Healthy balance sheet for PFI's annual

PFI's properties were revalued upward by $36.3 million or 4.3% to $876 million.

NZX-listed PFI (Property For Industry) [NZX: PFI] enjoyed a 32% lift in revenues to $63.8 million largely due to its merger with Direct Property Fund a year ago.

There was a corresponding lift in operating expenses but the ratio was in line with previous years at 42% of revenues.

Excluding non-operating income, expenses and deferred tax, the company posted a profit after tax of $59.9 million or 14.55c a share (compared with last year’s pre-merger $40.5 million or 12.79c per share).

PFI’s properties were revalued upward by $36.3 million or 4.3% to $876 million.

Net tangible assets per share increased by 7.2 cents a share or 5.9% from 123-130.2 cents a share, driven by the increase in the value of investment properties (+8.8c per shares) but partially offset by a loss on the sale of investment properties (-0.5 cents a share) and a reduction in the fair value of PFI’s derivatives (-1.6 cents a share).

The distributable profit of 7.53 cents a share, is an increase of 0.27 cents a share or 3.7% over 2013, allowing for a fourth quarter final cash dividend of 1.95c per share with imputation credits of 0.3127 cents a share. A supplementary dividend of 0.1419 cents a share will be paid to non-resident shareholders. The fourth quarter final dividend takes dividends for the year to 7.25 cents a share (7.20 cents a share last year).

The PFI board is forecasting cash dividends next year of approximately 7.30 cents a share.

Gearing was 35.8%, down from 37.4% and below PFI’s self imposed limit of 40% and bank covenants of 50%.