PFI boosts first half profit and taps shareholders for $49.5m
PFI shareholders tapped for acquisition and development money.
Listed industrial landlord Property For Industry (PFI) [NZX: PFI] more than doubled its first-half profit on a valuation uplift for its portfolio.
At the same time PFI says it will tap investors for $49.5 million for acquisitions and developments.
Profit rose to $36.4 million, or 8.85c per share, in the six months ended June 30, from $14.4 million, or 3.5c, a year earlier.
Operating revenue for the Auckland-based company was little changed at $32.1 million, with the bulk of the bottom line gain coming from a $25.6 million fair value gain on investment properties.
PFI, which merged with Direct Property Fund to create an $800 million industrial property empire in 2013, says it has secured $86 million in acquisition and development activity. To fund that, the company will tap shareholders for $49.5 million via a one-for-12 rights offer, at $1.44 per share and fully underwritten by Forsyth Barr. The shares fell in opening trading, down 0.7% to $1.54.
"In the current market, securing prime industrial property accretive to shareholder returns continues to be a challenge given the dearth of high quality assets available and the intensity of competition to acquire, particularly from private investors and owner occupiers," the company says.
"Despite this, PFI has successfully completed a number of acquisitions since the start of 2015 which have enhanced earnings and provided PFI with core industrial property in key locations."
The board will pay a second quarter dividend 1.75c per share on September 3, with a record date of August 25, taking its first-half dividend to 3.5c, in line with the previous corresponding period.
Distributable profit, which adjusts for fair value gains, slipped in the six month period to $15 million, from $15.6 million a year earlier, as operating expenses rose 18% to $15.3 million on static revenue.
(BusinessDesk)
Suze Metherell
Tue, 11 Aug 2015
Tue, 11 Aug 2015
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PFI boosts first half profit and taps shareholders for $49.5m
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