PFI Announces Interim Results

Tuesday 24th February 2026

Property for Industry Limited (the Company, PFI), today announced the Company’s interim results for the six months ended 31 December 2025 (H1 FY26).

“PFI has delivered a very strong interim result, demonstrating the resilience of our industrial portfolio and the benefits of our long term strategy,” says Chief Executive Officer, Simon Woodhams. “Robust rental growth, strong re leasing outcomes and disciplined capital management are supporting earnings momentum, while growing valuations have added to reported profit and reinforced confidence in the portfolio. Together, these factors have underpinned the PFI Board’s decision to increase FY26 dividend guidance, reinforcing the Company’s focus on delivering growing dividends for shareholders over the long term.”

Highlights

- Interim results: Profit after tax[1] of $46.9m, up $18.2m on the prior interim period, Funds From Operations (FFO)[2] up 32.2% to 6.40 cents per share (cps), Adjusted Funds From Operations (AFFO) up 23.9% to 5.39 cps, interim cash dividends of 4.40 cps.

- Industrial valuations growing, supported by realised rental growth: Valuation growth continues across PFI’s $2.25b portfolio, 19 properties revalued at the half-year[3], fair value gains on those properties of $17.1m or 3.2%, net tangible assets (NTA) up 1.7% to $2.88 per share, $46.2m of contract rent reviewed during H1 FY26 delivering an average annualised uplift of 7.3%, $3.1m of contract rent leased during H1 FY26 at an average of 14.9% above previous contract rents, occupancy stable at 99.9%.

- Key Green Star development projects advanced: Stage 2 of 78 Springs Road continues to track under-budget and ahead of programme, demolition complete at 92-98 Harris Road with redevelopment to be tenant-led, Stage 1 of Spedding Road to commence on a speculative basis, PFI retains optionality to deploy up to ~$325m on Green Star certified projects over the medium-term.

- Robust capital position: $100m tranche of syndicated bank facility reclassified as ‘Green’ debt, $100m PFI020 bonds repaid, ~$154m of facility headroom, December 2025 gearing of 34.2% lifting to ~36.3% after all committed acquisitions, divestments and development projects, considering potential retail bond offer.

- FY26 dividend guidance increased: Reflecting a strong H1 FY26 performance and positive trading conditions, PFI expects to declare FY26 cash dividends of at least 9.05 cps, an increase of at least 5.2% on FY25 dividends.

Interim results

PFI reported a H1 FY26 profit after tax of $46.9m (9.34 cps), up from $28.8m (5.73 cps) in the prior interim period. An increase in net rental income, along with a much smaller change in the fair value of derivative financial instruments, were the main contributors to this increase.

H1 FY26 net rental income[4] increased $10.7m or 20.6% on H1 FY25 to $62.6m, driven by the early lease surrender payment at 92-98 Harris Road (+$4.3m), leasing activity (+$5.0m) and development projects completing in the prior period (+$1.6m), partly offset by current and prior period acquisition and divestment activity (-$0.2m) and vacancy(-$0.1m).

Profit before finance income and expenses, other gains and losses and income tax[5] increased from $44.1m in the prior interim period to $55.2m in H1 FY26. Interest and fees increased by $0.2m, with the benefit of lower floating interest rates largely offset by higher borrowings and lower levels of interest capitalised to development projects. Current tax of $6.4m increased by $2.1m as a result of higher earnings.

FFO earnings were up 32.2% to 6.40 cps, whilst AFFO earnings of 5.39 cps were up 23.9%, reflecting the aforementioned increases in net rental income, partly offset by higher current tax.

In line with PFI’s dividend policy, the PFI Board resolved to pay a second quarter interim cash dividend of 2.20 cps[6].

Further detail on PFI’s FY26 interim results is included in the presentation and Interim Report released with this announcement.

Industrial valuations growing, supported by realised rental growth

PFI’s industrial property portfolio continued to perform through H1 FY26, supported by strong re leasing outcomes and realised rental growth. At the end of the interim period, the Company’s weighted average lease term (WALT) was 5.37 years, and the portfolio remained near fully-occupied at 99.9%. These robust fundamentals – coupled with the fact that all material FY26 expiries have been leased – reflect ongoing tenant demand for well located industrial space and the attractiveness of PFI’s portfolio.

Rent reviews were completed on 57 leases during H1 FY26, delivering an average uplift of 8.0% (7.3% annualised) on ~$46.2m of contract rent.

Around 50,000 square metres (sqm), or $6.7m or 5.8% of rent, was leased in H1 FY26 across three new leases and eight renewals, for an average of seven years. Minimal incentives were required to secure these leases, and a positive re-leasing spread[7] of ~15% was observed where rents were agreed.

Combined, over 45% of contract rent was reviewed, varied, or leased during H1 FY26.

19 properties, representing ~25% of PFI’s portfolio by value, were revalued at the end of the interim period, resulting in a fair value gain on those properties of $17.1m or an average increase of 3.2%. The valuation outcome was attributable to realised rental growth and development progress at Stage 2 of 78 Springs Road. As a result of portfolio and valuation activity[8], PFI’s passing yield increased by 0.13% to 5.34%, while the portfolio market cap rate remained stable at 5.74%.

An independent market rental assessment of the 19 properties was completed as part of the valuation process, and when combined with June 2025 market rental assessments for the remainder of the portfolio, PFI’s portfolio is estimated to be ~9.1% under-rented[9] at the end of the interim period (June 2025: ~11.5%). On a like-for-like basis, market rents were estimated to have grown by ~3.2% over the period[10].

Net tangible assets as at the end of the interim period of $2.88 per share increased $0.04 or 1.7% on 30 June 2025, largely driven by continued growth in investment property valuations.

Key Green Star development projects advanced

Consistent with the refreshed strategy introduced in FY25, PFI targets holding 5–15% of the portfolio in development opportunities. Currently, ~$203m (~9%) of the portfolio is allocated to this category[11]. In line with PFI’s sustainability strategy, all significant new developments will target a 5 Green Star rating.

Progress continues to be made at Stage 2 of 78 Springs Road, East Tamaki, where PFI is developing a dual unit ~11,300 sqm warehouse, ~60% pre-leased to MiTek[12] for 12 years. The project continues to track under budget and ahead of programme, with completion expected in April 2026. Based on current cost and leasing assumptions, Stage 2 is expected to deliver a yield on cost of at least 6.5%, including land, and securing a tenant for the speculative component of this development remains a key priority for the Company.

Following the early lease surrender at 92-98 Harris Road, East Tamaki, PFI moved quickly to take advantage of softer construction market conditions, with demolition now complete. Current master-planning provides for a ~14,500 sqm industrial facility, with a potential redevelopment involving ~$40m of additional investment (excluding land) and targeting a yield on cost of ~6.5% including land. Any redevelopment is expected to be tenant led, with the site cleared, secured and held until an anchor tenant is secured.

Post balance date, PFI settled the acquisition of ~5.8 hectares of land at the Spedding Road Industrial Estate, Whenuapai, under a deferred settlement structure. Stage 1 is due to commence in March 2026 and is progressing on a speculative basis, with completion expected in Q4 FY27. The project is expected to involve an investment of ~$40m including land and target a yield on cost of ~6.5% including land. Future stages at Spedding Road provide a further ~4.0 hectares of land to be developed over the next 3-4 years for an estimated cost of ~$70m.

PFI holds ~$105m in additional development opportunities, enabling the deployment of a further ~$175m over the medium-term. These projects aim to transform obsolete assets into best-in-class, 5 Green Star-rated industrial facilities, unlocking value and supporting long-term earnings growth.

Robust capital position

PFI reclassified Tranche C of its syndicated bank facility ($100m, expiring August 2027) as ‘Green’ debt during the interim period, aligning total ‘Green’ facilities with the recent growth in PFI’s ‘Green’ asset base. The PFI020 retail bonds were repaid in October 2025, and PFI is considering a potential fourth retail bond issue, to further extend and diversify its borrowings.

At the end of the interim period, PFI’s debt instruments have a weighted average term to expiry of 3.2 years, and the Company has approximately $154m of unutilised bank facility capacity.

Following settlement of the acquisitions at 505 & 507 Mount Wellington Highway, Mount Wellington, for $36m in December 2025, gearing at the end of the interim period was 34.2% (covenant: 50%). Post balance date, PFI reached an unconditional agreement to divest the properties at 2 Smart Road & 18 Constance Street, New Plymouth and 41 & 55 Foremans Road, Christchurch for a combined ~$19m. Together with all other committed acquisitions and development projects, gearing is expected to increase to ~36.3%, towards the middle of PFI’s target range of 30 – 40%.

At the end of the interim period the interest cover ratio was 3.2 times (covenant: 2 times), and interest rate hedging covers ~74% of forecast debt at an average rate of ~3.07% for the remainder of FY26.

FY26 dividend guidance increased

At the beginning of the period, PFI guided to FY26 cash dividends of at least 8.90 cps. Reflecting a strong H1 FY26 performance and positive trading conditions, and subject to events beyond the Company’s control, the PFI Board now expects to declare FY26 cash dividends of at least 9.05 cps, an increase of at least 0.45 cps or 5.2% on FY25 dividends.

After normalising FY26 earnings for the early lease surrender payment at Harris Road, cash dividends of at least 9.05 cps are expected to result in a dividend payout of ~90% of AFFO on a rolling three-year historic average basis, in line with PFI’s dividend policy range.

“PFI’s interim results highlight the disciplined execution of our long term strategy and the strength of our industrial portfolio,” says Simon Woodhams. “PFI enters the second half of FY26 focused on harnessing embedded rental growth, advancing its development pipeline and continuing to deliver sustainable, growing returns for shareholders.”

(See Key Metrics table in attached PDF)

ENDS

The PFI Management Team will present the results via live webcast from 10am NZT on 24 February 2026. To view and listen to the webcast, please visit:

https://edge.media-server.com/mmc/p/9qzjo3u6.

Anyone wishing to participate in the webcast (for example, to ask a question) must pre-register for the conference call at:

https://register-conf.media-server.com/register/BI95ef20bc29974d11ada070ef2d448ba3.

Upon registering, participants will be provided with participant dial-in numbers, a passcode and a unique registrant ID. In the 10 minutes prior to the call start time, you will need to use the conference access information provided in the email received at the point of registering, in addition to opening the webcast (using the details above).

ABOUT PFI

PFI is an NZX listed industrial property specialist, owning over 90 quality properties worth more than $2 billion. Our well diversified portfolio is focused on strategic locations that drive value and growth for the industrial sector, for our tenants, and for our investors. Since listing on the NZX in 1994, we’ve built a strong track record of delivering consistent returns. We invest for the long-term, combining our capital and specialist industry capability to deliver the successful outcomes all our stakeholders need.

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