Here’s how the listed property sector is doing
Thursday, 28 August 2025
A new hotel and plans for a new capital partnership to fund further developments are on Precinct Properties’ agenda, and are signs of its optimism about its outlook.
The NZX-listed commercial and residential developer announced improvements in operating profit and total income after tax for the year to June 30.
Funds from the operation of its directly held investment portfolio were up 3.7% on a year earlier to $150.3m, while operating profit before indirect expenses and income tax was up 1.2% to $152.3m.
Total income after tax was $3.1m, up from a $30.1m loss a year earlier, and stabilising property valuations contributed to that with values down $27.6m in the 2025 year compared to a $105.2m drop last year.
The company’s core portfolio had performed well with occupancy of 97% and a weighted average lease term of six years across its investments at year’s end.
It said that reflected the continued demand for premium-grade office space and the ongoing preference for quality among occupiers.
Precinct Properties chief executive Scott Pritchard said the weaker New Zealand economy over the last year had impacted on the company’s retail and operating businesses.
But positive sentiment was returning and the company was beginning to see growth and opportunities emerge, he said.
The improving investment market had led Precinct to consider further capital partnering initiatives, and it planned to establish a capital partnership for the PwC Tower in Auckland’s Commercial Bay, he said.
“This initiative is consistent with our long standing business strategy, and enables the recycling of capital to support strategic growth opportunities including the Downtown Car Park redevelopment project.”
Pritchard said the Downtown Car Park redevelopment was progressing well, with designs advancing, negotiations with potential office occupiers under way and a high level of contractor interest.
Plans for the two-tower mixed-use development had been altered and it would now include a five-star, 200-room hotel, he said.
“While that will reduce the number of residential apartments, it will reduce risk in one of the towers and enhance the offering.”
Work on the project was expected to start in 2026, and be completed in 2031.
Precinct has a $3.7 billion pipeline of development work in flow, and its 61 Molesworth Street office project in Wellington was set for completion in the final quarter of the year.
The company’s expansion into the “living sector” in Auckland continued. Two of its residential build-to-sell projects, Fabric Stage 2 and The Domain Collection, were scheduled to be finished in 2026.
Construction had started on its York House project, consents granted for its Dominion & Valley project, and it had just launched a new 20 residence boutique development, Pillars, in St Mary’s Bay.
Its move into purpose built student accommodation was also tracking well, with its $290m facility at 22 Stanley Street set to be the largest of its sort in the country on completion, and consent secured for a 640-bed facility at 256 Queen.
Pritchard said the company was optimistic about its medium-term outlook and was well placed to benefit from the economic recovery, with lower interest rates expected to underpin investment market and business confidence.
Precinct was just one of a slew of listed property companies to release financial results over the last week, and they suggested the trend was one of a slowly recovering sector.
Property for Industry
Property for Industry announced an after-tax profit of $106m over the year to June 30, up from a $46.1m loss the previous year.
Adjusted funds from operations were up 8.1%, and a turn in the valuation cycle meant it saw $70.7m in fair-value gains across its $2.17b portfolio as compared to losses of $90m in the 2024 year.
Occupancy across the company’s portfolio was 99.9%, and its rental income increased by 12.7% to $108.0m.
Property for Industry chief executive Simon Woodhams said it was a strong result, which reflected the company’s strategic positioning and the resilience of its core industrial portfolio.
“Conditions are still tough, but with the operating environment improving, the company is well placed to harness its $350m development runway, driving long-term value and growing returns for investors.”
New Zealand Rural Land Company
The New Zealand Rural Land Company’s half year results were out on Friday, and they showed net profit after tax of $3.5m and adjusted funds from operations of $3.9m over the six months to June 30.
Following the purchase of a 305 hectare highly productive dairy property in Canterbury this year, it now owned 17,077 hectares of high-quality rural land which was fully tenanted on long-term leases.
Its latest acquisition had increased the company’s total rental income by $290,000 a year.
Winton Land
However, Winton Land’s results, announced on Wednesday, were not as rosy. The company’s net profit after tax was $10.3m in the year to June 30, a 34.4% drop from $15.7m the previous year.
Its revenue was also down 10.5% to $155.4m from $173.6m, but the company said its pre-sale strategy continued to serve it well and it had settled 266 units over the year.
Winton Land chief executive Chris Meehan said the conditions contributing to the subdued property market were beyond the company’s control, but it controlled its response.
“Hard decisions have been made regarding the timing of projects, which has meant slowing some down until funding and building costs stabilise.”
While the Auckland market continued to be challenging, it had focused its attention on Winton’s southern projects, including its flagship Ayrburn development where the master plan was coming together well.
“It is expected that Ayrburn will welcome at least a million visitors over the next year, and it is on track to become the most visited attraction in Queenstown,” he said.
“We will be judicious in committing further capital to projects until we have conviction that the market has a positive outlook. We don’t expect this to occur until after unemployment has peaked.”