1 mins to read

Property For Industry reports record profit

Net profit rose to $123.4 million, or 27.4c a share, in calendar 2016 from $72.8 million, or 17.3c, in the previous year.

Rebecca Howard
Mon, 13 Feb 2017

Property For Industry, the industrial property investor, reported a record full-year profit on higher revenues and lower costs and remained upbeat about the current financial year.

Net profit rose to $123.4 million, or 27.4c a share, in calendar 2016 from $72.8 million, or 17.3 cents, in the previous year, the Auckland-based property investor said in a statement. It noted that non-operating income and expenses which, for the most part, comprised an $88.2 million fair value gain on investment properties, were more than double the amount in the prior year at $89 million.

Distributable profit, which strips out unrealised movements in the value of the property portfolio, was $34.1 million, or 7.58c a share, 8.1% higher than the previous year when distributable profit was $29.6 million, or 7.01c. The board declared a fourth-quarter dividend of 2.05c a share, taking total cash dividends for the year to 7.35c a share.

PFI's operating revenues increased 6.2 percent to $71.1 million. Operating expenses fell 7.9 percent to $28 million.

"We've maintained our focus on industrial property, concentrated on extracting value from strong Auckland demand and watched and waited for favourable investment opportunities," chairman Peter Masfen said.

Looking ahead, Mr Masfen said it expects distributable profit before management performance fees to be between 7.5-7.7 cents per share "subject as always to economic conditions." It also expects to pay a cash dividend of "at least" 7.35c a share in 2017.

The company's 83 properties were valued at $1.08 billion as at December 31 versus 84 properties and $986.6 million in the previous year as several properties increased in value. Its occupancy rate remained steady at 99.6 percent. The weighted average lease term was 4.79 years, compared to 5.18 years in the prior period. Its annual contract rent was $72.5 million, up from $72.3 million a year earlier.

PFI's shares last traded at $1.615 and have increased 4.2% over the past 12 months.


Rebecca Howard
Mon, 13 Feb 2017
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Property For Industry reports record profit