Property values rose 22.2 per cent or $392m to reach $2.1b including a property at 48 Seaview Rd in Wellington which is not due to settle until next month. Valuers highlighted uncertainty due to the pandemic but said that was lower in the industrial property sector compared to other types of property.
Net rental income of $94.3m was up $10.1m or 12 per cent annually and acquisition activity contributed $7.3m to this increase.
A fourth-quarter dividend of 2.4cps will be paid on March 22.
With the good times, PFI said it had supported its tenants during the pandemic: it allowed rent abatements in 2021 of $700,000, down on the previous year's $900,000. In addition, it gave rent deferrals of $200,000 in the latest period compared to $600,000 in 2020.
PFI said it sought to balance support for its tenants with its obligations "to our other stakeholders".
The company has a seismic works programme in place to reduce the likelihood of damage from earthquakes. Seismic works at its heritage building Shed 22, 23 Cable St, Wellington cost $413,000, the annual report showed.
Around 150,000sq m of space was leased in the year to 29 new and existing tenants for an average 6.7 years.
Ten new leases and 19 lease renewals were negotiated and signed.
Rent reviews were completed on 114 leases during the year, resulting in an average annual uplift of 3.5 per cent on around $66.5m of contract rent.
"The leasing market for industrial property remains very strong, with vacancy still at historically low levels," the business said.
The company plans redevelopment work at some of its sites. It has around $224m or 10 per cent of its portfolio listed as holding opportunities. This means it has a growing pipeline of development projects.
Anthony Beverley, chairman, said: "The company's continued focus on industrial property has coincided with ongoing investor interest and tenant demand that has enabled us to grow significantly. We are pleased to have capitalised on these market conditions while keeping gearing low. Our refreshed strategy and the changes in our dividend policy will give us that extra degree of flexibility to enhance and expand our portfolio in order to continue growing cash returns for investors."
At the company's annual meeting last May, Woodhams said there were four areas of focus: core generic assets, brownfield opportunities, specialised assets and assets held for sale.
Nearly $253m of acquisitions and value-add opportunities had been achieved in the year, including the divestment of Carlaw Park in Auckland in December, capping off a year of $368m in capital transactions.
Shares have been trading around $2.80, giving a market cap of $1.4b.
