KEY POINTS:
Listed industrial property investor Property for Industry reported a 5.3 per cent increase in full-year net operating profit for distribution to $15.7 million.
But an unrealised portfolio revaluation loss was a factor in a loss after tax and unrealised losses for the year to December of $31.9 million compared with a profit of $44.5 million the previous year, the company said yesterday.
Other factors contributing to the loss included unrealised losses in the fair value of interest rate swaps and deferred taxation.
The full-year revaluation of PFI's portfolio, by independent valuers DTZ, Jones Lang LaSalle and CB Richard Ellis, resulted in an unrealised net reduction in portfolio value of $43.1 million or 10.2 per cent over the 12 months.
PFI general manager Ross Blackmore emphasised that the reduction did not affect the company's revenue streams or the profit available for distribution to shareholders.
Rentals rose 5.2 per cent to $32.5 million on the strength of previous acquisitions, development projects and higher rents after rent reviews, and despite the sale of two of the company's properties during the year, PFI said.
In view of the current economic climate, it was decided the fourth-quarter dividend for 2008 would be at the same level as in 2007.
PFI shareholders will receive a final dividend for 2008 of 2.425c a share plus imputation credits of 0.345c, bringing the total net dividend for 2008 to 7.18cps, 1.1 per cent higher than in the previous year.
PFI's share price closed at $1.11 yesterday, up from a year-low of 98c in December.
- NZPA
