Sharechat Logo

PFI finetunes portfolio

By Campbell McIlroy

Friday 22nd September 2000

Text too small?
Property For Industry has continued to rationalise its portfolio with the sale of four properties worth $2.3 million and plans to dispose of another three to four properties worth up to $4.1 million by year's end, its interim report says.

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.

  General Finance Advertising    

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.

Related News:

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

IRG See IRG research reports