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

 

Scoop Business: RBNZ Starts Talks On Tougher Rules For Property Speculators

The Reserve Bank of New Zealand is stepping up preparations to restrict lending to residential property investors as it watches house prices, particularly in Auckland, continue to rise strongly. More>>

ALSO:

Research: ‘Ageing Well’ Science Challenge Launched

Science and Innovation Minister Steven Joyce today launched the Ageing Well National Science Challenge, confirming initial funding of $14.6 million. More>>

ALSO:

Scoop Business: Govt Resisting Pressure To Pump More Cash Into Solid Energy

Prime Minister John Key says it is “not the government’s preferred option” to make a fresh capital injection into the troubled state-owned coal miner, Solid Energy, but dodged journalists’ questions at his weekly press conference on whether that might prove necessary... More>>

ALSO:

Lagest Ever Privacy Breach Award: NZCU Baywide Accepts “Severe” Censure In Cake Case

NZCU Baywide says that once it was found to have committed a breach of a former staff member’s privacy, it had attempted to resolve the matter... the censure and remedies for its actions taken almost three years ago are “severe” but accepted, and will hopefully draw a line under the matter. More>>

ALSO:

Scoop Business: PayPal Stops Processing Mega Payments; NZX Listing Still On

PayPal has ceased processing payments for Mega, the file storage and encryption firm looking to join the New Zealand stock market via a reverse listing of TRS Investments, amid claims it is not a legitimate cloud storage service. More>>

ALSO:

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news