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

 

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news