46 slides from Precinct Properties Nz Ltd & Precinct Properties Investments's earnings presentation, Aug 27, 2025
Slide 1: FY25 Annual Result
FY25 Annual Result Replace photo with non-construction 27 August 2025
Slide 2: Agenda
Agenda Section 1: Highlights and key themes Section 2: Business overview Section 3: Financial performance Section 4: Capital partnering and investment update Section 5: Portfolio update Section 6: Development update Section 7: Summary Appendices Precinct Properties – FY25 Annual Result
Slide 3: FY25 operational highlights
FY25 operational highlights Operational excellence Financial performance Active capital management • 97% portfolio occupancy • $150.3 million Funds from • Strategic exit of the Operations (FFO) from directly InterContinental Auckland hotel • 6.0 years WALT held investment portfolio, up at One Queen
Slide 4: Highlights – Strategic execution
Highlights – Strategic execution Artist’s impression: 22 Stanley Street PBSA Artist’s impression: Pillars, St Mary’s Bay Living Sector – Student Accommodation Living Sector – Residential build-to-sell Active capital recycling and partnerships Commitment to deliver NZ’s largest student Pipeline estab
Slide 5: Key themes
Key themes Economy Construction sector • Economic recovery underway after a period of • Ongoing weak construction demand with spare protracted weakness capacity in the sector leading to continued easing in cost inflation • Precinct well placed to benefit from economic recovery, with lower interest r
Slide 6: Business overview
Business overview Precinct Properties – FY25 Annual Result 6
Slide 7: Our business
Our business We create vibrant, Own and invest mixed-use precincts Through our concentrated ownership in strategic locations, Precinct has that deliver premium successfully evolved its business structure since 2021, through internalisation, stapling experiences for the and expansion of its investibl
Slide 8: Delivering on strategy
Delivering on strategy Pillar 2: Developments Pillar 3: Capital Partnering “Leverage our strategic pillars to create vibrant, mixed-use precincts that provide Since 2015, Precinct has maintained an average Investing in value-add opportunities alongside capital quality experiences for the people who
Slide 9: Financial performance
Financial performance Precinct Properties – FY25 Annual Result 9
Slide 10: Financial overview
Financial overview Operating profit before indirect expenses and income tax $152.3m up $1.8m on prior year Total comprehensive income after tax attributable to equity holders $3.1m up $33.2m on prior year Net property income before transactions and developments $137.1m up $1.0m on prior period Dispo
Slide 11: Breakdown of operating income
Breakdown of operating income For the 12 months ended 30 Jun 2025 30 Jun 2024 Operating income reconciliation Δ % $ millions Audited Audited $160 m Directly held property funds from operations (FFO) $155 m Auckland office $87.5 m $83.8 m +$3.7 m +4.4% Wellington office $43.6 m $43.0 m +$0.6 m +1.4%
Slide 12: Funds from operations and AFFO
Funds from operations and AFFO For the 12 months ended 30 Jun 2025 30 Jun 2024 Δ % $ millions Audited Audited • Contribution from Wynyard Stage 3 and Investment portfolio FFO $150.3 m $145.0 m +$5.3 m +3.7% Orams Commercial resulted in a 35% Cornerstone distributions attributable to the period $5.0
Slide 13: Year end revaluations
Year end revaluations FY25 revaluation outcome Market value (fair value) and full year revaluation movement1 • Valuations now stabilising following cap rate Cap rate Market value Book value Revaluation movement expansion of 100 bps from peak to trough, with Property Jun-25 Jun-24 Change Jun-25 Jun-2
Slide 14: Capital management
Capital management Debt facilities expiry profile (pro forma1) Active capital management is enabling Key capital management metrics as at 30 June 25 the execution of strategy Debt facilities Debt drawn $1,594m $800 m $275m Post balance date Total debt facilities $1,693m 5 year facility • Recycling o
Slide 15: Dividend policy update
Dividend policy update Precinct has undertaken a New policy Benefits and considerations comprehensive review of its Following this review Precinct has adopted a • Introduction of a range provides flexibility to dividend policy to ensure it revised dividend policy based on a payout range of 80% to 95
Slide 16: Earnings outlook and FY26 guidance
Earnings outlook and FY26 guidance Outlook 1 Dividend held at 6.75 cps for FY26 as strategy underpins a Strategic pillar FY26 +26 positive near-term outlook • 7% under renting with ~70% of portfolio weighted to Auckland Core Investment • 75% of portfolio subject to review in FY26, • Recent progr
Slide 17: Capital partnering and investment update
Capital partnering and investment update Precinct Properties – FY25 Annual Result 17
Slide 18: Capital partnerships – strategic approach
Capital partnerships – strategic approach Direct ownership (strategic assets) Capital partnerships Office City centre retail and hospitality Investment management services Investment – Development Development passive and active Key benefits of capital partnering Target equity returns • Expanding the
Slide 19: Capital partnerships
Capital partnerships Update on existing partnerships Value of capital partnerships 1 Jun-2025 Completion PCT • Committed to deliver NZ’s largest student value value share accommodation facility for the University of Auckland, with the formation of a new Investment partnerships strategic real estate
Slide 20: Investment and capital markets
Investment and capital markets Domestic environment Premium office investment market Investment metrics Auckland Sydney Melbourne Brisbane • Conditions for an improving investment market are in place, with the return of a positive yield spread relative to cost of debt, and stable occupier markets. I
Slide 21: Auckland residential market
Auckland residential market • Sales volumes in Auckland have been steadily REINZ Median House Price – Auckland Region Sales volumes – Auckland Region rising over the last two years and are now 35 $1.5m 40k Mean house price ($) Y/Y growth (%) No. of sales (pa) slightly above pre-Covid levels and arou
Slide 22: Residential build-to-sell platform
Residential build-to-sell platform Existing projects Build-to-sell pipeline Completion Completion value Project Status Units 1 • Construction progressing well on existing projects, with Fabric 2 and The timing (FY) (incl. GST) Domain Collection on track to complete in FY26 Fabric Stage 2 Constructio
Slide 23: Purpose-built student accommodation platform
Purpose-built student accommodation platform 22 Stanley Street PBSA pipeline Completion • In the period, Precinct committed to the development of 22 Stanley Street in Project Status Opening Beds value (approx.) Carlaw Park which will be NZ’s largest student accommodation building, targeting opening
Slide 24: Partnership opportunities
Partnership opportunities Precinct remains well on track to have $4-5 billion Partnership opportunities ($b) of capital partnerships over the medium term $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 • Precinct expects demand for core and core-plus investment exposure to grow in the next 12 months Existing partners
Slide 25: Portfolio update
Portfolio update Precinct Properties – FY25 Annual Result 25
Slide 26: Investment portfolio update
Investment portfolio update • 18,874sqm of lease deals concluded across the portfolio in the period 97% 6.0yrs • Precinct occupiers are right-sized, as evidenced by the absence of sublease space in the investment portfolio • Another solid leasing spread was achieved during this period: Occupancy Wei
Slide 27: Auckland CBD office occupier market
Auckland CBD office occupier market • Auckland premium office market Net absorption, rolling 12 months Premium net effective rental growth rate (Y/Y%) continues to outperform other office 60k 12% Forecast NLA (sqm) subsectors in terms of occupancy and 40k 10% rental growth 20k 8% -- 6% • Slight incr
Slide 28: Auckland waterfront outperforms
Auckland waterfront outperforms • Auckland’s CBD waterfront precinct Waterfront sub-precinct continues to lead the market, delivering the lowest office vacancy Prime office stock (sqm) 151 k rate in the CBD and attracting Prime office vacancy 3.8% sustained occupier demand. Precinct Prime office vac
Slide 29: Wellington CBD office occupier market
Wellington CBD office occupier market • Net rental growth in Wellington has Net absorption, rolling 12 months Premium gross effective rental growth rate (Y/Y%) been limited due to operating cost 100k NLA (sqm) 14% Forecast pressures and muted occupier 12% market. 50k 10% 8% -- • Prime vacancy in Wel
Slide 30: Commercial Bay Retail
Commercial Bay Retail • Moving annual turnover (MAT) Trading Performance1 has increased 3.7% on last year, FY25 FY24 Var driven by strong sales from new Occupancy 97% 97% - retailers and tourism spend offsetting reduced local domestic Funds from operations $16.9 m $15.6 m 8.3% spend. Total sales (MA
Slide 31: Development update
Development update Precinct Properties – FY25 Annual Result 31
Slide 32: Molesworth nearing completion
61 Molesworth nearing completion Delivery of 6 Green Star development to deliver enhanced asset and income resilience • Construction nearing completion and remaining on target for Q4 2025 rent start • On track to achieve 6 star ‘World Leadership’ Green Star Built rating and 5 star NABERSNZ rating •
Slide 33: Living sector projects
Living sector projects Precinct is making continued progress in the sector with three build-to-sell projects and one PBSA project now under construction Residential build-to-sell • Fabric Stage 2 and The Domain Collection progressing well, with both projects on schedule for completion in FY26 • Cons
Slide 34: Downtown
Downtown The Downtown Car Progress update: Park redevelopment is • Office leasing demand the final phase of the remains elevated as we Commercial Bay continue to actively engage with potential masterplan. occupiers. Seamlessly integrated into the • Preliminary design Commercial Bay precinct, the con
Slide 35: Development pipeline
Development pipeline % PCT Delivery programme Sector Ownership FY26 FY27 FY28 FY29 FY30 FY31+ Committed 61 Molesworth Street Commercial 100% $3.7 billion Fabric Stage 2 Residential - gross development value, to be delivered with investment from The Domain Collection Residential - capital partners Yo
Slide 36: Summary
Summary Precinct Properties – FY25 Annual Result 36
Slide 37: Summary
Summary • Economic recovery underway after a period of protracted weakness • Recent progress made advancing PBSA projects demonstrates continued execution of strategy and provides earnings accretion via multiple income streams • Premium office market continues to outperform and supply outlook remain
Slide 38: Appendices
Appendices Precinct Properties – FY25 Annual Result 38
Slide 39: A1: Financial performance
A1: Financial performance For the 12 months ended 30 Jun 2025 30 Jun 2024 Δ $ millions Audited Audited Operating profit before indirect expenses and income tax $152.3 m $150.5 m +$1.8 m $3.1m Corporate overhead expense ($4.6 m) ($5.5 m) +$0.9 m Net interest expense ($65.0 m) ($41.1 m) ($23.9 m) Oper
Slide 40: A2: FFO contribution from directly held property
A2: FFO contribution from directly held property For the 12 months ended 30 Jun 2025 30 Jun 2024 Δ % $ millions Audited Audited AON Centre - AKL $11.3 m $12.6 m ($1.3 m) (10.3%) HSBC Tower $28.8 m $24.3 m +$4.5 m +18.5% Jarden House $7.5 m $6.8 m +$0.7 m +10.3% PwC Tower $31.8 m $29.8 m +$2.0 m +6.7
Slide 41: A3: AFFO reconciliation to operating profit
A3: AFFO reconciliation to operating profit For the 12 months ended 30 Jun 2025 30 Jun 2024 $ millions Audited Audited Operating profit before indirect expenses and income tax $152.3 m $150.5 m Corporate overhead expense ($4.6 m) ($5.5 m) Net interest expense ($65.0 m) ($41.1 m) Operating profit bef
Slide 42: A4: Balance sheet
A4: Balance sheet Financial Position as at 30 June 2025 30 June 2024 Δ $ millions Audited Audited Assets Investment properties $2,803.7 m $2,987.4 m ($183.7 m) Development properties $334.9 m $201.2 m +$133.7 m Investment properties held for sale $223.7 m - +$223.7 m Investment in equity-accounted i
Slide 43: A5: ESG progress
A5: ESG progress Our strategy includes the integration of Participation Overview Current2 Target sustainability across all areas of our business. • We hold $1.8 billion in green assets (excl. partnership assets)1 + Global The overarching measure Precinct have chosen to use as its core Score 89 ESG p
Slide 44: A6: Investment portfolio overview
A6: Investment portfolio overview Key metrics Investment Investment Portfolio metrics – directly held portfolio including portfolio directly Auckland Wellington 6.0 years cornerstone 1 held WALT 6.1 yrs 6.0 yrs 5.4 yrs 7.2 yrs Occupancy 95% 97% 96% 97% Weighted average lease term Investment portfoli
Slide 45: A7: Other city centre markets
A7: Other city centre markets Auckland retail net absorption vs. vacancy rates Retail 6.0k 10.0% • Location is an important feature of retail demand, with vacancy of 2% at Commercial Net absorption (sqm) Bay and lower end of Queen Street, while vacancy at upper end of Queen Street, High 4.0k 8.0% St
Slide 46: Disclaimer
Disclaimer The information and opinions in this presentation were prepared by Precinct Properties New Zealand Limited or one of its subsidiaries (Precinct). Precinct makes no representation or warranty as to the accuracy or completeness of the information in this presentation. Opinions including est