Strong Valuation Outcome, Penrose Acquisition

NZX and media
announcement
—
3 December 2021

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STRONG VALUATION OUTCOME, PENROSE
ACQUISITION
Property for Industry Limited (PFI, the Company) is pleased to announce an expected increase from
independent valuations in the value of its property portfolio for the six months ended 31 December 2021
of approximately $150 million or 8%. The Company is also pleased to announce the acquisition of a
5,000 sqm site at 318 Neilson Street, Penrose for $6.825 million.

Strong Valuation Outcome
PFI expects an increase from independent valuations in the value of its property portfolio for the six
months ended 31 December 2021 of approximately $150 million or 8%. When combined with the $240
million or 14% uplift recognised in the six months to 30 June 2021, the annual uplift of approximately
$390 million or 22% is expected to result in PFI’s portfolio of 97 properties being valued at approximately
$2.164 billion at the end of 2021.

PFI Chief Executive Officer, Simon Woodhams, notes: “Industrial property has continued to attract high
levels of investor demand in the second half of 2021. The occupier market also remains robust, resulting
in low levels of vacancy and projected rental growth. These factors have combined to result in a strong
valuation outcome.”

As a result of portfolio activity and the valuation process PFI’s passing yield has firmed by around 0.36%
(was 4.75% as at 30 June 2021, 5.53% as at 31 December 2020) and around 30 cents will be added to
the Company’s Net Tangible Assets per share (was 271 cents per share as at 30 June 2021, 221 cents
per share as at 31 December 2020).

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

The final independent valuation outcome will be confirmed in the results for the financial year ended 31
December 2021, which will be announced on Monday, 21 February 2021.

Penrose Acquisition
PFI has today agreed to acquire a 5,000 sqm site at 318 Neilson Street, Penrose (the Property) for
$6.825 million.

This Property is adjacent to existing PFI properties 304, 306, 312 and 314 Neilson Street, which have a
combined value of ~$72.5 million (based on the valuations announced today). When the Property is
combined with the Company’s existing holdings, PFI will have a combined ~5 hectare estate zoned
Heavy Industrial in one of Auckland’s key industrial precincts valued at almost $80 million.

The Property will be acquired on a vacant possession basis and, initially, PFI plans to lease the Property
as a yard. In the longer term, the Property will facilitate future redevelopment of the Company’s Neilson
Street properties.

Settlement of the acquisition of the Property is expected in March 2022.

ENDS

NZX and media
announcement
—
3 December 2021

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ABOUT PFI & CONTACT

PFI is an NZX listed property vehicle specialising in industrial property. PFI’s nationwide portfolio of almost 100 properties is
leased to around 135 tenants.

For further information please contact:

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