NZ's Precinct Properties sees drop in portfolio valuation on higher interest rates

Precinct Properties New Zealand

06/07/2023 22:52

July 7 (Reuters) - Precinct Properties New Zealand
Limited  PCT.NZ  on Friday revealed a draft revaluation loss on
its property portfolio of about NZ$250 million ($153.88 million)
compared to a gain of NZ$19 million a year earlier. 
    The forecast valuation move will decrease the value of
Precinct's portfolio to around NZ$3.2 billion at June end, the
company said in a press release.
    "We have continued to see the rising interest rate
environment place increasing pressure on investment returns and
impact property valuations across all real estate sectors," said
Precinct's Chief Executive Scott Pritchard.
    The owner and developer of inner-city business spaces said
on a like-for-like basis, asset valuations decreased by around
8.6% and 5.3% in Auckland and Wellington, compared with the
latest book values. 
    Similar is the scenario in Australia where real estate
investment trusts (REITs) like Waypoint  WPR.AX , Centuria
Industrial  CIP.AX , Centuria Office  COF.AX , and real estate
firm Dexus  DXS.AX  have all faced declining valuations for
their properties. 
    
    

($1 = 1.6247 New Zealand dollars)

 (Reporting by Jaskiran Singh in Bengaluru; Editing by Shailesh
Kuber)
 ((Jaskiran.Singh@thomsonreuters.com;))