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Property For Industry takes a well-earned breather

Friday 14th March 2003

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After an almost uninterrupted rise from June 1999, shares in Property For Industry have come off the boil recently but the company still has good growth prospects.

ABN Amro Craigs property analyst James Beale said the all-time high of 97c reached at the end of last year was "a bit pricey" in relation to the company's net tangible asset backing of about 77c.

Even so the 2002 net profit of $12.8 million ­ up 7% and the highest since PFI listed in December 1994 ­ was "pretty solid."

With a favourable interest rate environment, falling yields and tight occupancy rates the industrial property market looked set of continued growth, Mr Beale said.

PFI is the only listed company operating in the market and has a strategy of continually refining its portfolio to stay focused on high occupancy and good development prospects.

In January it sold a property at Auckland's North Harbour that no longer fitted the mix and reinvested in Wellington's Seaview. Last month it secured a $6.5 million contract to design and build a warehouse for Health Logistics near Auckland Airport.

The policy of paying out 100% of net profits as dividends puts it on a dividend yield of about 8.1%.

According to Mr Beale, the recent softening of the share price means it is now good value.

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