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

 


PFI boosts first-half profit 21%, reflecting merger gains

Property For Industry boosts profit 21% in first-half, reflecting merger gains

By Suze Metherell

Aug. 13 (BusinessDesk) - Property For Industry, the industrial property investor, lifted first-half profit 21 percent, a year on from its merger with Direct Property Fund which increased its portfolio by two-thirds.

Profit rose to $14.42 million for the six months ended June 30, from $11.87 million a year earlier, the Auckland-based company said in a statement, just below Forsyth Barr’s forecast of $14.8 million. Rental income more than doubled to $32.07 million, while operating expenses jumped to $13 million,from $6.4 million, keeping in line with previous periods operating ratio at about 40 percent.

The merger with Direct Property last year boosted PFI's portfolio from 50 sites to 83. At balance date it had 79 locations after shedding four properties for a gross sale price of $11.3 million, as part of its strategy to sell non-core properties to invest in better suited sites. In July, after the balance date, it entered an unconditional agreement to buy a 14,995 square metre site in Wellington for $15.4 million.

"The programme for divesting non-core assets in 2014 is largely complete," said joint general manager Simon Woodhams. "We will continue to seek to recycle the capital into accretive core industrial opportunities."

Guidance was unchanged, with the property investor expecting cash dividends to be 7.25 cents, based on its dividend policy between 95 percent and 100 percent of annual distributable profit. In the first-half, distributable profit was $15.63 million, or 3.80 cents a share, from $7.59 million, or 3.44 cents, a year earlier.

"Our view of the remainder of 2014 is that the compression of prime industrial yields - which have firmed to levels at or below the previous 2007 peak - may moderate over the balance of the year as recent interest rate rises start to impact," said joint general manager Nick Cobham. "Rental growth, which is already beginning to gain strength, will continue to gain momentum, reflecting the pass through increasing land values, construction costs and improving occupancy rates across the industrial sector."

Second quarter cash dividend was 1.75 cents per share, taking total cash dividends for the first-half to 3.50 cents, 2.9 percent more than the previous year.

PFI shares last traded at $1.355 and have advanced 4.3 percent this year. The stock is rated an average of ‘hold’ according to three out of five analysts surveyed by Reuters, with a median price target of $1.34.

(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