Ann: QUARTER: PFI: PFI Provides Portfolio Update;

• Release Date: 05/11/12 10:30
• Summary: QUARTER: PFI: PFI Provides Portfolio Update; Announces 3rd Qtr Dividend
• Price Sensitive: No
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PFI
05/11/2012 08:30
QUARTER

REL: 0830 HRS Property for Industry Limited

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

PFI PROVIDES PORTFOLIO UPDATE; ANNOUNCES THIRD QUARTER DIVIDEND

Highlights

- More than 40% of contract rent varied or reviewed during the nine months to
30 September 2012;
- No further lease expiries pending in the current year;
- Third quarter dividend held at 1.65 cents per share taking dividends for
the three quarters to 4.75 cents per share.

NZX listed industrial property landlord Property For Industry (PFI) today
announced continued leasing progress and a third quarter dividend of 1.65
cents per share.

Peter Masfen, PFI Chairman, said: "PFI's manager, PFIM Limited, has made
excellent progress on the company's strategic objectives.

Over the first nine months of the year, the manager completed almost 40 lease
transactions and sold a non-core property at a compelling yield. The company
has no further lease expiries this year. The focus has now shifted to
expiries in the 2013 financial year and reducing portfolio vacancy, while
continuing to explore earnings-accretive industrial property investment
opportunities."

Portfolio performance

Portfolio snapshot
As at 30 September 2012  31 December 2011 30 September 2011
Number of properties 48 49 49
Number of tenants 84 89 92
Contract rent $29.3 million $30.2 million $29.8 million
Occupancy 96.4% 95.6% 95.7%
Weighted average lease term 4.45 years 4.17 years 4.24 years

PFI secured a further three lease variations during the quarter. In total,
PFI has secured 14 new or varied leases during the nine months to 30
September 2012 for an average term of more than eight years. This leasing
accounts for 57,502 sqm of space representing 19% of PFI's contract rent.

Leasing progress during the quarter includes the retention of PFI's fourth
largest tenant, Pharmacy Retailing (NZ) Limited, a subsidiary of EBOS Group
Limited, at 58 Richard Pearse Drive, Mangere, on an eight year term.

Rent reviews of 25 of PFI's leases, representing more than 21% of contract
rent, resulted in an average annual uplift of 3.8%. Fixed or index-linked
review mechanisms, a feature of nearly half  of PFI's leases, contributed the
majority of the growth in contract rental income.

As announced on 18 September 2012 and consistent with PFI's strategy to
release capital from non-core property, PFI entered into an unconditional
contract during the quarter to sell 80 Lunn Avenue, Mount Wellington.

The property was originally constructed in the late 1980's and leased to
PlaceMakers. It was redeveloped in 2006 into seven high profile retail units.
As a result, the property no longer meets PFI's long-term investment
criteria.

The sale price of $12.8 million represents a 10% premium to the property's 31
December 2011 valuation of $11.6 million and reflects an initial yield of
6.98%. Settlement is due to occur on 13 November 2012.

Dividends

The third quarter cash dividend of 1.6500 cents per share, with imputation
credits of 0.4747 cents per share, will have a record date of 19 November
2012 and a payment date of 28 November 2012. A supplementary dividend of
0.2154 cents per share will be paid to non-resident shareholders.

The third quarter cash dividend is unchanged from the previous corresponding
period and results in cash dividends in respect of the nine months to 30
September 2012 totalling 4.7500 cents per share, also unchanged from the
previous corresponding period.

In its interim results announcement on 6 August 2012, PFI announced that it
expected dividends in respect of the year to 31 December 2012 to fall within
a range of 6.5 to 6.9 cents per share. Following the sale of 80 Lunn Avenue,
Mount Wellington, PFI expects dividends to be at the lower end of this range.
The company's distribution policy  remains unchanged.

The board has again decided to suspend PFI's dividend reinvestment scheme for
the third quarter dividend. Going forward, the board will continue to decide
whether to operate or suspend the company's dividend reinvestment scheme on a
quarter-by-quarter basis.

The company's average total shareholder return per annum since listing
stands at 8.78% at 31 October 2012.

Outlook

Nick Cobham, PFI General Manager, said: "The industrial market continues to
show encouraging signs of improvement. Whilst this may yet to be reflected in
'market' rental growth, anecdotal evidence suggests core 'market' yields for
industrial property have firmed in recent times.

The current investment market is buoyant with a weight of funds chasing prime
properties across all sectors. Whilst this has been helpful for vendors, it
makes purchasing accretive industrial properties challenging at the current
time. PFI continues to investigate the acquisition of prime industrial
property but will only do so when opportunities provide an improvement in
risk-adjusted shareholder returns."

Contact

For further information please contact:
Nick Cobham
General Manager
DDI: +64 9 303 9656
Mob: +64 21 464 583
Email: [email protected]

About PFI

PFI is New Zealand's only listed company specialising in industrial property.
PFI's portfolio of 48 industrial properties in Auckland, Wellington and
Christchurch, is leased to 84 tenants.

www.pfi.co.nz

Attached

Appendix 7

i. Excludes 80 Lunn Avenue, Mount Wellington, which was unconditionally sold
as at 30 September 2012 and is due to settle on 13 November 2012.
ii. Excludes 11 Barnes Street, Wellington, which was unconditionally sold as
at 30 September 2012 and settled on 1 November 2011.
iii. Weighted by contract rent.
iv. PFI's current distribution policy is to distribute 100% of total
comprehensive income for the period attributable to the shareholders of the
company after adjusting for unrealised net changes in the fair value of
investment properties, gains/(losses) on disposals of investment properties,
unrealised net changes in the fair value of derivative financial instruments,
deferred taxation and other one off items.
v. Income yield plus change in share price, assuming dividends are
reinvested.
End CA:00229290 For:PFI    Type:QUARTER    Time:2012-11-05 08:30:10