| Snowflake Score | |
|---|---|
| Valuation | 2/6 |
| Future Growth | 1/6 |
| Past Performance | 3/6 |
| Financial Health | 1/6 |
| Dividends | 5/6 |
PCT Stock Overview
Precinct is New Zealand’s only listed city centre specialist investing predominately in premium and A-grade commercial office property.
Rewards
Risk Analysis
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | NZ$1.63 |
| 52 Week High | NZ$1.75 |
| 52 Week Low | NZ$1.54 |
| Beta | 0.11 |
| 1 Month Change | -0.92% |
| 3 Month Change | 0% |
| 1 Year Change | -4.97% |
| 3 Year Change | 9.43% |
| 5 Year Change | 31.58% |
| Change since IPO | 64.14% |
Recent News & Updates
We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Precinct Properties New Zealand Limited's (NZSE:PCT) CEO For Now
CEO Scott Pritchard has done a decent job of delivering relatively good performance at Precinct Properties New Zealand...
Shareholder Returns
| PCT | NZ REITs | NZ Market | |
|---|---|---|---|
| 7D | -0.3% | -1.1% | -3.2% |
| 1Y | -5.0% | -2.2% | -11.4% |
Return vs Industry: PCT underperformed the NZ REITs industry which returned -2.2% over the past year.
Return vs Market: PCT exceeded the NZ Market which returned -11.4% over the past year.
Price Volatility
| PCT volatility | |
|---|---|
| PCT Average Weekly Movement | 2.7% |
| REITs Industry Average Movement | 2.7% |
| Market Average Movement | 3.8% |
| 10% most volatile stocks in NZ Market | 6.5% |
| 10% least volatile stocks in NZ Market | 2.4% |
Stable Share Price: PCT is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: PCT's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1997 | n/a | Scott Pritchard | https://www.precinct.co.nz |
Precinct is New Zealand’s only listed city centre specialist investing predominately in premium and A-grade commercial office property. Listed on the NZX Main Board, PCT currently owns Auckland’s PwC Tower, AMP Centre, ANZ Centre (50%), Jarden House, HSBC House, Mason Bros. Building, 12 Madden Street, 10 Madden Street and Commercial Bay; and Wellington’s AON Centre, NTT Tower, No. 1 and No. 3 The Terrace, Mayfair House and Bowen Campus.
Precinct Properties New Zealand Fundamentals Summary
| PCT fundamental statistics | |
|---|---|
| Market Cap | NZ$2.58b |
| Earnings (TTM) | NZ$187.70m |
| Revenue (TTM) | NZ$199.80m |
13.7x
P/E Ratio12.9x
P/S RatioIs PCT overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| PCT income statement (TTM) | |
|---|---|
| Revenue | NZ$199.80m |
| Cost of Revenue | NZ$72.10m |
| Gross Profit | NZ$127.70m |
| Expenses | -NZ$60.00m |
| Earnings | NZ$187.70m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 0.12 |
| Gross Margin | 63.91% |
| Net Profit Margin | 93.94% |
| Debt/Equity Ratio | 51.7% |
How did PCT perform over the long term?
See historical performance and comparisonDividends
4.1%
Current Dividend Yield88%
Payout RatioValuation
Is Precinct Properties New Zealand undervalued compared to its fair value and its price relative to the market?
13.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PCT (NZ$1.63) is trading below our estimate of fair value (NZ$1.88)
Significantly Below Fair Value: PCT is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: PCT is poor value based on its PE Ratio (13.7x) compared to the NZ REITs industry average (6.3x).
PE vs Market: PCT is good value based on its PE Ratio (13.7x) compared to the NZ market (18.8x).
Price to Earnings Growth Ratio
PEG Ratio: PCT is poor value based on its PEG Ratio (4.9x)
Price to Book Ratio
PB vs Industry: PCT is overvalued based on its PB Ratio (1.2x) compared to the NZ REITs industry average (1x).
Future Growth
How is Precinct Properties New Zealand forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
2.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PCT's forecast earnings growth (2.8% per year) is above the savings rate (2.1%).
Earnings vs Market: PCT's earnings (2.8% per year) are forecast to grow slower than the NZ market (7.3% per year).
High Growth Earnings: PCT's earnings are forecast to grow, but not significantly.
Revenue vs Market: PCT's revenue (1.1% per year) is forecast to grow slower than the NZ market (4.8% per year).
High Growth Revenue: PCT's revenue (1.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: PCT's Return on Equity is forecast to be low in 3 years time (4.9%).
Past Performance
How has Precinct Properties New Zealand performed over the past 5 years?
-1.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PCT has a large one-off gain of NZ$53.6M impacting its June 30 2021 financial results.
Growing Profit Margin: PCT's current net profit margins (93.9%) are higher than last year (19.9%).
Past Earnings Growth Analysis
Earnings Trend: PCT's earnings have declined by 1.7% per year over the past 5 years.
Accelerating Growth: PCT's earnings growth over the past year (521.5%) exceeds its 5-year average (-1.7% per year).
Earnings vs Industry: PCT earnings growth over the past year (521.5%) exceeded the REITs industry 319.3%.
Return on Equity
High ROE: PCT's Return on Equity (8.5%) is considered low.
Financial Health
How is Precinct Properties New Zealand's financial position?
Financial Position Analysis
Short Term Liabilities: PCT's short term assets (NZ$35.6M) do not cover its short term liabilities (NZ$276.7M).
Long Term Liabilities: PCT's short term assets (NZ$35.6M) do not cover its long term liabilities (NZ$959.1M).
Debt to Equity History and Analysis
Debt Level: PCT's net debt to equity ratio (51.3%) is considered high.
Reducing Debt: PCT's debt to equity ratio has increased from 19.4% to 51.7% over the past 5 years.
Debt Coverage: PCT's operating cash flow is negative, therefore debt is not well covered.
Interest Coverage: PCT's interest payments on its debt are well covered by EBIT (14.2x coverage).
Balance Sheet
Dividend
What is Precinct Properties New Zealand current dividend yield, its reliability and sustainability?
4.12%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PCT's dividend (4.12%) is higher than the bottom 25% of dividend payers in the NZ market (2.76%).
High Dividend: PCT's dividend (4.12%) is low compared to the top 25% of dividend payers in the NZ market (4.97%).
Stability and Growth of Payments
Stable Dividend: PCT's dividends per share have been stable in the past 10 years.
Growing Dividend: PCT's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (87.7%), PCT's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: PCT's dividends in 3 years are forecast to be covered by earnings (90.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.0yrs
Average management tenure
CEO
Scott Pritchard
11.33yrs
Tenure
NZ$2,622,578
Compensation
Mr. Scott Pritchard has been Chief Executive Officer at Precinct Properties New Zealand Limited since September 6, 2010 and served as Chief Operating Officer from 2013 to 2015. Mr. Pritchard is employed at...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD1.76M) is about average for companies of similar size in the NZ market ($USD1.53M).
Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: PCT's management team is seasoned and experienced (5 years average tenure).
Board Members
Experienced Board: PCT's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.7%.
Top Shareholders
Company Information
Precinct Properties New Zealand Limited's employee growth, exchange listings and data sources
Key Information
- Name: Precinct Properties New Zealand Limited
- Ticker: PCT
- Exchange: NZSE
- Founded: 1997
- Industry: Office REITs
- Sector: Real Estate
- Implied Market Cap: NZ$2.576b
- Shares outstanding: 1.59b
- Website: https://www.precinct.co.nz
Number of Employees
Location
- Precinct Properties New Zealand Limited
- PwC Tower
- Level 12
- Auckland
- 1010
- New Zealand
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/23 06:01 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2021/06/30 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.