Monday, 20 August 2018

Announcement

MKTUPDTE: PFI: Valuation, Portfolio and Earnings Update

14 Dec 2017 12:08NZX
VALUATION, PORTFOLIO AND EARNINGS UPDATE

NZX listed industrial property landlord Property for Industry Limited (PFI,
the Company) today announced an expected annual increase from independent
valuations in the value of its property portfolio of approximately $44
million or 3.8% to $1.210 billion, an update on the portfolio and upgraded
earnings guidance.

Valuation
PFI began the year with a portfolio of 84 properties valued at $1.083
billion(1). Nine properties were acquired for a combined total of $84 million
and one property was sold for a book value of $12 million. Capital
expenditure and property related prepayments of $11 million, together with
the expected uplift of $44 million(2), provide the bridge to the December
2017 portfolio of 92 properties which is expected to be valued at $1.210
billion.

Independent valuers CBRE, Colliers International, Jones Lang LaSalle and
Savills carried out the valuations, which remain subject to finalisation and
audit.

Portfolio
A key driver of this valuation outcome was the successful leasing of nearly
88,000 square metres - representing ~12% of PFI''s existing portfolio - during
the year to date. 24 new and existing tenants have been secured for an
average term of 5.5 years, with approximately half of the contract rent
secured as a result of lease renewals with nine PFI tenants for an average
term of 4.3 years. In addition to this, 15 new leases were secured for an
average term of 6.4 years, and the portfolio is expected to be almost fully
occupied at the end of the year.

Earnings
PFI Chairman Peter Masfen noted: "The second half of 2017 has delivered
strong leasing outcomes, continuing the trend we reported on in our interim
results announcement in August. A series of important strategic initiatives
have also been completed during the year, with the internalisation of
management, portfolio acquisition, rights offer and bond offer all
contributing to a successful year.

These factors have combined to allow us to increase guidance for full year
distributable profit from 7.7 - 7.9 cents per share to around 8.0 cents per
share. Guidance for full year cash dividends totalling 7.45 cents per share
is unchanged."

Annual results announcement
A final valuation, portfolio and earnings announcement will be made on
Monday, 12 February 2018.

ENDS

ABOUT PFI & CONTACT

PFI is New Zealand''s only listed company specialising in industrial property.
PFI''s portfolio of 92 properties located in Auckland, Hamilton, Mount
Maunganui, New Plymouth, Napier, Wellington, Nelson, Blenheim and
Christchurch is leased to 149 tenants.

For further information please contact:

SIMON WOODHAMS
General Manager
---
Phone: +64 9 303 9652
Email: woodhams@pfi.co.nz
---
CRAIG PEIRCE
Chief Financial Officer and Company Secretary
---
Phone: +64 9 303 9651
Email: peirce@pfi.co.nz
---
Property for Industry Limited
Shed 24, Prince''s Wharf, 147 Quay Street, Auckland 1010
PO Box 1147, Shortland Street, Auckland 1140
---
www.propertyforindustry.co.nz

(1) 31 December 2016 figures are adjusted for the sale of 27 Zelanian Drive,
which had been unconditionally sold as at 31 December 2016 and settled on 1
February 2017.
(2) Includes $6.0 million recognised in the six months to 30 June 2017.
End CA:00311969 For:PFI    Type:MKTUPDTE   Time:2017-12-14 12:08:01
Views: 161
Property For Industry Ordinary Shares
 1.640 Change:
0.01
0.30%
 
Open:1.645 
High:1.645 
Low:1.645 
Volume:250 
Last Traded:07/02/18 09:09:05 
Bid:1.640 
Ask:1.640 
52-Wk High:1.710 
52-Wk Low:1.575