$3.3b landlord Precinct Properties’ revenue up, bottom line improvement

The $1b PwC Tower at Commercial Bay.

Giant listed landlord Precinct Properties, with $3.3 billion of real estate, cut losses and suffered less brutal devaluations in its latest result due to what it called a “stabilising investment property market”.

The company made $150.5 million operating profit before indirect expenses in the year to June 30, 2024, up on 2023′s $138.9m.

Devaluations of $257.1m last year improved to a paper loss writedown of $105.2m in the latest year, showing less harsh devaluations of its multi-billion dollar portfolio.

Net profit after tax also improved from last year’s $147.2m loss to a $30.1m loss in the 2024 year.

Precinct said its core office performance had been strong with increased leasing activity and rental growth.

“This has resulted in funds from operations from directly held investment portfolio of $126.9m, up 2.9% (2023: $123.3m). This has contributed to net operating income before tax of $103.6m, reflecting an increase of 1.5% on the previous comparable period (2023: $102.1m,) with net property income of $139.3m up 5.8% on the previous comparable period (2023: $130.2m).

Gearing is 35.2%, well beneath Precinct’s borrower covenant level of 50%.

Precinct’s directly owned portfolio is valued at $3.3b and its capital partnerships total $1.6b on completion value.

Chief executive Scott Pritchard Precinct said: “Progressing further growth in the living sector during the 2024 financial year has reinforced our commitment to growing the platforms we have created and participation in a market where we believe there is significant opportunity for our business to outperform.

“Achieving strong performance across our core office portfolio, an established capital partnering strategy and an improving investment environment is supporting Precinct to deliver on our strategy.”

Anne Gibson has been the Herald’s property editor for 24 years, written books and covered property extensively here and overseas.