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Property For Industry half-year profit remains steady

Monday 3rd August 2009

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Property For Industry, the investment group managed by AMP Capital Investors, met half-year profit expectations in the first result from the top 50 companies on the NZX in this earnings season.

Net operating profit after tax for distribution fell 1.6% to $7.9 million for the six months ended June 30, meeting First NZ Capital’s expectations, amid declining rental revenues, which dropped to $15.8 million from $16.5 million in the same period a year earlier. The second-quarter dividend was held at 1.550 cents per share plus imputation credits of 0.387 cents per share.

The company reduced its debt levels through the sale of $45.4 million worth of assets in the past year, but this had resulted in lower returns as the funds had yet to be reinvested, said general manager Ross Blackmore.

Commercial property returns slumped last year as the global economic slump eroded property values and sapped demand for rentals. AMP Office Trust, the largest listed commercial property investor, last month wiped an annual 15% from the value of its portfolio.

The value of PFI’s portfolio shrank 5.7% to $349.8 million in the past six months. The company reported a net loss of $15.7 million, including unrealised losses, compared to a $5.9 million profit in the same period a year earlier, which wasn’t required to include unrealised fluctuations on values.

The company’s occupancy rate was 97.9%, with a weighted average lease term of 4.5 years.

The shares were unchanged at $1.17, and have gained 6.4% in the year to date.

Businesswire.co.nz

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