Property for Industry Limited Analysis

Overview

Property for Industry Limited ("PFI") is an NZX listed property vehicle specialising in industrial property.

PFI's nationwide portfolio of more than 90 properties is leased to around 150 tenants.

PFI was formed in 1993, and has been listed on the NZX under the code "PFI" since December 1994.

Performance

The following information has been extracted from Property for Industry's Full Year Results, released on 25 August 2025:

“PFI has delivered a strong result, reflecting its strategic positioning and the resilience of its core industrial portfolio,” says Chief Executive Officer, Simon Woodhams. “An uplift in valuations has driven an increase in reported profit, while earnings growth has been supported by strong re-leasing outcomes and a more favourable interest rate environment. Together, these factors have underpinned further dividend growth, reinforcing PFI’s commitment to delivering sustainable returns to shareholders.”

With the valuation cycle turning and floating interest rates now nearing projected cycle-lows[2], the operating environment has become increasingly supportive. PFI is well placed to harness embedded rental growth and capitalise on recent development completions and portfolio optimisation initiatives, positioning the Company for expected continued earnings and cash flow momentum.

Highlights

• Annual results: Profit after tax of $106.0m, up $152.1m on the pcp, incorporating fair value gains on properties of $70.7m, as compared to losses of $90.0m in the pcp, Funds From Operations (FFO)[3] up 5.4% on the pcp to 10.69 cents per share (cps), Adjusted Funds From Operations (AFFO) up 8.1% on the pcp to 9.59 cps, FY25 cash dividends of 8.60 cps, an increase of 3.6% on annualised FP24 cash dividends.
• Valuation cycle turning, embedded rental growth being realised: Positive momentum continuing across PFI’s $2.17b industrial portfolio, fair value gains on properties of $70.7m or 3.4%, net tangible assets (NTA) up 4.7% to $2.84 per share, $73.2m of contract rent reviewed during FY25 delivering an average annualised uplift of 5.3%, $7.9m of contract rent leased during FY25 at an average of 20.1% above previous contract rents, occupancy increased to 99.9%.
• Green Star development pipeline bolstered: Stage 2 of the redevelopment of 78 Springs Road tracking under-budget and ahead of programme, planning progressing for Harris Road redevelopment opportunity, runway to deploy ~$350m on Green Star certified projects over the medium-term.
• Well-capitalised for strategic execution: $700m of facilities refinanced or established during FY25 – including $150m PFI030 bonds issued in March 2025, ~$318m of facility headroom, gearing stable at 32.6%.
• Positive outlook: PFI enters FY26 with confidence – reinforced by just 1.2% of contract rent expiring in FY26 and an increasingly supportive operating environment – guiding to expected cash dividends of at least 8.90 cps, an increase of at least 0.30 cps or 3.5% on FY25 dividends.