Precinct Properties New Zealand
Market Cap
NZ$2.2b
Last Updated
2020/04/01 10:33 UTC
Data Sources
Company Financials +
Executive Summary
Precinct is New Zealand’s only listed city centre specialist investing predominately in premium and A-grade commercial office property.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -4.7% per year for the next 3 years
Snowflake Analysis
Average dividend payer and fair value.
Share Price & News
How has Precinct Properties New Zealand's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: PCT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
13.0%
PCT
7.5%
NZ REITs
6.2%
NZ Market
1 Year Return
7.3%
PCT
-5.9%
NZ REITs
-6.2%
NZ Market
Return vs Industry: PCT exceeded the NZ REITs industry which returned -5.5% over the past year.
Return vs Market: PCT exceeded the NZ Market which returned -7.4% over the past year.
Shareholder returns
| PCT | Industry | Market | |
|---|---|---|---|
| 7 Day | 13.0% | 7.5% | 6.2% |
| 30 Day | -9.6% | -19.0% | -11.8% |
| 90 Day | -7.9% | -19.8% | -17.0% |
| 1 Year | 11.2%7.3% | -1.9%-5.9% | -2.8%-6.2% |
| 3 Year | 58.6%39.7% | 31.8%13.7% | 28.7%12.9% |
| 5 Year | 79.4%43.2% | 54.8%20.0% | 62.0%26.8% |
Price Volatility Vs. Market
How volatile is Precinct Properties New Zealand's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 month ago | Simply Wall St
Precinct Properties New Zealand Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next1 month ago | Simply Wall St
Have Insiders Been Buying Precinct Properties New Zealand Limited (NZSE:PCT) Shares?4 months ago | Simply Wall St
How Much Of Precinct Properties New Zealand Limited (NZSE:PCT) Do Institutions Own?Valuation
Is Precinct Properties New Zealand undervalued compared to its fair value and its price relative to the market?
18.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: PCT (NZ$1.69) is trading below our estimate of fair value (NZ$2.08)
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 good value based on its PE Ratio (10x) compared to the REITs industry average (10.1x).
PE vs Market: PCT is good value based on its PE Ratio (10x) compared to the NZ market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: PCT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: PCT is overvalued based on its PB Ratio (1.1x) compared to the NZ REITs industry average (0.9x).
Next Steps
Future Growth
How is Precinct Properties New Zealand forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?
-4.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PCT's earnings are forecast to decline over the next 3 years (-4.7% per year).
Earnings vs Market: PCT's earnings are forecast to decline over the next 3 years (-4.7% per year).
High Growth Earnings: PCT's earnings are forecast to decline over the next 3 years.
Revenue vs Market: PCT's revenue (11.7% per year) is forecast to grow faster than the NZ market (6.3% per year).
High Growth Revenue: PCT's revenue (11.7% 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 (5.1%).
Next Steps
Past Performance
How has Precinct Properties New Zealand performed over the past 5 years?
16.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PCT has a large one-off gain of NZ$168.5M impacting its December 31 2019 financial results.
Growing Profit Margin: PCT's current net profit margins are lower than last year .
Past Earnings Growth Analysis
Earnings Trend: PCT's earnings have grown by 16% per year over the past 5 years.
Accelerating Growth: PCT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: PCT had negative earnings growth (-16.1%) over the past year, making it difficult to compare to the REITs industry average (-4.9%).
Return on Equity
High ROE: PCT's Return on Equity (11.2%) is considered low.
Next Steps
Financial Health
How is Precinct Properties New Zealand's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: PCT has a high level of physical assets or inventory.
Debt Coverage by Assets: PCT's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: PCT's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if PCT has a sufficient allowance for bad loans.
Low Risk Liabilities: PCT reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if PCT has an acceptable proportion of non-loan assets held.
Low Risk Deposits: PCT has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if PCT has an appropriate level of bad loans.
Next Steps
Dividend
What is Precinct Properties New Zealand's current dividend yield, its reliability and sustainability?
3.73%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PCT's dividend (3.73%) is higher than the bottom 25% of dividend payers in the NZ market (3.48%).
High Dividend: PCT's dividend (3.73%) is low compared to the top 25% of dividend payers in the NZ market (7.5%).
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 fallen over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (73.1%), PCT's dividend 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 (81% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.3yrs
Average management tenure
CEO
Scott Pritchard
9.58s
Tenure
NZ$1,784,420
Compensation
Mr. Scott Pritchard has been Chief Executive Officer at Precinct Properties New Zealand Limited since September 6, 2010. Mr. Pritchard is currently employed at AMP Haumi Management Limited. He has led the ...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD1.06M) is about average for companies of similar size in the NZ market ($USD1.24M).
Compensation vs Earnings: Scott's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chief Executive Officer | 9.58yrs | NZ$1.78m | 0.13% NZ$2.9m | |
| Chief Financial Officer | 3.25yrs | no data | 0.030% NZ$662.3k | |
| Chief Operating Officer | 5.25yrs | no data | 0.066% NZ$1.5m | |
| General Counsel & Company Secretary | no data | no data | 0.00038% NZ$8.4k | |
| General Manager of Marketing & Communications | no data | no data | no data | |
| HR Manager | 1.25yrs | no data | no data | |
| Portfolio Manager | 6yrs | no data | no data | |
| Investor Relations | no data | no data | no data |
5.3yrs
Average Tenure
Experienced Management: PCT's management team is seasoned and experienced (5.3 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 9.42yrs | NZ$113.08k | 0.046% NZ$1.0m | |
| Director | 7yrs | no data | no data | |
| Independent Director | 9.42yrs | NZ$101.90k | no data | |
| Independent Director | 4.42yrs | NZ$100.23k | no data | |
| Independent Director | 0.58yr | no data | no data | |
| Independent Chairman of the Board | 9.92yrs | NZ$192.44k | no data | |
| Director | 8yrs | NZ$7.98k | 0.035% NZ$772.4k | |
| Director | 6.5yrs | no data | no data | |
| Alternate Director | 5.67yrs | no data | no data |
7.0yrs
Average Tenure
68yo
Average Age
Experienced Board: PCT's board of directors are considered experienced (7 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 7.2%.
Top Shareholders
Company Information
Precinct Properties New Zealand Limited's company bio, 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
- Market Cap: NZ$2.220b
- Shares outstanding: 1.31b
- Website: https://www.precinct.co.nz
Number of Employees
Location
- Precinct Properties New Zealand Limited
- PwC Tower
- Level 12
- Auckland
- 1010
- New Zealand
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| PCT | NZSE (New Zealand Stock Exchange) | Yes | Common Shares | NZ | NZD | Dec 1997 |
| AOTU.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Dec 1997 |
Biography
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%), Zurich 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, Pastoral House, Mayfair House and Bowen Campus.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/01 10:33 |
| End of Day Share Price | 2020/04/01 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/06/30 |
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.