Property for Industry holds 92 properties suitable for warehousing and logistics, most in Auckland. (File picture). Photo: 123rf
A sharp slide in property values has markedly increased the annual loss of specialist developer Property for Industry.
Key numbers for the 12 months ended December compared with a year ago:
- Net loss $97.8m vs $13.9m
- Net property income $92.8m vs $93.3m
- Property values -$140.8m vs -$56.7m
- Portfolio value $2.03b vs $2.12b
- Final dividend 8.3 cents per share vs 8.1 cps
Fully tenanted properties and rent increases underpinned the company's result, with funds from operations slipping less than 2 percent.
Chief executive Simon Woodhams said its strong leasing position had delivered cashflow and stability.
"Despite significant increases in interest rates during the year, low gearing, low vacancies and growing rents have all worked in our favour."
The company holds 92 properties, mostly in Auckland, offering industrial sites suitable for warehousing and logistics, all of which are leased, with an average duration of 5.6 years.
Woodhams said about 16 percent of its properties were rented at below market averages and this offered opportunities for increases.
In addition to upgrading existing facilities, known as brownfield, the company was pressing ahead with a programme of greenfield projects with new buildings constructed to the high level of 5 Green Star sustainability standards.
The company said it was expecting a challenging year ahead, but any interest rate cuts by the Reserve Bank would ease the pressure on its interest bill, but pending changes to depreciation rules, would probably add about $2m a year to its tax bill.