9 percent to $1.115, and have gained 9.2 percent in the past 12 months. The stock is rated an average of ‘hold’ according to three out of five analysts surveyed by Reuters, with a median target price of $1.09.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Immigration: Increase In Seasonal Workers For RSE

The current cap will be increased by 1,000 from 9,500 to 10,500 RSE workers for the 2016-17 season. Mr Woodhouse says the horticulture and viticulture industry is New Zealand’s fourth largest export industry, producing almost $5 billion in exports. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news