Release to New Zealand Exchange
PFI announces nine-month result, board and management changes
Listed industrial property investor Property For Industry (PFI) has announced a steady dividend and
distributable profit of $11.716 million for the nine months to 30 September 2011.
The company has also advised of changes at both governance and management level as part of the
transition of management from AMP Capital Investors to PFIM Ltd, which was announced to the market
at the end of September.
PFI’s rentals for the nine months to 30 September 2011 were 5.7 percent lower than the previous nine-
month period, at $23.171 million, primarily as a result of the company’s property sales, partially offset by
new revenue from completed developments and recent rent reviews.
Interest costs were up 4.7 percent despite lower debt levels, continuing to reflect the higher costs
associated with the company’s new five-year bank debt facility.
Taxation costs for the year to date also continue to be comparatively higher as a result of two factors:
firstly, the removal of the company’s ability to depreciate building structures with useful lives of more
than 50 years for tax purposes, and secondly, prior-year tax adjustments received by PFI during the
previous nine-month period.
PFI’s directors have again maintained the net dividend at the same level as the previous corresponding
period, and PFI shareholders will therefore receive a third-quarter dividend for 2011 of 1.65 cents per
share plus imputation credits of 0.397 cents.
The record date is 14 November 2011 and payment will be made on 23 November. The company’s
dividend reinvestment scheme is in place for the dividend and the discount rate for shares issued under
the scheme remains at 2.5 percent.
NZ IFRS accounting standards require non-cash adjustments such as unrealised gains or losses in the
fair value of interest rate swaps and deferred taxation to be taken into account in reporting net profit after
taxation. On this basis, PFI recorded a net profit after tax including unrealised losses of $8.987 million for
the nine months.
PFI general manager Ross Blackmore, who finishes with the company today, noted that portfolio
occupancy as at 30 September 2011 was 95.6 percent.
Settlement of the $7.35 million sale of 11 Barnes St, Wellington, along with 6,751 sqm of non-income
producing land on an adjoining property, is now imminent. This will reduce the company’s gearing from
its 30 September 2011 level of 30.5 percent to 29 percent.
PO Box 3984, Shortland Street, Auckland, New Zealand T +64 9 927 1716 Property for Industry Limited
Level 7, 21 Queen Street, Auckland F +64 9 927 1715 www.pfi.co.nz
AMP Capital (New Zealand) Limited
PFI has previously announced the assignment of the management contract from AMP Capital Investors
to PFIM Ltd, with an agreed transition period and process to ensure a seamless change of manager.
From the settlement date of 20 January 2012, Greg Reidy, managing director of PFIM Ltd, will join the
Board of PFI as an executive director representing the new management. Existing director Anthony
Beverley, who is no longer an AMP Capital executive, will remain on the Board as an independent
director.
At management level, from 1 November 2011 – the commencement of the transition period – Nick
Cobham and Craig Peirce of PFIM Ltd will be appointed as general manager and chief financial officer
respectively. The existing PFI accounting and finance team, including Jeff Moore (PFI’s chief financial
officer from 2008) have been retained through to 31 March 2012 to ensure that PFI’s year-end financial
statements and audit are completed seamlessly following the change in manager.
The board is looking forward to working with PFIM Ltd.
The board would again like to acknowledge and thank Ross Blackmore and his team for the contribution
that they have made to PFI and for the assistance that has been, and will continue to be, provided
through the transition period of the change in management.
PFI is New Zealand’s only listed company specialising in industrial property investment.
-ends-
October 31, 2011
For further information about the financial For further information about the board and
result: management changes:
Ross Blackmore (outgoing general manager) Nick Cobham (incoming general manager)
Ph 09-927 1700 or 029-307 8393 Ph 09-303 9656 or 021-464 583
Email ross.blackmore@ampcapital.co.nz Email cobham@mrco.co.nz
Greg Reidy, managing director, PFIM Ltd
Ph 09-303 9653 or 021-339 965
Email reidy@mrco.co.nz
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