Ann: QUARTER: PFI: PFI announces 9 month result,

• Release Date: 31/10/11 11:41
• Summary: QUARTER: PFI: PFI announces 9 month result, board and management changes
• Price Sensitive: No
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PFI
31/10/2011 09:41
QUARTER

REL: 0941 HRS Property for Industry Limited

QUARTER: PFI: PFI announces 9 month result, board and management changes

PFI announces nine-month result, board and management changes

Listed industrial property investor Property For Industry (PFI) has announced
a steady dividend and distributable profit of $11.716 million for the nine
months to 30 September 2011.

The company has also advised of changes at both governance and management
level as part of the transition of management from AMP Capital Investors to
PFIM Ltd, which was announced to the market at the end of September.

PFI's rentals for the nine months to 30 September 2011 were 5.7 percent lower
than the previous nine-month period, at $23.171 million, primarily as a
result of the company's property sales, partially offset by new revenue from
completed developments and recent rent reviews.

Interest costs were up 4.7 percent despite lower debt levels, continuing to
reflect the higher costs associated with the company's new five-year bank
debt facility.

Taxation costs for the year to date also continue to be comparatively higher
as a result of two factors: firstly, the removal of the company's ability to
depreciate building structures with useful lives of more than 50 years for
tax purposes, and secondly, prior-year tax adjustments received by PFI during
the previous nine-month period.

PFI's directors have again maintained the net dividend at the same level as
the previous corresponding period, and PFI shareholders will therefore
receive a third-quarter dividend for 2011 of 1.65 cents per share plus
imputation credits of 0.397 cents.

The record date is 14 November 2011 and payment will be made on 23 November.
The company's dividend reinvestment scheme is in place for the dividend and
the discount rate for shares issued under the scheme remains at 2.5 percent.

NZ IFRS accounting standards require non-cash adjustments such as unrealised
gains or losses in the fair value of interest rate swaps and deferred
taxation to be taken into account in reporting net profit after taxation. On
this basis, PFI recorded a net profit after tax including unrealised losses
of $8.987 million for the nine months.

PFI general manager Ross Blackmore, who finishes with the company today,
noted that portfolio occupancy as at 30 September 2011 was 95.6 percent.

Settlement of the $7.35 million sale of 11 Barnes St, Wellington, along with
6,751 sqm of non-income producing land on an adjoining property, is now
imminent. This will reduce the company's gearing from its 30 September 2011
level of 30.5 percent to 29 percent.

PFI has previously announced the assignment of the management contract from
AMP Capital Investors to PFIM Ltd, with an agreed transition period and
process to ensure a seamless change of manager.

From the settlement date of 20 January 2012, Greg Reidy, managing director of
PFIM Ltd, will join the Board of PFI as an executive director representing
the new management. Existing director Anthony Beverley, who is no longer an
AMP Capital executive, will remain on the Board as an independent director.

At management level, from 1 November 2011 - the commencement of the
transition period - Nick Cobham and Craig Peirce of PFIM Ltd will be
appointed as general manager and chief financial officer respectively. The
existing PFI accounting and finance team, including Jeff Moore (PFI's chief
financial officer from 2008) have been retained through to 31 March 2012 to
ensure that PFI's year-end financial statements and audit are completed
seamlessly following the change in manager.

The board is looking forward to working with PFIM Ltd.

The board would again like to acknowledge and thank Ross Blackmore and his
team for the contribution that they have made to PFI and for the assistance
that has been, and will continue to be, provided through the transition
period of the change in management.

PFI is New Zealand's only listed company specialising in industrial property
investment.

-ends-

October 31, 2011

For further information about the financial result: For further
information about the board and management changes:
Ross Blackmore (outgoing general manager)
Ph 09-927 1700 or 029-307 8393
Email [email protected]
Nick Cobham (incoming general manager)
Ph 09-303 9656 or 021-464 583
Email [email protected]

Greg Reidy, managing director, PFIM Ltd
Ph 09-303 9653 or 021-339 965
Email [email protected]
End CA:00215627 For:PFI    Type:QUARTER    Time:2011-10-31 09:41:03