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ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is two times the semi-annual (Dec. 2025) net income data. The Revenue data used here is two times the semi-annual (Dec. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Precinct Properties NZ & Precinct Properties Investments ROE % vs REITs Industry
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
ROE % is displayed in the 30-year financial page.
Precinct Properties NZ & Precinct Properties Investments (NZSE:PCT) has a ROE % of 0.27% as of Dec. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Precinct Properties NZ & Precinct Properties Investments and its competitors. This is 96% below median its historical median of 6.91. According to the industry distribution chart, Precinct Properties NZ & Precinct Properties Investments ranks #740 out of 929 companies in the REITs industry, placing it in the top 79.7%.
Is Precinct Properties NZ & Precinct Properties Investments' ROE % too high?
Precinct Properties NZ & Precinct Properties Investments' current ROE % of 0.27% is 96% below median its 10-year median of 6.91. The REITs industry median ROE % is 6.13. Precinct Properties NZ & Precinct Properties Investments' value of 0.27% is 95.6% below this industry median. Based on the distribution chart, Precinct Properties NZ & Precinct Properties Investments ranks #740 out of 929 companies in the REITs industry, which is in the bottom quartile relative to peers. Overall, Precinct Properties NZ & Precinct Properties Investments has a GF Score™ of 49/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Precinct Properties NZ & Precinct Properties Investments' ROE % compare to VICI and WPC?
According to the REITs industry distribution chart, Precinct Properties NZ & Precinct Properties Investments ranks #740 out of 929 companies for ROE %. This places Precinct Properties NZ & Precinct Properties Investments in the lower half of its industry. The industry median ROE % is 6.13. Precinct Properties NZ & Precinct Properties Investments' value of 0.27% is 95.6% below this benchmark. While the company's 10-year median is 6.91 vs. the industry median of 6.13, Precinct Properties NZ & Precinct Properties Investments has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a REITs company?
The median ROE % among REITs companies is 6.13, based on 929 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Precinct Properties NZ & Precinct Properties Investments's current ROE % of 0.27% is 95.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Precinct Properties NZ & Precinct Properties Investments and its competitors. For the REITs industry, the median ROE % is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Precinct Properties NZ & Precinct Properties Investments's current ROE % is 0.27%, which is 96% below median its own 10-year median of 6.91. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Precinct Properties NZ & Precinct Properties Investments stock overvalued right now?
Based on GuruFocus' analysis, Precinct Properties NZ & Precinct Properties Investments (NZSE:PCT) is currently considered Modestly Overvalued. The stock's GF Value™ is NZ$0.93, compared to a current price of NZ$1.05 — trading 12.9% above its estimated fair value. The current ROE % is 0.27%, which is 96% below median its 10-year median of 6.91 and 95.6% below the REITs industry median of 6.13. Precinct Properties NZ & Precinct Properties Investments' overall GF Score™ is 49/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Precinct Properties NZ & Precinct Properties Investments (NZSE:PCT), the current ROE % is 0.27% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Precinct Properties NZ & Precinct Properties Investments (NZSE:PCT) Overvalued in 2026?
Based on GuruFocus' analysis, Precinct Properties NZ & Precinct Properties Investments stock appears to be overvalued.
The current stock price of NZ$1.05 is trading 12.9% above its estimated GF Value™ of NZ$0.93.
GuruFocus considers Precinct Properties NZ & Precinct Properties Investments to be Modestly Overvalued.
Key valuation signals for NZSE:PCT:
ROE %: 0.27% (96% below median its 10-year median of 6.91)
GF Value™: NZ$0.93 vs. price of NZ$1.05 (12.9% above fair value)
Industry Position: 95.6% below the REITs median (#740 of 929)
No single metric tells the full story. See the NZSE:PCT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Precinct Properties NZ & Precinct Properties Investments Business Description
Precinct Properties NZ Ltd & Precinct Properties Investments Ltd invests predominantly in prime office properties in the central business districts of New Zealand. The company's operating segment includes Investment properties, Hotel and hospitality, Investment management, and Flexible space. It generates maximum revenue from the Investment properties segment. Some of its properties include AON Centre, NTT Tower, Jarden House, PwC Tower at Commercial Bay, and others.
49GF Score
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