Property for Industry has best result in 11 years

Listed industrial real estate investor Property for Industry has released its best annual result in 11 years, saying times have never been so good since it listed.

Chairman Peter Masfen said yesterday net profits were up in the past five years but the company's performance had never been as spectacular as the latest result when net profit was up 7 per cent on the previous year.

Consistently high portfolio occupancy, more property purchases and developments and the rising market had all combined to help the company do better than ever before. Shareholder dividends rose 6.4 per cent to 8.37c a share for the year.

Masfen predicted the good times would last, saying portfolio activity throughout last year - particularly rent reviews, acquisitions and developments - would generate more revenue this year and beyond. The company, which owns real estate worth $333.4 million, would also continue to review contract rentals to market levels. A 98 per cent occupancy level, a weighted average lease term of 5.26 years and a debt level of 28 per cent, well below its self-imposed maximum of 35 per cent, were other signs of good health.

Mark Lister, analyst of ABN Amro Craigs, praised the company's performance.

"It's a stellar result and yet another impressive year of low-risk, sustainable growth from the company. In my opinion, this particular listed property vehicle has an unmatched track record in New Zealand. No other listed property vehicle has been able to achieve the year-in, year-out earnings and dividend growth that this has," he said, noting he gave it a very positive outlook.

The Property Council's investment performance index for the September quarter showed the total return from industrial real estate was 21.84 per cent, compared with 13.7 per cent in the December 2004 quarter when the same sector's total return was 13.7 per cent.