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Property For Industry nine-month earnings slide 15 percent

Monday 31st October 2011

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Property For Industry, the industrial property investor, reported a 15 percent fall in distributable earnings just one month after fund manager AMP Capital Investors agreed to sell the management contract.

Distributable profit, which removes deferred tax and unrealised changes in the value of interest rate swaps and investment property, was $11.7 million in the nine months ended Sept. 30, compared to $12.4 million a year earlier.

The property investor reported a net profit of $9 million, turning around a $25.7 million loss a year earlier when it took a one-off hit on the tax treatment of its building values.

Property investment companies typically prefer to report pre-adjusted profits.

PFI's revenue fell 5.6 percent to $23.2 million, with property sales leading to a decline in rental income. That was partially offset by new income streams from completed developments and rent reviews, the company said.

Last month, AMP Capital agreed to sell the management contract to Auckland-based DPF Management after an unsolicited bid. The manager received a base fee of $1.4 million in the period, but hadn’t received any incentive fee, according to the financial statements.

The units rose 0.9 percent to $1.16 in trading on the NZX.

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