The industrial property investment company Property for Industry (PFI) has turned a record half year profit on the back of a strong valuation gains and improved rental income.
Photo: 123RF
The company's chief executive Simon Woodhams said its refreshed strategy and the buoyant commercial property market helped generate the record result.
Key Numbers
(For the six months to June 2021 against 2020)
- Net profit after tax $273.5m vs $15.7m (This includes a $248.2m value gain on its property portfolio.)
- Revenue $306.5m vs $50.5m
- Net Rental income $45.4m vs $38.9m
- Dividend 3.6 cps vs 3.6 cps
"Our balance sheet is in great shape, and we have high levels of liquidity to continue to execute on our priorities and to deliver strong, stable returns," chief executive Simon Woodhams said.
The value of the company's property portfolio rose by 14.5 percent to $2.03 billion.
Nearly all of the company's portfolio was fully leased and PFI had negotiated extensions with all contracts that were due to end in the second half of 2021.
PFI completed 66 rent reviews over the half, which resulted in an average annual rent increase of 3.1 percent.
However, the average lease term fell from 5.3 years to 4.8 over the period.
Most of the company's 96 properties were concentrated in the Auckland region, where it said the demand for industrial property was strong.
Property services firm CBRE latest report of the Auckland industrial property market shows vacancy rates were at 1.2 percent/
Woodhams said it was projecting rental growth in the future.
The company expected to pay out a full year dividend at the top end of its guidance range of between 7.85 cps and 7.90.
However, it noted that the guidance was subject to there being no adverse changes in conditions or unforeseen events.
"Including no material tenant failures or further material Covid-19 restrictions, other than those in place as at the date of this announcement," it said.