Precinct Properties New Zealand
Market Cap
NZ$2.3b
Last Updated
2020/12/03 06:01 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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Established dividend payer with moderate growth potential.
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 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.
Market Performance
7 Day Return
-1.4%
PCT
0.9%
NZ REITs
0.6%
NZ Market
1 Year Return
-6.0%
PCT
2.1%
NZ REITs
9.2%
NZ Market
Return vs Industry: PCT underperformed the NZ REITs industry which returned 2.1% over the past year.
Return vs Market: PCT underperformed the NZ Market which returned 9.2% over the past year.
Shareholder returns
| PCT | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | 0.9% | 0.6% |
| 30 Day | 1.5% | 0.7% | 5.8% |
| 90 Day | 3.0% | 5.4% | 6.4% |
| 1 Year | -2.3%-6.0% | 5.0%2.1% | 13.2%9.2% |
| 3 Year | 48.7%31.7% | 54.7%36.6% | 51.1%31.7% |
| 5 Year | 71.3%38.0% | 75.3%39.5% | 105.3%56.2% |
Long-Term 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
2 weeks ago | Simply Wall St
How Should Investors Feel About Precinct Properties New Zealand's (NZSE:PCT) CEO Remuneration?1 month ago | Simply Wall St
Need To Know: Precinct Properties New Zealand Limited (NZSE:PCT) Insiders Have Been Selling Shares2 months ago | Simply Wall St
Shareholders Of Precinct Properties New Zealand (NZSE:PCT) Must Be Happy With Their 78% ReturnValuation
Is Precinct Properties New Zealand undervalued compared to its fair value and its price relative to the market?
75.05x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: PCT (NZ$1.73) is trading above our estimate of fair value (NZ$1.38)
Significantly Below Fair Value: PCT is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: PCT is poor value based on its PE Ratio (75x) compared to the NZ REITs industry average (15.7x).
PE vs Market: PCT is poor value based on its PE Ratio (75x) compared to the NZ market (23.1x).
Price to Earnings Growth Ratio
PEG Ratio: PCT is poor value based on its PEG Ratio (1.7x)
Price to Book Ratio
PB vs Industry: PCT's PB Ratio (1.2x) is in line with the NZ REITs industry average.
Next Steps
Future Growth
How is Precinct Properties New Zealand forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
43.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: PCT's forecast earnings growth (43.1% per year) is above the savings rate (2.6%).
Earnings vs Market: PCT's earnings (43.1% per year) are forecast to grow faster than the NZ market (11.4% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: PCT's revenue (3.3% per year) is forecast to grow slower than the NZ market (5.6% per year).
High Growth Revenue: PCT's revenue (3.3% 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 (4.8%).
Next Steps
Past Performance
How has Precinct Properties New Zealand performed over the past 5 years?
6.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: PCT has a large one-off loss of NZ$68.8M impacting its June 30 2020 financial results.
Growing Profit Margin: PCT's current net profit margins (19.9%) are lower than last year .
Past Earnings Growth Analysis
Earnings Trend: PCT's earnings have grown by 6.6% 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 (-84.1%) over the past year, making it difficult to compare to the REITs industry average (-20.4%).
Return on Equity
High ROE: PCT's Return on Equity (1.6%) is considered low.
Next Steps
Financial Health
How is Precinct Properties New Zealand's financial position?
Financial Position Analysis
Short Term Liabilities: PCT's short term assets (NZ$23.9M) do not cover its short term liabilities (NZ$86.5M).
Long Term Liabilities: PCT's short term assets (NZ$23.9M) do not cover its long term liabilities (NZ$1.2B).
Debt to Equity History and Analysis
Debt Level: PCT's debt to equity ratio (58.4%) is considered high.
Reducing Debt: PCT's debt to equity ratio has increased from 26.2% to 58.4% over the past 5 years.
Debt Coverage: PCT's debt is not well covered by operating cash flow (7.4%).
Interest Coverage: PCT's interest payments on its debt are well covered by EBIT (3.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Precinct Properties New Zealand current dividend yield, its reliability and sustainability?
3.65%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: PCT's dividend (3.65%) is higher than the bottom 25% of dividend payers in the NZ market (2.58%).
High Dividend: PCT's dividend (3.65%) is low compared to the top 25% of dividend payers in the NZ market (4.48%).
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 (90.4%), 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 (95.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.9yrs
Average management tenure
CEO
Scott Pritchard
10.25yrs
Tenure
NZ$1,848,800
Compensation
Mr. Scott Pritchard has been Chief Executive Officer at Precinct Properties New Zealand Limited since September 6, 2010 and served as Chief Operating Officer from 2013 to 2015. Mr. Pritchard is employed at...
CEO Compensation Analysis
Compensation vs Market: Scott's total compensation ($USD1.30M) is about average for companies of similar size in the NZ market ($USD1.00M).
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 | 10.25yrs | NZ$1.85m | 0.11% NZ$ 2.4m | |
| Chief Financial Officer | 3.92yrs | no data | 0.030% NZ$ 676.0k | |
| Chief Operating Officer | 5.92yrs | no data | 0.066% NZ$ 1.5m | |
| General Counsel & Company Secretary | no data | no data | 0.00038% NZ$ 8.6k | |
| General Manager of Marketing & Communications | no data | no data | no data | |
| General Manager of People | 1.92yrs | no data | no data | |
| Portfolio Manager | 6.67yrs | no data | no data | |
| Investor Relations | no data | no data | no data |
5.9yrs
Average Tenure
Experienced Management: PCT's management team is seasoned and experienced (5.9 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Director | 10.08yrs | NZ$106.17k | 0.046% NZ$ 1.0m | |
| Director | 7.67yrs | no data | no data | |
| Independent Director | 10.08yrs | NZ$101.17k | 0.0051% NZ$ 116.3k | |
| Independent Director | 5.08yrs | NZ$98.67k | 0.0030% NZ$ 67.5k | |
| Independent Director | 1.25yrs | NZ$79.94k | 0.0019% NZ$ 42.2k | |
| Independent Chairman of the Board | 10.58yrs | NZ$194.84k | no data | |
| Director | 8.67yrs | no data | 0.035% NZ$ 788.4k | |
| Director | 7.17yrs | no data | no data | |
| Alternate Director | 6.33yrs | no data | no data |
7.7yrs
Average Tenure
69yo
Average Age
Experienced Board: PCT's board of directors are considered experienced (7.7 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 not been meaningfully diluted in the past year.
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$2.266b
- 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...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/12/03 06:01 |
| End of Day Share Price | 2020/12/03 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.