Property For Industry, which increased its portfolio by two thirds after a merger with Direct Property Fund last year, said annual profit rose 50 per cent as it benefited from an increased rental flow while keeping expenses in check.
Net profit was $40.5 million for the year ended Dec. 31, from $26.9 million a year earlier, the Auckland-based company said in a statement. Rental income jumped 64 per cent to $47.9 million as the Direct Property merger lifted properties under management to 83 from 50.
New Zealand's only listed company specialising in industrial property increased its average lease term by 0.8 years to 5.3 years, while occupancy rates were little changed at about 97 per cent. Property For Industry said its largest vacant property only represents 1.4 per cent of contract rent.
The company said distributable profit, the earnings measure it uses to determine dividend payments, rose 60 per cent to $23.3 million from a year earlier, and earnings per share were up 9.3 per cent to 7.2 cents.
Property For Industry will pay a fourth-quarter dividend of 2.01 cents a share, making 7.2 cents for the year. It has a payout ratio range of 95 per cent to 100 per cent, adjusted from its 100 per cent ratio previously.
