PFI's dividend will be the first the company has paid under the PIE (portfolio investment entity) regime.
PFI's dividend will be the first the company has paid under the PIE (portfolio investment entity) regime.
KEY POINTS:
Listed industrial property investor Property For Industry (PFI) has reported a 6.6 per cent increase in net operating profit after tax for distribution for the nine months to September 30.
PFI general manager Ross Blackmore today said the company's rentals for the nine months rose 6.5 per centon the same period last year, to $23.1 million, as a result of acquisitions, new developments and higher rents following rent reviews.
Net profit after tax before gain on sale for the nine months was $11.1m, from $8.2m a year earlier.
Net operating profit after tax for distribution was $11.2m from $10.5m.
So far this year, PFI had bought three new properties with a total value of $11.6m and had five development projects under construction at a total cost of $19.1m, including land.
Those projects would provide an average return of 8.6 per cent on cost including land already held, or 10.7 per cent on additional funds invested, with the full benefit of the new revenue to be reflected in the company's accounts from early 2008, Mr Blackmore said.
He estimated the company's long-term development pipeline remained at more than $50m.
He said 19 of the 29 rent reviews scheduled for 2007 were now finished, adding $733,000 to the company's annual rent roll.
The increases equated to an average of 11.53 per cent, or 4.02 per cent compounded annually over the average 2.77-year review period.
A third-quarter dividend of 1.625c per share plus 0.165c imputation credits would be paid, bringing total dividends this year to 6.3c per share, Mr Blackmore said.
The third-quarter dividend would be the first the company had paid under the PIE (portfolio investment entity) regime, which benefited New Zealand resident shareholders in that their cash dividends did not incur any additional tax.
