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

 

Property for Industry 1H earnings fall 4.9%

Property for Industry 1H earnings fall 4.9% on smaller portfolio, flags reduced dividend

By Paul McBeth

Aug. 6 (BusinessDesk) - Property for Industry, whose management contract was sold to DPF Management last year, reported a 4.9 percent drop in first-half earnings after shrinking its portfolio, and warned the annual dividend will be smaller than a year ago.

Distributable earnings, the favoured profit measure for property companies because it strips out unrealised changes in the fair value of its portfolio, fell to $7.6 million, or 3.5 cents per share, in the six months ended June 30, from $8 million, or 3.7 cents per share, a year earlier, the Auckland-based company said in a statement. That was slightly ahead of Forsyth Barr analyst Jeremy Simpson's forecast of $7.4 million, or 3.4 cents per share.

Operating revenue declined 5.9 percent to $14.7 million from a smaller portfolio and lower occupancy rate.

"The fall in gross rental income reflects sales of properties in the prior period and lower average occupancy," general manager Nick Cobham said. "We are confident PFI's financial strength combined with our strong position in the industrial property market leaves us well placed to continue to deliver for shareholders."

The annual dividend will be between 6.5 cents per share and 6.9 cents per share, lower than the 7.2 cents per share return last year. It first flagged a smaller payment at its annual meeting in May.

PFI declared a second-quarter dividend of 1.55 cents per share, with imputation credits of 0.4336 cents per share to be paid on Aug. 29. That takes the first-half return to 3.1 cents per share, or $6.8 million.

"The company's earnings and dividends will continue to be impacted by the leasing of PFI's vacant properties and expiring leases and a change to the company's deductible capital expenditure profile," it said.

PFI had 49 properties with 90 tenants as at June 30, with contract rent of $30.2 million, down from 51 properties with 96 tenants and rent of $30.6 million a year earlier. Its occupancy rate fell to 96.1 percent from 97.4 percent, though its weighted average lease term rose to 4.5 years from 4.08 years.

The shares fell 1.3 percent to $1.155 on Friday, and are down 0.4 percent this year. The stock is rated an average 'underperform' based on five analysts' recommendations compiled by Reuters, with a median target price of $1.095.

(BusinessDesk)

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 


Energy Resources Aotearoa: Doubling Of Coal Use Shows Need For Local Natural Gas

New figures showing a near doubling of coal-fired electricity generation highlight New Zealand’s energy shortage and the need for natural gas as a lower carbon alternative, according to Energy Resources Aotearoa... More>>


E Tu: ‘Sense Of Mourning’ As Norske Skog Mill Set To Close

Workers at Norske Skog’s Tasman Mill now know they’ll be losing their jobs in little over a month’s time.
On Wednesday afternoon, workers were told the mill will be stopping production from the end of June... More>>




Stats NZ: Card Spending Sees Strong Growth In May

Seasonally adjusted card spending rose by $189 million (2.3 percent) between April 2021 and May 2021, Stats NZ said today.
Spending rose across all industries for the first time since New Zealand moved to level 1 in June 2020... More>>




Auction: 1.4 Million In Rare Vintage Watches, Gems, Jewels & Diamonds Go Under The Hammer At Webb’s

An auction event showcasing over 1.4 Million dollars in rare jewels, gems, diamonds and vintage watches is due to take place this Sunday by Auckland based auction house Webb’s... More>>

Catalist: NZ’s New SME Stock Exchange, Gets Licence To Go Public

New Zealand has a new stock exchange – designed specifically for small and medium-sized businesses (SMEs) to raise up to $20 million a year from the public.
Called Catalist, the exchange has already been successfully working the private investment sector.... More>>

E-Commerce: Over 40% Of Those Engaged In The Bitcoin Community Are Millennials

Bitcoin has emerged to be a popular topic among millennials with digital currency increasingly being viewed as a potential source of creating wealth through investments. The interest in bitcoin by millennials signals the role this age group plays in the possible realization of the digital currency’s mass adoption... More>>