By Campbell McIlroy
Friday 22nd September 2000
|Text too small?|
Analysts said the portfolio rationalisation and divestment programme was a signal the company was reading the market well.
PFI reported a tax-paid surplus of $4.8 million on rental revenue of $9.1 million for the six months to June 30.
Properties sold included 15 Ride Way in Auckland's North Harbour for $1.1 million. It has been leased short term and sold to Kea Property Group with settlement due in June 2001.
Three units in stage one of the property at 19-25 Porana Rd, Wairau Valley, have also been sold for a total of $1.2 million, with one remaining unit targeted for sale during the next quarter.
Stage two is due for completion this month and has been 62% pre-leased to the New Zealand Sugar Co, while stage three has been leased short term until divestment options are evaluated.
Analysts picked PFI would look to divest a further 2% of its 41-property portfolio.
PFI general manager Peter Alexander said the divestment programme would enable the company to focus on high-quality industrial properties that were easily adaptable and had a multiple number of uses.
One of the highlights for the six-month period was the purchase of the $7.13 million Recall Total Information Management property in Mt Wellington as it was a good- quality building on a long-term lease with a good-quality tenant, Mr Alexander said.
The firm also bought the $4.48 million Caroma property in Mt Wellington. This includes 8020sq m of land fronting Allens Rd, for which PFI is seeking tenant commitment for a new design-build project.
New acquisitions were funded from debt that led to interest costs of $1.67 million, with term debt increased to $52.98 million or 28% of assets.
Expansion and refurbishment of existing properties totalling $2.07 million had created additional revenue of $343,000, including the $1.65 million expansion of the Fletcher Aluminium buildings on Bowden Rd, Mt Wellington.
Total dividend return to shareholders for the six months June 30 was 2.6c a share with imputation credits of 0.6c a share.
No comments yet
Mandatory farm plans scorned as 'tick box' exercises
Kiwi dollar firms on weak US retail data, capped by rate-cut expectations
17th October 2019 Morning Report
SkyCity hoses down union claims over potential job losses
OPINION: Fair Payment Agreements and 'swallowing vomit' - the lot of the CTU
MARKET CLOSE: NZ shares gain; Restaurant Brands climbs on upbeat outlook
NZ dollar stalls after Bascand's rate cut comments
Bascand says RBNZ will consider changing bank capital proposals
Affordable electricity key to decarbonisation - Genesis
Graeme Hart trims global packaging empire with US$615m asset sale