Property for Industry Ltd lifted its after-tax result for the June half by 12.2%, but turned it into a loss with the $42 million internalisation vote (at a net after-tax cost to PFI of $30.3 million) right on balance date.
PFI chair Peter Masfen said on Wednesday the benefits of the internalisation would accrue in the years to follow: “One benefit is an enhanced level of distributable profit, enabling higher dividends, which we have confirmed in today’s announcement.”
- Increased full-year dividend guidance – distributable profit (1) of between 7.7-7.9c/share, cash dividend of 7.45c/share
- Transition of the Penrose portfolio – $13 million of shareholder value created equating to a property level internal rate of return of about 24%
- Including the impact of the internalisation, PFI recorded a loss after tax of $5.6 million (1.25c/share and net tangible assets of 155.6c/share (160.7c/share at December)
- Excluding the impact of the internalisation, PFI recorded profit after tax of $25.2 million (5.58c/share), up 12.2%, and net tangible assets of 162.5 cents/share (up 1.1% from December)
- Distributable profit up 2.4% to 3.86c/share
- Strong balance sheet – $40 million short-term facility obtained to complete the internalisation, gearing of 34.2%
- $6 million uplift from independent revaluation of 7 properties, independent desktop review of rest of the portfolio
- 29% of contract rent varied, leased or reviewed
- Portfolio occupancy at 99.5%, with 5.5% of contract rent due to expire in the second half of the year
- $14.2 million acquisition & $14.3 million divestment.
Link: More details
5 July 2017: PFI settles internalisation
23 June 2017: PFI vote strongly in favour of internalisation, and building sale settles
Attribution: Company release.