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Rentals for listed Property For Industry are marginally down on last year.
Part of the reason was the sale of two properties.
But the company’s indicative full-year guidance report anticipates end-of-year rentals will be slightly less than the full-year result ending December 2011 of $29.8 million.
This may change if the remaining 4% of vacant space is leased.
But higher rentals will not come from more rent reviews this year, all of which have been completed.
The third quarter dividend has been held at 1.65c a share, taking the total for the three quarters to 4.75c a share. The full dividend for the year is expected to be around 6.5c a share, easier than the 6.9c forecast earlier in the year.
During the past nine months PFI executives have completed 40 lease renewals.
On September 18, 2012, the company struck an unconditional contract during the quarter to sell 80 Lunn Ave, Mt Wellington, Auckland.
The property was built in the late 1980s and leased to PlaceMakers. It was redeveloped in 2006 into seven high-profile retail units.
“As a result, the property no longer meets PFI’s long-term investment criteria,” general manager Nick Cobham says.
The sale price of $12.8 million represents a 10% premium to the property’s December 2011 valuation of $11.6 million and reflects an initial yield of 6.98%.
The company’s average total shareholder return a year since first listing stands has been 8.78%.
“The industrial market continues to show encouraging signs of improvement. The current investment market is buoyant with a weight of funds chasing prime properties across all sectors.
"While this has been helpful for vendors, it makes purchasing accretive industrial properties challenging at the current time,” Mr Cobham says in a statement.