Property firm profit declines

HAMISH RUTHERFORD
Last updated 05:00 08/05/2012

Relevant offers

Commercial Property

Wellington's Amora Hotel says it is closing for up to 12 months Ratepayers will be asked for their opinions on sale of council land at Shelly Bay Wellington City Council poised to sell Shelly Bay land for 'fraction' of its true value, developers say Sylvia Park opening $9m food precinct at the end of the year Wellington changes tack on plans to tackle its housing crisis Australian media claims buyers are chasing Fletcher Building Sale ends Warehouse Group's development dream St Mary of the Angels reopens after earthquake strengthening while Town Hall waits Long forgotten time capsule opens a window to the 1960s Wellington ratepayers asked to share infrastructure costs for Shelly Bay development

New Zealand's only listed industrial property owner says companies are increasingly willing to sign up to new long-term leases but are still able to demand incentives in return.

Property for Industry said in the three months to March 31 its distributable profits were $3.57 million, an 8 per cent fall on the same period a year ago, while rents fell 4.9 per cent to $7.41m.

PFI said it would maintain its quarterly dividend of 1.55 cents a share, payable to shareholders on the register on May 21.

General manager Nick Cobham blamed the fall on property sales, as well as lower occupancy, which stood at 96.2 per cent on March 31, down from 99.4 per cent a year earlier.

PFI negotiated eight new leases or extensions during the period, with its weighted average lease term increasing by six months to 4.34 years.

PFI has 49 properties, all but five of which are in the Auckland region.

Cobham said while there had been a reluctance to commit to long-term leases in recent years, companies were showing increased confidence to commit, although when signing up to leases of a decade or more, the market was typically demanding a month of free rent a year.

Ad Feedback

- The Dominion Post

Comments

Special offers
Opinion poll

Do you rent or own your home?

Rent alone

Rent with others

Own with mortgage

Own freehold

Vote Result

Related story: $1m-plus in unclaimed bonds

Featured Promotions

Sponsored Content