Property For Industry's Earnings Increase

Release to New Zealand Stock Exchange

Property For Industry’s Earnings Increase

Listed industrial property investment company Property For Industry has reported net earnings of $5.38 million for the half-year to June 30.

The result, a 10.2 percent increase over the previous corresponding period, reflects the expanded asset base, which has increased to $216 million, said chairman Mr Allan Lockie.

Shareholders will receive a consistent second-quarter dividend of 1.3 cents per share, with 0.3 cps imputation credits.

Announcing the dividend, Mr Lockie pointed out that earnings per share had increased from 2.73 cps to 2.84 cps, demonstrating the company’s ability to improve shareholder returns.

PFI's rentals for the half-year were $11 million, an increase of 21 percent over the previous corresponding period. This is largely due to revenues provided by the acquisition of 10 new properties in Mt Wellington in late 2000 and early 2001.

The purchases were funded through a combination of debt, new capital and sales of existing properties. The additional debt levels resulted in increased interest costs, $1.07 million higher than for the same period last year.

Mr Lockie said highlights for the half-year also included a number of refinements to PFI’s portfolio, notably:
- The completion of the $3.7 million expansion of an East Tamaki property for the existing tenant, Cardinal Freight Distribution Ltd. As part of this agreement, the lease term has been returned to 12 years
- The announcement of a $560,000 expansion of another East Tamaki property for existing tenant Hurricane Wire, also securing a 12-year lease
- The leasing and sale of part of its property at 5 Maui Street, Hamilton; and the sale of two units at 21 Porana Road, Glenfield. The properties have been identified as no longer meeting PFI’s investment criteria.

PFI’s portfolio currently totals 50 properties nationwide, with a combined value of $216 million.

The company’s debt-to-investment assets ratio is currently 30 percent, comfortably within its self-imposed maximum debt level of 35 percent.

PFI is New Zealand’s only listed property company investing exclusively in the New Zealand industrial property sector. The company is managed by AMP Henderson Global Investors, which manages more than $360 billion of assets worldwide.

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