Property For Industry Ltd more than doubled its net profit after tax in 2018, from $51.7 million to $110.1 million.
Basic & diluted earnings/share rose from 11.25c to 22.08c.
The fair-value gain on investment properties rose from $43.6 million to $66.4 million.
The company increased funds from operations/share by 3.2%, adjusted funds from operations were steady and the cash dividend was increased by 1.3% to 7.55c/share.
- Portfolio revaluation gain 5.3% ($66.4 million)
- NTA (net tangible assets)/share up 8.9% (14.5c) to 177.7c/share
- Second $100 million senior secured fixed rate 7-year bond issue, $37.5 million of bank facilities refinanced, gearing 30.3%
- Over 100,000m² (15%) of portfolio leased to 30 tenants for an average increase in term of 6.2 years
- 2 Auckland industrial properties acquired for $28.4 million.
PFI announced management structure changes in December, appointing Simon Woodhams as chiefexecutive and Craig Peirce as chief finance & operating officer from 1 January, when they switched from being independent contractors to full-time employees. Greg Reidy, managing director since 2012, will remain an independent contractor until 30 June, when he will become a non-executive director.
These appointments followed the internalisation of the management contract in mid-2017 and are part of the PFI board’s long-term approach to succession planning.
Net rental income increased by 8.4% ($6.1 million) to $79.1 million, as increases from acquisitions ($4.9 million) & positive leasing activity ($3 million) partially offset a decrease due to increased vacancy ($1.8 million).
Average occupancy through 2018 was 98%, before ending the year above 99%.
The end of management fees saved $2.9 million, against a $1.8 million increase in internal administration costs.
Also as a result of the June 2017 internalisation, PFI recorded no current tax expense in 2017 and a reduced level of current tax expense in 2018. Excluding the impact of the internalisation, PFI’s effective current tax rate was 21.0% in 2017 and 20.2% in 2018.
Attribution: PFI release.