Precinct Properties NZ Ltd notched up a $162 million revaluation gain for the year to June, down from $208.7 million in 2017 but still a 6.2% increase.
It increases the value of Precinct’s portfolio to $2.8 billion, lifting net asset backing/share by 12c, from $1.38 to $1.50/share.
The draft asset valuations by independent valuers are still subject to final audit & finalisation of year-end book values, and will be confirmed when the company releases its financial results on 16 August.
On a like-for-like basis, Auckland asset valuations are 6.5% up on forecast year-end book values and Wellington 5.4%.
Chief executive Scott Pritchard said yesterday the gains were mainly attributable to further market rental growth, capitalisation rate compression & positive leasing activity. In Wellington, while gross market rentals had notably improved, increases in net rentals were limited due to ongoing increases in rates & insurance premiums.
“Our development projects have again made a significant contribution to our revaluation gain, in particular Commercial Bay, which has achieved further value accretion following continued leasing progress & increase in its expected value on completion.”
Precinct’s weighted average capitalisation rate has tightened from 5.8% to 5.5%.
Attribution: Company release.