Property for Industry profit dips

21:37, Feb 17 2013

Property sales and vacancies have taken a bite out of annual earnings at listed industrial property investor Property for Industry.

The firm's annual distributable profit - which excludes unrealised changes to its portfolio value - fell 7.5 per cent to $14.6 million, year-on-year.

That was in line with analysts' expectations.

Operating revenues fell 4.7 per cent to $29.4m, due to sales of properties in the prior year and vacancies during the year.

Profit after tax, which includes changes to its portfolio value, rose almost 65 per cent to $26.9m thanks to a $15m boost to non-operating income.

That boost included a 3.3 per cent or $12.3m increase to its portfolio value.

The company will pay a fourth quarter final dividend of 1.85 cents per share. That takes the total dividend for the year to 6.6 cents per share.

General manager Nick Cobham said the firm had made progress towards repositioning its portfolio.

"The acquisition of three significant industrial properties and disposal of selected non-core properties was complemented by more than 50 leasing transactions. This activity provides a foundation from which to build future earnings growth."

Cobham said there was more optimism in the industrial property market last year than in the previous three to four years.

The company would continue to develop existing expansion land and reposition properties as tenant demand dictated, Cobham said.

"Selected sales of non-core property will be considered, as will the acquisition of core industrial property in the main centres."

PFI said it expected dividends for the 2013 financial year to be within the range of 6.6 to 6.9 cents per share.

Its shares last traded at $1.24 on the NZX, up five per cent on this time last year.