Property For Industry Ltd upgraded earnings guidance yesterday on an expected $44 million (3.8%) portfolio valuation increase to $1.21 billion.
The NZX-listed industrial property landlord began the year with a portfolio of 84 properties valued at $1.083 billion, acquired 9 more for a total $84 million and sold one for its $12 million book value.
Independent valuers CBRE, Colliers International, JLL & Savills carried out the valuations, which remain subject to finalisation & audit.
PFI chair Peter Masfen said a driver of the valuation gain was the leasing of nearly 88,000m² – 12% of its portfolio. The company secured 24 new & existing tenants for an average term of 5.5 years. Half the contract rent was secured by lease renewals with 9 existing tenants for an average term of 4.3 years. The average term for the 15 new leases was 6.4 years.
Mr Masfen said the company had also completed a series of important strategic initiatives during the year, internalising management, adding to the portfolio and making rights & bond offers.
“These factors have combined to allow us to increase guidance for full-year distributable profit from 7.7-7.9c/share to around 8.0c/share. Guidance for full-year cash dividends totalling 7.45c/share is unchanged.”
PFI will release its full-year results, including the final valuation, on Monday 12 February.
Attribution: Company release.