PFI maintains first-quarter dividend, looks ahead to increased rentals from development projects
News release to New Zealand Stock Exchange
April 21, 2009
Listed industrial property investor Property For Industry (PFI) has maintained its first quarter dividend for 2009 at the same level as last year’s first quarter, on the back of slightly-lower rentals and profit.
General manager Ross Blackmore said PFI’s rentals for the three months to March 31, 2009, were 3.2 percent lower because the company had sold three properties during the intervening year.
The company’s taxation for the quarter was also 11.8 percent higher.
Net operating profit after tax for distribution was down 3.3 percent to $3.967 million. Net earnings per share, based on distributable profit, were 1.87 cents per share (2008: 1.95 cents per share).
PFI shareholders will receive a first-quarter dividend for 2009 of 1.550 cents per share plus imputation credits of 0.526 cents per share.
The record date for the dividend is May 5, 2009 and payment will be made on May 15. The company’s dividend reinvestment scheme is in place for the dividend and the discount rate for shares issued under the scheme remains at 2.5 percent.
Mr Blackmore said PFI’s portfolio occupancy at the end of the quarter was 99.46 percent. The company secured four new tenants during the quarter, all for Penrose properties – Kings Transport, Argyle Schoolwear, Bowls NZ Inc and a café. PFI has 32 rent reviews scheduled for the year, with half being on CPI or structured growth mechanisms.
PFI currently has two development projects due for completion over the next two months – a $2.4 million office/warehouse in North Harbour for Brewcraft and a $3.05 million office/warehouse at PFI’s Peninsula Business Park in Avondale for Dorma. These projects will add a total of $400,000 to PFI’s annual rent roll.
The proceeds of the three property sales have reduced PFI’s debt levels. PFI’s gearing ratio (debt to total assets) is currently 28.3 percent, compared to 29.4 percent at the same time last year. This is well below the company’s self-imposed maximum of 35 percent and one of the lowest in New Zealand’s listed property sector.
PFI is New Zealand’s only listed company specialising in industrial property investment, and is managed by AMP Capital Investors.
For further information:
Ross Blackmore, General Manager, Property For Industry
Ph 09-307 8393 or 029-307 8393
Email ross.blackmore@ampcapital.co.nz