NZSE:PCT

Stock Analysis Report

Precinct Properties New Zealand

Executive Summary

Precinct is New Zealand’s only listed city centre specialist investing predominately in premium and A-grade commercial office property.


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

PCTIndustryMarket
7 Day13.0%7.5%6.2%
30 Day-9.6%-19.0%-11.8%
90 Day-7.9%-19.8%-17.0%
1 Year11.2%7.3%-1.9%-5.9%-2.8%-6.2%
3 Year58.6%39.7%31.8%13.7%28.7%12.9%
5 Year79.4%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

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

NamePositionTenureCompensationOwnership
Scott Pritchard
Chief Executive Officer9.58yrsNZ$1.78m0.13% NZ$2.9m
Richard Hilder
Chief Financial Officer3.25yrsno data0.030% NZ$662.3k
George Crawford
Chief Operating Officer5.25yrsno data0.066% NZ$1.5m
Edward Timmins
General Counsel & Company Secretaryno datano data0.00038% NZ$8.4k
Nicola McArthur
General Manager of Marketing & Communicationsno datano datano data
Lauren Joyce
HR Manager1.25yrsno datano data
Graham Kristiffor
Portfolio Manager6yrsno datano data
Stephanie How
Investor Relationsno datano datano data

5.3yrs

Average Tenure

Experienced Management: PCT's management team is seasoned and experienced (5.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Huse
Independent Director9.42yrsNZ$113.08k0.046% NZ$1.0m
Christopher Judd
Director7yrsno datano data
Graeme Wong
Independent Director9.42yrsNZ$101.90kno data
Launa Inman
Independent Director4.42yrsNZ$100.23kno data
Anne Urlwin
Independent Director0.58yrno datano data
Craig Stobo
Independent Chairman of the Board9.92yrsNZ$192.44kno data
Robert Campbell
Director8yrsNZ$7.98k0.035% NZ$772.4k
Mohammed Al Nuaimi
Director6.5yrsno datano data
Anthony Bertoldi
Alternate Director5.67yrsno datano 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCTNZSE (New Zealand Stock Exchange)YesCommon SharesNZNZDDec 1997
AOTU.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 10:33
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.