PFI Maintains Shareholder Returns In Active Year

SUMMARY OF 2000 RESULTS

* Gross Shareholder Returns improved for Investors.
* Final Net Distribution of 1.54 cents per share with 0.54 cents of imputation credits.
* Record Date is 9 March 2001, with Payment Date on 16 March 2001.
* Gross Dividend of 6.88 cps for 2000 (1999; 6.82 cps).
* Significant Market Activity during the Year including$34 million of acquisitions; and
* Sale of 5 properties including $10 million Bowden Road property.
* 2.4% Portfolio devaluation, (42% relate to 2 properties, 13.5% relate to provisions on new property acquisitions).

Property For Industry is maintaining dividend levels to shareholders, after returning a consistent performance on an expanded share register for the 12 months to 31 December 2000.

Chairman Mr Allan Lockie has announced a final net dividend of 1.54 cents per share with 0.54 cents per share of imputation credits. This brings the full-year gross dividend to 6.88 cents per share (6.82 cents in 1999)with 1.44 cents of imputation credits attached, representing a gross yield of 9.2% on current net tangible asset backing of 74.46 cents per share.

PFI’s gross operating profit before tax and revaluations was $11.8 million, a 6.5 percent increase over the previous corresponding period (before including realised losses, which trimmed the increase back to two percent).

Gross assets rose from $181 million to $216 million due to acquisitions. In a year of significant market activity PFI purchased 10 properties (with a total value of $34 million) and sold five smaller properties and a $10 million property in Bowden Road, Mt Wellington.

Total rentals grew from $17.3 million to $19.2 million – an increase of 11.3 percent – and the management expenses ratio fell by six percent from 0.78 percent to 0.73 percent.

The bulk of the new acquisitions were made in December and contributed only one months’ rent, while concurrently a provision of two percent for disposal costs on the new acquisitions was booked in accordance with accounting requirement (SAP 17).

Mr Lockie noted that PFI has maintained an aggressive approach in respect of property valuations, ensuring that properties were fairly valued to market and as a result of devaluations, the value of PFI’s portfolio has been written back by 2..4 percent. Lockie further noted that 42 percent of this revaluation figure related to just two properties. This reinforces PFI’s strategy to divest investments that no longer meet its long term investment criteria.

“The purchase of the $23 million Westfield Portfolio, announced in December, is a further example of PFI's commitment to high-quality property in land-constrained locations". This acquisition resulted in a further 13.5 percent of the devaluation, as a consequence of the requirement to provide in the year-end accounts for disposal costs for the 10 properties purchased.

“PFI’s core portfolio has continued to provide resilient returns for shareholders,” he said. “PFI has a high-quality , well-located portfolio leased to predominantly blue-chip tenants. This, combined with an average weighted lease term of seven years, provides investors with a sustainable dividend income.”

Mr Lockie noted that a key philosophy of the company was to provide shareholders with a consistent return throughout the year, each year. "We plan to continue our policy of distributing net operating earnings in an even and consistent manner".

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For further information, please contact Peter Alexander, General Manager, at Property for Industry on 09-307 8393or 021-614-601 or Allan Lockie (Chairman) on 09-379-7800.

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