Property For Industry Announces Gains In Revenue
Property For Industry Announces Gains In Revenue, Profits And Returns To Shareholders
Listed industrial property investor Property For Industry (PFI) has announced a record profit for the year to December 31, 2001 after achieving significant improvements across most aspects of the company’s performance.
PFI’s operating surplus before tax increased 18 percent to $13.9 million, on increased rental revenue of $22.1 million (up 15 percent on 2000). Additional rentals of $4.1 million were contributed from new properties acquired by the company in late 2000 and early 2001.
Earnings before interest and tax (before unrealised revaluations but including realised gains) increased 21 percent to $19.04 million, and net profit after tax before revaluations was $11.18 million, also up 21 percent. Unrealised net property revaluations increased by $790,000.
The gross dividend for the year increased by 0.6 percent to 6.92 cents, including 1.39 cents attached imputation credits.
Chairman Mr Allan Lockie noted: “In 2001, an investment in PFI held throughout the entire year provided shareholders a total return, taking into account reinvestment of dividend distributions and share price appreciation, of 17.93 percent.”
PFI has a policy of paying out 100 percent of its net operating earnings as quarterly dividends. Mr Lockie said the final net dividend distribution for 2001 would be 1.62 cents per share, with 0.49 cents of imputation credits. The record date is March 8, with payment on March 15.
During 2001, two properties were acquired by PFI and five sold. Mr Lockie said PFI had actively pursued a number of promising transactions during the year, but it was thought prudent to wait for better opportunities.
The company, which is managed by AMP
Henderson Global Investors, had focused on divestment of
non-core assets and maintaining full occupancy, and finished
the year with
99 percent occupancy in its investment portfolio.
PFI’s portfolio now has 49 properties, occupied
by 58 tenants, and an annual rental roll of
The company’s net tangible asset backing (NTA)
per share as at December 31, 2001 was
76.8 cents per share, up from 74.5 cents at the end of 2000. When provision is made for the final 2001 dividend of 1.62 cents per share, NTA is 75.1 cents per share, an increase of 0.89 percent.
New acquisitions during 2001 were financed through debt, new equity and proceeds from sales. Net interest costs were $5.09 million, up 29.8 percent due to the acquisitions made in 2000/2001. Debt as a percentage of assets as at year-end was 29 percent, below PFI’s self-imposed maximum of 35 percent.
Management fees were $1.93 million and included performance-related fees of $566,000 (payable when shareholder wealth is increased by in excess of 10 percent). In the 2001 year, shareholder wealth increased by 17 percent or $28.6 million.
Overall management expense ratio (MER) increased from 0.73 percent in the previous year to 0.97 percent. When management incentive fees are excluded, the current year MER is 0.71 percent.