Simon Woodhams, chief executive of NZX-listed landlord Property For Industry.
The largest NZX-listed landlord specialising in industrial property pushed up profit and upgraded its forecast on full-year dividends by 5.2%
Property For Industry made net after-tax profit of $46.9 million (previously $28.7m) from $73.5m revenue (previously $61.2m) in the six months to December 31, 2025.
It today declared $2.25b of real estate, as at the end of December.
Property For Industry CEO Simon Woodhams said the company had delivered a very strong interim result.
That, he said, “demonstrated the resilience of our industrial portfolio and the benefits of our long-term strategy”.
He cited robust rental growth, strong re-leasing and disciplined capital management.
All that supported earnings momentum and investors will get more money.
Rising valuations added to the result and reinforced confidence in the portfolio, Woodhams said.
“Together, these factors have underpinned the board’s decision to increase FY26 dividend guidance, reinforcing the company’s focus on delivering growing dividends for shareholders over the long term,” Woodhams said.
PFI had forecast FY26 cash dividends of at least 8.90 cents per share (cps) for the year to June 30, 2026.
“Reflecting a strong H1 FY26 performance and positive trading conditions, and subject to events beyond the company’s control, the board now expects to declare FY26 cash dividends of at least 9.05cps, up 0.45cps or 5.2% on FY25 dividends,” today’s statement said.
In line with its dividend policy, the board resolved to pay a second quarter interim cash dividend of 2.20cps.
The company is now trading through FY26, “focused on harnessing embedded rental growth, advancing its development pipeline and continuing to deliver sustainable, growing returns for shareholders”, Woodhams said.
Rent reviews were completed on 57 leases during the half-year, delivering an average uplift of 8% on $46.2m of contract rent.
At the end of the interim period, the company’s weighted average lease term was 5.37 years, and the portfolio was 99.9% occupied.
Nineteen properties, representing about 25% of the portfolio by value, were revalued at the end of the interim period.
That resulted in a fair value gain of $17.1m or an average increase of 3.2%.
Net rental income increased $10.7m or 20.6% in the interim period.
An independent market rental assessment of those 19 properties was completed as part of the valuation process, and when combined with June 2025 market rental assessments for the remainder of the portfolio, the company’s portfolio is estimated to be about 9.1% under-rented.
That bodes well for the future in terms of possible rental income uplift.
Net tangible assets of $2.88 per share increased 1.7%, largely driven by continued growth in investment property valuations.
Progress continued to be made at stage two of 78 Springs Rd, East Tāmaki.
PFI is developing a dual-unit warehouse of about 11,300sq m. It has already pre-let about 60% of that to component manufacturer MiTek New Zealand on a 12-year term.
Following an early lease surrender at 92-98 Harris Rd, East Tamaki, PFI took advantage of softer construction market conditions, it said today.
Demolition on the site is now complete and the company is planning a 14,500sq m warehouse there.
Post balance date, PFI settled 5.8ha at the Spedding Road Industrial Estate, Whenuapai, where it plans to build.
Investment broker Craigs puts PFI in a group of companies it rates positively.
In a note this month, it said its focus today would be on progress with PFI’s FY26 lease expiries, which amount to 16% of the portfolio.
It is also keen to know more about brownfield developments, “which could support an upgrade to current FY26 DPS [dividend per share] guidance of at least 8.9cps”.
PFI said today it is considering a bond issue. It has not specified how much it will seek to raise, only saying more details will be out on March 2.
Westpac, Craigs and Forsyth Barr are involved, a statement said.
Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.