Tax and credit costs higher in PFI profit

Monday 18th April 2011

Property For Industry (PFI) said an increase in tax costs for first quarter of $405,000 and higher credit costs contributed to a fall in profit.

The industrial property owner managed by AMP Capital Investors reported a $3.874 million first quarter profit, down 17.3% on the same period last year, which included a one-off tax adjustment. On a normalised basis, the decline was 10%.

The company is paying a first-quarter dividend of 1.55 cents per share, which is the same level as a year ago. The record date for the first-quarter dividend is May 4 and payment will be made on May 16.

PFI had secured a new five-year bank debt facility but bank charges were higher than under the previous facility, negotiated in 2008.

PFI's borrowing levels were $11 million lower than the previous corresponding period as a result of the property sales but interest costs were in line with the previous period.

PFI's tax costs were $962,000, up $405,000 from the previous corresponding period. The company cited tax policy changes, including the removal of an ability to depreciate building structures with useful lives of more than 50 years for tax purposes.

NZPA

Comments from our readers

No comments yet