Ann: QUARTER: PFI: PFI Announces 3rd Qtr Dividend

• Release Date: 04/11/13 11:49
• Summary: QUARTER: PFI: PFI Announces 3rd Qtr Dividend; Provides Portfolio Update
• Price Sensitive: No
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					PFI
04/11/2013 09:49
QUARTER

REL: 0949 HRS Property for Industry Limited

QUARTER: PFI: PFI Announces 3rd Qtr Dividend; Provides Portfolio Update

PFI ANNOUNCES THIRD QUARTER DIVIDEND; PROVIDES PORTFOLIO UPDATE

Highlights

- Third quarter cash dividend of 1.79 cents per share, in line with the
merger Information Memorandum(i);
- Cash dividends for the year to date total 5.19 cents per share, up from
4.75 cents per share in the prior year;
- 38% of contract rent varied, leased or reviewed during the period to date;
- Lease expiries in the current year reduced to less than 1%, 2014 lease
expiries reduced to 6.5%.

NZX listed industrial property landlord Property For Industry (PFI) today
announced a third quarter cash dividend of 1.79 cents per share and continued
leasing success.

Peter Masfen, PFI Chairman, said: "With a low level of vacancy and pending
lease expiry, PFI is well placed to end the 2013 year delivering on the
forecasts contained in the merger Information Memorandum."

Dividends

PFI will pay a third quarter cash dividend of 1.79 cents per share. The
dividend will have imputation credits of 0.3752 cents per share attached and
a supplementary dividend of 0.1703 cents per share will be paid to
non-resident shareholders. The record date for the dividend is 18 November
2013 and the payment date is 27 November 2013.

The board has again decided to suspend PFI's dividend reinvestment scheme,
and will continue to assess whether to operate or suspend the dividend
reinvestment scheme on a quarter-by-quarter basis.

Guidance for the financial year ending 31 December 2013 remains unchanged,
with cash dividends expected to be in line with the merger Information
Memorandum at 7.04 cents per share.

Portfolio Performance

Portfolio snapshot
As at - 30 September 2013 (ii) - 31 December 2012 - 30 September 2012 (iii)
Number of properties - 83 - 50 - 48
Number of tenants - 137 - 86 - 84
Contract rent - $65.2 million - $32.6 million - $29.3 million
Occupancy - 96.9% - 97.4% - 96.4%
Weighted average lease term - 5.50 years - 4.80 years - 4.45 years

More than 50,000 square metres of space has been leased to 15 tenants for an
average term of 5.5 years during the first nine months of the year. PFI also
completed rent reviews on 36 leases, representing almost $19.4M of contract
rent, the reviews resulting in an average annual uplift of 3.0%.

Vacancy decreased from the prior year to 3.1%, and PFI has less than 1% of
the rent roll due to expire within the remainder of the current year. 2014
expiries total just 6.5%, down from 7.0% at 30 June 2013.

Market, Outlook and Strategy

Colliers International notes in research published in October that the
industrial property sector's high occupancy rates, stable cash flow and
increases in capital value are making investors more confident about
industrial property than any other commercial property sector in Auckland,
Wellington and Christchurch. It says investors are "expecting there will be
further growth in the sector, which has traded strongly in the last few
years."

With a portfolio located in the prime precincts in these cities, PFI
continues to benefit from the strength of activity within the industrial
sector as evidenced by the consistent attraction of new and retention of
existing, quality tenants within the portfolio.

It is expected that the current positive sentiment attributable to the
industrial sector will continue to benefit PFI, with the larger merged entity
also benefiting from an increase in diversification of geography, property
and individual tenancy risks.

Contact

For further information please contact:
Nick Cobham
General Manager (Joint)
Phone: +64 9 303 9656
Email: [email protected]

Simon Woodhams
General Manager (Joint)
Phone: +64 9 303 9652
Email: [email protected]

About PFI

PFI is New Zealand's only listed company specialising in industrial property.
PFI's portfolio of 83 industrial properties in Auckland, Hamilton, Mount
Maunganui, Wellington and Christchurch, is leased to 137 tenants.
www.pfi.co.nz

Attached

Appendix 7

(i) The term merger Information Memorandum is used throughout this
announcement and relates to the Information Memorandum in relation to the
merger of PFI with DPF dated 22 May 2013.
(ii) Includes portfolio activity between 30 September 2013 and the date of
this announcement.
(iii) Excludes 80 Lunn Avenue, Mount Wellington, which was unconditionally
sold as at 30 September 2012 and settled on 13 November 2012.
End CA:00243290 For:PFI    Type:QUARTER    Time:2013-11-04 09:49:58