Steady first-quarter result for PFI
News release to New Zealand Stock Exchange
April 19, 2010
Listed industrial property investor Property For Industry (PFI) continues to deliver consistent earnings, helped by high portfolio occupancy and new income from an acquisition, new developments and rent reviews.
PFI general manager Ross Blackmore said the company’s rentals for the three months to 31 March 2010 were 3.2 percent higher than the previous corresponding period, at $8.193 million.
The company’s expenses for the quarter were relatively stable. Interest – PFI’s largest single expense item – was virtually unchanged at $2.027 million, with higher debt levels being offset by lower interest rates.
PFI’s net operating profit after tax for distribution for the three months was $4.686 million, up $719,000 or 18.1 percent on the previous corresponding period. However, after excluding a one-off prior year tax credit, distributable profit was up 10.7 percent on a normalised basis. In addition, Mr Blackmore noted that PFI’s effective tax rate for the first quarter of 16.3 percent was below the 20.4 percent for the previous corresponding period, as a result of the higher level of deductible expenses arising from recent high leasing volumes.
Net earnings per share, based on distributable profit, were 2.18 cents per share (2009: 1.87 cents per share).
PFI’s directors have again maintained the net dividend at the same level as the previous year, and PFI shareholders will therefore receive a first-quarter dividend for 2010 of 1.55 cents per share plus imputation credits of 0.233 cents.
The record date for the first-quarter dividend is 3 May 2010 and payment will be made on May 13. 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.
NZ IFRS accounting standards require non-cash adjustments such as unrealised gains or losses in the fair value of interest rate swaps and deferred taxation to be taken into account in reporting net profit after taxation. On this basis, PFI recorded a net profit after tax and unrealised losses of $3.421 million for the first quarter of 2010, compared with $3.438 million for the previous corresponding period.
PFI’s portfolio continues to enjoy solid tenant demand and was 98.6 percent occupied as at 31 March 2010. To date in 2010, the company has secured eight new leases and lease renewals across existing properties and new developments, representing a total floor area of more than 23,000 sqm and a total annualised rent roll of $2.46 million.
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