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

 

Crown Accounts: Government Ekes Out Six-Month Surplus Of $9M

The New Zealand government eked out a tiny surplus in the first six months of the fiscal year as growth in domestic consumption lifted the goods and services tax take, while uncertainties over the Kaikoura earthquake costs meant expenses were less than expected. More>>

ALSO:

Almost 400 Jobs: Shock At Cadbury's Dunedin Factory Closure

Workers at Cadbury in Dunedin are reeling after learning this morning that the iconic Cadbury factory is to close, with the loss of almost 400 jobs... “The company had reported it was doing well and this has come out of the blue,” says Chas. More>>

ALSO:

Transport: Boards Of Inquiry For Auckland Roading Projects

Boards of Inquiry have been appointed to decide on two significant Auckland roading projects in a move which will get a decision by the end of the year, Environment Minister Dr Nick Smith and Conservation Minister Maggie Barry announced today. More>>

ALSO:

Three Months On: Quake Reciovery In Kaikōura And Elsewhere

Three months after the magnitude 7.8 earthquake on 14 November, encouraging recovery progress is being made in affected communities. More>>

ALSO:

Jetstar, Qantas For Govt Transport: Government Still In Talks With Air NZ

The government is still negotiating with national carrier Air New Zealand in a cross-agency air travel contract that will add a number of new airlines to the list of approved flyers. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news