PFI posts gains

Friday 16th April 2004

Property For Industry (PFI)has reported gains of more than five percent in net profit and dividends for the first quarter of 2004.

Rental revenues for the three months to March 31 were $5.767 million, a 5.5% increase on the same period last year, as income begins to flow from the properties PFI acquired and developed in 2003.

Interest costs were higher at $1.214 million as a result of the additional borrowings associated with the new properties.

PFI's net profit after tax for the quarter was $3.217 million, a 5.7% increase.

PFI chairman Peter Masfen said shareholders will receive a dividend of 1.4 cents per share, up from 1.35 cps for the same period last year. The record date is April 30, 2004 and the payment date is May 7, 2004. As has been the case since last year, PFI shareholders participating in the company's dividend reinvestment programme will receive their shares at a five percent discount.

Earnings per share for the quarter were 1.60 cps, 5.3% higher than 2003's 1.52 cps.

"In 2003, PFI achieved a record net profit and dividend for the full year, without receiving most of the revenue contribution from the new properties we were buying and building at the time," Masfen.

"Those new rental revenues are now showing an immediate benefit in 2004."

Last year PFI bought four properties and completed a further three design-build projects, with a combined value of $26 million most of them close to year-end. These properties are providing additional contracted revenue of $2.4 million per annum, the majority of which has begun in the current financial year.

PFI general manager Ross Blackmore said during the first quarter of 2004, PFI returned its portfolio occupancy to 100% following four leasing transactions in Auckland and Christchurch, which covered more than 13,000 sqm and a total annual rent roll of more than $1 million.

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