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PCT

Precinct Properties New ZealandNZSE:PCT Stock Report

Market Cap

NZ$2.5b

7D

0.6%

1Y

-9.8%

Updated

03 Dec, 2021

Data

Company Financials +
PCT fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance3/6
Financial Health1/6
Dividends5/6

PCT Stock Overview

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

Price History & Performance

Summary of all time highs, changes and price drops for Precinct Properties New Zealand
Historical stock prices
Current Share PriceNZ$1.57
52 Week HighNZ$1.79
52 Week LowNZ$1.54
Beta0.060
1 Month Change-1.88%
3 Month Change-8.19%
1 Year Change-9.77%
3 Year Change8.65%
5 Year Change33.05%
Change since IPO58.59%

Recent News & Updates

Oct 28
We Think Shareholders Are Less Likely To Approve A Large Pay Rise For Precinct Properties New Zealand Limited's (NZSE:PCT) CEO For Now

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

PCTNZ REITsNZ Market
7D0.6%-0.5%-0.6%
1Y-9.8%-4.6%-3.2%

Return vs Industry: PCT underperformed the NZ REITs industry which returned -4.6% over the past year.

Return vs Market: PCT underperformed the NZ Market which returned -3.2% over the past year.

Price Volatility

Is PCT's price volatile compared to industry and market?
PCT volatility
PCT Average Weekly Movement2.1%
REITs Industry Average Movement2.6%
Market Average Movement3.6%
10% most volatile stocks in NZ Market6.7%
10% least volatile stocks in NZ Market2.4%

Stable Share Price: PCT is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: PCT's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997n/aScott Pritchardhttps://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

How do Precinct Properties New Zealand's earnings and revenue compare to its market cap?
PCT fundamental statistics
Market CapNZ$2.49b
Earnings (TTM)NZ$187.70m
Revenue (TTM)NZ$199.80m

13.3x

P/E Ratio

12.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PCT income statement (TTM)
RevenueNZ$199.80m
Cost of RevenueNZ$72.10m
Gross ProfitNZ$127.70m
Expenses-NZ$60.00m
EarningsNZ$187.70m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.12
Gross Margin63.91%
Net Profit Margin93.94%
Debt/Equity Ratio51.7%

How did PCT perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

88%

Payout Ratio

Valuation

Is Precinct Properties New Zealand undervalued compared to its fair value and its price relative to the market?

15.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PCT (NZ$1.57) is trading below our estimate of fair value (NZ$1.86)

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 (13.3x) compared to the Oceanic REITs industry average (9.4x).

PE vs Market: PCT is good value based on its PE Ratio (13.3x) compared to the NZ market (20.2x).


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's PB Ratio (1.1x) is in line with the XO REITs industry average.


Future Growth

How is Precinct Properties New Zealand forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PCT's forecast earnings growth (2.7% per year) is above the savings rate (2.1%).

Earnings vs Market: PCT's earnings (2.7% per year) are forecast to grow slower than the NZ market (7.1% per year).

High Growth Earnings: PCT's earnings are forecast to grow, but not significantly.

Revenue vs Market: PCT's revenue (1.9% per year) is forecast to grow slower than the NZ market (4.8% per year).

High Growth Revenue: PCT's revenue (1.9% 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 (4.6%).


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 184.1%.


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?

4.27%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PCT's dividend (4.27%) is higher than the bottom 25% of dividend payers in the NZ market (2.76%).

High Dividend: PCT's dividend (4.27%) is low compared to the top 25% of dividend payers in the NZ market (4.99%).


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 (90.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.9yrs

Average management tenure


CEO

Scott Pritchard

11.25yrs

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 ($USD1.79M) is about average for companies of similar size in the NZ market ($USD1.51M).

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 considered experienced (4.9 years average tenure).


Board Members

Experienced Board: PCT's board of directors are considered experienced (5.2 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
  • Market Cap: NZ$2.489b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 15:53
End of Day Share Price2021/12/03 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.