Property for Industry (PFI) today announced "consistently-high portfolio occupancy" resulted in a 16.7 increase in net operating profit for the first six months.But the Auckland-based property investment company required a one-off, non-cash adju
Property for Industry (PFI) today announced "consistently-high portfolio occupancy" resulted in a 16.7 increase in net operating profit for the first six months.
But the Auckland-based property investment company required a one-off, non-cash adjustment as previously advised due to the Government's budget announcements in May.
It needed to show an additional $35.314 million in deferred tax liability as PFI no longer is entitled to claim tax depreciation on its buildings.
As a result, despite recording a $9.2m net operating profit, the company had a net loss after tax of $29.030m.
It compares to a $15.737m loss in the same period in 2009, which also included a $20.917m reduction in portfolio value.
General manager Ross Blackmore said the company's $9.2m profit included two prior-year tax credits. When those were deducted, the distributable profit was up about 2.5 percent.
The AMP Capital-Investors managed company, which owns a portfolio of 54 properties with a total value of $360.9m, made $16.392m in rentals for the first six months, showing a 3.4 percent increase over the same period last year.
Mr Blackmore said the company's portfolio was 99.9 percent occupied as at June 30, with just half an office tenancy in one building representing the company's entire vacancy.
He said PFI to date has secured eight new leases, as well as another eight lease renewals and lease restructures, which meant the company has re-leased or extended leases on almost all of the space that is due to expire in 2010.
The company also has three development projects under way costing about $9m, and has sold one property at Rothwell Ave, North Harbour for $4.8m.
PFI's directors have maintained the net dividend at the same level, resulting in shareholders receiving a second-quarter dividend for 2010 of 1.55c per share, plus imputation credits of 0.288c for a total of 3.10c to be paid on August 26.
PFI shares last traded for 114.
