Valuation, Portfolio and Earnings Update

NZX and media
announcement
—
14 December 2017






VALUATION, PORTFOLIO AND EARNINGS
UPDATE

NZX listed industrial property landlord Property for Industry Limited (PFI, the Company) today
announced an expected annual increase from independent valuations in the value of its property portfolio
of approximately $44 million or 3.8% to $1.210 billion, an update on the portfolio and upgraded earnings
guidance.

Valuation
PFI began the year with a portfolio of 84 properties valued at $1.083 billion
1
. Nine properties were
acquired for a combined total of $84 million and one property was sold for a book value of $12 million.
Capital expenditure and property related prepayments of $11 million, together with the expected uplift of
$44 million
2
, provide the bridge to the December 2017 portfolio of 92 properties which is expected to be
valued at $1.210 billion.

Independent valuers CBRE, Colliers International, Jones Lang LaSalle and Savills carried out the
valuations, which remain subject to finalisation and audit.

Portfolio
A key driver of this valuation outcome was the successful leasing of nearly 88,000 square metres –
representing ~12% of PFI’s existing portfolio – during the year to date. 24 new and existing tenants have
been secured for an average term of 5.5 years, with approximately half of the contract rent secured as
a result of lease renewals with nine PFI tenants for an average term of 4.3 years. In addition to this, 15
new leases were secured for an average term of 6.4 years, and the portfolio is expected to be almost
fully occupied at the end of the year.

Earnings
PFI Chairman Peter Masfen noted: “The second half of 2017 has delivered strong leasing outcomes,
continuing the trend we reported on in our interim results announcement in August. A series of important
strategic initiatives have also been completed during the year, with the internalisation of management,
portfolio acquisition, rights offer and bond offer all contributing to a successful year.

These factors have combined to allow us to increase guidance for full year distributable profit from 7.7
– 7.9 cents per share to around 8.0 cents per share. Guidance for full year cash dividends totalling 7.45
cents per share is unchanged.”

Annual results announcement
A final valuation, portfolio and earnings announcement will be made on Monday, 12 February 2018.

ENDS


--------

1
31 December 2016 figures are adjusted for the sale of 27 Zelanian Drive, which had been unconditionally sold as at 31
December 2016 and settled on 1 February 2017.

2
Includes $6.0 million recognised in the six months to 30 June 2017.

NZX and media
announcement
—
14 December 2017






ABOUT PFI & CONTACT

PFI is New Zealand’s only listed company specialising in industrial property. PFI’s portfolio of 92 properties located in Auckland,
Hamilton, Mount Maunganui, New Plymouth, Napier, Wellington, Nelson, Blenheim and Christchurch is leased to 149 tenants.

For further information please contact:

SIMON WOODHAMS CRAIG PEIRCE
General Manager Chief Financial Officer and Company Secretary
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Phone: +64 9 303 9652 Phone: +64 9 303 9651
Email: woodhams@pfi.co.nz Email: peirce@pfi.co.nz
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Property for Industry Limited
Shed 24, Prince’s Wharf, 147 Quay Street, Auckland 1010
PO Box 1147, Shortland Street, Auckland 1140
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www.propertyforindustry.co.nz