Listed investor Property for Industry (PFI) has reported a 10.5 per cent rise to $4.1 million in first quarter net operating profit.
Acting general manager Conor Collier said the company's rentals for the three months to March 31 were up 6.2 per cent on the previous corresponding periodto $8.2m, as a result of acquisitions, developments and rent reviews.
Interest costs were up 26.6 per cent to $2.3m, due to additional borrowings and higher interest rates.
Despite a softening economic outlook, industrial leasing inquiry remained steady, with a noticeable shortage of larger, quality industrial properties available for lease in the better Auckland industrial precincts, Mr Collier said.
PFI shareholders would receive a first-quarter dividend of 1.55 cents per share plus 0.404c imputation credits, representing a 1.64 per cent increase over the 2007 first-quarter dividend on a net basis.
A $5.9m office and warehouse project in Avondale, Auckland, had been confirmed as the first development project of the year, Mr Collier said.
All 29 of the rent reviews from 2007 were finished, increasing PFI's rent roll by more than $1m for the third consecutive year.
The 2008 rent review programme was the largest in the company's history, with 40 reviews scheduled on 45 per cent of PFI's total contract rentals, Mr Collier said.
PFI's portfolio occupancy rate as at March 31, was 99.75 per cent, partly as a result of tenant retentions.
About an hour after the sharemarket opened today, PFI's shares were up 2c to $1.31.
