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

 

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Planes: Jetstar Launches Regional Network

Jetstar, the Qantas Airways budget offshoot, launched its new regional network in New Zealand with special $9 one-way fares and has narrowed down its choices to five routes and four destinations - Nelson, Napier, New Plymouth, and Palmerston North. More>>

ALSO:

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news