Precinct's FY25 half-year earnings dip despite strong leasing

Precinct Properties New Zealand (NZX:PCT) announced its FY25 first-half results, reporting a net property income (NPI) of $71.4 million, up from $68.4 million in 1H24. Funds from operations (FFO) reached $72.7 million, compared to $67.7 million in the prior period. However, total comprehensive income after tax fell to $3.2 million from $12.9 million in 1H24. Adjusted funds from operations (AFFO) were 3.23 cents per share. The company reaffirmed its FY25 dividend guidance of 6.75 cents per stapled security. Portfolio occupancy stood at 96%. The company secured leasing transactions across 5,720 square meters of office space, achieving a 22.8% growth in contract rents. Precinct is advancing its living sector strategy with several residential projects underway, as well as student accomodation procurement. The company's strategy also includes capital partnering and deleveraging, with gearing at ~39%.