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Property for Industry has reported a half year loss, reflecting higher financing costs and fair value losses on the value of its portfolio.
Key numbers for the six months ended June compared with a year ago:
- Net loss $30.5m vs net profit $23.7m
- Loss on the value of 37 properties $55m vs $19.5m value gain on 11 properties
- Revenue $46.4m from continuing operations vs $88.4m
- Net rental income $47.4m vs $47.6m
- Interim dividend 3.9 cents a share 3.6 cps
Rental income was down 0.7 percent on the year earlier, as the company began development projects, in addition to divestment activity over the past couple of years.
Interest expense and bank fees increased by $3.2m.
Despite the drop in income, the company expected to pay full year cash dividends of between 8.10 and 8.30 cps -- an increase of up to 2.5 percent on 2022 dividends.
"Occupier market fundamentals remain robust, and our resilient, well-located portfolio continues to capture further rental growth," PFI chief executive Simon Woodhams said, adding that Auckland's industrial property market was constrained with vacancy rates at all time lows.
"Significant progress has been made across the Company's Green Star development pipeline, financed by PFI's inaugural Green loan tranches, demonstrating our commitment to long term sustainability initiatives," he said.