Annual Meeting Presentation and Speeches

NZX and media
announcement
—
19 May 2021


ANNUAL MEETING PRESENTATION AND
SPEECHES
Property for Industry Limited (PFI, the Company) today holds its annual meeting of shareholders at Eden
Park, Auckland (with the option of virtual attendance).

PFI has provided NZX with a copy of the presentation and speeches to be made at the annual meeting.

If you cannot attend, a recording of the webcast of the meeting will be available to view on PFI’s website
at the conclusion of the meeting.

ENDS





















ABOUT PFI & CONTACT

PFI is an NZX listed property vehicle specialising in industrial property. PFI’s nationwide portfolio of 95 properties is leased to
150 tenants.

For further information please contact:

SIMON WOODHAMS CRAIG PEIRCE
Chief Executive Officer Chief Finance and Operating Officer
--- ---
Phone: +64 21 749 770 Phone: +64 21 248 6301
Email: woodhams@propertyforindustry.co.nz Email: peirce@propertyforindustry.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

Attachments
Annual Meeting Presentation
Annual Meeting Speeches

---

TO THE 2021 ANNUAL MEETING.
WELCOME
Annual
Meeting
2021

Anthony Beverley
Chair of the Board

AGENDA
01. BOARD PRESENTATION
02. MANAGEMENT TEAM
PRESENTATION
03. SHAREHOLDER DISCUSSION
04. FINANCIAL STATEMENTS
05. ORDINARY RESOLUTIONS
06. GENERAL BUSINESS
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Agenda

01.
BOARD
PRESENTATION
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Board
Presentation

INTRODUCTIONS
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Introductions

CONTINUING MOMENTUM
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Continuing
Momentum
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
FY20FY19FY18FY17FY16
FFOAFFODividends
7.70cps
8.03cps
9.67cps
Cents per share

1.631
$
BILLION
PORTFOLIO
REVALUATION
$
72 M
90,500
SQM LEASED
LEASING ACTIVITY
CONTRACT
RENT UP
89.8
$89.8M
20192020
84.9
WEIGHTED AVERAGE LEASE TERM
5.28
YEARS
$84.9M
PORTFOLIO IN GREAT SHAPE
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Portfolio in
Great Shape

GROSS RETURNS SINCE INCEPTION: 11.6% PA
Source: Forsyth Barr Analysis, NZX
0
500
1,000
1,500
2,000
2,500
199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820202019
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Gross Returns

$
2M
investment to reduce emissions
from our HVAC systems
1.
NET Zero
scope 1, scope 2 and selected
scope 3 emissions
(1)
2.
Transparency for our stakeholders
on our climate impacts
3.
OUR KEY CLIMATE COMMITMENTS
(1) Including waste and business travel; excluding
goods and services, capital expenditure, energy
and fuel, and employee commuting.
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Enviromental,
Social and
Governance

Annual
Meeting
2021
Management Team
Presentation
Simon Woodhams
Chief Executive
Officer
MANAGEMENT
TEAM
PRESENTATION
02.

STRATEGYVISIONPURPOSE
We generate income for investors
as professional landlords to the
industrial economy, generating
prosperity for New Zealand.
We will be one of New Zealand’s foremost
Listed Property Vehicles.
Our measures will be performance,
quality, scale and reputation.
We will build on what we have and we’re
true to who we are. But we will be more
intentional; more proactive.
Annual
Meeting
2021
Simon Woodhams
Chief Executive
Officer
Purpose, Vision
and Strategy

Investment Properties ($m)
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
THE JOURNEY SO FAR
$m
Annual
Meeting
2021
Simon Woodhams
Chief Executive
Officer
The Journey
So Far
Investment PropertiesBorrowings
Listed
Managed
by AMP
Managed
by PFIM
Merger
Rights Issue
Rights Issue

$
275 M
$
158 M
DIVESTED
INVESTED
Annual
Meeting
2021
Simon Woodhams
Chief Executive
Officer
Strategy
Execution

76%
CORE GENERIC
HOLDINGS
11%
BROWNFIELD
OPPORTUNITIES
7%
ASSETS HELD
FOR SALE
6%
SPECIALISED
ASSETS
AUCKLAND 85%15% OUT OF AUCKLAND
Annual
Meeting
2021
Simon Woodhams
Chief Executive
Officer
Our Current
Portfolio

RECENT ACQUISITIONS
528-558
ROSEBANK ROAD,
AVONDALE
670-680
ROSEBANK ROAD,
AVONDALE
44
NOEL BURNSIDE ROAD,
WIRI
$66 MILLION
5.0 HECTARES
WALT 6 YEARS
$39 MILLION
2.8 HECTARES
WALT 4 YEARS
$92 MILLION
3.6 HECTARES
WALT 2 YEARS
Annual
Meeting
2021
Recent
Acquisitions
Simon Woodhams
Chief Executive
Officer

44
NOEL BURNSIDE ROAD,
WIRI
PURCHASE PRICE
$
92M
RENT PA
$
3.64M
SITE AREA
3.6HA
Annual
Meeting
2021
Simon Woodhams
Chief Executive
Officer
44 Noel
Burnside
Road
Puhunui RoadPuhunui Road
Cavendish DriveCavendish Drive
20

44
NOEL BURNSIDE ROAD,
WIRI
NET LETTABLE AREA
18,305SQM
OFFICE
480SQM
CANOPIES

2,200SQM
YARD

12,250SQM
Annual
Meeting
2021
Simon Woodhams
Chief Executive
Officer
44 Noel
Burnside
Road

30-32
BOWDEN ROAD,
MT WELLINGTON
CURRENT RENT PA
$
1.7M
DECEMBER 2020 VALUATION
$
29M
SITE AREA
4HA
CAPITAL REQUIRED
̃
$50M
Annual
Meeting
2021
Simon Woodhams
Chief Executive
Officer
30-32
Bowden
Road
Sylvia ParkSylvia Park
1
10
Mutukaroa /Mutukaroa /
Hamlins Hill Hamlins Hill
Regional Regional
ParkPark
3
6

NET LETTABLE AREA
̃
21,000SQM
OFFICES

600SQM
CANOPIES

̃
1,820SQM
YARD

6,000SQM
CAR PARKS
150
30-32
BOWDEN ROAD,
MT WELLINGTON
Annual
Meeting
2021
Simon Woodhams
Chief Executive
Officer
30-32
Bowden
Road

GROWING
RETURNS
TO SHAREHOLDERS
CONTINUOUS
PORTFOLIO
IMPROVEMENT
FIRST CLASS
MANAGEMENT
Annual
Meeting
2021
Simon Woodhams
Chief Executive
Officer
Looking
Forward

03.
SHAREHOLDER
DISCUSSION
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Shareholder
Discussion

04.
FINANCIAL
STATEMENTS
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Financial
Statements

05.
ORDINARY
RESOLUTIONS
Annual
Meeting
2021
Ordinary
Resolutions
Anthony Beverley
Chair of the Board

That David Thomson, who retires and
is eligible for election, be elected as a
Director of the Company.
01.
RESOLUTION
Annual
Meeting
2021
David Thomson
Independent
Director
Resolution
01.

That Gregory Reidy, who retires and
is eligible for election, be elected as a
Director of the Company.
02.
RESOLUTION
Annual
Meeting
2021
Gregory Reidy
Non-Executive
Director
Resolution
02.

That the Directors are authorised to fix
the fees and expenses of the auditors,
PricewaterhousesCoopers Auckland.
03.
RESOLUTION
That the Directors be authorised to
fix the remuneration of the Directors
of the Company from the close of
this meeting as per the table shown
in the Explanatory Notes of the
Notice of Meeting.
04.
RESOLUTION
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Resolutions
03. and 04.

06.
GENERAL
BUSINESS
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
General
Business

CLOSE OF
MEETING
Annual
Meeting
2021
Anthony Beverley
Chair of the Board
Close of
Meeting

The information included in this presentation is provided
as at 19 May 2021.
Property for Industry Limited (PFI) does not guarantee
the repayment of capital or the performance referred
to in this presentation.
Past performance is not a reliable indicator of future performance.
The presentation includes a number of forward looking statements.
Forward looking statements, by their nature, involve inherent risks
and uncertainties. Many of those risks and uncertainties are matters
which are beyond PFI’s control and could cause actual results to
differ from those predicted. Variations could either be materially
positive or materially negative.
While every care has been taken in the preparation of
this presentation, PFI makes no representation or warranty
as to the accuracy or completeness of any statement in it
including, without limitation, any forecasts.
This presentation has been prepared for the purpose of providing
general information, without taking account of any particular
investor’s objectives, financial situation or needs. An investor
should, before making any investment decisions, consider the
appropriateness of the information in this presentation, and seek
professional advice, having regard to the investor’s objectives,
financial situation and needs.
This presentation is solely for the use of the party to whom
it is provided.
DISCLAIMER
Annual
Meeting
2021
Disclaimer

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NZX and media
announcement
—
19 May 2021



PRESENTATIONS TO THE PROPERTY FOR
INDUSTRY ANNUAL MEETING

At 11.00am on Wednesday, 19 May 2021

<< Slide 1: WELCOME TO THE 2021 PFI ANNUAL MEETING >>

<< Anthony Beverley >>

Good morning, my name is Anthony Beverley and I am the Chairman of the Board of
Directors of PFI.

Welcome to the twenty-seventh Annual Meeting of PFI. We have a quorum present, so
let’s get underway.

This year we are holding our first ever hybrid meeting, meaning that we have participants
both here in person, and attending virtually.

Before we start, can I just remind those here in person to put your phone on silent? And, in
case of an emergency, please follow the instructions of the Eden Park staff. The nearest
exit is back down the entry stairs for Gate G that you would have entered from, and the
assembly point is on Reimers Ave.

In order for this hybrid meeting to run smoothly, I would like to confirm how questions and
answers, and voting will work.

First, let’s deal with the procedure around questions and answers: any shareholder or
appointed proxy is eligible to ask questions. If an eligible online attendee would like to ask
a question, you can press the speech bubble icon, and then type and submit your
question. It will then be sent to the Board for an answer. There will be time allocated for in-
person attendees to ask questions during the course of the meeting. We will try to get to
as many of the questions as possible, but not all questions may be able to be answered
during the meeting. In this case, questions will be followed up after the meeting.

The second key procedure is voting. We will open the poll for virtual attendees now, to
give you plenty of time to vote. The polling icon will appear on your screen, and from here,

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announcement
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19 May 2021



the resolution and voting choices will be displayed. To vote, simply select your voting
choice from the options shown on screen. You can change your vote at any time up until
when the poll is closed. Prior to the poll closing, simply select another voting choice to
change your vote. I will explain procedures for voting in person later in the meeting.

<< Slide 2: AGENDA >>

Here is the agenda.

I will start with a short presentation, and then our CEO, Simon Woodhams, will do likewise.

You will then have the opportunity to ask questions or to make comments about those
presentations, or the financial statements and auditor’s report.

Then, as you have seen in the notice of meeting, we have four resolutions we would like
you to approve.

Following those resolutions, we will finish with a further opportunity for questions and
answers when we get to general business.

Those who are here in person are welcome to join us for light refreshments and a more
informal chat with the Board and Management Team after the meeting.

<< Slide 3: BOARD PRESENTATION >>

<< Slide 4: INTRODUCTIONS >>

Let me start by re-introducing the Management Team and Board:

▪ Craig Peirce, Chief Finance and Operating Officer;
▪ Simon Woodhams, Chief Executive Officer;
▪ David Thomson, Independent Director;
▪ Greg Reidy, Non-Executive Director; and finally;
▪ Dean Bracewell, Independent Director;
▪ Susan Peterson, Independent Director.

NZX and media
announcement
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19 May 2021



<< Slide 5: CONTINUING MOMENTUM >>

So, ladies and gentlemen, in terms of PFI, I’m happy to note that the industrial property
sector has continued to build momentum as a place for investment. In recent years, the
sector has emerged as something of a favourite for those looking for a reliable income
stream, providing consistent returns for investors that outperform the lower returns they
would now get from areas they have traditionally invested in, such as term deposits. In fact,
for many investors, property has become one of the closest things they can find to an
investment with fixed income-like characteristics – and whilst we can’t predict the future,
changes in the residential market could accentuate this trend, as more people look to avoid a
range of tough new regulations.

These trends have, in turn, drawn more participants to the sector, eager to make the most of
the environment. PFI has of course recognised the characteristics and opportunities of
industrial property for many years. As an experienced and successful sector investor and
participant, we back ourselves to find the right opportunities, deploying our balance sheet and
securing returns to ensure our investors continue to receive the reliable income from
dividends that they look to us for.

The Covid environment has affected everyone in one way or another. While we have faced
down a range of challenges, I’m happy to report an improvement in our earnings and
dividends for the last financial year: funds from operations increased 6.6% to 9.67 cents per
share, adjusted funds from operations increased 3.1% to 8.03 cents per share and we
increased our dividend 1.3% to 7.70 cents per share.

Looking forward, results for the year to date, combined with the positive impact of the recent
acquisition which Simon will speak about shortly, means the Board expects to declare cash
dividends of at least 7.90 cents per share for the 2021 financial year, an increase on 2020 of
2.6%.

Paying dividends of 7.90 cents per share is currently expected to result in a dividend pay-out
ratio below 80% of forecast funds from operations and 95% of forecast adjusted funds from
operations, resulting in a higher ratio of dividend coverage than that which is required by our
dividend policy.

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announcement
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19 May 2021



Accordingly, the Board is currently reviewing both the dividend policy and total cash
dividends for the 2021 financial year, and an update will be provided to shareholders on the
outcome of that review in due course.

<< Slide 6: PORTFOLIO IN GREAT SHAPE >>

Our portfolio benefitted from rising industrial property values driven by strong investor interest
in the sector. This healthy appetite for investment was brought about by low interest rates, a
lack of attractive investment alternatives and New Zealand’s relative normality following our
success in dealing with the pandemic and preventing waves of disruption.

Overall, property values across our portfolio were up around 5% during 2020. That
revaluation of our portfolio means our property assets were valued at $1.632 billion at the
end of last year, and based on recent transactions, further growth in the value can be
expected at the half-year, if current conditions persist.

Rental streams too were healthy at year end, with 90,500 sqm of space leased last year for
an average term of 7.5 years and a total rent of $12.4 million.

Our track record is an asset in itself in this environment, because it literally opens doors for
us. The $1.632 billion portfolio valuation I referred to makes us a major player in the sector,
with a scale of operation that enables us to pursue larger opportunities in the market. Our two
acquisitions on Rosebank Road and our recent acquisition in Wiri are all examples of larger
transactions that we were able to pursue because we have the track record and the balance
sheet to make it happen.

The flipside of the elevated interest in industrial property plays out in our acquisition plans too
of course. We need to be careful not to pay too much in what, in places, feels like an
overheated market – and that’s about using our experience, expertise and focus to our
advantage. The Board has been careful to work with management in making measured
decisions this year around what we invest in. Not everything we have looked at is right for us,
not every tender is one we will finally participate in or win, and that’s OK. We are prepared to
wait for good opportunities, whilst continuing to invest in our own portfolio. This year, for
example, we made robust investments in our properties at 59 Dalgety Drive in Wiri and 314
Neilson Street in Onehunga / Penrose.

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announcement
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19 May 2021



Being a professional landlord to business is about making the most of the relationships we
have, taking a long-term view, and fostering those relationships with integrity and
commitment. Certainly, in the early days of Covid, the outlook looked very grim and the team
worked very hard with our tenants to see them right through the full range of challenges they
faced. The proof that we manage these relationships well is in our high levels of tenant
retention, which at the end of the year translated into occupancy and our Weighted Average
Lease Term largely holding steady, while contract rent actually increased.

<< Slide 7: GROSS RETURNS >>

2020 was full of testing times for every business, and our results would suggest we
negotiated a number of unknowns very well. By the end of 2020, we had recorded total
shareholder returns for the year in excess of 23%, making us one of the top performing New
Zealand listed property vehicles.

My final observation before I ask CEO Simon Woodhams to comment on the year and outline
where he sees PFI heading, would be that we continue to look for opportunities to balance
our commercial imperatives with our broader responsibilities.

<< Slide 8: ENVIRONMENTAL, SOCIAL AND GOVERNANCE >>

Last year, we continued to focus on our strategic Environmental, Social and Governance or
ESG framework, and I am happy to report that we have made important advances on this
front. We established a Health, Safety and Wellbeing framework to formalise accountability
for our already strong health and safety culture. We also committed $2 million to emissions
reductions initiatives over the next three years, offset a range of our emissions, submitted to
the Carbon Disclosure Project for the first time and carried out a risk assessment in line with
the Task force on Climate-related Financial Disclosures or TCFD recommendations. Looking
at everything we do through this extra lens has yielded new insights and enabled us to take a
more sophisticated and considered approach to factors that in the longer term will almost
certainly influence value. Organising and managing the Company with ESG as one of our key
priorities is not only the right thing to do but it is increasingly demanded by investors and
tenants both here and New Zealand and around the world. We expect to apply this approach
more and more in the years ahead.

NZX and media
announcement
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19 May 2021



PFI is a Company that continues to look forward. We pride ourselves on being stable,
responsible and on making decisions that stand the test of time. I would now like to hand
over to Simon who will discuss our plans for PFI in the years ahead.

<< Slide 9: MANAGEMENT TEAM PRESENTATION >>

<< Simon Woodhams >>

Thanks Ant, and good morning everyone.

Well it’s great to be able to meet in the same room together again. Welcome back to those
familiar faces, a warm welcome to those who are attending for the first time, and of course
welcome to those of you who cannot make it here in person and are attending online.

As a Management Team and Board, we really enjoy having the opportunity of presenting
what we have been up to over the last 12 months so thank you for taking time to come
along today to listen.

Over the next few minutes, I am going to give you a brief update on where our strategy
has brought us to, and where we see it taking us in the years ahead.

As Ant pointed out, 2020 was another successful year for PFI, all things considered, and
as a Management Team we are very happy with where we find ourselves today.

Rewinding a little, in the 2019 annual meeting, you may recall we set out our Purpose,
Vision and Strategy, and how these would guide us going forward. Standing here today,
and the positive situation we find ourselves in at year end is no coincidence. Rather, it is a
direct reflection, we believe, of that strong Purpose, Vision and Strategy that we laid out
three years ago

So I just want to review each of these three elements and the role they play.

<< Slide 10: PURPOSE, VISION, STRATEGY >>

Our Purpose acknowledges our role as very clearly generating income for you, our
shareholders or investors, as professional landlords to the industrial economy. By doing both
of these things well, we will have a positive impact on the wider New Zealand economy.

NZX and media
announcement
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19 May 2021



Our Vision sets out what success looks like. Our drive is to be best in class at what we do,
and we assess that against the four measures you see here. Performance and quality sit
alongside reputation and scale.

Our Strategy acknowledges that it requires us to be intentional and proactive, and as a
Management Team to authentically build on what we have. I guess the way we look at it is
that our strategy prevents us from just being a passive investor, riding what is currently a
rising market. Instead, the emphasis is on deliberately but prudently creating value for
your, our shareholders.

<< Slide 11: THE JOURNEY SO FAR >>

Investors have benefited from our more hands-on approach for a long time now, but what
laying out our Purpose, Vision and Strategy did is it added a framework to how we do that
going forward, and to set out, in concise terms, what we expect of ourselves and what you, in
turn, can expect of us.

Recently, we’ve used the strength of our balance sheet to grow our dividends at the same
time as we’ve recycled capital away from non-industrial and non-core assets and back into
industrial property. This year, particularly with the contract to sell Carlaw Park, we’ve
continued to hone and focus our portfolio into a pure-play industrial property sector vehicle.

<< Slide 12: STRATEGY EXECUTION >>

That direction is reflected in the levels of recent activity. Since the beginning of 2019, when
we announced this direction or focus, we have completed over $430 million of property
transactions, with $275 million invested in acquisitions and developments and $158 million
freed up through divestment. We’ll talk soon about some of the more recent acquisitions
shortly.

But before we do, as Ant mentioned earlier, we expect to see a further uplift in our
revaluations at the half year, and as a result, our loan-to-value or gearing ratio would fall to
well below 30%.

This is important to note, as continuing to prudently invest further in industrial property, which
lifts our gearing ratio, is an important way in which we drive increased earnings and dividends
to you, our shareholders.

NZX and media
announcement
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19 May 2021



Naturally then, the question for the Board and us as a Management Team is: what should we
invest in to ensure investors benefit?

This is a question that we continually ask ourselves and recently spent some more time
reviewing, and to answer it, we need to first look at the composition of our portfolio.

<< Slide 13: OUR CURRENT PORTFOLIO >>

The slide on the screen now shows the Company’s portfolio as at the end of 2020, broken
down into a number of categories or “buckets”, with the weighting to each bucket expressed
as a percentage.

As you can see:

• 76% of our portfolio was classified as what we call core generic holdings. These are
properties that appeal to a wide range of users: they have functional warehouse space,
minimal offices, canopies and good yard areas. These holdings are the backbone of our
portfolio and provide reliability to our earnings.
• 6% of our portfolio was made up of specialised assets. Properties like cool stores or our
bulk store facilities down in Tauranga next door to the Port. We typically receive a higher
return from these properties as they are less generic and appeal to a narrower suite of
tenants.
• 7% of our portfolio were assets held for sale. At the moment this includes a small
property in Christchurch which we just recently sold, Carlaw Park which we have
contracted to sell, and Shed 22 in Wellington. We will always have a small number of
assets that we are prepared to sell as we look to continually improve our portfolio by
recycling capital from poorer performing assets back into higher quality assets.
• And finally, 11% of our portfolio was classified as brownfield opportunities. These are
properties that are able to be repositioned or redeveloped by investing further capital at
superior returns – reflecting the risk of that project – to create more “core generic”
property to be held over the long term.

Along the bottom of this slide, we highlight the geography of the portfolio. We continue to
weight strongly towards Auckland as you would expect because of the growth opportunities
in this market, but the remaining 15% of the portfolio is held across New Zealand – in
Tauranga, Wellington, Christchurch and elsewhere up and down the country. Having an out-

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of-Auckland presence allows us to work with our tenants up and down the country, and we
think having a nationwide offering is an important part of our strategy.

With this framework in mind, lets look a little closer at our three most recent acquisitions.

<< Slide 14: RECENT ACQUISITIONS >>

In October last year, we announced the acquisition of an industrial estate located at 528-558
Rosebank Road in Avondale, Auckland. The estate comprises nine buildings occupied by five
tenants and generates an annual rent of more than $3.4 million with a weighted average
lease term of around six years.

Then late in 2020, we announced the acquisition of the industrial properties located at 670-
680 Rosebank Road in Avondale, Auckland. This purchase comprised four buildings leased
to two tenants paying an annual rent of around $1.7 million with a weighted average lease
term of over four years.

As highlighted in our annual report, PFI already owned the industrial properties neighbouring
this second acquisition on Rosebank and when combined an industrial estate of 8.6 hectares
valued in excess of $110 million was created. All this just 250 meters from the North Western
motorway system.

These first two acquisitions fall squarely in the “core generic” classification that I mentioned
earlier: properties in one of our preferred locations occupied by a mix of tenants with a
weighted lease term of around five years. As is the case with the other three quarters of our
portfolio that we classify as “core generic”, these properties will form part of the backbone of
PFI’s portfolio and shareholder’s returns into the future.

Then just under two weeks ago, we announced the acquisition of an industrial property
located at 44 Noel Burnside Road in Wiri, Auckland, and I will cover this most recent
acquisition off in a little more detail on the next couple of slides.

<< Slide 15: 44 NOEL BURNSIDE ROAD >>

44 Noel Burnside Road consists of a large, modern 17,500 sqm warehouse, with associated
canopies, yards, and a small office and amenities.

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19 May 2021



Located on a 3.64 hectare site on the corner of Noel Burnside Road and Cavendish Drive,
the property sits within the prime Wiri industrial area, and benefits from exceptional transport
links via State Highway 20.

The property is leased to ABC Tissue Products for an initial two-year period with further rights
of renewal and the commencement rental is $3.64 million. Because of the shorter lease, and
the potential for an expiry in two years, we are currently viewing this as a “brownfields
opportunity”.

Shareholders may recall a similar situation back in 2015, when we acquired a portfolio of five
industrial properties in Penrose, leased on a short-term basis to Sistema Plastics. That
purchase and the subsequent re-leasing of those properties created additional “core generic”
product for PFI, and, if ABC Tissue Products decide to leave in the short-term, a similar re-
leasing process will be carried out on this asset.

<< Slide 16: 44 NOEL BURNSIDE ROAD >>

We see Noel Burnside Road as being very attractive to a wide range of occupiers, but in
particular, the exceptional transport links and generic nature of the warehouse are likely to be
attractive to logistics users. As noted in our annual report, the increased use of online
shopping is creating additional demand for logistics space, and we anticipate that leasing
demand for this property will benefit from this trend.

Once a long-term lease is secured, this property would then move into the “core generic”
classification.

Looking into the future, we see “brownfields opportunities” as being an increasingly key driver
of returns for the Company.

This has always been something that PFI has done well, adding a canopy, or expanding a
warehouse, are projects that result in additional rental being charged. In the last two years
alone, in excess of $25 million has been invested in four key projects here in Auckland, and
$9 million will be invested this year in a fifth project, a new warehouse at the rear of 47
Dalgety Drive in Wiri, which is now under construction.

Looking slightly further out, PFI has a number of sites where, on expiry of the current lease, a
significant redevelopment opportunity exists.

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<< Slide 17: 30-32 BOWDEN ROAD >>

30 – 32 Bowden Road in Mount Wellington is the first of these significant opportunities. The
current tenant utilises this four-hectare site as a manufacturing base, and on expiry of their
lease at the end of March 2023, an opportunity exists to demolish the existing obsolete
facilities and to create a significant warehouse development.

<< Slide 18: 30-32 BOWDEN ROAD >>

Whilst we are still in the design stage of this process, the new facility will benefit from dual
access from both Bowden Road and Gabador Place, which will make the new buildings
particularly appealing to those logistics type users I spoke about earlier. It is also a versatile
site that could accommodate designs for either a large-scale single user or multiple tenants,
and we plan on incorporating sustainable features into the project.

We expect the project could provide the opportunity for us to invest as much as $50 million.
Investing capital in a site like this will likely secure a strong tenant or tenants on market rents,
and we will be left with an asset that we can expect to perform for decades.

Brownfield opportunities are about having sites like this that we can transform. Sites that
become available in the right place and at the right time for us to use our expertise to your
greatest benefit. Converting these “brownfield opportunities” into “core generic” holdings will
then free up more allocation in the “brownfields” part of our portfolio for us to look for further
opportunities, this will in turn ensure we have an ongoing growth engine for the Company.

<< Slide 19: LOOKING FORWARD >>

As the industrial property sector becomes more crowded and competitive, we can’t just rely
on doing more of the same. We need to stay ahead of the curve, and I firmly believe we have
the team, the portfolio, the balance sheet and access to the right opportunities to make that
happen.

We are concentrating our efforts on the sector where we can play to our strengths.
As you can see from today’s presentation, we believe that first class management and
continuous improvement of the portfolio are the vital ingredients for continuing to deliver
growing returns to shareholders. Which is what you should expect from us and we know a lot
of you rely on.

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The four buckets I’ve spoken about today – “core generic”, “specialised”, “assets held for
sale” and “brownfields opportunities” – are a smart and natural way for us to think about our
portfolio as this Company continues to grow. They enable us to act with confidence as pure
industrial property specialists. For that reason, you’ll hear us talk about our portfolio in this
way going forward.

Now before I hand the presentation back to Ant I would just like to say thank you to our
shareholders and other stakeholders who have continued to support our Company to date –
we as a Management Team and Board look forward to you all continuing to be a part of our
successful story well into the future.

Thanks.

<< Slide 20: SHAREHOLDER DISCUSSION >>

<< Anthony Beverley >>

Thank you, Simon.

There is now an opportunity for questions or comments on the presentations, or on the
financial statements and auditor’s report, which you can find from page 68 of the annual
report.

For those here in person, if you raise your hand, we’ll get a microphone to you, so that
everyone can hear. Can you start by introducing yourself: your name and whether you’re a
shareholder or a proxy holder and, if you are a proxy holder, the name of the shareholder you
are representing?

For virtual attendees, press the speech bubble icon on your device, and then type and
submit your question.

<< Slide 21: FINANCIAL STATEMENTS >>

Thank you for your questions and comments. As there are no further questions on the
financial statements and auditor’s report, we will now consider the financial statements
and auditor’s report to have been received.

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<< Slide 22: ORDINARY RESOLUTIONS >>

We will now move to the resolutions.

Craig advises me that 354 shareholders, representing 149,345,645 shares or 29.72% of the
Company’s shares on issue, are represented by proxies.

Voting for the resolutions will be conducted by poll. For the purpose of the poll, I appoint the
Company’s registrar, Computershare, to carry out the poll.

The procedure for the conduct of the poll for in person attendees will be as follows:
▪ Voting papers have been provided with the notice of meeting, pens, where required,
will be distributed now;
▪ If you do not have a voting paper, please see a Computershare representative at the
registration desk who will provide you with a voting paper;
▪ Indicate your vote for, against or abstain, by placing a tick in the appropriate box;
▪ If you are here as a proxy for a shareholder who has not marked ‘proxy discretion’ on
their proxy form, your vote will be automatically counted in accordance with the voting
directions given by your appointer, but please sign the voting paper provided when
you arrived at the meeting;
▪ Where you are a proxy holder and you have been granted a discretion on how to vote
the resolution, please use the voting paper provided when you arrived at the meeting;
▪ After recording your vote, please remember to sign your voting paper, then place the
voting paper in the boxes provided at the back of the room where they will be
collected by Computershare staff.

For virtual attendees, the poll is open to vote now. The resolutions and voting choices are
displayed on your screens, and to vote, simply select your voting choice from the options
shown on screen. You can change your vote at any time up until when the poll is closed.
To change your vote, simply select another voting choice.

Having collected the votes, they will be taken to a separate room for counting. The results of
the poll will be announced via NZX as soon as they are available.

Please note that the Board recommends that you vote in favour of each of the four ordinary
resolutions.

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<< Slide 23: RESOLUTION 01. >>

Just before we get to the resolutions, I would like to note that at last year’s annual meeting I
said I would step down in 12 or so months. Subsequent to that meeting and in light of the
increasingly uncertain operating environment under the Covid pandemic, my Board
colleagues felt that it was in the Company’s interest that I remain on the Board through these
unique and uncertain times. Board succession, including my tenure, will continue to be
actively considered by the Board but for the time being the status quo remains.

So, turning to the resolutions.

The first resolution is that David Thomson, who retires and is eligible for election, be elected
as a Director of the Company.

The Board considers David will be an Independent Director if re-elected, and supports his re-
election.

David has been a director of PFI since 2018. David is a senior partner at law firm Buddle
Findlay, where he runs a broad corporate and commercial law practice. There is a profile of
David in the notice of meeting.

David, would you like to say a few words?

<< David to speak >>

<< Anthony Beverley >>

Thank you, David.

The resolution is: “That David Thomson, who retires and is eligible for election, be elected as
a Director of the Company.”

Is there any discussion?

Please mark your voting papers for resolution 1, or for virtual attendees, select your voting
choice from the options shown on screen.

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<< Slide 24: RESOLUTION 02. >>

The second resolution is that Gregory Reidy, who retires and is eligible for election, be
elected as a Director of the Company.

The Board considers Greg will be a Non-Executive Director, if re-elected, and supports his
re-election.

Greg has been a director of PFI since 2012. Greg has a background in property investment,
funds management and development with more than 25 years’ experience. There is a profile
of Greg in the notice of meeting.

Greg, would you like to say a few words?

<< Greg to speak >>

<< Anthony Beverley >>

Thank you, Greg.

The resolution is: “That Gregory Reidy, who retires and is eligible for election, be elected as a
Director of the Company.”

Is there any discussion?

Please mark your voting papers for resolution 2, or for virtual attendees, select your voting
choice from the options shown on screen.

<< Slide 25: RESOLUTIONS 03. AND 04. >>

The third resolution is “That the Directors are authorised to fix the fees and expenses of the
auditors, PricewaterhouseCoopers Auckland.”

Is there any discussion?

Please mark your voting papers for resolution 3 or for virtual attendees, select your voting
choice from the options shown on screen.

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The fourth resolution is that the Directors be authorised to fix the remuneration of the
Directors of the Company from the close of this meeting as per the table shown in the
Explanatory Notes of the Notice of Meeting.

In setting the proposed rates, the Board commissioned an independent benchmarking review
of the current level of Directors’ fees by Strategic Pay. A summary of Strategic Pay's report,
together with their attestation of independence, has been made available to all shareholders
on PFI’s website.

In requesting this review and setting the proposed Directors’ fees to be put to shareholders,
the Board has also considered:
• the growth of the Company, with contract rent growing 9.5% and assets growing
24.1% over the past two years;
• PFI’s robust performance through the recent period of economic uncertainty;
• changes in the workload and expectations of directors since the review; and
• the need to attract and retain directors of a strong calibre.

The proposed structure and rates are set out in the notice of meeting, and if resolution 4 is
approved by shareholders today the set rates will apply from the close of this meeting. Going
forward the rates would continue to be reviewed every second year by the Board in advance
of the Annual Meeting with any adjustment put to shareholders for approval.

The fourth resolution “That the Directors be authorised to fix the remuneration of the
Directors of the Company from the close of this meeting as per the table shown in the
Explanatory Notes.”

Is there any discussion?

Please mark your voting papers for resolution 4, or for virtual attendees, select your voting
choice from the options shown on screen.

We will just give you all a moment to finalise voting, and then I will close the poll.

The poll is now closed, thank you.

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<< Slide 26: GENERAL BUSINESS >>

We now come to general business.

If there is something you wish to put to the meeting, could you raise your hand and we’ll get
one of the microphones to you? A reminder to please state your name and whether you are a
shareholder or proxy holder. If you are attending virtually, press the speech bubble icon on
your computer, tablet or mobile, and then type and submit your question.

As mentioned earlier, we will try to get to as many of the questions as possible, but not all
questions may be able to be answered. In this case, questions will be followed up after the
meeting.

<< Slide 27: CLOSE OF MEETING >>

Thank you for your continued support of PFI, and for your attendance today. We would
welcome any feedback that you have on this hybrid meeting format.

That ends the formal part of the meeting and I declare the meeting closed.
For those here in person, please join us for light refreshments and further conversation.

<< Slide 28: DISCLAIMER >>