Support our sponsors:

NZX 50 Index	3326.74	2.10
S&P/ASX 200	4282.90	7.80
Dow Jones Industrials	12884.00	5.80

Twitter

Facebook

RSS

PFI net profit up 16.7% before non-cash tax charge

Monday 2nd August 2010

Text too small?

Property for Industry reported a large bottom-line loss due to government tax changes but its distributable net profit rose 16.7% for the six months ended June 30.

The property trust had previously warned about the $35.5 million charge against profit resulting from it no longer being able to claim depreciation and that led to a $29 million bottom-line loss.

Excluding that non-cash charge, PFI posted a $9.2 million net profit, reflecting a 3.4% rise in rents collected from its nearly fully tenanted portfolio of buildings – occupancy at June 30 was 99.9% – and tax benefits.

PFI says on a normalised basis its result was up about 2.5%.

PFI, which is managed by AMP Capital Investors and is the only listed vehicle specialising in industrial property, says it has re-leased or extended leases on almost all space with leases expiring in 2010 and is making substantial progress on re-letting lease expiries in 2011 and beyond.

It has three development projects underway worth about $9 million and sold one property in North Harbour in the six months for $4.8 million, above its book value. Following that sale, the portfolio of 54 properties is valued at $360.9 million.

The first-half result compares with a $15.7 million loss in the same six months a year earlier which reflected a $20.9 million devaluation of PFI's portfolio. There was no change in valuation recorded in the latest result.

PFI units last traded at $1.14, unchanged from Friday, putting PFI's market capitalisation at $245.9 million. The tax charge meant the units' net tangible asset backing fell to 93 cents each from $1.10 at December 31, 2009.

Businesswire.co.nz

Comments from our readers

No comments yet

Add your comment:

Your name:
Your email:	Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.