Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Property For Industry FY profit jumped 50% after merger

Property For Industry boosts annual profit 50% after merger with Direct Property

By Suze Metherell

Feb. 17 (BusinessDesk) – Property For Industry, which increased its portfolio by two thirds after a merger with Direct Property Fund last year, said annual profit rose 50 percent as it benefited from an increased rental flow while keeping expenses in check.

Net profit was $40.5 million for the year ended Dec. 31, from $26.9 million a year earlier, the Auckland-based company said in a statement. Rental income jumped 64 percent to $47.9 million as the Direct Property merger lifted properties under management to 83 from 50.

New Zealand’s only listed company specialising in industrial property increased its average lease term by 0.8 years to 5.3 years, while occupancy rates were little changed at about 97 percent. Property For Industry said its largest vacant property only represents 1.4 percent of contract rent.

The company said distributable profit, the earnings measure it uses to determine dividend payments, rose 60 percent to $23.3 million from a year earlier, and earnings per share were up 9.3 percent to 7.2 cents.

Property For Industry will pay a fourth-quarter dividend of 2.01 cents a share, making 7.2 cents for the year. It has a payout ratio range of 95 percent to 100 percent, adjusted from its 100 percent ratio previously.

The industrial landlord announced earlier this year that Direct Property Investors could participate in its suspended dividend reinvestment scheme, if and when the freeze is lifted.

Operating expenses rose 74 percent to $21.1 million, though the ratio of expenses to revenue was unchanged at 41 percent.

The fifth largest listed property company on the NZX said the outlook remains positive, and it will continue to focus on the disposal of non-core properties. It didn’t give specific guidance.

The shares last traded at $1.27, and have gained 2.8 percent over the past 12 months.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news