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Property For Industry 1Q profit falls 8%

BUSINESSDESK: Property For Industry, which has a portfolio of 49 industrial properties nationwide, posted a decline in distributable profit after a fall in property sales and lower occupancy in the first quarter.

Distributable profit fell 8% to $3.57 million, in the three months ended March 31.

This is the first set of results since the Auckland-based company's management contract was sold to McDougall Reidy Management last year. Sales dropped to about $7.1m from $7.8m.

PFI secured eight new leases and extensions during the quarter, with its portfolio occupancy rate rising to 96.2% from 95.6%.

"While 96.2% is still a respectable occupancy level - it is lower than in previous years and addressing PFI's current vacancy and upcoming lease expiries remain our major focus," general manager Nick Cobham said.

PFI's rentals dropped 4.9% to $7.4m, largely due to property sales over the past year and lower portfolio occupancy, he said.

Net profit rose to $4.79m from $2.75m a year earlier, reflecting net changes in fair value of investment properties and unrealised revaluation changes from financial instruments.

The company's dividend remains unchanged at 1.55 cents per share.

Shares in the company are largely unchanged this year and last traded at $1.17 cents.