Property For Industry, the industrial property investor, reported a record full year profit on higher revenues and lower costs and remained upbeat about the current financial year.
Net profit rose to $123.4 million, or 27.4 cents per share, in calendar 2016 from $72.8m, or 17.3 cents, in the prior year, the Auckland-based property investor said in a statement. It noted that non-operating income and expenses which, for the most part, comprised an $88.2m fair value gain on investment properties, were more than double the amount in the prior year at $89m.
Distributable profit, which strips out unrealised movements in the value of the property portfolio, was $34.1m, or 7.58 cents per share, 8.1 per cent higher than the prior year when distributable profit was $29.6m, or 7.01 cents. The board declared a fourth-quarter dividend of 2.05 cents per share, taking total cash dividends for the year to 7.35 cents per share.
PFI's operating revenues increased 6.2 per cent to $71.1m. Operating expenses fell 7.9 per cent to $28m.
"We've maintained our focus on industrial property, concentrated on extracting value from strong Auckland demand and watched and waited for favourable investment opportunities," chairman Peter Masfen said.
