Property for Industry Limited/Announcement

PFI Announces Annual Results

Full Year Results19 February 2023PFIReal Estate

View on NZX PDF 1 PDF 2 PDF 3 PDF 4 PDF 5

NZX and media
announcement
—
20 February | 2023

Page 1

PFI ANNOUNCES ANNUAL RESULTS
The PFI management team will present the results via live webcast from 10am NZT on 20 February
2023. To view and listen to the webcast, please visit https://edge.media-server.com/mmc/p/tgtfcjtm.
Anyone wishing to participate in the webcast (for example, to ask a question) must pre-register for the
conference call at https://register.vevent.com/register/BI3d1bcec87ff848fa9dce0e425ad8d27d. Upon
registering, participants will be provided with participant dial-in numbers and a personal PIN. In the 10
minutes prior to the call start time, you will need to use the conference access information provided in
the email received at the point of registering, in addition to opening the webcast (using the details above).

Highlights
▪ Steady underlying results: Fair value losses on properties of $56.7 million or 2.6% contributing to
a loss after tax of $13.9 million, Funds From Operations (FFO)
1
earnings down 7.8% from the prior
year to 10.21 cents per share, Adjusted Funds From Operations (AFFO) earnings down 5.0% from
the prior year to 8.83 cents per share, 2022 cash dividends of 8.10 cents per share, up 2.5% on
2021 dividends
▪ Brownfield opportunities set to commence: Existing tenant secured to activate first stage of
Springs Road redevelopment, $140 million of development spend now committed across two sites,
all buildings targeting a Five Green Star rating
▪ Sustainability programme advanced: Sustainability strategy refreshed, R22 refrigerant gas
replacement project completed, third voluntary Task Force on Climate-Related Financial Disclosures
(TCFD) report filed, undertaking sustainable refurbishments
▪ Portfolio delivering strong rental growth: $62.8 million of contract rent reviewed during 2022
delivering an average annualised uplift of 4.0%, 15.0% of contract rent leased during 2022 at an
average of 11.8% above previous contract rents
▪ Resilient industrial portfolio of scale: $2.12 billion industrial property portfolio ~11% under-rented,
net tangible assets confirmed at 298.8 cents per share
▪ Proactive and conservative capital management: 3.6 million shares acquired through share
buyback programme, $100 million BNZ facility refinanced, USPP facility established, $121 million of
available bank liquidity, gearing comfortable at 28.5%

Property for Industry Limited (PFI, the Company) today announced a steady underlying result for the
year ended 31 December 2022.

“We continue to deliver stable cash returns for investors, and the team have made good use of the
drivers available to them through our clear strategy to divest sensibly, while positioning the Company to
continue to grow in the years ahead” says PFI Chief Executive Officer, Simon Woodhams.

Steady underlying results
PFI generated a loss after tax for the year of $13.9 million (loss of 2.70 cents per share), down from a
profit of $452.8 million (profit of 89.97 cents per share) in the prior year. A $56.7 million fair value loss
on the independent valuation of the Company’s property portfolio, as compared to a $392.5 million fair
value gain in the prior year, was the main contributor to this reduction. A $29.1 million impairment of the
goodwill which arose on the merger with Direct Property Fund in July 2013 was recorded at the end of
the interim period, and this also contributed to the full year loss.

--------

1
Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) are non-GAAP financial information and are
common property investor metrics, which have been calculated in accordance with the guidelines issued by the Property Council
of Australia. Please refer to Appendix 1 for more detail as to how these measures were calculated.

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At an operating level, net rental income
2
of $95.6 million was up $1.4 million or 1.4% on the prior year,
with growth on the stabilised portion of the portfolio of 2.4%. Offsetting this, interest expense and bank
fees rose by $4.5 million on the prior year, this increase being the result of an increase in the Company’s
weighted average cost of debt to 4.77% as at the end of 2022 from 3.81% as at the end of 2021,
combined with a $57 million or 10% increase in average borrowings from net acquisition and divestment
activity.

As a result, FFO earnings were down 7.8% from the prior year to 10.21 cents per share, whilst AFFO
earnings were down by 5.0% to 8.83 cents per share (prior year: 9.29 cents per share).

In line with PFI’s dividend policy to distribute between 90% to 100% of AFFO on a rolling three-year
historic average basis, the PFI Board today resolved to pay a fourth quarter final cash dividend of 2.65
cents per share. The dividend will have imputation credits of 0.46 cents per share attached and a
supplementary dividend of 0.21 cents per share will be paid to non-resident shareholders. The record
date for the dividend is 27 February 2023, and the payment date is 9 March 2023. The dividend
reinvestment scheme will not operate for this dividend.

The fourth quarter dividend will take cash dividends for the year to 8.10 cents per share, up 2.5% from
2021 dividends, resulting in an FFO dividend pay-out ratio of 79% (2021: 71%) and an AFFO dividend
pay-out ratio of 92% (2021: 85%). The dividend pay-out ratio is 91% of AFFO on rolling three-year
historic average basis (2021: 92%, refer Appendices 2 and 3 for all pay-out ratio calculations).

Brownfield opportunities set to commence
The Company has around $216 million or 10% of the portfolio held in properties where there is an
opportunity for redevelopment, and these properties are referred to as brownfield opportunities. During
the year, the PFI team made the most of market conditions to generate proceeds from the divestment
of a range of properties to be recycled into two such opportunities.

The divestments of 39 Edmundson Street in Napier, 330 Devon Street East and 20 Constance Street,
both in New Plymouth, all settled during the year, whilst the divestment of 8A & 8B Canada Crescent in
Christchurch is due to settle early-April 2023. Combined, these properties will generate gross proceeds
of $33.4 million and have been sold at an average of 8% above their most recent book values.

During 2022, PFI committed to the extensive redevelopment of the Company’s 3.9 hectare Bowden
Road site in Mount Wellington and the initial phase of the redevelopment of the Company’s 10.4 hectare
Springs Road site in East Tamaki. Across both sites, 43,700 square metres of warehousing, 2,400
square metres of offices, 7,900 square metres of canopies, 16,000 square metres of yard and 280 car
parks will be constructed over an 18-month period from April 2023.

Combined, these projects have an estimated total incremental cost of around $140 million, and once
complete, are expected to be accretive to both earnings and net tangible assets on a per share basis.
Consistent with PFI’s climate commitments, all facilities will target Five Green Star ratings.

Sustainability programme advanced
“Our decision to target Five Green Star ratings in our upcoming Bowden and Springs Road
redevelopments puts us at the leading edge of the industrial sector in New Zealand,” says Chief Finance
and Operating Officer, Craig Peirce. “There are only a handful of buildings in New Zealand currently at
this level, and it’s exciting to be embarking on these projects with sustainability firmly at their core.”

--------

2
Refer note 2.3 of the financial statements, on page 66 of the annual report. Excludes service charge income recovered from
tenants and management fee income.

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Tangible progress was made across a wide variety of areas in the Company’s sustainability programme,
including refreshing our sustainability strategy, completing the R22 refrigerant gas replacement project,
filing our third voluntary Task Force on Climate-Related Financial Disclosures (TCFD) report, creating a
strategy for solar installations, and undertaking sustainable refurbishments.

You can learn more about sustainability at PFI on pages 25 to 43 of the Company’s Annual Report,
released today.

Portfolio delivering strong rental growth
Portfolio snapshot as at 31 December 2022 31 December 2021
Book value $2,117.2m $2,168.9m
Number of properties 94 97
Number of tenants 132 136
Contract rent $98.2m $95.6m
Occupancy 100.0% 100.0%
Weighted average lease term 5.08 years 5.40 years
Auckland property 83.2% 81.8%

The strong levels of rental growth reported for the first half of 2022 continued into the second half of the
year.

Rent reviews were completed on 102 leases during the year, resulting in an average annual uplift of
4.0% on ~$62.8 million of contract rent. CBRE forecast
3
industrial rental growth over the next five years
to average 5.5% per annum for prime properties and 3.5% per annum for secondary properties.

Around 104,000 square metres or 15% of PFI’s portfolio by rent was leased during the year to seven
new and 26 existing tenants for an average increase in term of 5.0 years. Across these leasing
transactions average leasing costs of 0.1 months per year of term were negotiated and a positive re-
leasing spread of around 12% on annual passing rents was achieved.

Combined, 81% of contract rent was reviewed, varied, or leased during 2022.

At the end of the year, the Company’s portfolio was fully occupied, and 7.8% of contract rent is due to
expire in 2023, with the largest single expiry totalling just 0.9% of contract rent. Excluding brownfield
opportunities, 2023 and 2024 expiries are 4.4% and 10.6% respectively, in line with prior periods. The
leasing market for industrial property remains strong, with vacancy still at historically low levels. CBRE
reports
3
that Auckland industrial vacancy is just 0.1% for prime properties and 0.7% for secondary
properties.

At an operational level, the project to bring facilities management in-house continued to gather
momentum during the year. “Bringing facilities management in-house will ensure PFI provides
integrated, proactive and sustainable property solutions that add value for our tenants and
shareholders,” says Simon Woodhams. During the second half of the year, the PFI team have been
updating systems and processes to provide a seamless experience for tenants, whilst working with
contractors to ensure a smooth transition.

Resilient industrial portfolio of scale
PFI recorded an annual decrease in the value of its property portfolio from independent valuations of
$56.7 million or 2.6% to $2,117.2 million. Realised rental growth was estimated to have added around
--------

3
CBRE “Auckland Property Market Outlook”, December 2022, includes 2022 rental growth.

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1.3% to the value of the portfolio, with the remainder of the valuation outcome due to an increase in
yields or cap rates as a result of the higher interest rate environment. As a result of portfolio and valuation
activity, PFI’s passing yield softened from 4.41% to 4.62%. An independent market rental assessment
of the entire portfolio was completed as part of the valuation process, this assessment estimates that
PFI’s portfolio is around 11% under-rented.

Net tangible assets (NTA) per share decreased by 4.6 cents per share from 303.4 cents per share as at
the end of 2021 to 298.8 cents per share as at the end of 2022, with the impact of the decrease in the
Company’s property portfolio partially offset by increases in the value of derivatives and retained
earnings.

Proactive and conservative capital management
“2022 has been an active year for capital management,” says Craig Peirce. “We’ve managed our capital
base by running a share buyback programme, extending our Bank of New Zealand loan facility, and
entering into a new USPP facility.”

With the Company’s shares trading at a 21% discount to NTA at the time, PFI announced that it would
undertake an on-market share buyback programme (the Buyback Programme) on 25 May 2022. PFI
has since acquired and subsequently cancelled 3.6 million shares at an average cost of $2.43 per share,
compared to net tangible assets per share as at 31 December 2022 of $2.99.

With $140 million of Five Green Star development spend committed across both Bowden and Springs
Road, the decision was made to pause the Buyback Programme indefinitely on 19 December 2022, as
the Company has assessed these developments as being a superior use of its capital.

PFI also refinanced its $100 million loan facility from the Bank of New Zealand during the year, extending
the facility expiry date by one year from 2 July 2023 to 2 July 2024. The weighted average term to expiry
of PFI’s bonds and bank facilities is 3.0 years and the Company has over $120 million of available bank
liquidity as at the end of the year. An as-yet-unutilised US$250 million USPP facility established with
Pricoa Capital Group, part of Prudential Financial, Inc. provides PFI with access to long-term funding,
which the Company may use to finance investment opportunities, including upcoming brownfield
opportunities.

Gearing at the end of the year stood at 28.5% (covenant: 50%) and the interest cover ratio was 3.4 times
(covenant: 2 times) for the 2022 year. Interest rate hedging provides for an average of ~61% of the
Company’s debt to be hedged at an average fixed rate of ~2.38% for 2023, offering protection from rising
interest rates.

Auckland flooding and Cyclone Gabrielle
2023 has started with several extreme weather events. “Our thoughts are with everyone who has been
affected by the recent events, including the flooding in Auckland and the widespread devastation caused
by Cyclone Gabrielle.” says Simon Woodhams. “A small number of PFI’s properties have suffered
damage, and it is our expectation that any losses will be covered by insurance.”

Closing
Looking to the year ahead, the PFI Board is guiding to 2023 cash dividends of between 8.10 and 8.30
cents per share, an increase of up to 2.5% on 2022 dividends. Higher forecast interest rates, including
uncertainty around the pace and size of changes in the Official Cash Rate, have the potential to impact
forecast earnings, and PFI’s guidance assumes an average BKBM throughout 2023 of 5.25%. This
guidance is also subject to upside risks from capturing sector rental growth and portfolio under renting,
with additional downside risk from matters that are outside the Company’s control, including tenant
failure.

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PFI’s dividend policy is to distribute between 90% to 100% of AFFO on a rolling three-year historic
average basis, and cash dividends of 8.10 to 8.30 cents per share are anticipated to result in a dividend
pay-out at the bottom of this dividend policy range.

2022 has closed with the Company well placed for the coming years. With plenty of demand evident,
and a clear path for development, PFI is confident that it can maintain momentum while meeting investor
expectations. “We may not see the record results of 2021 in the short to medium term, but we are
confident of delivering resilient results,” says Simon Woodhams. “There will be challenges, but we are
intent on meeting investor and occupier demands and delivering the stable returns that our investors
look for.”

ENDS

ABOUT PFI & CONTACT

PFI is an NZX listed property vehicle specialising in industrial property. PFI’s nationwide portfolio of 94 properties is leased to
around 132 tenants.

For further information please contact:

SIMON WOODHAMS
Chief Executive Officer
----
Phone: +64 21 749 770
Email: woodhams@pfi.co.nz
CRAIG PEIRCE
Chief Finance and Operating Officer
----
Phone: +64 21 248 6301
Email: peirce@pfi.co.nz
----
Property for Industry Limited
Level 4, Hayman Kronfeld Building, 15 Galway Street,
Auckland 1010
PO Box 1147, Shortland Street, Auckland 1140
www.propertyforindustry.co.nz

Attachments
NZX Form – Results Announcement
NZX Form – Distribution Notice
Annual Results Presentation
Annual Report

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20 February | 2023

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Appendices
Appendix 1 – FFO and AFFO Calculations

Funds / Adjusted Funds From Operations For the year
ended
For the year
ended
(unaudited, $000, unless noted)
31 December
2022
31 December
2021
Profit (loss) and total comprehensive income after income
tax attributable to the shareholders of the Company
(13,944) 452,810
Adjusted for:
Fair value loss / (gain) on investment properties 56,735 (392,519)
Impairment of goodwill or intangibles 29,086 -
Material damage insurance income - (900)
Loss / (gain) on disposal of investment properties (575) (2,636)
Fair value loss / (gain) on derivative financial instruments (18,536) (12,271)
Amortisation of tenant incentives 2,799 3,243
Straight lining of fixed rental increases (942) (1,417)
Deferred taxation (3,114) 9,412
Other 40
Funds From Operations (FFO) 51,549 55,723
FFO per share (cents) 10.21 11.07
Maintenance capex (3,870) (3,946)
Incentives and leasing fees given for the period (3,173) (5,065)
Other (incl. reversal of accounting entries for COVID-19 abatement
and deferral deals)
72 33
Adjusted Funds From Operations (AFFO) 44,578 46,745
AFFO per share (cents) 8.83 9.29

Appendix 2 – FFO and AFFO Dividend Pay-out Ratios

2022 2021
Full year dividends per share (cents) 8.10 7.90
FFO dividend pay-out ratio (%) 79% 71%
AFFO dividend pay-out ratio (%) 92% 85%

Appendix 3 – Rolling three-year AFFO Dividend Pay-out Ratios

2022 2021 2020 2019 2018
Rolling three-year AFFO dividend pay-
out ratio (%)
91% 92% 98% 99% 102%

---

Results announcement
(for Equity Security issuer/Equity and Debt Security
issuer)
Updated as at 17 October 2019

Results for announcement to the market
Name of issuer Property for Industry Limited (PFI)
Reporting Period 12 months to 31 December 2022
Previous Reporting Period 12 months to 31 December 2021
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$73,297 -86%
Total Revenue $73,297 -86%
Net profit/(loss) from
continuing operations
($13,944) -103%
Total net profit/(loss) ($13,944) -103%
Final Dividend
Amount per Quoted Equity
Security
$0.02650000
Imputed amount per Quoted
Equity Security
$0.00457973
Record Date 27 February 2023
Dividend Payment Date 8 March 2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.988 $3.034
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
This dividend is fully credited with imputation credits to the
extent permitted by the imputation credit rules and to the extent
that the directors of PFI determine were available.
This announcement is extracted from PFI’s audited financial
statements as at and for the twelve months ended 31 December
2022. A copy of these audited financial statements is attached to
this announcement.
Authority for this announcement
Name of person

authorised
to make this announcement
Craig Peirce
Contact person for this
announcement
Craig Peirce
Contact phone number +64 9 303 9651
Contact email address peirce@pfi.co.nz
Date of release through MAP

20 February 2023

Audited financial statements accompany this announcement.

---

Distribution Notice

Updated as at 18 December 2019

Section 1: Issuer information
Name of issuer Property for Industry Limited
Financial product name/description Property for Industry Limited Shares
NZX ticker code PFI
ISIN (If unknown, check on NZX
website)
NZPFIE0001S5
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 27 February 2023
Ex-Date (one business day before the
Record Date)
24 February 2023
Payment date (and allotment date for
DRP)
8 March 2023
Total monies associated with the
distribution
$13,304,339
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.03107973
Gross taxable amount $0.01635617
Total cash distribution $0.02650000
Excluded amount (applicable to listed
PIEs)
$0.01472356
Supplementary distribution amount $0.00207819
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed X
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$0.00457973
Resident Withholding Tax per
financial product
N/A

Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
N/A
Start date and end date for
determining market price for DRP

Date strike price to be announced (if
not available at this time)

Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)

DRP strike price per financial product

Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms

Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Craig Peirce
Contact person for this
announcement
Craig Peirce
Contact phone number +64 21 248 6301
Contact email address peirce@pfi.co.nz
Date of release through MAP

20 February 2023

---

Highlights
Annual
Results
Briefing
2022
4
STEADY UNDERLYING RESULT:
Fairvaluelossesonpropertiesof$56.7millionor2.6%contributingtoaloss
aftertaxof$13.9million,FundsFromOperations(FFO)earningsdown7.8%
fromtheprioryearto10.21centspershare,AdjustedFundsFromOperations
(AFFO)earningsdown5.0%fromtheprioryearto8.83centspershare,2022
cashdividendsof8.10centspershare,up2.5%on2021dividends
SPRINGS ROAD
PROACTIVE AND CONSERVATIVE CAPITAL
MANAGEMENT:
3.6millionsharesacquiredthroughsharebuybackprogramme,$100
millionBNZfacilityrefinanced,USPPfacilityestablished,$121million
ofavailablebankliquidity,gearingcomfortableat28.5%
RESILIENT INDUSTRIAL PORTFOLIO OF SCALE:
$2.12billionindustrialpropertyportfolio~11%under-rented,net
tangibleassetsconfirmedat298.8centspershare
BROWNFIELD OPPORTUNITIES SET TO COMMENCE:
ExistingtenantsecuredtoactivatefirststageofSpringsRoad
redevelopment,$140millionofdevelopmentspendnowcommitted
acrosstwosites,allbuildingstargetingaFiveGreenStarrating
PORTFOLIO DELIVERING STRONG RENTAL GROWTH:
$62.8millionofcontractrentreviewedduring2022deliveringan
averageannualisedupliftof4.0%,15.0%ofcontractrentleased
during2022atanaverageof11.8%abovepreviouscontractrents
SUSTAINABILITY PROGRAMME ADVANCED:
Sustainabilitystrategyrefreshed,R22refrigerantgasreplacement
completed,thirdvoluntaryTaskForceonClimate-RelatedFinancial
Disclosures(TCFD)reportfiled,undertakingsustainable
refurbishments

1
2
4
78
1
1
3
3
DECEMBER 2022DECEMBER 2021
BOOK VALUE
$2,117.2m$2,168.9m
NUMBER OF PROPERTIES
9497
NUMBER OF TENANTS
132136
CONTRACT RENT
$98.2m$95.6m
OCCUPANCY
100.0%100.0%
WEIGHTED AVERAGE LEASE TERM
5.08 years5.40 years
AUCKLAND PROPERTY
83.2%81.8%
Portfolio
Snapshot
▪PFI's portfolio is diversified across 94 properties
and 132 tenants, with 100.0% occupancy and a
weighted average lease term of 5.08 years,
weighted towards Auckland
Annual
Results
Briefing
2022
1
6

Annual
Results
Briefing
2022
Valuations
$
2,117.2M
CURRENT VALUATION
56.7M (-2.6%)
~
11%
UNDER
RENTED
Estimated by independant
market rental assessment
Due to realised rental growth
ESTIMATED
PORTFOLIO
VALUE GROWTH
~
1.3%
$
2.988
NTA PER SHARE
4.6C
4.62%
PASSING YIELD
0.21%
7

Annual
Results
Briefing
2022
Leasing
104,433SQM
15% of portfolio by rent
2022 - LEASED
5.0YEARS
Weighted Average
Lease Term
for new leases and renewals
12%
POSITIVE
RE-LEASING
SPREAD
on previous
contract rent
81%
of total contract rent
varied, leased or
reviewed during 2022
75%
of contract
rent secured
LEASE
RENEWALS
7 new leases
26 renewals
0.1
MONTHS
per year of term
AVERAGE INCENTIVE
8

0.0%
7.8%
18.7%
10.4%
7.2%
11.0%
14.3%
4.0%
3.5%
8.0%
15.1%
0%
5%
10%
15%
20%
25%
Vacant202320242025202620272028202920302031Onwards
Total ExpiriesBrownfield Opportunities
2023 Lease
Expiries
▪Portfolio is 100.0% occupied (0.0% vacancy) and 7.8% of contract rent
is due to expire in 2023 (graph below), largest single expiry 20.0% of
that (0.9% of contract rent, chart on right)
−8A & 8B Canada Crescent has been sold with settlement due to
take place in April 2023 and is excluded from any expiries analysis
▪Excluding brownfield opportunities, FY23 and FY24 expiries are 4.4%
and 10.6% respectively (bottom graph), in line with prior periods
▪Vacancy still at historically low levels: CBRE reports
1
Auckland Prime
industrial vacancy at 0.1%, Secondary industrial vacancy at 0.7%
1
CBRE “Auckland Property Market Outlook” December 2022
Annual
Results
Briefing
2022
9

Fixed58.8%
CPI14.6%
Market2.1%
Expiries7.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
CBRE five year average rental growth
estimates
1
for Auckland:
▲
▲
▲
Rent
Reviews
1
CBRE “Auckland Property Market Outlook” December 2022 –includes 2022 rental growth,
2
8A & 8B Canada Crescent is due to settle in April 2023 and is therefore excluded from 2023 lease events analysis
Annual
Results
Briefing
2022
10

CHANGING HOW
FACILITES
MANAGEMENT
IS DELIVERED
To ensure PFI provides integrated, proactiveand
sustainableproperty solutions that add value for our
tenants and shareholders.
Updatingsystems and processes to provide a seamless
experience for tenants, contractors and our team.
Working with contractors and tenants to ensure a
smooth transition.
Annual
Results
Briefing
2022
Facilities
Management
11

95.6
+4.0
+2.8
+0.9
+0.7
-6.5
-0.5
-0.1
94.3
$90m
$92m
$94m
$96m
$98m
$100m
$102m
$104m
2021 net rental
income
AcquisitionsRent reviews &
adjustments
New leases &
renewals
DevelopmentsDisposalsCOVID-19 supportOther2022 net rental
income
Net Rental
Income
▪Net rental income of $95.6
million up $1.4 million or 1.4%
on the prior year ($94.3 million),
growth on stabilised portion of
the portfolio of 2.4%
▪Prior year acquisitions resulted
in an increase of +$4.0 million
▪Positive leasing activity
contributed to an increase
totalling +$3.7 million
▪Disposal activity resulted in a
decrease of -$6.5 million
▪Further decreases due to
COVID-19 adjustments -$0.5
million and other -$0.1 million
Annual
Results
Briefing
2022
13

+0.66
+0.03
+0.02
+0.02
-0.03
-0.91
-0.25
9.29
8.83
7.4
7.6
7.8
8.0
8.2
8.4
8.6
8.8
9.0
9.2
9.4
2021 AFFORebase for
shares issued
Interest expense
and bank fees
Administrative
expenses /
Other
Net rental
income
Non-recoverable
property costs
Current taxationMaintenance
capex
2022 AFFO
Adjusted
Funds From
Operations
(cents per share)
▪AFFO earnings of 8.83 cents
per share, 0.46 cents per share
(cps) or 5.0% less than the
prior year
▪Interest expense and bank
fees up $4.5 million of 0.91 cps
on the prior year
▪Net rental income (including
AFFO adjustments) up $3.3
million or 0.66 cps on the prior
year
▪Admin expenses increased
due to continued investment in
team and systems, but
remained constant as a % of
average property values
▪Maintenance capex in line with
the prior year at 18 basis
points
Annual
Results
Briefing
2022
14

60%
70%
80%
90%
100%
110%
120%
6.50
7.00
7.50
8.00
8.50
9.00
9.50
FY18FY19FY20FY21FY22
AFFO (cps)DPS (cps)Pay-out % (3-year - rhs)Pay-out % (1-year - rhs)
Earnings,
Dividends,
Guidance
▪2022 cash dividends total 8.10 cents per share
(cps), up 0.20 cps or 2.5% from 2021
▪2023 dividend guidance of 8.10 to 8.30 cps, an
increase of up to 0.20 cps or 2.5% on 2022
dividends
▪Higher forecast interest rates impacting on
earnings, guidance assumes an average
BKBM throughout 2023 of 5.25%
▪Upside risks from capturing sector rental
growth and portfolio under renting, downside
risk predominantly from tenant failure
▪Dividend policy to distribute between 90% to
100% of AFFO on a rolling three-year historic
average basis
▪2023 cash dividends of 8.10 to 8.30 cps
anticipated to result in a dividend pay-out at
the bottom of this dividend policy range
EARNINGS2022 CPS2021 CPSCHANGE
FUNDS FROM OPERATIONS
10.2111.07-0.86 CPS or -7.8%
ADJUSTED FUNDS FROM OPERATIONS
8.839.29-0.46 CPS or -5.0%
Annual
Results
Briefing
2022
15

2,117.2
+17.8
+6.8
+1.2
-56.7
-20.8
2,168.9
$2,060m
$2,080m
$2,100m
$2,120m
$2,140m
$2,160m
$2,180m
$2,200m
December 2021
investment
properties & AHFS
Fair value lossDisposalsCapitalised
expenditure &
interest
AdditionsMovement in lease
incentives, fees and
fixed rental income
December 2022
investment
properties & AHFS
Investment
Properties
▪Portfolio value of $2.117 billion,
including properties classified as
held for sale (AHFS)
▪Decrease from annual
independent valuations of $56.7
million or 2.6%
▪Four properties disposed in
2022 for a combined total of
$20.8 million
▪Capex at 3-5 Niall Burgess
Road (sustainable
refurbishment), Shed 22
(seismic strengthening works),
30-32 Bowden Road (pre-
project) and 528-558 Rosebank
Road (seismic strengthening
works)
▪318 Neilson Street, Penrose,
acquired in March 2022 for $6.8
million
Annual
Results
Briefing
2022
16

303.4
298.8
+2.1
+3.7
+2.6
-1.7
-11.3
285
290
295
300
305
310
December 2021 NTARebase for shares
purchased
Movement in share
capital
Fair value loss on
investment properties
Fair value gain on
derivative financial
instruments
Retained earningsDecember 2022 NTA
▪Net tangible assets (NTA) per
share decreased by 4.6 cents
per share (cps) or 1.5%
▪Change in NTA per share driven
by the decrease in the fair value
of investment properties (-11.3
cps), an increase in the net fair
value asset for derivative
financial instruments (+3.7 cps)
and retained earnings (+2.6
cps)
▪Share buyback programme
accretive to NTA, shares
purchased at an average cost of
$2.43 per share, compared to
NTA as at 31 December 2022 of
$2.99
Net Tangible
Assets
(cents per share)
Annual
Results
Briefing
2022
17

-
0.50
1.00
1.50
2.00
2.50
3.00
3.50
60%
70%
80%
90%
100%
110%
120%
130%
140%
150%
160%
Share Price ($), NTA ($)
P/NTA (%)
Buyback PeriodsP/NTA (%)Share Price ($)NTA per share ($)
Share
Buyback
Programme
▪On-market share buyback programme of up
to 5% of ordinary shares, announced on 25
May 2022
▪At the time of announcement, PFI shares
were trading at a 21% discount to NTA
▪PFI has since acquired and subsequently
cancelled 3.6 million shares at an average
cost of $2.43 per share, compared to net
tangible assets per share as at 31
December 2022 of $2.99
▪With $140 million of Green Star
development spend committed across both
Bowden and Springs Road, the decision
was made to pause the buyback programme
indefinitely on 19 December 2022, as the
Company has assessed these
developments as being a superior use of its
capital
1.80
2.00
2.20
2.40
2.60
2.80
3.00
3.20
60%
70%
80%
90%
100%
110%
120%
130%
140%
150%
160%
Jun-21Sep-21Dec-21Mar-22Jun-22Sep-22Dec-22
Share Price ($), NTA ($)
P/NTA (%)
Annual
Results
Briefing
2022
19

Funding,
Covenants,
Interest Rates
▪$100 million BNZ facility extended in June
2022
▪USPP facility established with Pricoa,
providing access to long-term funding
▪High levels of liquidity from a diverse range
of sources, coupled with low gearing and
sufficient hedging, provide PFI with funding
flexibility to execute on committed brownfield
development opportunities
DECEMBER 2022DECEMBER 2021
FUNDING
BANK FACILITIES DRAWN
$403.7m$401.2m
BANK FACILITIES LIMIT
$525.0m$525.0m
BANK FACILITIES HEADROOM
$121.3m$123.8m
FIXED RATE BONDS
$200.0m$200.0m
FUNDING TERM (AVERAGE)
3.0 years3.9 years
BANKS
ANZ, BNZ, CBA,
Westpac
ANZ, BNZ, CBA,
Westpac
COVENANTS
LOAN-TO-VALUE RATIO (COVENANT: <50%)
28.5%27.7%
INTEREST COVER RATIO (COVENANT: >2.0X)
3.4 times4.4 times
INTEREST RATES
WEIGHTEDAVERAGE COST OF DEBT
4.77%3.81%
INTERESTRATE HEDGING (EXCL. FORWARD
STARTING)
$390m/ 2.44% / 3.1 years$400m/ 2.58% / 3.7 years
FORWARD STARTING INTEREST RATE
$60m / 2.75% / 4.3 years$120m / 2.69% / 4.1 years
Annual
Results
Briefing
2022
20

100.0100.0
100.0
150.0
150.0
125.0
$m
$50m
$100m
$150m
$200m
$250m
$300m
FY23FY24FY25FY26FY27FY28FY29
BondsBNZ facilitySyndicated facilitiesCBA facility
1.5%
1.9%
2.3%
2.7%
3.1%
$0m
$50m
$100m
$150m
$200m
$250m
$300m
$350m
$400m
$450m
Dec-22Jun-23Dec-23Jun-24Dec-24Jun-25Dec-25Jun-26Dec-26Jun-27Dec-27
Cover (lhs)Interest Rate (rhs)
Debt Facility
Maturity Profile,
Hedging
▪Average term to expiry of bank
facilities and bonds (top graph)
of ~3.0 years, $121.3 million of
unutilised bank facility capacity
▪Fixed rate payer hedging profile
(bottom graph) provides for an
average of ~61% of debt to be
hedged at an average fixed rate
of ~2.38% during 2023, offering
some protection from floating
interest rates
Annual
Results
Briefing
2022
21

Sustainability –
2022 Highlights
Annual
Results
Briefing
2022
23

Sustainability –
Strategy Refresh
Annual
Results
Briefing
2022
24

Sustainability -
Targets
Annual
Results
Briefing
2022
25

-5%
0%
5%
10%
15%
20%
20222023202420252026
CBRE - Primary Industrial ForecastCBRE - Secondary Industrial Forecast
Market Update
▪Auckland industrial vacancy remains at all time lows
▪CBRE is forecasting rental growth to slow in 2023
and bottom out in 2024, before returning to more
‘normal’ levels in 2025 and 2026 (top graph)
▪PFI’s ~11% portfolio under-renting provides platform
for further rental growth
▪Construction costs are forecast to ease as supply
chains free up and activity moderates in response to
higher interest rates
▪Looking forward, PFI’s strong balance sheet and
defensive portfolio allows the Company to look
through short-term challenges to execute on
opportunities within the portfolio
CBREAUCKLAND MARKET OUTLOOK
1
DECEMBER 2022
5-YEAR
FORECAST:
DECEMBER 2022
5-YEAR
FORECAST:
JUNE 2022
PRIME INDUSTRIAL –VACANCY0.1%1.2%▲0.6%
–RENTS$182+5.5% (p.a.)▲+5.0% (p.a.)
–YIELDS5.24%4.92%▲4.33%
SECONDARY INDUSTRIAL –VACANCY0.7%2.0%▲0.6%
–RENTS$140+3.5% (p.a.)▼+5.1% (p.a.)
–YIELDS5.94%6.03%▲5.33%
1
CBRE “Auckland Property Market Outlook” December 2022 and “Auckland Rent & Yield Update” January 2023
Annual
Results
Briefing
2022
27

Our Portfolio
(Target & Current)
Annual
Results
Briefing
2022
29

▪39 Edmundson Street (Napier) settled 8 July
2022
▪330 Devon Street East (New Plymouth) settled 25
August 2022
▪20 Constance Street (New Plymouth) settled 17
October 2022
▪8A & 8B Canada Crescent (Christchurch) due to
settle early-April 2023
▪Combined, these properties will generate gross
proceeds of $33.4 million and have been sold at
an average of 8% above their most recent book
values
Assets Held
For Sale
DECEMBER 2022
8A & 8B CANADA
CRESCENT
PRO FORMA
INVESTMENT PROPERTIES & AHFS$2,117.2m-$21.0m▼$2,096.2m
TOTAL DRAWN BORROWINGS$603.7m-$21.0m▼$582.7m
CONTRACT RENT$98.2m-$1.4m▼$96.9m
LOAN-TO-VALUE RATIO 28.5%-0.7%▼27.8%
AUCKLAND PROPERTY83.2%+0.8%▲84.0%
Annual
Results
Briefing
2022
30

69.8
123.2
+21.9
+4.6
+27.0
$0m
$10m
$20m
$30m
$40m
$50m
$60m
$70m
$80m
$90m
$100m
$110m
$120m
$130m
Purchase
price
Valuation gains on retained
portfolio
Gains on disposed assetsNet rentTotal Return / Valuation
▪MOVeLogistics portfolio of nine
properties purchased in
November 2017
▪Three properties were sold in
2022, generating gross
proceeds of $12.4 million, an
average of 10% above their
most recent book values
▪~$53 million of returns
generating a property level
internal rate of return of ~13%
▪No further assets earmarked for
divestment at this point in time,
but recycling of capital is an
important driver of value for PFI
MOVeLogistics
Portfolio
Annual
Results
Briefing
2022
31

Brownfield
Opportunities
▪~$216 million or 10% of the portfolio held in
brownfield opportunities, providing a growing
pipeline of medium-term development
opportunities
▪30-32 Bowden Road and 78 Springs Road
redevelopments commencing in April 2023
(see next slides)
▪Post balance date, Graincorpat 92-98 Harris
Road has renewed for a further five years from
November 2023
▪Remaining parcels of land in key industrial
precincts provides PFI with the ability to
generate earnings growth by unlocking
brownfield opportunities
PROPERTYDECEMBER
2022 VALUE
LETTABLE
AREA(SQM)
SITE
COVERAGE
% OF
CONTRACT
RENT
LEASE
EXPIRY
30-32 BOWDEN ROAD$34.0m
17,047
44%1.9%31-Mar-23
170 SWANSON ROAD$33.5m
5,183
12%1.2%31-Jan-24
78 SPRINGS ROAD$98.0m
41,536
40%6.8%8-Oct-24
304 NEILSON STREET$20.3m
4,538
22%0.8%30-Jun-27
318 NEILSON STREET$6.6m
59012%0.2%30-Jun-27
92-98 HARRIS ROAD$23.5m
7,194
27%1.4%3-Nov-28
TOTAL$216m
76,089
12.3%
Annual
Results
Briefing
2022
32

Brownfield
Opportunities
STAGE 1 –LEASED
▪~40% of development pre-leased to Tokyo Food,
for a lease term of 12-years
▪Construction commencing in April 2023, PFI will
develop a 7,000sqm warehouse with 900sqm of
office and amenities, 2,500 square metres of
canopies and breezeways, 2,000sqm of yard and
more than 100 car parks
▪Stage 1 of project estimated to cost around $31
million, targeting a yield on cost including land in
excess of 5%
Annual
Results
Briefing
2022
34

Brownfield
Opportunities
STAGE 2 –SPECULATIVE BUILD
▪Remainder of 3.9ha site to be developed on a
speculative basis
▪Construction commencing in April 2023, Stage 2
will include a 11,200sqm warehouse with 800sqm
of office and amenities, 2,900sqm of breezeway
canopy and 80 car parks
▪Estimated cost of around $35 million, targeting a
yield on cost including land in excess of 5%
▪Both buildings will target a Five Green Star rating,
creating PFI’s first fully Green Star rated industrial
estate once complete
Annual
Results
Briefing
2022
35

▪PFI to develop a 25,500sqm warehouse for existing
tenant Fisher & Paykel Appliances, with an option
to expand the warehouse to 30,000sqm
▪Stage 1 of the project has an estimated total
incremental cost of around $76 million, with a
targeted yield on cost, including land, of more than
5.3%
▪Construction commencing in April 2023, the facility
will target a Five Green Star rating
Brownfield
Opportunities
STAGE 1 –FISHER & PAYKEL
Annual
Results
Briefing
2022
37

▪Significant 10.4-hectare site in East Tamaki
currently benefits from site coverage of less than
40%
▪Multiplewarehouse redevelopment and
refurbishment options on a versatile heavy
industrial zoned site that can accommodate around
67,500sqm of facilities (lifting site coverage to
around 65%)
▪PFI will target Five Green Star ratings on all new
buildings
Brownfield
Opportunities
Annual
Results
Briefing
2022
POTENTIAL MASTER PLAN
38

▪Angela Bull will join the PFI Board as an Independent
Director from 20 February 2023.
▪Angela is currently the Chief Executive of TramcoGroup,
and a director of Vital Healthcare Property Trust, The Real
Estate Institute of New Zealand, Property Council New
Zealand, realestate.co.nz and Foodstuffs South Island.
▪Angela is an experienced director and executive in
property investment and commercial developments.
Interim
Results
Briefing
2022
Environmental,
Social and
Governance
(ESG)
40

Review &
Questions
Questions?
CLOSING:
▪2022 has closed with the Company well placed
for the coming years. With plenty of demand
evident, and a clear path for development, PFI
is confident that it can maintain momentum
while meeting investor expectations. “We may
not see the record results of 2021 in the short
to medium term, but we are confident of
delivering resilient results,” says Simon
Woodhams. “There will be challenges, but we
are intent on meeting investor and occupier
demands and delivering the stable returns that
our investors look for.”
HIGHLIGHTS:
▪Steady underlying result
▪Brownfield opportunities set to commence
▪Sustainability programme advanced
▪Portfolio delivering strong rental growth
▪Resilient industrial portfolio of scale
▪Proactive and conservative capital
management
Annual
Results
Briefing
2022
41

Disclaimer
The information included in this presentation is provided as at 20 February 2023 and should be read in conjunction with the annual report, NZX results
announcement, NZX Form –Results Announcement and NZX Form –Distribution Notice issued on that same day.
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.
Annual
Results
Briefing
2022
42

---

WELL
PLACED
Annual
Report
31
December
THE
ACUMEN
ISSUE
SUSTAINABILITY
GETTING TO GRIPS
WITH IMAPCTS
2022
REVIEW
WELL PLACED FOR
FUTURE GROWTH
LOOKING
AHEAD
ACTING FOR
THE FUTURE
PROPERTY FOR INDUSTRY LIMITED
20
22
04
PAGE
12
PAGE
24
PAGE

As a professional landlord to the
industrial sector, we made the most
of less frenetic market conditions to
recycle cash from the divestment of
a range of properties
into two important
brownfield
opportunities.
YOUR
INDUSTRIAL
PROPERTY
EXPERTS
QUIETLY
STRONGER

_ 30-32 Bowden Road, Mount Wellington
We also reset our potential through
share repurchasing, starting the process
to bring facilities management in-house
and building our team’s capability.
Performance was steady, with full
occupancy and contracted rents up by a
healthy margin, even though the number of
properties and tenants decreased slightly.
Stability remains a defining discipline for PFI.
But this year we also significantly advanced our
sustainability programme, placing this priority
alongside consistency as hallmarks of how we
do business. A busy year has seen us planning
well ahead, strengthening our resources,
our team and our resolve to prudently take
advantage of the opportunities as they arise.
1

IN
THIS
ISSUE
CONTENTS
WELL PLACED FOR FUTURE GROWTH
1
2022 review
04
READ MORE
ON PAGE
SECTION
THE ACUMEN ISSUE
ACTING FOR THE FUTURE
SECTION
4
Looking ahead
12
READ MORE ON PAGE
SECTION
10 THINGS YOU SHOULD KNOW
ABOUT PFI
2
Business overview
8
READ MORE
ON PAGE
10
READ MORE ON PAGE
A CLIMATE OF CHANGE
SECTION
3
The external environment
2
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

CAROLYN STEELE
Independent Director
SIMON WOODHAMS
Chief Executive Officer
CRAIG PEIRCE
Chief Finance and

Operating Officer
DAVID THOMSON
Independent Director
DEAN BRACEWELL
Independent Director
GREG REIDY
Independent Director
ANTHONY BEVERLEY
Board Chair and
Independent Director
Profiles of our team members can be found
on our website at propertyforindustry.co.nz/
about-pfi/our-people/
CASTING AHEAD
SECTION
5
Brownfield opportunities
18
READ MORE ON PAGE
GETTING TO GRIPS WITH IMPACTS
SECTION
7
Sustainability
24
READ MORE ON PAGE
LEADING
STRENGTH IN NUMBERS
SECTION
6
Profile
22
READ MORE ON PAGE
A GOOD POSITION TO BE IN
SECTION
8
Financial statements, notes and other disclosures
44
READ MORE ON PAGE
3

2022 REVIEW
A MUCH QUIETER year from a
transactional point of view belies
how much we achieved behind
the scenes.
While high-quality, well-located
industrial properties remain in
demand, it was harder to find new
properties with the right long-term
returns profile. Focus shifted
accordingly to maximising the value
of existing assets, and divesting
assets where it made sense to recycle
cash. Good returns on sales outside
Auckland enabled the Company to
pay down debt and prepare for two
major brownfield redevelopments
scheduled to begin in 2023.
A change in market sentiment, as
the cycle shifted to late stage, enabled
us to pre-emptively execute a share
buy-back, starting the process to bring
facilities management in-house
and,
at year end, move to new premises
in
preparation for our next era of growth.
“The time was right for us
to realign our portfolio by selling
down some assets and earmarking
the proceeds for brownfield
redevelopments at Bowden and
Springs roads, as well as buying back
shares that we judged were trading
below their fair value,” says Chief
Executive Officer Simon Woodhams.
“All of these decisions are consistent
with our strategic commitments to
focusing on the industrial property
sector, reading prevailing market
conditions for opportunities
and being intentional in our
management style.
“Demand for industrial property
remains high: there are limited
vacancies, rentals continue to
increase and there is widespread
investment and construction to
meet demand.”
Overall, dividends continued
to trend upward. Assessed over a
three-yearly framework, the 2022
dividend looks past the higher
earnings in 2021, which were a result
of record low interest rates and
holding the Carlaw Park properties
until the end of that year. Dividends
rose to 8.10 cents per share (cps),
an increase of 2.5% on last year’s
dividend of 7.90 cps, representing
a dividend pay-out ratio of around
01.
2022 REVIEW
WELL
PLACED
FOR
FUTURE
GROWTH
4
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

For more information on our annual results, please visit:
propertyforindustry.co.nz/investor-centre/resultscentre
>
102
COMPLETED
rent reviews, resulting in
average annual uplift of 4%
104,433
SQM LEASED
LEASING ACTIVITY
REVALUATION
2.12
$
BILLION
PORTFOLIO
$
56.7 M
$
ADJUSTED FUNDS
FROM OPERATIONS
8.83 CPS
DOWN 7.8%
FUNDS

FROM OPERATIONS
10.21 CPS
CONTRACT
RENT UP
98.2m
$95.6M
$98.2M
20212022
95.6m
7.552018
7.602019
7.70
7.90
2020
2021
298.8
NET TANGIBLE ASSETS
CENTS PER SHARE
298.82022
177.72018
205.52019
220.9
303.4
2020
2021
DOWN 5.0%
$
$
8.10
2022
cents per share.
8.10
DIVIDEND
UP 2.5%
$
5

2022 REVIEW
91.7% of Adjusted Funds From
Operations (AFFO) for the year, and
90.7% of AFFO on a rolling three-year
basis. The projection for next year is a
dividend of 8.10 to 8.30 cps, a further
increase of up to 2.5%.
Valuations across PFI’s portfolio
decreased by just $56.7 million, or
2.6%, resulting in a portfolio value
of $2.117 billion, down from the
high point last year of $2.169 billion.
Following a reduction in the share
price during the year from $2.98
to $2.30, average annualised total
shareholder returns since inception
now stand at just under 10%.
As expected, earnings were lower
than last year’s record result. Funds
From Operations (FFO) were down
7.8% to 10.21 cps, while AFFO
reduced by a smaller percentage to
8.83 cps. Again, though, in the context
of FY20 and FY19, this year’s result
reflects consistent upward movement
over the medium term. By contrast,
net rental income was up a further
$1.2 million, or 1.3%, at $95.3 million
as compared to $94.0 million in
the previous period.
Non-recoverable property costs
of $2.7 million were down 5.0%, in
keeping with full occupancy and
low levels of expiry. Interest expenses
and bank fees were up 23% to
$24.6 million due to higher levels of
borrowings and increased underlying
interest rates. Administrative
expenses increased also, up 14%
to $8.5 million, as we continued to
invest in our team, our premises
and the systems supporting us.
An active year for divestments
saw four properties – 39 Edmundson
Street in Napier, 330 Devon Street
East and 20 Constance Street in
New Plymouth, and 8A & B Canada
Crescent in Christchurch –
transacted at a combined gross sales
price of $33.4 million. On average,
these properties realised 8% above
their most recent book value.
Occupancy remained at 100%
but the Weighted Average Lease Term
decreased slightly from 5.40 years to
5.08 years. We leased 104,433 sqm
of space this year for an average
term of 5.0 years and total rent of
$14.8 million, with new leases being
agreed at an average of around 12%
above the previous contract rent.
We also completed over 100 rent
reviews on $62.8 million of contract
rent, resulting in an average annual
uplift of 4%.
The only changes to our
borrowings were a one-year
extension of the short-term facility
with the Bank of New Zealand, and
the establishment of a US$250
million ‘shelf facility’ for long-term
borrowings with Pricoa, part of
a large US insurance company.
Gearing remains at comfortable
levels at 28.5%, up slightly from
27.7% last year.
“We now have borrowing facilities
totalling $725 million with maturities
through to 2028,” explains Chief
Finance and Operating Officer Craig
Peirce. “Low gearing, a solid balance
sheet and good capital management,
combined with a focus on people and
systems, means we are well placed to
take PFI forward into our next phase.”
Tangible progress was made
in the Company’s sustainability
programme. This included: refreshing
our sustainability strategy; completing
the R22 refrigerant gas replacement
project; filing our third voluntary Task
Force on Climate-Related Financial
Disclosures (TCFD) report in this
Annual Report; targeting 5 Green Star
design for the Bowden Road and
Springs Road developments; creating
a strategy for rolling solar across
the portfolio; and undertaking
sustainable refurbishments.
“Our decision to target 5 Green
Star ratings in our upcoming
Bowden Road and Springs Road
redevelopments puts us at the
leading edge of the industrial sector
in New Zealand,” says Craig. “There
are only a handful of buildings in
New Zealand currently at this level,
and it’s exciting to be embarking
on these projects with sustainability
firmly at their core.” You can learn
more about these projects on
pages 18 to 21.
“PFI’s long-term strategy and
continued focus on industrial
property have advanced this year,
and the Board is happy with progress,”
says PFI Chair Anthony Beverley.
“We continue to deliver stable cash
returns for investors, and the team
have made good use of the drivers
available to them through the strategy
to divest sensibly, while positioning
the Company to continue to grow in
the years ahead.”
n
6
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

_ PFI is aiming to
install solar systems on
five buildings by 2025.
7

BuSINESS OVERVIEW
BuSINESS OVERVIEW
02.
10 THINGS YOU
SHOULD KNOW
ABOUT PFI
94
PROPERTIES
2021: 97
132
TENANTS
2021: 136
99
.2
AVERAGE OCCUPANCY OVER THE LAST 10 YEARS
2021: 99.0%
5
.08
WEIGHTED AVERAGE LEASE TERM
2021: 5.40
YEARS
22
.5
AVERAGE PROPERTY VALUE
2021: $22.4 MILLION
MILLION
$
We judge our
performance and the
ongoing effectiveness
of our strategy against
these 10 metrics.
%
8
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

28
.5
GEARING
2021: 27.7%
29
NUMBER OF PROPERTIES OCCUPIED BY TOP 10 TENANTS
2021 : 29
9
.99
AVERAGE ANNUALISED TOTAL RETURN SINCE INCEPTION
2021: 11.32%
SHARE PRICE
2021: $2.98
24
NUMBER OF STAFF AND DIRECTORS
2021: 21
%
%
2
.30
$
9

THE EXTERNAL ENVIRONMENT
A
CL IM AT E
OF
CHANGE
03.
Sustained interest in e-commerce
as well as the maintenance
of higher inventories as a
hedge against supply chain
disruptions continue to fuel
demand for industrial and
logistics buildings. According to
CBRE, up to 200 million sqm of
additional e-commerce-dedicated
logistics space will be required
internationally by 2026.
ADDITIONAL SPACE
Some of the material issues the industry
continues to contend with:
200
MILLION
SQM
10
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

Transport costs account for
45 to 70% of total logistics spend.
To help contain costs, businesses
are increasingly siting their
operations closer to ports of entry,
including Auckland and Tauranga’s
ports, and inland ports.
45
-
70%
TRANSPORT COSTS
Plunging national business
confidence, alongside rising
interest rate costs, contributed
to transactional activity in the
property market remaining muted
in 2022. The industrial sector
remains a favourably viewed
asset class from a property
investment perspective.
MUTED
BUSINESS CONFIDENCE
In New Zealand, the Reserve
Bank is expected to continue
raising the official cash rate
to bring down inflation.
Despite significant building
activity in the industrial sector,
currently vacancy rates are
expected to stay low.
LOW
VACANCY RATES
Rents have increased markedly
over recent years according to
CBRE but are expected to level
off in the period ahead. We remain
confident of further growth in
PFI’s own rental income because
of historical under-renting.
CBRE
RENT INCREASES
According to commentators,
rising interest rates could affect
earnings growth and asset
pricing. Balance sheets are
generally in good shape with low
listed property sector gearing
overall, but debt costs remain
a headwind for many.
GROWTH
INTEREST RATES
OCR
INFLATION
$
11

12
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
LOOkING AHEAD
LOOkING AHEAD
ACTING
FOR
THE
FUTURE
Some of the macro factors that have influenced
values and returns in the sector still exist,
but they have been tempered by rising interest
rates. Supply chain issues
may have begun
to show signs
of resolving themselves, and
consumer sentiment is cooling in the face
of rising
costs of living, yet the demand
for quality logistics space, particularly in
Auckland, remains high. Significant increases
in market rental rates this year reflect that.
04.

_ Thinking ahead
for our tenants is a
hallmark of our strong
relationships.
13

LOOkING AHEAD
THE PREVIOUS YEAR was exceptional: the
transaction environment enabled the Company
to fill the earnings hole left by the divestment of
Carlaw Park. Of course, retaining that property
until the end of the 2021 financial year was also
a bonus, effectively providing almost 12 months
of additional revenue. The sale did something else
as well: it realised our goal of being a pure industrial
property player.
This year is quite different. “We find ourselves
in a dynamic sector,” says Chief Executive Officer
Simon Woodhams. “Our strategy continues to
focus on making deliberate decisions in industrial
property that balance short-term earnings and
long-term value generation. We’re looking for
investments that benefit our investors, tenants,
industry, people and the planet. We have
divested properties this year to help advance
that agenda.”
FOCUS SHIFTS TO
VALUE MAXIMISATION
LEVERAGING PFI’S CURRENT scale is about opening
up opportunities and taking the time to get them
right. A great deal will happen behind the scenes
over the next while, but with higher interest rates,
the focus has turned to maximising the value of
the current portfolio.
As the Company becomes larger, our ability
to maintain our performance record steepens.
“Our ability to grow in value and deliver strong,
stable returns to our shareholders revolves around
our portfolio mix, which we continue to refine,
as well as our enduring and collaborative
relationships and partners, and our great team
and culture,” says Simon.
Continuing on a growth trajectory will be
executed in a range of ways, including growing
market share, improving asset quality, and
diversifying the income mix. While the market
may be shifting to a different part of the cycle,
Simon says PFI has a duty to remain true to our
strategy and a quieter transactional environment
has enabled important changes that will benefit
the Company for years to come.
“In terms of our portfolio, we continue to
grow our base through proactive and deliberate
investments at the same time as we divest assets
that are non-core. We’ve always enjoyed strong
tenant relationships, but we’ve begun to strengthen
those this year by starting to bring facilities
management in-house, and by thinking ahead
for our tenants. We’ve paid a lot of attention to
developing capable and agile teams within a
distinctive and healthy culture. And, alongside
others in the sector, we are increasing our climate
commitments. Our objective, in the case of the
latter, is really to be at the forefront for the
application of sustainability in the industrial
property sector. Our upcoming Bowden Road and
Springs Road redevelopments are a case in point.”
INDUSTRIAL PROPERTY
DEMAND REMAINS STRONG
THE GOOD NEWS is that, unlike other parts of
the property sector, industrial and logistics
remain stable and attractive. According to
CBRE’s “Auckland Property Market Outlook”
ACTING
FOR
THE
FUTURE
14
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

BUILDING OUR
DEVELOPMENT
CAPABILITY
MANAGED CAREFULLY, BROWNFIELD projects are
a potential game-changer. “In a market where large
assets are simply not available at what we deem to
be realistic prices, and might not be for some time,
properties like Bowden and Springs roads offer us
a wealth of opportunity,” says Simon Woodhams.
“Redesigning those sites from the ground up
represents not only our best use of capital, it also
enables us to advance our ambitions to gear up
for the next stage of our journey by redeveloping
properties as an engine for maximising
shareholder value.”
Changes to the dividend policy announced last
year align directly with these shifts. “Both projects
will take time to plan and implement,” says Chief
Finance and Operating Officer Craig Peirce.
“The timeframe for delivery of Bowden Road is
mid-2024, while Springs Road is a multi-year
project. Annual earnings as measured by AFFO
may move around, but our aims are for increasing
dividends and earnings that move up over a
timeframe beyond any single year.
“Our three-year horizon for earnings and
dividends recognises that, as we grow, returns and
development may not always flow immediately.

By taking a longer-term view, we can look through
any one year of ups or downs, enabling us to evolve
as a company while staying true to our defining
ethos of stable returns.”
100
%
CURRENT
OCCUPANCY
4.62
PORTFOLIO
YIELD
%
CONTRACT
RENT
98.2
$
MILLION
and “Auckland Rent & Yield Update”, released in
December 2022 and January 2023 respectively,
demand for industrial property remains strong.
Prime-grade vacancy sits at just 0.1%, while
secondary-grade vacancy is low also at 0.7%.
Even as demand responds to a weaker economy,
based on pre-commitment levels and enquiry
volumes, indications are for vacancy rates to stay
at only 1.2% for prime-grade property and 2.0%
for secondary-grade property.
Rental trends will continue to reflect current
momentum based on increasing development
costs and entrenched strong supply-demand
fundamentals. Rental growth has indeed remained
high in 2022, as CBRE forecast, although the rate
of growth is expected to start to reflect longer-term
trends in 2023 and beyond. Under-renting in PFI’s
portfolio of around 11% provides a platform for
further rental growth in the face of weaker
economic conditions.
We continue to
grow our base
through proactive
and deliberate
investments at the
same time as we
divest assets that
are non-core.”
SIMON WOODHAMS
Chief Executive Officer
15

LOOkING AHEAD
A COMPREHENSIVE APPROACH
TO SUSTAINABILITY
PFI’S COMMITMENT TO sustainability continues
to move forward. Our new sustainability strategy
focuses efforts on six key areas: the Company
will create a future-proofed and resilient portfolio;
maximise the useful lifespan of buildings;
become a trusted partner for tenants in terms
of sustainability and reducing greenhouse gas
emissions; collaborate with supply-chain partners
to minimise waste and promote positive social
impacts; commit to strong employee engagement
and health and safety performance; and maintain
high standards of financial and governance
performance. “These commitments reflect
and fortify our strategic intentions,” says Simon
Woodhams. “Going forward, there can be
no separation of our commercial and
sustainability goals.”
BOARD CHANGES
THE COMPANY HAS welcomed Carolyn Steele to
the Board this year. “We would like to take this
opportunity to thank retiring director Susan
Peterson for her guidance and expertise. The
Company has benefitted significantly from her
presence at our Board table,” says PFI Chair
Anthony Beverley. You can find an interview with
incoming Director Carolyn Steele on pages 22 to 23.
RESILIENT RESULTS AHEAD
FY22 CLOSES WITH the Company well placed for the
coming years. With substantial demand evident,
and a clear path for development, PFI is confident
that it can maintain momentum while meeting
investor expectations. “We may not see the record
results of 2021 in the short to medium term,
yet we are confident of delivering resilient results,”
says Simon. “There will be challenges, but we’ll
walk towards them, intent on meeting investor
and occupier demands and delivering the strong,
stable returns that our investors look for.”
n
By taking a longer-
term view, we can
look through any
one year of ups
or downs.”
CRAIG PEIRCE
Chief Finance and
Operating Officer
_ Sustainability, Getting
to grips with impacts.
Read more on page 24.
16
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

73 - 84%
CORE GENERIC
HOLDINGS
AUCKLAND
STRATEGYVISION
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.
GROWING
RETURNS
TO SHAREHOLDERS
CONTINUOUS
PORTFOLIO
IMPROVEMENT
PURPOSE
We generate income for investors
as professional landlords to the
industrial economy, generating
prosperity for New Zealand.
FIRST-CLASS
MANAGEMENT
CURRENT: 80%
10 - 15%
BROWNFIELD
OPPORTUNITIES
CURRENT: 10%
WE ARE TARGETING A FOUR-PART
PORTFOLIO COMPRISING THE FOLLOWING:
5 - 10%
SPECIALISED
ASSETS
CURRENT: 9%
1 - 2%
ASSETS HELD
FOR SALE
CURRENT: 1%
CURRENT: 83%
75 - 85%
OUT OF AUCKLAND
CURRENT: 17%
15 - 25%
17

BROWNFIELD OPPORTuNITIES
05.
OUR ROLE
A two-stage
development targeting
a 5 Green Star rating
Net lettable area:
~4ha on an irregular-
shaped site
BOWDEN ROAD
—
30-32
PURCHASE PRICE
$15 million
CASE STUDIES
Extensive redevelopment of
30-32 Bowden Road over the next
two years will replace the current
manufacturing, storage and office
buildings with best-in-class storage
and distribution warehouses targeting
5 Green Star ratings.
CASTING
AHEAD
1
1
20
MTMT
WELLINGTONWELLINGTON
ONEHUNGAONEHUNGA
AUCKLAND
MT
ROSKILL
LocationLocation
18
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

The redevelopment of Bowden
Road in many ways marks
the start of a new era of
development for PFI.”
SIMON WOODHAMS
Chief Executive Officer
PURCHASED AS A strategic acquisition
in 2013, the Bowden Road site
is a large landholding in a prime
industrial location. The original
buildings were built five decades ago,
with subsequent bespoke additions
constructed in the 1990s for the
previous tenant.
With current leases due to expire
in March 2023,
we have been preparing
to realise the site’s potential
as a
future brownfield redevelopment
capable of becoming a core, sustainable
asset. That process is now well in
hand, with a long-term lease secured
for the first stage with Tokyo Food,
the country’s longest-standing
Japanese foods importer, distributor
and retailer.
This first stage will comprise
a 7,050 sqm warehouse facility,
for which Tokyo Food will take
a 12-year lease. The forecast
completion date is mid-2024. The
second stage of the development is
an 11,200 sqm high-stud warehouse,
790 sqm of office and amenities,
along with a 2,900 sqm breezeway
and car parks. Both stages will
target 5 Green Star ratings.
The entire redevelopment
is very much in keeping with the
Company’s strategy of investing in
well-located industrial property.
Once fully leased, the project is
expected to be accretive to both
earnings and net tangible assets on a
per-share basis. Equally importantly,
completion of this significant
redevelopment will endorse our
_ 30-32
Bowden Road
ability to undertake large-scale
highest-quality development.
The projects 5 Green Star ratings
will be realised with solar arrays,
water retention, energy efficiency
measures and use of building materials
with a lower environmental impact.
“The redevelopment of Bowden
Road in many ways marks the start
of a new era of development for
PFI,” says Chief Executive Officer
Simon Woodhams. “This two-stage
development will target our first
fully Green Star-rated industrial
estate, underpinning the next era of
both scale and sustainability in our
evolution as a company. Securing
Tokyo Foods as a first major long-
term tenant for the site is a clear
signal to investors that organisations
looking for substantial industrial
sites have confidence in our vision.”
n
19

BROWNFIELD OPPORTuNITIES
SPRINGS
TO
LIFE
OUR ROLE
A multi-stage
development targeting
a 5 Green Star rating
on all new buildings
Net lettable area:
~10.4ha.
SPRINGS ROAD,
EAST TAMAKI
—
78
PURCHASE PRICE
$53 million
CASE STUDIES
Direct Property Fund, which merged
with PFI in 2013, purchased 78 Springs
Road as a strategic
acquisition in 2009,
attracted by the prospect of long-
dated income from a blue-chip tenant,
Fisher
& Paykel Appliances (FPA), a
large land
holding in a prime industrial
location, and low site coverage that
would allow for future redevelopment.
AN
AMBITIOUS
DEVELOPMENT
1
8
8
1
OTARAOTARA
PAPATOETOEPAPATOETOE
EAST EAST
TAMAKITAMAKI
GREENMOUNT
LocationLocation
20
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

The redevelopment of
this East Tamaki property
presents an opportunity
to target best-in-class
5 Green Star new buildings.”
SIMON WOODHAMS
Chief Executive Officer
ORIGINALLY THE SITE was designed
to manufacture home appliances.
Today, some of these warehouses no
longer meet best-in-class storage and
distribution needs, which typically
feature higher-stud buildings, little
or no internal columns, small offices,
and the ability to incorporate
cross-docking which enables goods
to be moved inwards and outwards
at scale. Modern large-scale logistics
operations require heavier truck
volumes also. The existing buildings
had large external grounds or
‘campus’
-style sites as well,
this translates into very low site
coverage and an inefficient layout.
PFI recognised an opportunity
to reposition Springs Road as a
core industrial asset holding for the
long term. By developing new and
refurbishing some of the existing
buildings, the Company could
incorporate best practice through
better design and deliver a more
sustainable, future-proofed,
industrial estate. A new-build
warehouse for FPA would be the
start of an ambitious regenerative
process, leading to the gradual
redevelopment of the entire site.
That work is now underway.
The multi-stage project will first
replace one of FPA’s existing
warehouses with a new 25,800 sqm
storage and distribution warehouse
targeting a 5 Green Star rating.
An extension option will enable
FPA to increase the warehouse up
to 30,050 sqm should they wish to
do so. Completion of the initial
warehouse is forecast for late 2024.
Sustainability features planned
for the site include rainwater
harvesting, the use of sustainable
construction materials, electric
vehicle (EV) charging stations,
greenhouse gas emissions
performance standards, and
diversion of construction and
demolition waste from landfill.
“The first stage of this
development will result in a
substantial warehouse, together
with offices and amenities, canopies,
breezeways and supporting yards
and car parks,” says Simon. “The
redevelopment of this East Tamaki
property presents an opportunity
to target best-in-class 5 Green
Star new buildings, and over
time infuse further sustainable
initiatives into this industrial estate.
Securing a 15-year lease to FPA
ensures that the project delivers
accretion to both earnings and
net tangible assets on a per-share
basis. Alongside the development
at Bowden Road, the works at
this site represent a significant
advancement of our commercial
and sustainability ambitions.”
n
_ 78
Springs Road,
East Tamaki
21

PROFILE
PROFILE
06.
CAROLYN STEELE JOINS the PFI Board with
an extensive governance track record and a
background in corporate finance, mergers and
acquisitions, and direct investments. She was
drawn to the Company, she says, because of the
quality of the people and the assets, and because
of PFI’s market position.
“The Company has a strong portfolio of
assets in a trading environment characterised
by constraint on supply and low vacancy rates.
My assessment is that you can’t replicate the
assets that PFI holds now, and the current balance
sheet leaves plenty of room for expansion.”
As a director, Carolyn says she enjoys working
with businesses with large assets. Previous
experience with a retirement village is useful in
terms of understanding brownfield opportunities.
“An emerging tension for the sector is balancing the
expectation of investors for good returns with the
ability of tenants to meet rent and inflation changes
in a supply constrained market,” she observes.
“Neither can achieve their potential without
understanding the situation of the other.”
Governance, she believes, revolves around
prudence: doing right by people, environment
and community. “Expectations of stakeholders
have changed considerably and quickly. On top
of that, we have increasing regulation and
scrutiny around sustainability outcomes.
Directors today must oversee the development
of more complex strategies while still enabling
and empowering management to perform, not
just comply.”
In terms of sustainability, she says she’s pleased
to see PFI taking a market-leading approach, with
the early adoption of TCFD reporting, elimination
of R22 refrigerant gases, targeting 5 Green Star
ratings for new buildings and more. “Investors are
driving many changes in this space for market
participants. It’s good to see PFI actively planning
to get out in front of that expectation wave.”
A well-balanced Board, she says, is one that not
only welcomes but also respects all contributions,
that is well chaired, has access to good advisors and
where the directors challenge themselves to keep
getting better. “We have a moral and legal duty
to act in the best interests of our shareholders,
but we must act in ways that reflect our wider
obligations as well. I’m a great believer in avoiding
distractions, retaining good people and giving
them the mandate and the support to do what
they are great at.
“This is an exciting time to be joining PFI,”
she concludes. “Brownfield developments offer
significant potential to create more value through
new buildings, continuous improvement of current
stock and smart recycling of capital. I’m looking
forward to being part of that journey.”
STRENGTH
IN
NUMBERS
My assessment
is that you can’t
replicate the assets
that PFI holds now.”
CAROLYN STEELE
Independent Director
22
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

_ Carolyn Steele
23

_ PFI is implementing
landscaping that
employs sustainable
design, planting and
maintenance practices.
24
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

25
ESG
GETTING TO GRIPS
WITH IMPACTS
0 7.
SuSTAINABILITY
The purpose of this report is to transparently communicate the positive and negative
impacts we have on people and planet, to explain how we are addressing such impacts,
and to provide insight into our sustainability-related risks and opportunities.
2022 SUSTAINABILITY REPORT
ECONOMIC VALUE
READ MORE ON PAGE
35
PEOPLE AND WELLBEING
READ MORE ON PAGE
34
DISASTER AND CLIMATE RESILIENCE
READ MORE ON PAGE
34
RESOURCES AND WASTE
READ MORE ON PAGE
33
GREENHOUSE GAS EMISSIONS
READ MORE ON PAGE
30
CONTENTS
2022 HIGHLIGHTS
26
READ MORE ON PAGE
2030 STRATEGY
28
READ MORE ON PAGE

26
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
2022 HIGHLIGHTS
2022 has been an exciting year for sustainability at PFI.
We have continued to make progress on the framework
and plans that we set in 2019, whilst also turning our
attention to the next phase of our sustainability journey
with the development of a refreshed sustainability
strategy. Highlights from 2022 include:
We completed a new materiality assessment
and refreshed our strategy out to 2030.
We committed to a 5 Green Star target

for three new buildings.
We moved to a new office targeting

5 Green Star certification.
We worked with contractors to apply
our sustainable refurbishment framework
for four capital projects.
We engaged with six tenants on
solar enquiries and committed to
four solar installations.
We completed our replacements of HVAC systems that
use ozone-depleting R22 refrigerant gas within PFI’s
operational control. During 2022, we replaced HVAC
systems at 18 properties at a cost of $1.78m in capital
expenditure, which helped to reduce our Scope 1
fugitive emissions by 35% on 2019 levels.
We improved the seismic ratings of two
buildings to A Grade.
STRATEGY
GREEN STAR TARGET
SUSTAINABLE REFURBISHMENTS
18
X
23 30
NEW OFFICE
SOLAR
R22 PHASEOUTSEISMIC UPGRADES
SuSTAINABILITY

27
We continued to monitor and respond to our climate-
related risks and opportunities. See our third voluntary
Climate-Related Disclosures (TCFD) report on pages
36-43 for details.
TCFD
We achieved a Carbon Disclosure Project (CDP)
score of B.
FLEXIBLE WORKING
We introduced a flexible working
policy for our team.
We achieved an 84% staff engagement score

and a 100% participation rate in our annual staff
engagement survey.
We achieved low employee

turnover of 11.4%.
VOLUNTEERING
We participated in two volunteering days at
Motuihe Island and Auckland City Mission.
We continued our sponsorship

of Keystone New Zealand Property Education Trust.
We provided support through donations of $10,000
to the Auckland City Mission and $5,000 to KidsCan.
%
11. 4
%
15,000
$
STAFF ENGAGEMENT
STAFF RETENTION
CDP
DONATIONSSPONSORSHIP

28
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
OUR REFRESHED STRATEGY
During 2022, we worked with a range of stakeholders including employees, suppliers, investors
and funders to seek their views on our organisation’s impacts and direction going forward. With
the help of sustainability specialists, Proxima, we conducted an impact assessment
1
to review
PFI’s actual and potential impacts on people and planet along the company’s value chain.
Through engagement with stakeholders and internal workshops, we have established the
following material topics:
At PFI, we understand that sustainability requires us to be responsive to our
changing external environment, constantly challenge ourselves, and be open to
trying new approaches. We have significantly grown our internal sustainability
expertise and capability over the past several years, while carefully monitoring the
changing expectations of financial markets, regulators, and our business partners.
This positioned us well to refresh our strategy for the future.
[1] Impacts were given a numerical ranking based on their relative significance, which considers severity and
likelihood. Impacts falling in the bottom 30% were deemed immaterial for reporting purposes.
[2] Most of PFI’s previous material topics have been incorporated into the new material topics, in particular People
and Wellbeing, Greenhouse Gas Emissions and Resources and Waste. Transparency, reporting and responding to
stakeholder concerns and Sustainability strategy, policy and process are no longer considered to be material topics
under the new GRI 2021 approach to materiality.
2030 STRATEGY
§
Greenhouse gas emissions
§
Resources and waste
§
Disaster and climate resilience
§
People and wellbeing
§
Economic value
These material topics are a complete refresh from prior years
2
and underpin the strategic
themes for our new strategy.
Our implementation of the strategy will be dynamic. We will continuously review and adapt
our response as we learn and as our external environment changes. We have committed to a
range of projects and targets through to 2025 to operationalise this strategy, which are
described in the sections that follow.
SuSTAINABILITY

29
Significant new buildings
to target minimum 5
Green Star certification.
Minimise and offset
residual Scope 1 + 2
greenhouse gas
emissions.
Install solar systems
at five buildings by the
end of 2025.
Implement power
metering and monitoring
for 50% of properties by
the end of 2025.
SOLAR SYSTEMSEMISSIONS
METERING
GREEN STAR
GREENHOUSE GAS
EMISSIONS
Aspiration
The embodied and
operational greenhouse
gas emissions
associated with
PFI’s buildings
are minimised.
RESOURCES
AND WASTE
Aspiration
The impacts from the
materials that PFI uses
and the waste PFI
produces during
developments
and refurbishments
are minimised.
DISASTER AND CLIMATE
RESILIENCE
Aspiration
PFI’s buildings
are resilient and we
are well placed to
respond to disasters.
PEOPLE AND
WELLBEING
Aspiration
Our people are safe

and engaged, and we
promote positive social
impacts through
our operations.
ECONOMIC
VALUE
Aspiration
The value of PFI

grows to create
economic value for
investors, tenants,
our people and others
that we work with.
IMMEDIATE TARGETS
MATERIAL

FOCUS AREAS
CORE

PRINCIPLES
Create a future-proofed and resilient portfolio through sustainable refurbishments, developments, acquisitions and divestments.
Maximise the useful lifespan of buildings to minimise waste by transforming our core portfolio.
Become a trusted partner for tenants when it comes to sustainability and reducing greenhouse gas emissions.
Collaborate with supply chain partners to minimise waste, use lower-impact materials and promote positive social impacts.
Maintain strong employee engagement and health and safety performance.
Maintain high standards of financial and governance performance.
OUR SUSTAINABILITY STRATEGY 2023 — 2030
We have committed to a range of projects and targets through to 2025 to operationalise this strategy,
which are described in the sections that follow. Key targets include:
DYNAMIC IMPLEMENTATION
Our implementation of the strategy will be dynamic.
We will continuously review and adapt our response as we learn and as our external
environment changes.

30
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
SCOPECATEGORYFY19 (tCO
2
e)FY20 (tCO
2
e)FY21 (tCO
2
e)FY22 (tCO
2
e)
SCOPE 1
Direct EmissionsFugitive emissions (refrigerants) 94.5116.876.861.3
Fuel Covered under Category 6Covered under
Category 6
0.24.5
SCOPE 2
Indirect EmissionsElectricity consumption (location based)15.55.414.219.6
Scope 1 and 2
Total Scope 1 and Scope 2 Emissions110.0122.291.285.4
SCOPE 3
Other Indirect EmissionsCategory 1: Purchased goods and services
1
Not measured in 2019111.3117.4284.3
Category 2: Capital goods
1
Not measured in 20192,564.72,615.02,122.4
Category 3: Energy and fuelNot measured in 20190.51.21.8
Category 5: Waste generated in operations0.70.50.20.4
Category 6: Business travel19.89.412.718.4
Category 7: Employee commutingNot measured in 201915.113.612.6
Total Scope 3 Emissions20.52,701.52,760.32,439.9
TOTAL Scope 1, 2 and 3 Emissions130.52,823.72,851.32,525.4
While our overall emissions reduced by more than 10%, most of the reduction is a result of comparatively less expenditure on capital
goods; which can fluctuate depending on development and refurbishment activity.
(1) The emissions per $ spend was calculated using an environmentally-extended input output (EEIO) model. An EEIO model estimates emissions based on category spend
using data from allocating national GHG emissions to final products based on economic flows between sectors. The EEIO model is accepted by the GHG protocol and is
considered comprehensive, but varies in its granularity. We intend to improve our approach to emissions assessments over time as we mature.
OUR VALUE CHAIN
EMISSIONS
UPSTREAM EMISSIONS
SCOPE 3
CORPORATE EMISSIONS
SCOPE 1 AND 2
DOWNSTREAM EMISSIONS
SCOPE 3
Goods and services
Capital expenditure
Electricity transmission and

distribution losses
Employee commuting
Fugitive emissions from
HVAC systems
Electricity consumption
Diesel emissions from sprinkler
systems
Operational waste
Business travel
2,525.4
tonnes of C0
2
e
% TOTAL FOOTPRINT
EMISSIONS SOURCE
95.9%
2,421.1 TONNES
3.4%
85.4 TONNES
0.7%
18.8 TONNES
Offset
SCOPE 2:
Electricity consumption
SCOPE 1:
Refrigerants
Diesel
GREENHOUSE GAS
EMISSIONS
Our carbon footprint
SuSTAINABILITY

31
The role that PFI will play in the collective global movement to net zero by 2050 is a key
sustainability consideration for PFI and underpinned our thinking for our strategy refresh.
Over the past three years, we have grown our understanding of the wider context of our
organisation from an emissions perspective and we can see that our most material emissions
impacts are:
§
emissions relating to developments and refurbishments (known as ‘embodied
carbon’); and
§
emissions relating to the operational performance of our buildings (for example, energy
performance). At present, we are largely removed from operational performance due
to our outsourced facilities management model, and the fact that industrial leases
are typically ‘arm’s length’ with energy arrangements organised directly by tenants.
Notwithstanding these challenges, PFI’s ambition is to minimise both the operational
and embodied carbon emissions of buildings. We have therefore committed to:
§
building and refurbishing in a way that reduces both embodied and operational
greenhouse gas emissions; and
§
measuring and over time improving the operational performance of our buildings.
New buildings and brownfields redevelopments
When we develop significant new buildings we will ensure that they are built to the latest
sustainability standards by targeting a 5 Green Star rating. The Green Star tool is holistic
and ensures that the building performs to a range of sustainability standards. In particular,
Green Star seeks to:
§
minimise the impact of building materials and practices on the environment, including
but not limited to greenhouse gas emissions; and
§
ensure that the building is designed efficiently to minimise greenhouse gas emissions
arising from the operation of the building (for example, energy usage).
PFI is targeting 5 Green Star certification for our upcoming developments at 30-32
Bowden Road and 78 Springs Road. See our case studies on Bowden Road and Springs Road
on pages 18-21. Green Star ratings are administered by the New Zealand Green Building
Council (NZGBC), a network of property and building businesses aiming to normalise market-
based green practices. PFI is a member of the NZGBC.
The commitment to Green Star is also enabling PFI to grow our in-house sustainable
development capabilities, which will position us well to continuously regenerate the PFI
portfolio into the future.
Sustainable refurbishments
In some cases, we are able to extend the useful life of a dated building by undertaking
a refurbishment. This avoids the generation of embodied carbon and waste by re-using
materials (such as walls and foundations) that were already in place in an original building,
while presenting an opportunity to upgrade or add sustainable features (such as LED lighting).
During 2021, we created an internal sustainable refurbishment framework which provides
a way for us to minimise our environmental impacts when we undertake refurbishment
projects through a preference for lower-carbon materials and resource efficient design
features. In 2022, we began applying this framework for all significant refurbishments.
As each refurbishment is unique, this framework ensures that we have a range of
sustainable design options to consider for each refurbishment. A sustainable refurbishment
might include improving energy efficiency and water consumption, reducing waste, using
lower-impact building materials, and moving to renewable energy sources.

32
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
Measuring and improving operational performance
Greenhouse gas emissions arise from the operations of a building, for example through energy
use. Due to the typical structure of industrial leases, we do not currently have data on the
energy use of our buildings as this is outside of our operational control, although due to the
scale of our portfolio it would be reasonable to assume that this is sizeable.
PFI has traditionally outsourced its facilities management function to a third party. This
model has worked well for many years. However it does mean that PFI is quite distanced from
the day to day operation of the properties. We can see that bringing this function in-house will
set PFI up for the net zero transition, and have begun the process of doing so this year.
The initial benefit of this change will be the ability to work more closely with engaged
tenants to measure the operating efficiency of the buildings they occupy. This will be
challenging as, even with in-sourced facilities management, industrial property leases typically
put the building operations in the control of the tenant. However, we will work with our tenants
on this over time and have set an ambitious target of implementing power metering and
monitoring for 50% of PFI’s properties by 2025. We are also progressively introducing lease
clauses enabling us to request data from tenants.
In time, as we build up data, we will be able to identify opportunities to improve the
efficiency of lower-performing buildings. This should create value for our tenants and ensure
that our buildings retain their value in the long term. The power use of buildings forms part of
a tenant’s ‘carbon footprint’ so we are in a position to help them with their own emissions
reduction plans. Buildings with better operational performance also typically cost the tenant
less in power and water.
Finally, the collection of data is the first step toward being able to explore options for
operational performance certification for our existing properties.
Solar
New Zealand has a higher supply of renewable energy than many other countries. However,
electrification of activities that we currently rely on fossil fuels for (such as driving) is key
for decarbonising many aspects of our economy, meaning there will be higher demands for
electricity in future. Installing solar at our properties makes renewable energy available for our
tenants to use, reducing their energy demands on New Zealand’s electricity grid. Tenants may
also be able to feed any energy they don’t use from the solar panels back to the national grid,
increasing the supply of renewable energy for others to use.
This year, we have made progress towards PFI’s first solar installation at 3-5 Niall Burgess
Road as part of a wider sustainable refurbishment project. We have also investigated solar
panel installation at selected PFI properties with interested tenants, and going forward, we will
ensure the structural design of new developments allows for solar installation. We are aiming
to install solar systems at five buildings by 2025.
Scope 1 and 2 emissions
PFI’s scope 1 and 2 emissions are very small, in particular when compared to the scale of
emissions from developments and building energy use (i.e. our indirect Scope 3 emissions).
However, we acknowledge that we need to be mindful of our direct footprint, and we have
successfully taken steps to reduce it. Over the last two years we upgraded a significant
number of HVAC systems across our portfolio that required R22 refrigerant gas. The R22
systems were prone to leaking, which released harmful, ozone-depleting gas. By upgrading
these systems we have reduced our scope 1 fugitive emissions by 35% (or 33tCO
2
e) against
a 2019 base. The upgraded systems use R32 gas, which has a far lower global warming
potential if any gas escapes, and does not harm the ozone layer.
SuSTAINABILITY

33
RESOURCES AND
WASTE
When PFI undertakes property developments and refurbishments, building
materials such as steel and concrete are procured by the contractors that PFI
engages. Extracting, producing, and shipping these materials have upstream
impacts such as greenhouse gas emissions and potential impacts on local
communities or biodiversity if not produced responsibly. There is also waste
generated by PFI’s contractors, for example from demolition and packaging of
materials that are delivered to the site. PFI aspires that the impacts from the
materials that PFI uses and the waste that PFI produces during developments
and refurbishments are minimised.
At present, PFI does not consistently measure waste from developments and refurbishments.
However, we are collaborating with suppliers to improve waste measurement and reduction,
and use of lower-impact materials.
Our commitment to 5 Green Star design not only reduces the carbon impact of our
developments, but also encourages us to use lower-impact materials and reduce the waste
impacts from our developments. For example, our upcoming developments at 30-32 Bowden
Road and 78 Springs Road will target at least 70% of the waste generated during construction
and demolition diverted from landfill.
We have also considered the resources and waste impacts of our refurbishments as
part of our sustainable refurbishment framework. When PFI refurbishes buildings instead of
building new ones, we can reduce the impacts caused by building materials by reusing what
is already in place where possible. The framework also encourages us to use lower-impact
materials and reduce the waste produced as part of these refurbishments. We have set waste
measurement requirements and diversion targets for two major refurbishment projects.
(1) Including waste, business travel, employee commuting, and energy and fuel; but excluding goods and services,
and capital expenditure.
(2) Carbon credits are retired on either the NZETS registry for New Zealand projects and the Markit Registry for
the Pacific project.
We will continue to work on initiatives to further reduce our gross Scope 1 and 2 emissions
going forward, particularly as new technologies become available that enable us to make
further advances. In the meantime, we are offsetting our residual Scope 1 and 2 emissions
through high-quality offsets.
We have offset Scope 1, 2 and selected Scope 3 emissions
1
with certified carbon credits.
These certified carbon credits are sourced from projects that grow and protect forests in
Aotearoa and the Pacific Islands and help to deliver climate resilience, waterways protection,
erosion control, biodiversity conservation and community economic development
2
. These
credits have enabled us to achieve Carbon Friendly certification with Ekos for the 2022
financial year.

34
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
Health, safety and wellbeing
The health, safety and wellbeing of our team and others that we deal with remains a critical
focus for PFI. We provide a wide variety of offerings for our team including:
§
A flexible working policy
§
Staff induction and ongoing training
§
Provision of ergonomically-designed workstations
§
A staff wellbeing programme that includes funding for periodic health checks, staff
insurances and access to a clinical psychologist
§
Safety protocols for site visits
§
Governance and incident management through our health and safety committee
PFI has implemented a formal health, safety and wellbeing framework that provides a
practical and enduring system to ensure that our approach to health, safety and wellbeing
goes beyond adherence to the Health and Safety at Work Act. The framework sets out our
objectives, policies, risk management controls and responsibilities across our team.
PEOPLE AND
WELLBEING
PFI strives to ensure that our people are safe and engaged, and we aim to promote
positive social impacts through our operations. PFI has strong staff engagement,
which enables us to deliver on our business and sustainability objectives. PFI also
interacts with a wide range of stakeholders for whom we want to contribute to a safe
and positive working environment.
Addressing seismic risk
For many years, PFI has been working through a programme to assess (and where appropriate,
improve) the seismic ratings of each property in our portfolio, to reduce the likelihood of
damage and harm as a result of earthquakes. Seismic risk is also carefully considered when
acquiring new properties as part of our due diligence process. When undertaking seismic
upgrade work, we generally aim to lift the seismic rating of the property to A grade.
Monitoring and responding to climate risk
We recognise that we also need to ensure that our business is resilient to climate change.
PFI regularly assesses, monitors and responds to the risks PFI faces from climate change.
You can read about our approach to climate-related risks and opportunities in our third
voluntary TCFD report on pages 36-43.
DISASTER AND CLIMATE
RESILIENCE
PFI has a strong history of ensuring its buildings are resilient and we are well placed
to respond to disasters. This is an important part of our ongoing ESG commitments.
SuSTAINABILITY

35
The development, maintenance and ongoing management of our properties presents a
range of risks to our tenants, contractors and other visitors to those properties, such as those
arising from electrical hazards, roof access and fire risks. Risk management initiatives for our
properties include:
§
Prequalification requirements and induction for contractors
§
Periodic and independent property risk assessments
§
Asbestos management protocols
§
Requirements for safety plans and site inspections for development projects
§
Governance and incident review through our Health and Safety Committee
The health and safety incidents in the table below reflect incidents that were reported to
us across our operations. The increase in incidents in 2022 may be attributable to increased
activity levels following the COVID-19 pandemic.
HEALTH AND SAFETY INCIDENTS 20212022
Incidents that did not result in injury89
Injuries813
Total recorded incidents1622
Modern slavery
PFI’s operations are located entirely in New Zealand, albeit some of our supply chains extend
overseas. While we consider that we have a relatively low risk of exposure to modern slavery,
we do intend to formalise a modern slavery policy to clearly communicate that modern
slavery will not be tolerated by PFI, and are already working with suppliers to communicate
our expectations.
Facilities management in-house
Bringing facilities management in-house will enable PFI to work more closely with service
contractors on environmental and social performance. For example, it will provide the ability
to establish service contracts directly with suppliers that include modern slavery, waste
management and materials requirements.
We also financially support our team, suppliers and many other organisations that we work
with. We see our refreshed sustainability strategy (along with our proven business model,
prudent capital management, strategy, and team) as critical to continuing to deliver strong
economic performance as our context continues to evolve with regulatory change, changing
market demands and increasing expectations from our business partners and investors.
ECONOMIC VALUE
PFI is proud to generate direct economic value for our investors and other capital
providers, and to help our tenants to generate economic value through the provision
of fit-for-purpose properties from which they can operate their businesses.

36
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
PFI recognises that we need to proactively manage the risks and opportunities that
arise from climate change, just as we manage all other risks and opportunities
facing our business. We are pleased with the progress that we have made during the
last three years to strengthen our understanding of, and response to, our climate-
related risks and opportunities. During that time, PFI has built a solid understanding
of the climate-related risks and opportunities faced by the business and updated its
processes, business plans and sustainability strategy to reflect these.
This report provides information about the actions that we are taking to identify and manage
climate-related risks and opportunities. The following disclosures have been prepared in
accordance with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD) which provides a framework for climate-related financial disclosures
across four core elements: governance, strategy, risk management and metrics and targets.
This is PFI’s third report in line with the TCFD recommended disclosures. We note that PFI
will be required to provide mandatory climate-related disclosures aligning with the Aotearoa
New Zealand Climate Standards from 2023. These voluntary disclosures position us well to
comply with that mandate once it is in place.
Climate change is an evolving challenge, with high levels of uncertainty. This report sets
out PFI’s current understanding of, and response to, climate-related issues. However, we
acknowledge that this will evolve over time. We remain committed to continue progressing
our response to climate change over time, and to report our progress to our stakeholders
each year.
CLIMATE-RELATED
DISCLOSURES
TCFD REPORT
SuSTAINABILITY

37
GOVERNANCE
Describe the Board’s oversight of climate-related risks and opportunities.
PFI’s Board Charter specifies that the Board is responsible for oversight of PFI’s sustainability
framework and performance, including climate-related issues. PFI’s Board receives quarterly
reporting from Management on strategy, sustainability, operations and risk management,
which includes PFI’s response to climate-related risks and opportunities. This reporting
includes progress against agreed climate-related initiatives within PFI’s sustainability
strategy (which are set with oversight from the Board). The Board also receives information
on climate-related matters from Management as part of PFI’s due diligence process for new
acquisitions. The PFI Board’s Audit and Risk Committee assists the Board in discharging
its responsibilities with respect to risk management. Management’s assessment of PFI’s
climate-related risks is presented to the Board’s Audit and Risk Committee annually.
Describe management’s role in assessing and managing climate-related risks and
opportunities.
Under PFI’s Risk Management Framework, the Chief Executive Officer and Chief Finance and
Operating Officer are responsible for management of climate-related risk, along with all
other risks. These roles are also responsible for the execution of PFI’s strategy, including
any climate-related opportunities. PFI has a dedicated Head of Sustainability and Operations
who leads the assessment of climate-related risks and opportunities, and ensures that the
Company’s sustainability strategy is designed to respond to these risks and opportunities.
During 2022, a monthly ESG management meeting was held that monitored sustainability
market trends and regulatory change, and made decisions on PFI’s responses to climate-
related risks and opportunities. This meeting was attended by the Chief Executive Officer
and Chief Finance and Operating Officer. The Chief Executive Officer and Chief Finance and
Operating Officer approved PFI’s latest climate-related risk and opportunity assessment
through this forum.
STRATEGY
Describe the climate-related risks and opportunities the organisation has identified over
the short, medium, and long term.
PFI’s climate-related risk and opportunity assessments are undertaken with reference to
PFI’s Risk Management Framework and the time horizons below:
HORIZONPERIODDESCRIPTION
Short term1-5 yearsWithin our weighted average lease term
Medium term6-20 yearsThe period within which most buildings will
require major capital works
Long termGreater than 20 yearsThe life of a building
PFI has identified 18 possible risks and opportunities across all of the TCFD categories. Most of
the risks are expected to materialise in the medium to long term. However, as our real estate
assets are long term investments we are taking steps now to ensure that our organisation is
resilient to these future challenges.

38
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
A summary of the top five risks that PFI has identified is provided below, along with a summary of how PFI is responding to them, and the
related opportunities:
RISKSEXPECTED TIME HORIZONRISK RESPONSERELATED OPPORTUNITIES
Transition – Policy (regulatory) risk:
The introduction of new regulations,
for example on building materials and
design, disclosure and governance, land
use, and electricity or water use could
lead to increased compliance risk, and
a potential reduction in profitability.
Short term
Medium term
Long term
PFI is closely monitoring
climate-related regulatory
change and is working with
industry bodies to provide
feedback on proposed
regulations where
appropriate.
We are also working to
ensure that we are ready
to respond to incoming
legislative changes when
they arise. For example, from
2023 PFI will start working
with tenants to implement
utility monitoring in
anticipation of future
regulation relating to the
energy use of buildings.
Our Board receives quarterly
reporting on how we are
responding to upcoming
regulatory change.
The sustainability
knowledge and capability
that PFI has built over the
past several years positions
us well to drive value for PFI
(for example, through
creation of best-in-class
sustainable assets) and our
tenants (for example,
through energy savings).
During 2022, PFI continued
to explore opportunities to
create value by working with
tenants on renewable
energy and water efficiency
initiatives.
This included reaching an
agreement for our first solar
installation at 3-5 Niall
Burgess Road.
Transition – Market risk:
With increasing scrutiny of organisations’
impact on the climate, we expect
increased tenant or purchaser demand
for sustainable buildings. In the long
term, this could result in difficulty
re-letting buildings, devaluation of
properties, or increased expenditure
to bring properties up to higher
sustainability standards.
Short term
Medium term
Long term
PFI has been developing
its internal capabilities
to develop and manage
sustainable buildings.
This includes:
§
targeting 5 Green Star
certification for significant
future developments;
§
creating and
implementing a
sustainable refurbishment
framework; and
§
planning to create an
in-house facilities
management function
to drive stronger
operational sustainability
performance of
existing buildings.
While this is a longer-term
risk, shifting tenant demand
has presented us with near
term opportunities to:
§
work with our tenants
to help them meet their
climate or environmental
commitments;
§
create value by
developing Green Star
certified buildings; and
§
consider opportunities
to improve building
performance (for
example, by installing
LED lighting) when
undertaking planned
capital expenditure
projects.
SuSTAINABILITY

39
RISKSEXPECTED TIME HORIZONRISK RESPONSERELATED OPPORTUNITIES
Transition - Reputation risk:
Failure to meet stakeholder expectations
regarding ESG performance could in turn
lead to difficulty in obtaining capital from:
§
shareholders due to increasing
preference to invest in demonstrably
sustainable companies; or
§
funders due to increased
scrutiny over climate risks
and their management.
Short term
Medium term
Long term
PFI sees successful execution
of its sustainability strategy
as being critical to managing
this risk. PFI has refreshed its
strategy during 2022 to
include initiatives such as a
Green Star certification target
for significant new buildings,
and initiatives to improve the
performance of existing
buildings in our portfolio.
See pages 28-29. for further
information on our
refreshed strategy.
PFI has also completed the
replacement of HVAC
systems using R22
refrigerant gas within
its operational control,
reducing our Scope 1
greenhouse gas emissions.
Transparency is also
important, so our
progress will continue to
be disclosed annually.
Strong ESG performance
could present an opportunity
for PFI to increase our
capital availability (for
example, through green
financing) and promote
our reputation.
Physical – Acute (damage) risk:
We may experience damage or loss
of access to PFI properties from
climate-related events, such as
storms or flooding.
Short term
Medium term
Long term
In response to this risk, PFI
has completed an exercise
to investigate which of PFI’s
properties may be most
vulnerable to physical
impacts from climate
change. This has helped us
to better understand what
actions we can take to
mitigate these risks through
our asset and portfolio
planning activities. We
will repeat this exercise
periodically as climate
science and the global
response evolve.
PFI completes physical
climate risk assessments as
part of our due diligence
checks for all new property
purchases, and to inform the
design of new buildings.
To ensure that we are
well-placed to respond
to a major climate event,
we continue to retain a
strong balance sheet.
We also closely manage
our insurance programme
which provides cover in
the event of damage from
weather events.
The work that we have done
to understand and plan for
the physical impacts of
climate change is not only
a risk mitigation approach;
it gives us the opportunity
to deliver longer-term
efficiencies by enabling us
to appropriately plan and
deliver changes at the most
effective times.
We also have an opportunity
to embed resilience to
climate impacts (rain, wind,
heat) into the design of
new buildings.

40
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
RISKSEXPECTED TIME HORIZONRISK RESPONSERELATED OPPORTUNITIES
Physical – Acute (insurance) risk:
Due to increasing climate-related claims,
insurance for climate events may
become more difficult to obtain or
increasingly expensive.
Short term
Medium term
Long term
As PFI relies on insurance
to remediate damage to
its properties, changes
in insurer preferences are
being carefully monitored.
PFI reviews its insurance
strategy annually and is
working to increase its
sophistication in insurance
management to ensure
that we are best placed
to address this risk should
it arise.
Due to PFI’s scale, PFI is
in a position to be able
to put in place tailored
insurance structures.
Describe the impact of climate-related risks and opportunities on the organisation’s
businesses, strategy, and financial planning.
Our understanding of PFI’s climate-related risks and opportunities has influenced the
following aspects of our business, strategy and financial planning:
§
PFI has refreshed its sustainability strategy with consideration for how PFI’s portfolio
will transform over the coming decades as the global community transitions to net
zero. You can read more about this refresh on pages 28-29.
§
PFI has commenced work to internalise its facilities management function. This will
allow us to play a more active role in the operational performance of our buildings.
At present, PFI has an outsourced facilities management model. This means that our
team is removed from some of the day-to-day operation of our buildings. This change
will position us to play a more active role in the energy and water efficiency of buildings,
work with tenants that want to improve the sustainability of the properties that they
occupy, and ensure that sustainable practices are embedded in our facilities
management services.
§
PFI has undertaken analysis of climate-related exposures for individual assets within
our portfolio. This has in turn fed into our asset planning and portfolio management
decisions. One affected property was divested during 2022.
§
PFI has enhanced its due diligence processes to consider climate-related risks for
new acquisitions. This includes the physical risks that a property may be exposed to.
Depending on the materiality and nature of the tenant we may also seek to understand
the impact of climate change on their business.
§
PFI has spent $2.5m to reduce the greenhouse gas emissions from refrigerants within
PFI’s operational control. This project was completed during 2022.
Describe the resilience of the organisation’s strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower scenario.
PFI has undertaken both qualitative and quantitative assessments of the impact of different
climate-related scenarios on PFI’s strategy, including a 2°C or lower scenario. The analysis has
considered three Representative Concentration Pathways (RCPs): RCP2.6 (low climate change
scenario), RCP4.5 (moderate scenario) and RCP8.5 (high scenario).
We have determined that PFI’s high level strategy of investing in quality industrial property
remains robust in either a warming scenario of lower than 2°C, or a more extreme warming
scenario. PFI has a diversified portfolio, with a good spread of geographical locations and
tenants in various industries. This reduces the impact of a single event, and the concentration
risk from exposure to a particularly impacted industry.
SuSTAINABILITY

41
In 2021, PFI engaged a third party to undertake a review of the vulnerability of PFI’s
properties to a range of climate-related hazards across differing time horizons and climate-
related scenarios, which determined that PFI’s portfolio has a low to moderate risk overall
(on a relative basis). Four properties were assessed as having a heightened exposure to a
particular climate-related hazard. One of these properties was divested during 2022, leaving
three properties in the portfolio with a combined value of $43.8m or less than 2% of the total
portfolio value. This knowledge puts PFI in a good position to consider these hazards as part
of asset management decisions such as future capital expenditure.
Critically, climate-related physical risks are one of a number of strategic factors that PFI
takes into account when considering acquisitions and divestments.
PFI also considered the transition risks associated with its existing stock of buildings when
completing its sustainability strategy refresh during 2022. This influenced the following key
strategic choices which will position PFI to manage impacts of climate change on its strategy
over time:
§
standing up an in-house facilities management function, bringing the management team
closer to the operational performance of the buildings;
§
a commitment to targeting Green Star certification for significant new buildings;
§
a commitment to completing refurbishments of existing buildings with consideration
for sustainability; and
§
a target to implement energy monitoring at existing properties.
With our proactive plan to invest in the sustainability and climate resilience of our assets
over time, we consider the risk of stranded assets in our portfolio to be relatively low based on
our current understanding.
Finally, we undertake annual reviews of our climate change strategies to ensure we remain
responsive to climate risks as they evolve.

42
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
RISK MANAGEMENT
Describe the organisation’s processes for identifying and assessing climate-related risks.
Identification and assessment of PFI’s climate-related risks is led by PFI’s Head of
Sustainability and Operations, with contribution from senior management. This assessment
is completed annually.
Key risks are assessed and prioritised against a risk matrix of consequence and likelihood
in line with PFI’s Risk Management Framework. The time horizons considered are set out in the
strategy section of this report. The assessment considers PFI’s direct operations, as well as
upstream and downstream impacts.
This assessment is also informed by the external analysis on the physical climate risk
exposure of each PFI property that was completed during 2021.
In line with TCFD guidance, PFI considers both the risks associated with the transition
to a lower carbon economy (such as changes in regulation) and the risks associated with the
physical impacts of climate change (such as damage to buildings).
Describe the organisation’s processes for managing climate-related risks.
As described in the Governance section, PFI holds a monthly ESG management meeting
attended by the Chief Executive Officer and Chief Finance and Operating Officer. This
management meeting oversees PFI’s climate-related risk and opportunity assessments.
The Chief Executive Officer and Chief Finance and Operating Officer are responsible for
making decisions on whether to mitigate, transfer, accept, or control climate-related risks.
This structure gives us flexibility to review and adapt our response to climate-related risks
and opportunities over time as the external environment evolves.
PFI’s most material risks have been identified based on the likely consequences of those
risks materialising, and are set out in the Strategy section above. Actions being taken to
respond to PFI’s most material climate-related risks include:
§
incorporating climate change considerations into our due diligence process for
new acquisitions;
§
committing to a Green Star certification target for significant new buildings;
§
growing our capabilities in sustainable refurbishment;
§
disclosing to stakeholders on our ESG progress;
§
building a long-term insurance strategy;
§
periodically assessing the vulnerability of individual PFI properties to physical
climate impacts;
§
designing our new developments with consideration for future physical climate impacts;
§
bringing facilities management in-house and starting to measure the operational
performance of our buildings; and
§
maintaining a strong balance sheet.
Describe how processes for identifying, assessing, and managing climate-related risks
are integrated into the organisation’s overall risk management.
PFI’s climate-related risks are incorporated into PFI’s company-wide risk register to provide
a single view of risk for PFI. In most cases, climate risks are an extension of our existing risks
(for example, physical damage to buildings or strategic risk). Our controls for those risks
(such as acquisition due diligence and our insurance programme monitoring) have been
enhanced to include consideration for climate change impacts. We also introduced a new
control in 2021 whereby we will periodically review the PFI portfolio’s physical climate risk.
Assessment and management of climate risk is managed in the same way as our other
risks, with oversight by senior management and the Board.
SuSTAINABILITY

43
METRICS AND TARGETS
Disclose the metrics used by the organisation to assess climate-related risks and
opportunities in line with its strategy and risk management process.
During 2022, PFI used the following metrics to assess climate-related risks and
opportunities in line with its strategy and risk management process:
METRICPURPOSE2021 RESULT2022 RESULT
Scope 1 emissionsTo measure PFI’s impact
on the climate.
77.0 tCO
2
e65.8 tCO
2
e
Scope 2 emissionsTo measure PFI’s impact
on the climate.
14.2 tCO
2
e19.6 tCO
2
e
Scope 3 emissionsTo measure PFI’s indirect
impact on the climate.
2,760.1 tCO
2
e2,439.9 tCO
2
e
CDP scoreTo understand how our
climate performance
compares to other
corporations globally.
B-B
Capital investment
deployed toward
removal of R22 gas
To measure progress on
our commitment to
phasing out R22 within
PFI’s operational control.
$688k $1.78m
2050 composite physical
risk score (based on
a moderate climate
change scenario)*
To measure the
physical climate risk
associated with PFI’s
property portfolio.
33 (Low to Moderate risk)
* This score was provided in 2021 by S&P Global, following analysis of PFI’s portfolio. We note that we do not intend
to update this score annually.
Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions,
and the related risks.
Please refer to the table above for details of PFI’s 2022 GHG emissions. We recognise
the importance of reducing greenhouse gas emissions and understand that there are
reputational and market risks if we do not take meaningful steps to decrease them.
PFI’s approach to managing greenhouse gas emissions is set out on pages 30-33 of
our sustainability report.
Describe the targets used by the organisation to manage climate-related risks and
opportunities and performance against targets.
The following targets that had previously been set by PFI to manage climate-related risks
and opportunities were met during 2022:
§
Replacement of all HVAC systems currently in our portfolio and within our operational
control that use R22 refrigerant gas by 2023.
§
Improvement in our CDP score from C (in 2020) to B by 2023.
New targets have been set by PFI to manage climate-related risks and opportunities
through our sustainability strategy refresh, including:
§
Significant new buildings to target minimum 5 Green Star certification.
§
Implement power metering and monitoring for 50% of properties by the end of 2025.
§
Install solar systems at five buildings by the end of 2025.
§
Minimise and offset residual Scope 1 + 2 emissions.
Further information on PFI’s sustainability strategy is set out on pages 28-29 of our
sustainability report.

A GOOD
POSITION
TO BE IN
44
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
FINANCIAL STATEMENTS
08.

Property
for
Industry
Limited
Group
Financial
Statements
31 December
2022
45

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
The accompanying notes form part of these financial statements.
ALL VALUES IN $000SNOTE20222021
INCOME
Rental and management fee income2.3 110,909 108,653
Interest income 12 2
Fair value (loss) / gain on investment properties and non-current assets classified as held
for sale2.1, 2.2(56,735) 392,519
Gain on disposal of investment properties and non-current assets classified as held for sale 575 2,636
Fair value gain on derivative financial instruments3.2 18,536 12,271
Business interruption insurance income2.6 – 170
Material damage insurance income2.6 – 900
Total income 73,297 517,151
EXPENSES
Property costs2.4 (17,598) (16,753)
Interest expense and bank fees (24,638) (20,106)
Administrative expenses5.1 (8,508) (7,465)
Goodwill impairment5.5 (29,086) –
Total expenses (79,830) (44,324)
(Loss)/profit before taxation (6,533) 472,827
Income tax expense5.2 (7,411) (20,017)
(Loss)/profit and total comprehensive income after income tax attributable
to the shareholders of the Company4.1 (13,944) 452,810
Basic earnings per share (cents)4.1 (2.70) 89.97
Diluted earnings per share (cents)4.1 (2.70) 89.96
FINANCIALS 2022
46
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

CONSOLIDATED STATEMENT OF CHANGES IN EQuITY
FOR THE YEAR ENDED 31 DECEMBER 2022
The accompanying notes form part of these financial statements.
NOTE
Cents
per Share
(cents)
No. of
Shares
(#)
Ordinary
Shares
($000s)
Share-Based
Payments
Reserve
($000s)
Retained
Earnings
($000s)
Total
Equity
($000s)
Balance as at 1 January 2021– 501,302,888 569,169 615 566,829 1,136,613
Total comprehensive (loss)/income– – – – 452,810 452,810
Dividends and reinvestment
Q4 2020 final dividend – 10/3/2021 2.25 – – – (11,281) (11,281)
Q4 2020 dividend reinvestment 1,105,073 3,087 – – 3,087
Q1 2021 interim dividend – 24/5/2021 1.80 – – – (9,044) (9,044)
Q1 2021 dividend reinvestment 986,161 2,737 – – 2,737
Q2 2021 interim dividend – 7/9/2021 1.80 – – – (9,064) (9,064)
Q2 2021 dividend reinvestment 976,285 2,895 – – 2,895
Q3 2021 interim dividend – 23/11/2021 1.85 – – – (9,334) (9,334)
Q3 2021 dividend reinvestment 1,038,576 2,930 – – 2,930
Long-term incentive plan5.9 84,685 177 136 – 313
Balance as at 31 December 2021– 505,493,668 580,995 751 980,916 1,562,662
Total comprehensive (loss)/income – - – – (13,944) (13,944)
Dividends and reinvestment
Q4 2021 final dividend – 9/3/2022 2.45 – – – (12,388) (12,388)
Q1 2022 interim dividend – 24/5/2022 1.80 – – – (9,100) (9,100)
Q2 2022 interim dividend – 7/9/2022 1.80 – – – (9,087) (9,087)
Q3 2022 interim dividend – 22/11/2022 1.85 – – – (9,311) (9,311)
Share buyback5.5 (3,554,708) (8,658) (8,658)
Long-term incentive plan5.9 111,564 300 (136) – 164
Balance as at 31 December 2022- 502,050,524 572,637 615 927,086 1,500,338
47

ALL VALUES IN $000SNOTE20222021
CuRRENT ASSETS
Cash at bank 1,332 1,103
Accounts receivable, prepayments and other assets5.3 4,918 5,842
Derivative financial instruments3.2 287 –
Total current assets 6,537 6,945
NON-CuRRENT ASSETS
Investment properties2.1 2,096,200 2,158,940
Property, plant and equipment 3,695 412
Derivative financial instruments3.2 35,355 11,623
Goodwill5.5 – 29,086
Total non-current assets 2,135,250 2,200,061
Non-current assets classified as held for sale2.2 21,000 10,000
Total assets 2,162,787 2,217,006
CuRRENT LIABILITIES
Derivative financial instruments3.2 – 710
Accounts payable, accruals and other liabilities5.4 13,727 12,344
Taxation payable 3,002 3,557
Total current liabilities 16,729 16,611
NON-CuRRENT LIABILITIES
Borrowings3.1 601,523 598,653
Derivative financial instruments3.2 10,801 4,608
Deferred tax liabilities5.2 31,284 34,419
Lease liabilities5.10 2,112 53
Total non-current liabilities 645,720 637,733
Total liabilities 662,449 654,344
Net assets4.2 1,500,338 1,562,662
EQuITY
Share capital 572,637 580,995
Share-based payments reserve5.9 615 751
Retained earnings 927,086 980,916
Total equity 1,500,338 1,562,662
These Group financial statements are signed on behalf of Property for Industry Limited and were authorised for issue on 20 February 2023.
Anthony Beverley Carolyn Steele
Chairman Chair, Audit and Risk Committee
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
FOR THE YEAR ENDED 31 DECEMBER 2022
The accompanying notes form part of these financial statements.
FINANCIALS 2022
48
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

The accompanying notes form part of these financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
ALL VALUES IN $000SNOTE20222021
CASH FLOWS FROM OPERATING ACTIVITIES
Property and management fee income received 111,867 105,440
Business interruption insurance income2.6 – 191
Net goods and services tax paid 273 (157)
Interest received 12 2
Interest and other finance costs paid (23,583) (19,812)
Payments to suppliers and employees (25,409) (19,239)
Income tax paid (11,080) (10,300)
Net cash flows from operating activities 52,080 56,125
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investment properties and non-current assets classified as held for sale 21,700 108,762
Acquisition of investment properties2.1 (6,843) (226,279)
Acquisition of property, plant and equipment (1,348) (23)
Expenditure on investment properties (19,157) (23,766)
Capitalisation of interest on development properties2.1 (13) (204)
Material damage insurance income2.6 – 900
Net cash flows from investing activities (5,661) (140,610)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from syndicated bank facility 2,468 86,360
Net proceeds from bilateral CBA bank facility – 25,000
Principal elements of finance lease payments (114) (113)
Dividends paid to shareholders net of reinvestments (39,886) (27,073)
Share buyback costs (8,658) –
Net cash flows from financing activities (46,190) 84,174
Net increase / (decrease) in cash and cash equivalents 229 (311)
Cash and cash equivalents at beginning of year 1,103 1,414
Cash and cash equivalents at end of year 1,332 1,103
Cash and cash equivalents at end of year comprises:
ALL VALUES IN $000S20222021
Cash at bank 1,332 1,103
Cash and cash equivalents at end of year 1,332 1,103
49

CONSOLIDATED STATEMENT OF CASH FLOWS
(
continued
)
FOR THE YEAR ENDED 31 DECEMBER 2022
RECONCILIATION OF (LOSS)/PROFIT AFTER INCOME TAX TO NET CASH FLOWS FROM
OPERATING ACTIVITIES
ALL VALUES IN $000SNOTE20222021
(Loss)/profit for the year after income tax (13,944) 452,810
Non-cash items:
Fair value loss/(gain) on investment properties and non-current assets classified as held for sale2.1, 2.2 56,735 (392,519)
Gain on disposal of investment properties and non-current assets classified as held for sale (575) (2,636)
Fair value gain on derivative financial instruments (18,536) (12,271)
(Decrease)/increase in deferred taxation 5.2 (3,114) 9,412
Goodwill impairment5.5 29,086 –
Depreciation5.1 190 181
Release of provision for doubtful debts – (450)
Lease liability interest expense5.10 12 19
Employee benefits expense – share-based payments 356 335
Movements in working capital items:
Decrease/(increase) in accounts receivable, prepayments and other assets 1,326 (351)
Increase in accounts payable, accruals and other liabilities 1,099 2,190
(Decrease)/increase in taxation payable (555) 305
Other: material damage insurance income (classified as cash flows from investing activities)2.6 – (900)
Net cash flows from operating activities 52,080 56,125

The accompanying notes form part of these financial statements.
FINANCIALS 2022
50
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

1. GENERAL INFORMATION52
1.1. Reporting entity52
1.2. Basis of preparation52
1.3. Group companies52
1.4. Basis of consolidation52
1.5. Critical judgements, estimates and assumptions52
1.6. Accounting policies53
1.7. Significant events and transactions54
2. PROPERTY55
2.1. Investment properties55
2.2. Non-current assets classified as held for sale66
2.3. Rental and management fee income66
2.4. Property costs67
2.5. Net rental income67
2.6. Insurance income67
3. FuNDING68
3.1. Borrowings68
3.2. Derivative financial instruments69
4. INVESTOR RETuRNS AND INVESTMENT METRICS70
4.1. Earnings per share70
4.2. Net tangible assets per share70
5. OTHER71
5.1. Administrative expenses71
5.2. Taxation71
5.3. Accounts receivable, prepayments and other assets74
5.4. Accounts payable, accruals and other liabilities74
5.5. Goodwill74
5.6. Financial instruments76
5.7. Financial risk management76
5.8. Related party transactions 79
5.9. Share-based payments79
5.10. Leases81
5.11. Operating segments81
5.12. Capital commitments82
5.13. Subsequent events82
51
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

NOTES 2022
1. GENERAL INFORMATION
IN THIS SECTION
This section sets out the basis upon which the Group’s financial statements are prepared. Specific accounting policies are described in
the note to which they relate.
1.1. Reporting entity
These audited consolidated financial statements (the financial statements) are for Property for Industry Limited (the Company) and
its subsidiary P.F.I. Property No. 1 Limited (PFI No. 1) (together, the Group). The Company is a limited liability company incorporated
in New Zealand and is registered under the New Zealand Companies Act 1993. The Company is a FMC reporting entity under Part 7
of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013 and these financial statements have been prepared
in accordance with the requirements of the NZX Listing Rules. The Company is listed on the NZX Main Board (NZX: PFI).
The Group’s principal activity is property investment and management in New Zealand.
1.2. Basis of preparation
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP).
They comply with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS) and other applicable Financial
Reporting Standards as appropriate to for-profit entities. The financial statements also comply with International Financial Reporting
Standards (IFRS).
The financial statements have been prepared on the historical cost basis except where otherwise identified. All financial information
is presented in New Zealand dollars and has been rounded to the nearest thousand.
1.3. Group companies
As at 31 December 2022 and 31 December 2021, PFI No. 1 is the only controlled entity and is wholly owned.
1.4. Basis of consolidation
The consolidated financial statements comprise the Company and the entity it controls. All intercompany transactions are eliminated
on consolidation.
1.5. Critical judgements, estimates and assumptions
In applying the Group’s accounting policies, the Board and Management regularly evaluate judgements, estimates and assumptions that
may have an impact on the Group. The significant judgements, estimates and assumptions made in the preparation of these financial
statements are as follows:
2.1. Investment properties Page 55
3.2. Derivative financial instruments Page 69
5.2. Taxation Page 71
5.5. Goodwill Page 74
5.9. Share-based payments Page 79
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
52
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

1.6. Accounting policies
No changes to accounting policies have been made during the year and policies have been consistently applied to all years presented.
Significant accounting policies have been included throughout the notes to the financial statements.
Other relevant policies are provided as follows:
Accounting for SaaS arrangements
Following developments in how to account for Software-as-a-Service (SaaS) arrangements during the prior year, the implementation
costs of $712,000 relating to a new property management and accounting software have been expensed through ‘Administrative expenses’
in the Consolidated Statement of Comprehensive Income in their entirety in the prior year. As at the beginning of the prior year, the
implementation costs incurred up to that date were held in ‘Accounts receivable, prepayments and other assets’ on the Consolidated
Statement of Financial Position in anticipation of being capitalised to ‘Property, plant and equipment’ on completion of the project.
Share capital
All shares on issue are fully paid, carry equal voting rights, share equally in dividends and any surplus on wind up and have no par value.
All shares are recognised at the fair value of the consideration received by the Company. Incremental costs directly attributable to the issue
of new shares are shown in equity as a deduction from the proceeds.
Measurement of fair values
A number of the Group’s accounting policies and disclosures require the measurement of fair values. The Board and Management have
overall responsibility for overseeing all significant fair value measurements and transfers between levels of the fair value hierarchy.
The fair value hierarchy has the following levels:
– Level 1: Fair value is based on observable quoted prices in active markets.
– Level 2: Fair value is based on observable market data where Level 1 quoted prices are not available.
– Level 3: Fair value is not based on observable market data (unobservable inputs).
The carrying values of all balance sheet financial assets and liabilities approximate their estimated fair values, apart from the fixed rate
bonds (refer Note 3.1 (ii) for further details).
The Board and Management review significant unobservable inputs and valuation adjustments. If third party information is used to measure
fair values, then the Board and Management assess the evidence obtained from the third parties to support the conclusion that such
valuations meet the requirements of NZ IFRS, including the level of the fair value hierarchy in which such valuations should be classified.
Goods and services tax
These financial statements have been prepared on a goods and services tax (GST) exclusive basis except for the accounts receivable
balance, accounts payable balance and other items where GST incurred is not recoverable. These balances are stated inclusive of GST.
1. GENERAL INFORMATION (continued)
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
53

NOTES 2022
1.7. Significant events and transactions
The financial position and performance of the Group was affected by the following events and transactions that occurred during the
reporting period:
Investment property acquisitions and disposals
On 22 February 2022, the Group settled the disposal of a non-current asset classified as held for sale located at 48 Seaview Road,
Wellington for a gross sales price of $10.00 million.
On 7 March 2022, the Group settled the acquisition of the property located at 318 Neilson Street, Penrose, for a net purchase price of
$6.83 million.
On 10 June 2022, the Group announced the divestment of 39 Edmundson Street, Napier for a gross sales price of $5.25 million. Settlement
of this divestment took place on 8 July 2022.
On 29 July 2022, the Group announced the divestment of 330 Devon Street East, New Plymouth for a gross sales price of $2.25 million.
Settlement of this divestment took place on 25 August 2022.
On 28 September 2022, the Group announced the divestment of 20 Constance Street, New Plymouth for a gross sales price of $4.90 million.
Settlement of this divestment took place on 17 October 2022.
On 6 December 2022, the Group announced the divestment of 8a & 8b Canada Crescent, Christchurch for a contracted gross sales price of
$21.00 million. This property is classified as a non-current asset classified as held for sale in these financial statements. Settlement of the
divestment is expected to take place early April 2023.
BNZ facilities
On 17 June 2022, the Group announced that it had refinanced its $100 million loan facility from the Bank of New Zealand (also known as
Syndicated Bank Facility C), extending the expiry date by one year from 2 July 2023 to 2 July 2024.
USPP facility
On 19 August 2022, a USPP facility was established with Pricoa Capital Group (Pricoa), part of Prudential Financial, Inc. (Prudential).
Prudential is one of the largest U.S. insurance companies. Establishing this facility with Pricoa provides the Group with access to long-term
funding in the future to finance investment opportunities. No initial draw of funds has been made as at 31 December 2022.
Share buyback
On 25 May 2022, the Group announced that it would begin an on-market share buyback programme to purchase up to 5% of its ordinary
shares (being 25,280,262 ordinary shares). Under the programme, the Group only acquires shares on the NZX Main Board for a period of
up to one year and all acquired shares are cancelled upon acquisition. The buyback programme was briefly paused from 1 July 2022,
as the Group entered a blackout period under its Financial Products Trading Policy in relation to the 2022 interim results and
recommenced on 23 August 2022, being the day following the interim results announcement.
The Group continued to assess the market conditions and investment opportunities throughout the buyback period and, following an
announcement regarding the commitment to the redevelopment project at 78 Springs Road on 19 December 2022, the share buyback
programme was paused indefinitely.
As at 31 December 2022, the Group had acquired and cancelled 3,554,708 shares for a cost of $8,658,412 (including transaction costs).
Impairment of goodwill
On 30 June 2022, the market value of PFI, based on the quoted market price, was below the value net assets of PFI. PFI assessed
whether objective evidence of impairment of goodwill exists, the outcome of which was that an impairment test has been performed.
PFI has estimated the recoverable amount by performing fair value less costs of disposal (FVLCOD) and value in use valuation approaches.
PFI has estimated the recoverable amount of the Property for Industry Limited CGU using FVLCOD (as the higher of the two valuation
approaches), resulting in an impairment loss of $29.086 million (2021: $NIL) against the carrying amount of goodwill (refer note 5.5).
1. GENERAL INFORMATION (continued)
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
54
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

2. PROPERTY
IN THIS SECTION
This section shows the real estate assets used to generate the Group’s trading performance which are considered to be the most
relevant to the operations of the Group.
2.1. Investment properties
ALL VALUES IN $000S20222021
Opening balance 2,158,940 1,524,785
Capital movements:
Additions 6,843 226,279
Disposals (11,125) –
Transfer to non-current assets classified as held for sale (21,000) (8,715)
Capital expenditure 18,014 20,114
Capitalised interest
1
13 204
Movement in lease incentives, fees and fixed rental income 1,250 4,731
(6,005) 242,613
Unrealised fair value (loss)/gain (56,735) 391,542
As at 31 December 2,096,200 2,158,940
1 The effective interest rate applied to capitalised interest was 4.34% (2021: 3.75%).
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
55

NOTES 2022
ALL VALUES IN $000S UNLESS NOTEDKey tenant Occupancy (%)Yield on valuation (%)Contract rent
Lettable
area (sqm) Valuer
Carrying
value
Capital
movements
Fair value
adjustment
Carrying
value
2022202220212022202120222021202220222021202220222022
Avondale:
15 Copsey Place Canterbury 100%100%
5.0%4.6% 986 948 7,907 CBRE 20,600 (18) (982) 19,600
32 Honan Place Solo Plastics 100%100%4.6%3.3% 145 103 795 JLL 3,100 88 (63) 3,125
15 Jomac Place Southern Spars 100%100%5.1%6.6% 1,695 1,759 9,534 Savills 26,600 3 6,397 33,000
61-69 Patiki Road Bidvest 100%100%4.5%4.4% 1,292 1,279 9,776 Savills 29,050 40 (340) 28,750
320 Rosebank Road Doyle Sails 100%100%4.0%3.8% 802 782 6,625 JLL 20,400 214 (614) 20,000
520 Rosebank Road Kenderdine Electrical 100%100%4.1%3.5% 187 182 1,995 Savills 5,225 14 (639) 4,600
528-558 Rosebank Road ETEL 100%100%5.2%4.5% 3,472 3,066 26,451 Savills 67,500 1,042 (1,542) 67,000
670-680 Rosebank Road New Zealand Comfort 100%100%4.3%4.3% 1,764 1,764 17,295 Savills 41,350 169 (19) 41,500
686 Rosebank Road Brand Developers 100%100%4.8%4.6% 3,019 2,766 23,885 Savills 60,300 555 2,645 63,500
100%100%4.8%4.6% 13,362 12,649 104,263 274,125 2,107 4,843 281,075
East Tamaki:
17 Allens Road Contract Warehousing 100%100%
4.2%4.2% 1,328 1,160 11,897 JLL 27,500 953 3,297 31,750
43 Cryers Road Astron Plastics 100%100%4.6%4.4% 856 833 6,068 Colliers 18,850 9 (359) 18,500
6-8 Greenmount Drive Bridon 100%100%4.0%3.9% 739 721 6,590 Colliers 18,500 806 (806) 18,500
92-98 Harris Road GrainCorp 100%100%6.1%5.8% 1,423 1,388 10,687 Colliers 23,750 (19) (231) 23,500
36 Neales Road Mainfreight 100%100%4.2%4.0% 1,583 1,545 12,563 JLL 38,750 88 (1,088) 37,750
1 Ron Driver Place Glen Dimplex 100%100%4.6%4.3% 540 527 5,393 CBRE 12,150 (48) (352) 11,750
78 Springs Road Fisher & Paykel Appliances 100%100%6.8%6.3% 6,672 6,478 41,530 JLL 102,500 831 (5,331) 98,000
10c Stonedon Drive Chemical Freight Services 100%100%4.8%4.8% 1,005 978 8,711 CBRE 20,250 537 113 20,900
11 Turin Place Thermakraft Industries 100%100%4.1%3.9% 1,023 1,023 9,981 Colliers 26,100 37 (1,337) 24,800
12 Zelanian Drive Central Joinery 100%100%4.2%4.0% 754 701 6,098 Colliers 17,600 24 476 18,100
23 Zelanian Drive Exclusive Tyre Distributors 100%100%4.2%4.3% 488 478 3,811 Colliers 11,050 111 539 11,700
100%100%5.2%5.0% 16,411 15,832 123,329 317,000 3,329 (5,079) 315,250
Manukau:
212 Cavendish Drive Mainfreight 100%100%
4.2%4.0% 2,182 2,115 25,896 JLL 53,000 62 (1,062) 52,000
232 Cavendish Drive
1
Fletcher Building Products 100%100%3.9%3.4% 1,332 1,232 16,832 JLL 36,500 (118) (1,882) 34,500
47 Dalgety Drive Peter Hay Kitchens 100%100%4.3%4.6% 952 952 10,155 Savills 20,500 188 1,412 22,100
47a Dalgety Drive Shaw 100%100%3.9%4.2% 592 530 4,832 Savills 12,500 1,018 1,482 15,000
59 Dalgety Drive Store Rite Logistics 100%100%4.2%4.1% 1,267 1,237 11,844 Savills 30,000 1,015 (1,015) 30,000
12 Hautu Drive Kiwi Steel 100%100%4.5%3.9% 727 746 6,492 CBRE 19,350 37 (3,237) 16,150
25 Langley Road Grayson Engineering 100%100%4.2%4.0% 2,190 2,136 21,248 Colliers 53,500 164 (2,064) 51,600
1 Mayo Road Transdiesel 100%100%4.6%4.3% 705 659 6,361 Colliers 15,150 29 21 15,200
61 McLaughlins Road MOVe Logistics 100%100%4.1%3.9% 1,257 1,257 13,347 Colliers 32,500 92 (1,892) 30,700
9 Narek Place Z Energy 100%100%4.7%4.3% 650 616 3,577 Savills 14,200 4 (454) 13,750
9 Nesdale Avenue Brambles 100%100%4.0%3.8% 863 838 14,163 JLL 22,250 10 (760) 21,500
44 Noel Burnside Road Cottonsoft 100%100%3.9%3.5% 3,403 3,320 32,807 Bayleys 94,500 199 (8,199) 86,500
100%100%4.1%3.9% 16,120 15,638 167,554 403,950 2,700 (17,650) 389,000
1 Excludes development land shown separately on page 62.
2. PROPERTY(continued)
2.1. Investment properties (continued)
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
56
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

ALL VALUES IN $000S UNLESS NOTEDKey tenant Occupancy (%)Yield on valuation (%)Contract rent
Lettable
area (sqm) Valuer
Carrying
value
Capital
movements
Fair value
adjustment
Carrying
value
2022202220212022202120222021202220222021202220222022
Avondale:
15 Copsey Place Canterbury 100%100%
5.0%4.6% 986 948 7,907 CBRE 20,600 (18) (982) 19,600
32 Honan Place Solo Plastics 100%100%4.6%3.3% 145 103 795 JLL 3,100 88 (63) 3,125
15 Jomac Place Southern Spars 100%100%5.1%6.6% 1,695 1,759 9,534 Savills 26,600 3 6,397 33,000
61-69 Patiki Road Bidvest 100%100%4.5%4.4% 1,292 1,279 9,776 Savills 29,050 40 (340) 28,750
320 Rosebank Road Doyle Sails 100%100%4.0%3.8% 802 782 6,625 JLL 20,400 214 (614) 20,000
520 Rosebank Road Kenderdine Electrical 100%100%4.1%3.5% 187 182 1,995 Savills 5,225 14 (639) 4,600
528-558 Rosebank Road ETEL 100%100%5.2%4.5% 3,472 3,066 26,451 Savills 67,500 1,042 (1,542) 67,000
670-680 Rosebank Road New Zealand Comfort 100%100%4.3%4.3% 1,764 1,764 17,295 Savills 41,350 169 (19) 41,500
686 Rosebank Road Brand Developers 100%100%4.8%4.6% 3,019 2,766 23,885 Savills 60,300 555 2,645 63,500
100%100%4.8%4.6% 13,362 12,649 104,263 274,125 2,107 4,843 281,075
East Tamaki:
17 Allens Road Contract Warehousing 100%100%
4.2%4.2% 1,328 1,160 11,897 JLL 27,500 953 3,297 31,750
43 Cryers Road Astron Plastics 100%100%4.6%4.4% 856 833 6,068 Colliers 18,850 9 (359) 18,500
6-8 Greenmount Drive Bridon 100%100%4.0%3.9% 739 721 6,590 Colliers 18,500 806 (806) 18,500
92-98 Harris Road GrainCorp 100%100%6.1%5.8% 1,423 1,388 10,687 Colliers 23,750 (19) (231) 23,500
36 Neales Road Mainfreight 100%100%4.2%4.0% 1,583 1,545 12,563 JLL 38,750 88 (1,088) 37,750
1 Ron Driver Place Glen Dimplex 100%100%4.6%4.3% 540 527 5,393 CBRE 12,150 (48) (352) 11,750
78 Springs Road Fisher & Paykel Appliances 100%100%6.8%6.3% 6,672 6,478 41,530 JLL 102,500 831 (5,331) 98,000
10c Stonedon Drive Chemical Freight Services 100%100%4.8%4.8% 1,005 978 8,711 CBRE 20,250 537 113 20,900
11 Turin Place Thermakraft Industries 100%100%4.1%3.9% 1,023 1,023 9,981 Colliers 26,100 37 (1,337) 24,800
12 Zelanian Drive Central Joinery 100%100%4.2%4.0% 754 701 6,098 Colliers 17,600 24 476 18,100
23 Zelanian Drive Exclusive Tyre Distributors 100%100%4.2%4.3% 488 478 3,811 Colliers 11,050 111 539 11,700
100%100%5.2%5.0% 16,411 15,832 123,329 317,000 3,329 (5,079) 315,250
Manukau:
212 Cavendish Drive Mainfreight 100%100%
4.2%4.0% 2,182 2,115 25,896 JLL 53,000 62 (1,062) 52,000
232 Cavendish Drive
1
Fletcher Building Products 100%100%3.9%3.4% 1,332 1,232 16,832 JLL 36,500 (118) (1,882) 34,500
47 Dalgety Drive Peter Hay Kitchens 100%100%4.3%4.6% 952 952 10,155 Savills 20,500 188 1,412 22,100
47a Dalgety Drive Shaw 100%100%3.9%4.2% 592 530 4,832 Savills 12,500 1,018 1,482 15,000
59 Dalgety Drive Store Rite Logistics 100%100%4.2%4.1% 1,267 1,237 11,844 Savills 30,000 1,015 (1,015) 30,000
12 Hautu Drive Kiwi Steel 100%100%4.5%3.9% 727 746 6,492 CBRE 19,350 37 (3,237) 16,150
25 Langley Road Grayson Engineering 100%100%4.2%4.0% 2,190 2,136 21,248 Colliers 53,500 164 (2,064) 51,600
1 Mayo Road Transdiesel 100%100%4.6%4.3% 705 659 6,361 Colliers 15,150 29 21 15,200
61 McLaughlins Road MOVe Logistics 100%100%4.1%3.9% 1,257 1,257 13,347 Colliers 32,500 92 (1,892) 30,700
9 Narek Place Z Energy 100%100%4.7%4.3% 650 616 3,577 Savills 14,200 4 (454) 13,750
9 Nesdale Avenue Brambles 100%100%4.0%3.8% 863 838 14,163 JLL 22,250 10 (760) 21,500
44 Noel Burnside Road Cottonsoft 100%100%3.9%3.5% 3,403 3,320 32,807 Bayleys 94,500 199 (8,199) 86,500
100%100%4.1%3.9% 16,120 15,638 167,554 403,950 2,700 (17,650) 389,000
1 Excludes development land shown separately on page 62.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
57

NOTES 2022
ALL VALUES IN $000S UNLESS NOTEDKey tenant Occupancy (%)Yield on valuation (%)Contract rent
Lettable
area (sqm) Valuer
Carrying
value
Capital
movements
Fair value
adjustment
Carrying
value
2022202220212022202120222021202220222021202220222022
Mt Wellington:
30-32 Bowden Road Altus 100%100%
5.5%5.7% 1,867 1,867 19,639 Savills 32,500 1,170 330 34,000
50 Carbine Road Fletcher Building Products 100%100%4.0%3.4% 239 190 2,592 Savills 5,600 9 391 6,000
54 Carbine Road & 6a Donnor Place Hancocks 100%100%4.9%4.8% 2,270 2,107 17,015 Savills 43,500 143 3,107 46,750
76 Carbine Road Atlas Gentech 100%100%5.1%4.2% 646 514 5,080 CBRE 12,300 (1) 251 12,550
7 Carmont Place CMI 100%100%4.7%4.2% 751 665 5,776 CBRE 15,950 65 (65) 15,950
6 Donnor Place Coca-Cola 100%100%4.8%4.7% 1,593 1,546 16,686 Savills 33,000 (112) 612 33,500
4-6 Mt Richmond Drive Iron Mountain 100%100%3.4%3.4% 918 918 7,946 JLL 27,250 28 (528) 26,750
509 Mt Wellington Highway Fletcher Building Products 100%100%4.3%4.1% 1,083 1,056 8,744 Colliers 25,600 (25) (575) 25,000
511 Mt Wellington Highway Stryker 100%100%4.3%3.7% 512 498 3,054 Colliers 13,600 98 (1,798) 11,900
515 Mt Wellington Highway Kiwi Management Services 100%100%4.3%3.2% 326 252 2,324 Colliers 8,000 8 (408) 7,600
523 Mt Wellington Highway Motion New Zealand 100%100%3.9%3.6% 285 263 1,677 Savills 7,400 – (100) 7,300
1 Niall Burgess Road Bremca Industries 100%100%3.8%3.6% 265 259 1,742 Colliers 7,200 (8) (192) 7,000
2-6 Niall Burgess Road McAlpine Hussmann 100%100%5.2%5.0% 1,081 1,071 6,874 CBRE 21,550 53 (653) 20,950
3-5 Niall Burgess Road Electrolux 100%100%4.2%3.7% 1,302 1,115 13,266 Colliers 30,200 4,089 (3,089) 31,200
7-9 Niall Burgess Road DHL Supply Chain 100%100%4.1%3.9% 2,573 2,493 23,565 Colliers 64,000 165 (1,665) 62,500
10 Niall Burgess Road NEP Broadcast Services 100%100%4.4%4.2% 300 275 1,725 JLL 6,550 80 170 6,800
5 Vestey Drive PPG Industries 100%100%3.9%3.9% 236 236 1,269 Savills 6,100 72 (72) 6,100
7 Vestey Drive True North 100%100%3.7%4.0% 663 663 6,067 JLL 16,750 14 986 17,750
9 Vestey Drive Multispares 100%100%3.6%3.5% 217 208 1,600 Savills 6,000 29 (29) 6,000
11 Vestey Drive N & Z 100%100%4.1%4.2% 527 515 3,470 Savills 12,400 (31) 381 12,750
15a Vestey Drive Pact Group Holdings 100%100%4.8%4.6% 597 594 3,261 Colliers 12,800 (26) (374) 12,400
36 Vestey Drive Motion New Zealand 100%100%4.1%3.6% 182 177 1,120 CBRE 4,900 (2) (498) 4,400
100%100%4.4%4.2% 18,433 17,482 154,492 413,150 5,818 (3,818) 415,150
North Shore:
2-4 Argus Place Pharmapac 100%100%
4.1%4.0% 474 463 3,560 Colliers 11,600 10 (10) 11,600
47 Arrenway Drive Device Technologies 100%100%4.3%4.1% 251 257 1,245 Colliers 6,200 137 (537) 5,800
51 Arrenway Drive Pacific Hygiene 100%100%4.6%4.2% 456 410 2,680 CBRE 9,650 (2) 202 9,850
15 Omega Street Wesfarmers 100%100%4.9%4.1% 577 513 3,498 Colliers 12,400 23 (623) 11,800
322 Rosedale Road BSGi 100%100%4.8%4.1% 1,199 1,169 7,936 CBRE 28,500 71 (3,371) 25,200
41 William Pickering Drive Innopak Global 100%100%4.3%4.2% 503 491 3,027 JLL 11,750 60 (210) 11,600
100%100%4.6%4.1% 3,460 3,303 21,946 80,100 299 (4,549) 75,850
2. PROPERTY(continued)
2.1. Investment properties (continued)
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
58
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

ALL VALUES IN $000S UNLESS NOTEDKey tenant Occupancy (%)Yield on valuation (%)Contract rent
Lettable
area (sqm) Valuer
Carrying
value
Capital
movements
Fair value
adjustment
Carrying
value
2022202220212022202120222021202220222021202220222022
Mt Wellington:
30-32 Bowden Road Altus 100%100%
5.5%5.7% 1,867 1,867 19,639 Savills 32,500 1,170 330 34,000
50 Carbine Road Fletcher Building Products 100%100%4.0%3.4% 239 190 2,592 Savills 5,600 9 391 6,000
54 Carbine Road & 6a Donnor Place Hancocks 100%100%4.9%4.8% 2,270 2,107 17,015 Savills 43,500 143 3,107 46,750
76 Carbine Road Atlas Gentech 100%100%5.1%4.2% 646 514 5,080 CBRE 12,300 (1) 251 12,550
7 Carmont Place CMI 100%100%4.7%4.2% 751 665 5,776 CBRE 15,950 65 (65) 15,950
6 Donnor Place Coca-Cola 100%100%4.8%4.7% 1,593 1,546 16,686 Savills 33,000 (112) 612 33,500
4-6 Mt Richmond Drive Iron Mountain 100%100%3.4%3.4% 918 918 7,946 JLL 27,250 28 (528) 26,750
509 Mt Wellington Highway Fletcher Building Products 100%100%4.3%4.1% 1,083 1,056 8,744 Colliers 25,600 (25) (575) 25,000
511 Mt Wellington Highway Stryker 100%100%4.3%3.7% 512 498 3,054 Colliers 13,600 98 (1,798) 11,900
515 Mt Wellington Highway Kiwi Management Services 100%100%4.3%3.2% 326 252 2,324 Colliers 8,000 8 (408) 7,600
523 Mt Wellington Highway Motion New Zealand 100%100%3.9%3.6% 285 263 1,677 Savills 7,400 – (100) 7,300
1 Niall Burgess Road Bremca Industries 100%100%3.8%3.6% 265 259 1,742 Colliers 7,200 (8) (192) 7,000
2-6 Niall Burgess Road McAlpine Hussmann 100%100%5.2%5.0% 1,081 1,071 6,874 CBRE 21,550 53 (653) 20,950
3-5 Niall Burgess Road Electrolux 100%100%4.2%3.7% 1,302 1,115 13,266 Colliers 30,200 4,089 (3,089) 31,200
7-9 Niall Burgess Road DHL Supply Chain 100%100%4.1%3.9% 2,573 2,493 23,565 Colliers 64,000 165 (1,665) 62,500
10 Niall Burgess Road NEP Broadcast Services 100%100%4.4%4.2% 300 275 1,725 JLL 6,550 80 170 6,800
5 Vestey Drive PPG Industries 100%100%3.9%3.9% 236 236 1,269 Savills 6,100 72 (72) 6,100
7 Vestey Drive True North 100%100%3.7%4.0% 663 663 6,067 JLL 16,750 14 986 17,750
9 Vestey Drive Multispares 100%100%3.6%3.5% 217 208 1,600 Savills 6,000 29 (29) 6,000
11 Vestey Drive N & Z 100%100%4.1%4.2% 527 515 3,470 Savills 12,400 (31) 381 12,750
15a Vestey Drive Pact Group Holdings 100%100%4.8%4.6% 597 594 3,261 Colliers 12,800 (26) (374) 12,400
36 Vestey Drive Motion New Zealand 100%100%4.1%3.6% 182 177 1,120 CBRE 4,900 (2) (498) 4,400
100%100%4.4%4.2% 18,433 17,482 154,492 413,150 5,818 (3,818) 415,150
North Shore:
2-4 Argus Place Pharmapac 100%100%
4.1%4.0% 474 463 3,560 Colliers 11,600 10 (10) 11,600
47 Arrenway Drive Device Technologies 100%100%4.3%4.1% 251 257 1,245 Colliers 6,200 137 (537) 5,800
51 Arrenway Drive Pacific Hygiene 100%100%4.6%4.2% 456 410 2,680 CBRE 9,650 (2) 202 9,850
15 Omega Street Wesfarmers 100%100%4.9%4.1% 577 513 3,498 Colliers 12,400 23 (623) 11,800
322 Rosedale Road BSGi 100%100%4.8%4.1% 1,199 1,169 7,936 CBRE 28,500 71 (3,371) 25,200
41 William Pickering Drive Innopak Global 100%100%4.3%4.2% 503 491 3,027 JLL 11,750 60 (210) 11,600
100%100%4.6%4.1% 3,460 3,303 21,946 80,100 299 (4,549) 75,850
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
59

NOTES 2022
ALL VALUES IN $000S UNLESS NOTEDKey tenant Occupancy (%)Yield on valuation (%)Contract rent
Lettable
area (sqm) Valuer
Carrying
value
Capital
movements
Fair value
adjustment
Carrying
value
2022202220212022202120222021202220222021202220222022
North Island (outside Auckland):
39 Edmundson Street, Napier MOVe Logistics 100%100%
– 5.3% – 247 – – 4,640 (4,640) – –
20 Constance Street, New Plymouth Aviagen 100%100% – 13.5% – 415 – – 3,075 (4,348) 1,273 –
330 Devon Street East, New Plymouth MOVe Logistics 100%100% – 5.2% – 122 – – 2,325 (2,325) – –
124 Hewletts Road, Mt Maunganui RMD Bulk Storage 100%100%4.7%4.1% 3,537 3,418 34,802 JLL 83,500 1 (7,501) 76,000
124a Hewletts Road, Mt Maunganui Ballance Agri-Nutrients 100%100%4.1%3.7% 1,107 1,107 10,497 JLL 29,750 8 (2,658) 27,100
124b Hewletts Road, Mt Maunganui Ballance Agri-Nutrients 100%100%4.5%3.9% 999 935 8,867 JLL 24,100 71 (2,121) 22,050
3 Hocking Street, Mt Maunganui BR & SL Porter 100%100%4.2%4.2% 165 165 1,250 JLL 3,950 (5) (45) 3,900
143 Hutt Park Road, Wellington EBOS 100%100%5.3%5.0% 1,256 1,256 11,372 CBRE 25,100 2 (1,352) 23,750
8 McCormack Place, Wellington Fletcher Building Products 100%100%5.9%5.5% 795 786 6,686 JLL 14,200 18 (668) 13,550
28 Paraite Road, New Plymouth MOVe Logistics 100%100%7.9%7.7% 1,306 1,306 15,636 CBRE 16,900 155 (455) 16,600
48 Seaview Road, Wellington Bridgestone 100%100% – 3.9% – 386 – – – – – –
Shed 22, 23 Cable Street, Wellington
1
Shed 22 Hospo 100%100%6.8%6.7% 940 917 2,809 JLL 13,650 1,644 (1,394) 13,900
2 Smart Road, New Plymouth New Zealand Post 100%100%6.7%6.2% 334 334 2,359 CBRE 5,400 13 (413) 5,000
558 Te Rapa Road, Hamilton DEC Manufacturing 100%100%4.4%4.3% 480 480 5,026 Colliers 11,100 89 (389) 10,800
22 Whakatu Road, Hastings Enzafruit New Zealand 100%100%4.6%4.4% 3,579 3,500 52,718 Bayleys 79,550 196 (1,246) 78,500
100%100%4.8%4.7% 14,498 15,374 152,022 317,240 (9,121) (16,969) 291,150
South Island:
15 Artillery Place, Nelson MOVe Logistics 100%100%
5.8%5.8% 590 590 18,052 CBRE 10,250 37 (37) 10,250
8a & 8b Canada Crescent, Christchurch Emergent Cold 100%100%6.5%6.1% 1,357 1,206 9,500 CBRE 19,750 (20,962) 1,212 –
41 & 55 Foremans Road, Christchurch MOVe Logistics 100%100%5.9%5.1% 802 802 14,710 CBRE 15,750 57 (2,107) 13,700
44 Mandeville Street, Christchurch Fletcher Building Products 100%100%7.7%7.5% 969 959 11,154 JLL 12,800 (49) (151) 12,600
11 Sheffield Street, Blenheim MOVe Logistics 100%100%6.7%6.5% 536 536 10,823 CBRE 8,300 36 (336) 8,000
100%100%9.5%6.1% 4,254 4,093 64,239 66,850 (20,881) (1,419) 44,550
Investment properties – subtotal100%100%4.6%4.4% 98,274 95,588 930,453 2,158,190 (6,080) (56,735) 2,095,375
Development land:
232 Cavendish Drive, Manukau
JLL 750 75 – 825
Development land – subtotal 750 75 – 825
Investment properties – total 2,158,940 (6,005)(56,735) 2,096,200
1 Included in the 2022 balance is a right-of-use asset of $4.13 million (2021: $4.13 million) primarily in relation to a ground lease, representing the value of the land,
with an associated immaterial lease liability.
2. PROPERTY(continued)
2.1. Investment properties (continued)
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
62
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

ALL VALUES IN $000S UNLESS NOTEDKey tenant Occupancy (%)Yield on valuation (%)Contract rent
Lettable
area (sqm) Valuer
Carrying
value
Capital
movements
Fair value
adjustment
Carrying
value
2022202220212022202120222021202220222021202220222022
North Island (outside Auckland):
39 Edmundson Street, Napier MOVe Logistics 100%100%
– 5.3% – 247 – – 4,640 (4,640) – –
20 Constance Street, New Plymouth Aviagen 100%100% – 13.5% – 415 – – 3,075 (4,348) 1,273 –
330 Devon Street East, New Plymouth MOVe Logistics 100%100% – 5.2% – 122 – – 2,325 (2,325) – –
124 Hewletts Road, Mt Maunganui RMD Bulk Storage 100%100%4.7%4.1% 3,537 3,418 34,802 JLL 83,500 1 (7,501) 76,000
124a Hewletts Road, Mt Maunganui Ballance Agri-Nutrients 100%100%4.1%3.7% 1,107 1,107 10,497 JLL 29,750 8 (2,658) 27,100
124b Hewletts Road, Mt Maunganui Ballance Agri-Nutrients 100%100%4.5%3.9% 999 935 8,867 JLL 24,100 71 (2,121) 22,050
3 Hocking Street, Mt Maunganui BR & SL Porter 100%100%4.2%4.2% 165 165 1,250 JLL 3,950 (5) (45) 3,900
143 Hutt Park Road, Wellington EBOS 100%100%5.3%5.0% 1,256 1,256 11,372 CBRE 25,100 2 (1,352) 23,750
8 McCormack Place, Wellington Fletcher Building Products 100%100%5.9%5.5% 795 786 6,686 JLL 14,200 18 (668) 13,550
28 Paraite Road, New Plymouth MOVe Logistics 100%100%7.9%7.7% 1,306 1,306 15,636 CBRE 16,900 155 (455) 16,600
48 Seaview Road, Wellington Bridgestone 100%100% – 3.9% – 386 – – – – – –
Shed 22, 23 Cable Street, Wellington
1
Shed 22 Hospo 100%100%6.8%6.7% 940 917 2,809 JLL 13,650 1,644 (1,394) 13,900
2 Smart Road, New Plymouth New Zealand Post 100%100%6.7%6.2% 334 334 2,359 CBRE 5,400 13 (413) 5,000
558 Te Rapa Road, Hamilton DEC Manufacturing 100%100%4.4%4.3% 480 480 5,026 Colliers 11,100 89 (389) 10,800
22 Whakatu Road, Hastings Enzafruit New Zealand 100%100%4.6%4.4% 3,579 3,500 52,718 Bayleys 79,550 196 (1,246) 78,500
100%100%4.8%4.7% 14,498 15,374 152,022 317,240 (9,121) (16,969) 291,150
South Island:
15 Artillery Place, Nelson MOVe Logistics 100%100%
5.8%5.8% 590 590 18,052 CBRE 10,250 37 (37) 10,250
8a & 8b Canada Crescent, Christchurch Emergent Cold 100%100%6.5%6.1% 1,357 1,206 9,500 CBRE 19,750 (20,962) 1,212 –
41 & 55 Foremans Road, Christchurch MOVe Logistics 100%100%5.9%5.1% 802 802 14,710 CBRE 15,750 57 (2,107) 13,700
44 Mandeville Street, Christchurch Fletcher Building Products 100%100%7.7%7.5% 969 959 11,154 JLL 12,800 (49) (151) 12,600
11 Sheffield Street, Blenheim MOVe Logistics 100%100%6.7%6.5% 536 536 10,823 CBRE 8,300 36 (336) 8,000
100%100%9.5%6.1% 4,254 4,093 64,239 66,850 (20,881) (1,419) 44,550
Investment properties – subtotal100%100%4.6%4.4% 98,274 95,588 930,453 2,158,190 (6,080) (56,735) 2,095,375
Development land:
232 Cavendish Drive, Manukau
JLL 750 75 – 825
Development land – subtotal 750 75 – 825
Investment properties – total 2,158,940 (6,005)(56,735) 2,096,200
1 Included in the 2022 balance is a right-of-use asset of $4.13 million (2021: $4.13 million) primarily in relation to a ground lease, representing the value of the land,
with an associated immaterial lease liability.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
63

NOTES 2022
2. PROPERTY(continued)
2.1. Investment properties (continued)
Recognition and Measurement
Investment properties are held to earn rental income and for long-term capital appreciation. After initial recognition on the settlement
date at cost, including directly attributable acquisition costs, investment properties are measured at fair value, on the basis of valuations
made by independent valuers on at least an annual basis. Gains or losses arising from changes in the fair value of investment properties
are included in the Consolidated Statement of Comprehensive Income in the year in which they arise.
Subsequent expenditure is charged to the asset’s carrying amount only when it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can be measured reliably.
The fair value of investment property reflects the Directors’ assessment of the highest and best use of each property and amongst other
things, rental income from current leases and assumptions about rental income from future leases in light of the current market
conditions. The fair value also reflects the cash outflows that could be expected in respect of the property.
No depreciation or amortisation is provided for on investment properties. However, for tax purposes, depreciation is claimed on building
fit-out and building structure. Deferred tax is recognised to the extent that tax depreciation recovery gain or loss on disposal is calculated
on the fit-out and building structure components separately. See section 5.2 for more details.
Investment properties under construction are carried at cost until it is possible to reliably determine their fair value, from which point they
are carried at fair value less costs to complete.
Gains or losses on the disposal of investment properties are recognised in the Consolidated Statement of Comprehensive Income in the
period in which the investment properties are derecognised when they have been disposed.
Borrowing costs are capitalised if they are directly attributable to the acquisition or construction of a qualifying property. Capitalisation of
borrowing costs commences when the activities to prepare the asset are in progress and expenditures and borrowing costs are being incurred.
Capitalisation of borrowing costs will continue until the asset is substantially ready for its intended use. The rate at which borrowing costs are
capitalised is determined by reference to the weighted average borrowing costs of the Group and the average level of borrowings by the Group.
Key estimates and assumptions: Investment properties and the impact of the COVID-19 pandemic
The fair value of investment properties are determined from valuations prepared by independent valuers.
All investment properties were valued as at 31 December 2022 by Bayleys Valuation Limited (Bayleys), CB Richard Ellis (CBRE), Colliers
International (Colliers), JLL or Savills. Bayleys, CBRE, Colliers, JLL and Savills are independent valuers and members of the New Zealand
Institute of Valuers.
All investment properties were valued as at 31 December 2021 (with the exception of 32 Honan Place, Avondale which was independently
valued as at 22 October 2021 by Jones Lang LaSalle (JLL), 520 Rosebank Road, Avondale which was independently valued as at
26 October 2021 by Savills and 22 Whakatu Road, Hastings which was independently valued as at 28 October 2021 by Bayleys, as part
of the acquisitions. These valuations remained the best estimate of fair value as at 31 December 2021).
PFI’s investment property valuation policy notes that: PFI will not use the same independent valuer for a property for more than three
consecutive year end valuations, however, in 2022 the Group made an exemption to this policy for four properties (2021: seven properties).
This exemption was made for two reasons: first, in order for certain properties adjacent to each other, for example, the Company’s Neilson
Street properties, to be valued by the same valuer, and second, to allocate the Company’s portfolio more evenly across the valuers.
As part of the valuation process, the Group’s management verifies all major inputs to the independent valuation reports, assesses
movements in individual property values and holds discussions with the independent valuers.
The fair value was determined using Level 3 valuation techniques via a combination of the following approaches:
• Direct Capitalisation: The subject property rental is divided by a market derived capitalisation rate to assess the market value of the asset.
Further adjustments are then made to the market value to reflect under or over renting, additional revenue and required capital expenditure.
• Discounted Cash Flow: Discounted cash flow projections for the subject property are based on estimates of future cash flows, supported
by the terms of any existing lease and by external evidence such as market rents for similar properties in the same location and condition,
and using discount rates that reflect current market assessments of the uncertainty in the amount and timing of the cash flows.
Below are the significant inputs used in the valuations, together with the impact on the fair value of a change in the inputs:
RANGE OF SIGNIFICANT
UNOBSERVABLE INPUTSMEASUREMENT SENSITIVITY
20222021Increase in inputDecrease in input
Market capitalisation rate (%)
1
3.25 – 7.75 3.48 – 7.50 Decrease Increase
Market rental ($ per sqm)
2
31 – 335 28 – 286 Increase Decrease
Discount rate (%)
3
5.50 – 9.00 5.50 – 9.00 Decrease Increase
Rental growth rate (%)
4
1.00 – 3.05 1.62 – 2.99 Increase Decrease
Terminal capitalisation rate (%)
5
3.50 – 8.25 3.62 – 7.75 Decrease Increase
1. The capitalisation rate applied to the market rental to assess a property’s value, determined through analysis of similar transactions taking into account location, weighted
average lease term, tenant covenant, size and quality of the property.
2. The valuers assessment of the net market income which a property is expected to achieve under a new arm’s length leasing transaction. Includes both leased and vacant areas.
3. The rate applied to future cash flows reflecting transactional evidence from similar properties.
4. The rate applied to the market rental over the future cash flow projection.
5. The rate used to assess the terminal value of the property.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
64
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

The estimated sensitivity of the fair value of investment property to changes in the market capitalisation rate (under the Direct
Capitalisation valuation approach) and discount rate (under the Discounted Cash Flows valuation approach) is set out in the table below:
ALL VALUES IN $000S
Fair valueMarket capitalisation rate Discount rate
2022+ 0.25% – 0.25%+ 0.25% – 0.25%
Valuation 2,096,200
Change (99,000) 109,000 (74,000) 80,000
Change (%)(5%)5%(4%)4%
ALL VALUES IN $000S
Fair valueMarket capitalisation rateDiscount rate
2021 + 0.25% – 0.25%+ 0.25% – 0.25%
Valuation 2,158,940
Change (115,000) 129,000 (85,000) 92,000
Change (%)(5%)6%(4%)4%
Generally, a change in the assumption made for the adopted market capitalisation rate is accompanied by a directionally similar change
in the adopted terminal capitalisation rate. The adopted market capitalisation rate forms part of the direct capitalisation approach and the
adopted terminal capitalisation rate forms part of the discounted cash flow approach. Both valuation methodologies are considered when
determining an investment property’s fair value.
When calculating the direct capitalisation approach, the market rental has a strong interrelationship with the adopted market
capitalisation rate given the methodology involves assessing the total market rental income receivable from the property and capitalising
this in perpetuity to derive a capital value. In theory, an increase in the market rent and an increase in the adopted market capitalisation
rate could potentially offset the impact to the fair value. The same can be said for a decrease in the market rent and a decrease in the
adopted market capitalisation rate. A directionally opposite change in the market rent and the adopted market capitalisation rate could
potentially magnify the impact to the fair value.
When assessing a discounted cash flow, the adopted discount rate and adopted terminal capitalisation rate have a strong
interrelationship in deriving a fair value given the discount rate will determine the rate at which the terminal value is discounted to
the present value. In theory, an increase in the adopted discount rate and a decrease in the adopted terminal capitalisation rate could
potentially offset the impact to the fair value. The same can be said for a decrease in the discount rate and an increase in the adopted
terminal capitalisation rate. A directionally similar change in the adopted discount rate and the adopted terminal capitalisation rate
could potentially magnify the impact to the fair value.
The impact of the COVID-19 pandemic
In the prior year, the valuers had noted that, there was no evidence of a shift in market sentiment to suggest any material change
in commercial property values resulting from the changes in the Government-directed Alert Levels and Traffic Light Settings in
and around that date. The valuers did not comment on the impact of the COVID-19 pandemic as at 31 December 2022.
The impact of climate change
The Group continues to assess the impact of climate change on the business and assets. The valuers have considered the impact but
have made no explicit adjustments in respect of climate change matters. However, the Group and valuers anticipate that climate change
could have a greater influence on valuations in the future as investment markets place a greater emphasis on this topic.
2. PROPERTY(continued)
2.1. Investment properties (continued)
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
65

NOTES 2022
2. PROPERTY(continued)
2.2. Non-current assets classified as held for sale
Key estimates and assumptions: Non-current assets classified as held for sale
Non-current assets classified as held for sale comprises investment properties actively marketed for sale. The carrying value of the
property is the contracted sale price or the most recent valuation if the investment property is not contracted for sale.
ALL VALUES IN $000S20222021
48 Seaview Road, Wellington – 10,000
8a & 8b Canada Crescent, Christchurch
1
21,000 –
Total non-current assets classified as held for sale 21,000 10,000
1. A revaluation gain of $1,211,767 was recorded when revaluing 8a & 8b Canada Crescent based on the actual contracted sales price of $21,000,000 (2021: A revaluation
gain of $977,000 was recorded when revaluing 48 Seaview Road based on the actual contracted sales price of $10,000,000).
2.3. Rental and management fee income
ALL VALUES IN $000S20222021
Gross rental receipts 95,208 92,271
Service charge income recovered from tenants 14,520 13,647
Fixed rental income adjustments 942 1,417
Capitalised lease incentive adjustments (580) 240
Impact of rental income deferred and abated due to the COVID-19 pandemic 77 366
Management fee income 742 712
Total rental and management fee income 110,909 108,653
Recognition and Measurement
Rental income from investment properties is recognised in the Consolidated Statement of Comprehensive Income on a straight line basis
over the term of the lease. Fixed rental income adjustments are accounted for to achieve straight-line income recognition. Lease incentives
are capitalised to investment properties in the Consolidated Statement of Financial Position and amortised on a straight line basis in the
Consolidated Statement of Comprehensive Income over the length of the lease to which they relate, as a reduction to rental income.
Rental abatements are usually offered by a landlord as an incentive for tenants to sign longer lease terms. However in this period
rental abatements were also offered to assist tenants struggling due to the impact of the COVID-19 pandemic. Rental abatements
are accounted for as a lease modification under NZ IFRS 16 ‘Leases’ and the expense is spread over the remaining life of the lease,
effectively accounted for as a lease incentive.
Management fee income is recognised in the Consolidated Statement of Comprehensive Income in the period in which the services
are rendered.
Income generated from service charges recovered from tenants are included in the gross rental income with the service charge
expenses to tenants shown in Property costs. Such revenue is recognised in the accounting period the underlying expenses are
incurred in accordance with the contractual terms.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
66
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

2. PROPERTY (continued)
2.3. Rental and management fee income (continued)
Future minimum rentals receivable under non-cancellable operating leases are as follows:
ALL VALUES IN $000S20222021
Within one year 85,961 84,987
After one year but not more than five years 229,997 223,829
More than five years 104,476 138,830
Total 420,434 447,646
2.4. Property costs
ALL VALUES IN $000S20222021
Service charge expenses (14,893) (13,898)
Bad and doubtful debts recovery / (expense)
2
– 155
Other non-recoverable property costs (2,705) (3,010)
Total property costs (17,598) (16,753)
2. Included in the 2021 balance is $(90,000) specifically relating to COVID-19 rent deferrals provided and NIL relating to tenants adversely affected by the COVID-19 pandemic.
Other non-recoverable costs represents property maintenance not recoverable from tenants, property valuation fees and property leasing costs.
2.5. Net rental income
ALL VALUES IN $000S20222021
Gross rental receipts 95,208 92,271
Service charge income recovered from tenants 14,520 13,647
Fixed rental income adjustments 942 1,417
Capitalised lease incentive adjustments (580) 240
Impact of rental income deferred and abated due to the COVID-19 pandemic 77 366
less: Service charge expenses (14,893) (13,898)
Net rental income 95,274 94,043
2.6. Insurance income
On 21 April 2019, 314 Neilson Street, Penrose sustained fire damage. The fire has resulted in a business interruption (loss of rents) claim and
a material damage claim. The insurance income relating to business interruption and to material damage is presented in the Consolidated
Statement of Comprehensive Income. All insurance proceeds were received as at 31 December 2021.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
67

NOTES 2022
IN THIS SECTION
This section outlines how the Group manages its capital structure, financing costs and exposure to interest rate risk.
3.1. Borrowings
(i) Net borrowings
ALL VALUES IN $000S20222021
Bilateral CBA bank facility drawn down – non-current 125,000 125,000
Syndicated bank facility drawn down – non-current 278,704 276,237
Fixed rate bonds – non-current 200,000 200,000
Unamortised borrowings establishment costs (2,181) (2,584)
Net borrowings 601,523 598,653
Weighted average interest rate for drawn debt (inclusive of current interest rate swaps,
margins and line fees)4.77%3.81%
Weighted average term to maturity (years) 3.01 3.87
Recognition and Measurement
All borrowings are initially measured at fair value, plus directly attributable transaction costs, and subsequently measured at amortised
cost using the effective interest rate method. Under this method, directly attributable fees and costs are capitalised and spread over the
expected life of the facility. All other interest costs and bank fees are expensed in the period they are incurred.
(ii) Composition of borrowings
ALL VALUES IN $000S
As at 31 December 2022Issue DateMaturity DateInterest Rate
Facility drawn /
amount
Undrawn
facilityFair Value
Syndicated Bank Facility C-2-Jul-24Floating 100,000 100,000
PFI01028-Nov-1728-Nov-244.59% 100,000 – 97,354
Syndicated Bank Facility A-2-Jul-25Floating 150,000 – 150,000
PFI0201-Oct-181-Oct-254.25% 100,000 – 96,395
Syndicated Bank Facility B-2-Jul-26Floating 28,705 121,295 28,705
Bilateral CBA Bank Facility-16-Apr-28Floating 125,000 – 125,000
Total borrowings 603,705 121,295 597,454
ALL VALUES IN $000S
AS AT 31 DECEMBER 2021
Issue DateMaturity DateInterest Rate
Facility drawn /
amount
Undrawn
facilityFair Value
Syndicated Bank Facility C-2-Jul-23Floating 100,000 100,000
PFI01028-Nov-1728-Nov-244.59% 100,000 – 103,803
Syndicated Bank Facility A-2-Jul-25Floating 150,000 – 150,000
PFI0201-Oct-181-Oct-254.25% 100,000 – 103,159
Syndicated Bank Facility B-2-Jul-26Floating 26,237 123,763 26,237
Bilateral CBA Bank Facility-16-Apr-28Floating 125,000 – 125,000
Total borrowings 601,237 123,763 608,199
The Group has long-term revolving facilities (A and B) with a banking syndicate comprising ANZ Bank New Zealand Limited (ANZ), Bank of
New Zealand (BNZ), Commonwealth Bank of Australia (CBA) and Westpac New Zealand Limited (Westpac) (each providing $75,000,000),
for $300,000,000. BNZ provides the Group with a further $100 million facility (C). Finally, the Group has a long-term bilateral facility with
CBA, providing $125,000,000. The carrying values of the bank facilities approximate the fair value of the facilities because the loans have
floating rates of interest that reset every 30-90 days.
3. FuNDING
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
68
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

The fair value of the fixed rate bonds is based on their listed market prices at balance date and is classified as Level 1 in the fair value
hierarchy (2021: Level 1). Interest on the PFI010 Bonds is payable quarterly in February, May, August and November in equal instalments,
while interest on the PFI020 Bonds is payable quarterly in January, April, July and October; also in equal instalments. Both bonds are listed
on the NZDX.
(iii) Security
The bank facilities and fixed rate bonds are secured by way of a security trust deed and registered mortgage security which is required to be
provided over Group properties with current valuations of at least $1,450,000,000 (31 December 2021: $1,450,000,000). In addition to this,
the bank facility agreements and the fixed rate bond terms also contain a negative pledge. The Company and PFI No. 1 are guarantors to the
facility and fixed rate bonds. As at 31 December 2022, investment properties totalling $2,115,950,000 (31 December 2021: $2,168,615,000)
were mortgaged as security for the Group’s borrowings.
3.2. Derivative financial instruments
(i) Fair values
ALL VALUES IN $000S20222021
Current asset 287 –
Non-current assets 35,355 11,623
Current liabilities – (710)
Non-current liabilities (10,801) (4,608)
Total 24,841 6,305
(ii) Notional values, maturities and interest rates
20222021
Notional value of interest rate swaps – fixed rate payer – start dates commenced ($000s) 390,000 400,000
Notional value of interest rate swaps – fixed rate receiver
1
– start dates commenced ($000s) 200,000 200,000
Notional value of interest rate swaps – fixed rate payer – forward starting ($000s) 60,000 120,000
Total ($000s) 650,000 720,000
Percentage of borrowings fixed (%)65%67%
Fixed rate payer swaps:
Average period to expiry – start dates commenced (years) 3.06 3.66
Average period to expiry – forward starting (years from commencement) 4.33 4.09
Average (years) 3.40 3.76
Fixed rate payer swaps:
Average interest rate
2
– start dates commenced (%)2.44%2.58%
Average interest rate
2
– forward starting (% during effective period)2.75%2.69%
Average (%)2.48%2.61%
1. The Group has $200 million fixed rate receiver swaps for the duration of the two $100 million fixed rate bonds, the effect of the fixed rate receiver swaps is to convert
the two $100 million fixed rate bonds to floating interest rates.
2. Excluding margin and fees.
(iii) Movement in fair value of derivative financial instruments
ALL VALUES IN $000S20222021
Interest rate swaps 18,536 12,271
Total movement in fair value of derivative financial instruments 18,536 12,271
3. FuNDING (continued)
3.1. Borrowings (continued)
(ii) Composition of borrowings (continued)
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
69

NOTES 2022
Recognition and Measurement
The Group is exposed to changes in interest rates and uses derivative financial instruments, principally interest rate swaps, to mitigate this
risk. The Group does not apply hedge accounting. Derivative financial instruments are entered into to economically hedge the risk exposure.
Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and
are subsequently re-measured to fair value at each reporting date. Transaction costs are expensed on initial recognition and recognised
in the Consolidated Statement of Comprehensive Income. The fair value of derivative financial instruments is based on valuations
prepared by independent treasury advisers and is the estimated amount that the Group would receive or pay to terminate the derivative
contract at reporting date, taking into account current interest rates and creditworthiness of the derivative contract counterparties.
Key estimates and assumptions: Derivatives
The fair values of derivative financial instruments are determined from valuations prepared by independent treasury advisers using Level
2 valuation techniques (2021: Level 2). These are based on the present value of estimated future cash flows accounting for the terms and
maturity of each contract and the current market interest rates at reporting date. Fair values also reflect the current creditworthiness
of the derivative counterparty. These values are verified against valuations prepared by the respective counterparties. The valuations
were based on market rates at 31 December 2022 of between 4.65% for the 90 day BKBM (31 December 2021: 0.97%) and 4.80% for
the 10 year swap rate (31 December 2021: 2.65%). There were no changes to these valuation techniques during the reporting period.
4. INVESTOR RETuRNS AND INVESTMENT METRICS
IN THIS SECTION
This section summarises the earnings per share and net tangible assets per share which are common investment metrics.
4.1. Earnings per share
(i) Basic earnings per share
20222021
Total comprehensive income for the year attributable to the shareholders of the Company ($000s) (13,944) 452,810
Weighted average number of ordinary shares (shares) 517,366,785 503,301,662
Basic earnings per share (cents) (2.70) 89.97
(ii) Diluted earnings per share
The calculation of diluted earnings per share has been based on the profit attributable to ordinary shareholders and weighted-average number of
ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares. Weighted average number of shares for the
purpose of diluted earnings per share has been adjusted for 44,503 (2021: 44,503) rights issued under the Group’s LTI Plan as at 31 December
2022. This adjustment has been calculated using the treasury share method. Refer to note 5.9 “Share-based payments” for further details.
20222021
Total comprehensive income for the year attributable to the shareholders of the Company ($000s) (13,944) 452,810
Weighted average number of shares for purpose of diluted earnings per share (shares) 517,395,860 503,346,165
Diluted earnings per share (cents) (2.70) 89.96
4.2. Net tangible assets per share
20222021
Net assets ($000s) 1,500,338 1,562,662
Less: Goodwill ($000s) (note 5.5) – (29,086)
Net tangible assets ($000s) 1,500,338 1,533,576
Closing shares on issue (shares) 502,050,524 505,493,668
Net tangible assets per share (cents) 299 303
3. FuNDING (continued)
3.2. Derivative financial instruments (continued)
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
70
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

5. OTHER
IN THIS SECTION
This section includes additional information that is considered less significant in understanding of the financial performance and position
of the Group, but is disclosed to comply with New Zealand Equivalents to International Financial Reporting Standards.
5.1. Administrative expenses
ALL VALUES IN $000SNOTE20222021
Auditors remuneration
1
Audit and review of financial statements (255) (200)
Provide market remuneration data and other services (9) (1)
Employee benefits (4,574) (4,065)
Directors’ fees5.8 (596) (547)
Office expenses (1,020) (730)
IT – licence fees and support (189) (8)
IT – implementation costs(129) (712)
Depreciation (190) (181)
Other expenses (1,278) (1,021)
Facilities management project (268) –
Total administrative expenses (8,508) (7,465)
1. In December 2021, PwC were engaged to provide market remuneration data relating to executive levels for a fee of $8,000. This engagement was delivered in the FY2022
financial year.
5.2. Taxation
(i) Reconciliation of accounting (loss)/profit before income tax to income tax expense
ALL VALUES IN $000S20222021
(Loss)/profit before income tax (6,533) 472,827
Prima facie income tax calculated at 28% 1,829 (132,392)
Adjusted for:
Non-tax deductible revenue and expenses (30) 228
Fair value (loss) / gain on investment properties (15,886) 109,905
Gain on disposal of investment properties 161 738
Goodwill impairment (8,144) –
Depreciation 5,834 4,917
Disposal of depreciable assets (434) 645
Deductible capital expenditure 1,030 1,106
Lease incentives, fees and fixed rental income 212 185
Derivative financial instruments 5,148 3,436
Impairment gains / (allowance) – 126
Current tax prior period adjustment (246) 157
Other 1 344
Current taxation expense (10,525) (10,605)
Depreciation 8,585 (5,715)
Lease incentives, fees and fixed rental income (212) (185)
Derivative financial instruments (5,148) (3,436)
Impairment (allowance) / gains – (126)
Other (111) 50
Deferred taxation benefit/(expense) 3,114 (9,412)
Total taxation reported in Consolidated Statement of Comprehensive Income (7,411) (20,017)
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
71

NOTES 2022
5. OTHER (continued)
5.2. Taxation (continued)
(ii) Deferred tax
20202021202120222022
ALL VALUES IN $000SAs at
Recognised
in profit As at
Recognised
in profit As at
Deferred tax assets
Impairment allowance (126) 126 – – –
Other (60) (203) (263) 90 (172)
Gross deferred tax assets (186) (77) (263) 90 (172)
Deferred tax liabilities
Investment properties 27,017 5,900 32,917 (8,373) 24,543
Derivative financial instruments (1,671) 3,436 1,765 5,148 6,913
Gross deferred tax liabilities 25,346 9,336 34,682 (3,225) 31,456
Share-based payment reserve – 153 – 21 –
Net deferred tax liability 25,160 9,412 34,419 (3,114) 31,284
(iii) Imputation credit account
The amounts below represent the balance of the imputation credit account as at the end of the reporting period, adjusted for imputation
credits that will arise from the payment of taxation payable represented in the Consolidated Statement of Financial Position.
ALL VALUES IN $000S20222021
Opening balance1,2642,577
Taxation paid / payable 10,379 10,343
Imputation credits attached to dividends paid(9,344) (11,656)
Closing balance available to shareholders for use in subsequent periods2,299 1,264
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
72
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

5. OTHER (continued)
5.2. Taxation (continued)
(iii) Imputation credit account (continued)
Recognition and Measurement
The Company and Group are a listed Portfolio Investment Entity (PIE) for the purposes of the Income Tax Act 2007. Tax is accounted for
on a consolidated Group basis and the Group is required to pay tax to the Inland Revenue as required by the Income Tax Act 2007. Income
tax expense comprises current and deferred tax and is recognised in the Consolidated Statement of Comprehensive Income for the year.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the
reporting date, and any adjustment to tax payable in respect of previous years. Deferred tax is provided for temporary differences
between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is recognised on all temporary differences, including:
• The tax liability arising from accumulated depreciation claimed on investment properties, where applicable;
• The tax asset arising from the allowance for impairment;
• The tax liability arising from certain prepayments and other assets; and
• The tax asset / liability arising from the unrealised gains / losses on the revaluation of interest rate swaps.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on
the laws that have been enacted or substantively enacted by the reporting date. Deferred tax is not recognised for:
• Temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and
that affects neither accounting nor taxable profit or loss;
• Temporary differences relating to investments in subsidiaries to the extent that it is probable that they will not reverse in the
foreseeable future; and
• Taxable temporary differences arising on the initial recognition of goodwill.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they
relate to income taxes levied by the same tax authority on the same taxable entity, or on different entities, but they intend to settle
current tax assets and liabilities on a net basis.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary
differences can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer
probable that the related tax benefit will be realised.
Additional income tax arising from distribution of dividends is recognised at the same time as the liability to pay the dividend
is recognised.
Key estimates and assumptions: Deferred tax
Investment properties are valued each year by independent valuers (as outlined in note 2.1). These values include an allocation of
the valuation between the land and building components. The calculation of deferred tax on depreciation recovered places reliance
on the land and building split in the valuation provided by the valuers. The building value is then split between fit-out and structure
based on the proportion of the tax book values of each.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
73

NOTES 2022
5. OTHER (continued)
5.3. Accounts receivable, prepayments and other assets
ALL VALUES IN $000S20222021
Accounts receivable 1,972 1,834
Provision for doubtful debts – –
Prepayments and other assets 2,946 3,325
Deposit paid for the acquisition of 318 Neilson Street – 683
Total accounts receivable, prepayments and other assets 4,918 5,842
Recognition and Measurement
Accounts receivable are recognised at fair value and subsequently measured at amortised cost using the effective interest rate method.
Receivables are assessed on an ongoing basis for impairment. The group applies the simplified approach to providing for expected credit
losses prescribed by NZ IFRS 9 ‘Financial Instruments’, which permits the use of lifetime expected loss provision for all trade receivables.
5.4. Accounts payable, accruals and other liabilities
ALL VALUES IN $000S20222021
Accounts payable 3,348 1,570
Accrued interest expense and bank fees 3,468 2,827
Accruals and other liabilities in respect of investment properties 2,349 2,242
Accruals and other liabilities 4,562 5,705
Total accounts payable, accruals and other liabilities 13,727 12,344
Recognition and Measurement
Expenses are recognised on an accruals basis and, if not paid at the end of the reporting period, are reflected as a payable in the
Consolidated Statement of Financial Position.
5.5. Goodwill
ALL VALUES IN $000S20222021
Opening balance 29,086 29,086
Impairment loss (29,086)
Closing balance – 29,086
On 30 June 2022 (being the last interim reporting period for the Group), the market value of the Group, based on the quoted market price,
was below the value net assets of the Group. PFI, with the assistance of an independent expert, assessed whether objective evidence of
impairment of goodwill exists, the outcome of which was that an impairment test has been performed. PFI estimated the recoverable
amount by performing fair value less costs of disposal (FVLCOD) and value in use valuation approaches. PFI estimated the recoverable
amount of the Property for Industry Limited CGU using FVLCOD (as the higher of the two valuation approaches), resulting in an impairment
loss of $29.086 million (2021: $NIL) against the carrying amount of goodwill. Once goodwill is impaired, it cannot be reversed.
As at 31 December 2022, the market value of the Group had further declined with the market price reported at $2.30 per share.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
74
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

5. OTHER (continued)
5.5. Goodwill (continued)
Recognition and Measurement
Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration transferred over the fair value of the
identifiable net assets acquired.
Goodwill is measured at cost less accumulated impairment losses. It is tested annually for impairment or more frequently if events
or changes in circumstances indicate potential impairment. An impairment loss is recognised if the carrying amount exceeds the
estimated recoverable amount. Impairment losses are recognised in the Consolidated Statement of Comprehensive Income.
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use
that are largely independent of the cash inflows of other assets or CGUs. PFI have identified one CGU, representing the entire Group.
To assess whether goodwill is impaired, the carrying amount of the CGU is compared to the recoverable amount, determined based on
the greater of its value in use and its fair value less costs of disposal. Fair value less costs of disposal is the price that would be received
to sell an asset in an orderly transaction between market participants at the measurement date, less the costs of disposal. Value in use
is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset or CGU.
Key estimates and assumptions: Goodwill
All goodwill relates to the Property for Industry Limited CGU.
The fair value of the Property for Industry Limited CGU for goodwill impairment testing is determined using Level 3 valuation techniques
(2021: Level 3). Fair value less costs of disposal is measured by calculating the fair value of the Property for Industry Limited CGU using
a 1 day volume-weighted average share price of $2.44 as at 30 June 2022, applying a control premium (15.2%, as determined by a third
party advisor as at 30 June 2022, 2021: 15.8%) and deducting costs of disposal. In performing a sensitivity analysis a control premium
range of between 15-20% (as determined by a third party advisor as at 30 June 2022 and based on observable premiums) has been used.
When a fair value less cost of disposal is estimated, critical judgements and estimates are made in relation to the appropriate premium
in assessing fair value of investment as a whole.
The recoverable amount was based on the fair value less costs of disposal. Due to significant decline in market value, the carrying
amount of Property for Industry Limited CGU was determined to be higher than its recoverable amount and an impairment loss of
$29.086 million was recognised against goodwill. Based on the 1 day volume-weighted average share price as at 31 December 2022
($2.30), the market capitalisation of the Group is less than the net assets of the Group at that date. All other assets have been assessed
for impairment and it has been determined that they are held at fair value with no impairment necessary.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
75

NOTES 2022
5. OTHER (continued)
5.6. Financial instruments
The following financial assets and liabilities, that potentially subject the Group to financial risk, have been recognised in the
financial statements:
ALL VALUES IN $000S20222021
Financial assets
Financial assets at amortised cost:
Cash at bank 1,332 1,103
Accounts receivable and other assets 1,972 1,834
Total – Financial assets at amortised cost 3,304 2,937
Financial assets at fair value through profit or loss:
Derivative financial instruments 35,642 11,623
Total – Financial assets at fair value through profit or loss 35,642 11,623
Total Financial Assets 38,946 14,560
Financial Liabilities
Financial liabilities at amortised cost:
Accounts payable, accruals and other liabilities 13,450 12,072
Lease liabilities 2,112 53
Borrowings 601,523 598,653
Total – Financial liabilities at amortised cost 617,085 610,778
Financial liabilities at fair value through profit or loss:
Derivative financial instruments 10,801 5,318
Total – Financial liabilities at fair value through profit or loss 10,801 5,318
Total Financial Liabilities 627,886 616,096
5.7. Financial risk management
The Group’s activities expose it to a variety of financial risks, including interest rate risk, credit risk and liquidity risk. The Group’s overall financial
risk management strategy focuses on minimising the potential negative economic impact of unpredictable events on its financial performance.
(a) Interest rate risk
The Group’s exposure to the risk of changes in interest rates relates primarily to the Group’s borrowings with a floating interest rate.
The Group has an interest rate hedging policy which has been reviewed by an external firm with expertise in this area. The policy calls
for a band of the Group’s borrowings to be at fixed interest rates, with a greater proportion of the near term to be fixed and a lesser
percentage of the far dated to be fixed.
The Group uses derivative financial instruments, principally fixed rate payer interest rate swaps, to exchange its floating short-term
interest rate exposure for fixed long-term interest rate exposure in accordance with its policy bands. As the Group holds derivative financial
instruments, there is a risk that their fair value will fluctuate because of underlying changes in market interest rates. This is accepted as
a by-product of the Group’s interest rate hedging policy, however this risk is partially mitigated by the Group’s holding of fixed rate receiver
interest rate swaps. The fair value of derivative financial instruments is disclosed in the Consolidated Statement of Financial Position
(refer to note 3.2).
The following sensitivity analysis shows the effect on (loss)/profit before tax and equity if interest rates at balance date had been 50 basis
points (0.50%) higher or lower with all other variables held constant.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
76
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

5. OTHER (continued)
5.7. Financial risk management (continued)
20222021
ALL VALUES IN $000S
Gain/(loss) on
increase of
0.50%
Gain/(loss) on
decrease of
0.50%
Gain/(loss) on
increase of
0.50%
Gain/(loss) on
decrease of
0.50%
Impact on profit before tax 1,726 (1,679) 3,374 (3,670)
Impact on equity 1,243 (1,209) 2,429 (2,642)
(b) Credit risk
Credit risk represents the risk that the counterparty to a financial instrument will fail to discharge its obligations and the Group will suffer
financial loss as a result. Financial instruments which potentially subject the Group to credit risk consist of cash and cash equivalents,
accounts receivable and other assets and interest rate swap agreements.
With respect to the credit risk arising from cash and cash equivalents, there is limited credit risk as cash is deposited with ANZ Bank
New Zealand Limited, a registered bank in New Zealand with a credit rating of AA– (Standard & Poor’s). The Group considers both historical
analysis and forward-looking information in determining any expected credit loss, and infers from this strong credit rating that no loss
allowance is deemed necessary.
With respect to the credit risk arising from accounts receivable, the Group only enters into lease arrangements over its investment
properties with parties whom the Group assesses to be creditworthy. It is the Group’s policy to subject all potential tenants to credit
verification procedures and monitor accounts receivable balances. As the Group has a wide spread of tenants over many industry sectors,
it is not exposed to any significant concentration of credit risk. Credit risk does not arise on property sale proceeds to be settled as title will
not transfer until settlement.
With respect to the credit risk arising from interest rate swap agreements, there is limited credit risk as all counterparties are registered
banks in New Zealand. The credit ratings of these banks are all AA– (Standard & Poor’s).
The carrying amount of financial assets as per note 5.6 approximates the Groups maximum exposure to credit risk. For certain receivables
the Group holds bank guarantees, parent company guarantees or personal guarantees.
(c) Liquidity risk
Liquidity risk is the risk that the Group will experience difficulty in either realising assets or otherwise raising sufficient funds to meet its
obligations arising from its financial liabilities.
The Group manages its liquidity risk by ensuring that it has committed funding facilities at a minimum of 105% of the projected peak debt
level over the next twelve months (excluding business acquisitions).
The maturities of the Group’s borrowings based on the remaining period is 3.0 years (2021: 3.9 years), with all borrowings due later than one
year (2021: later than one year). Further details of the Group’s borrowings, including the maturities of the Group’s borrowings, are disclosed
in note 3.1.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
77

NOTES 2022
5. OTHER (continued)
5.7. Financial risk management (continued)
The table below analyses the contractual undiscounted cash flows of the Group’s financial liabilities (principal and interest) by the relevant
maturity groupings based on the remaining period as at 31 December 2022 and 31 December 2021.
ALL VALUES IN $000S
Carrying
amount
Contractual cash flows
Total 0 – 1 year1 – 2 years 2 – 5 years > 5 years
Financial liabilities
Accounts payable, accruals and other liabilities 13,450 13,450 – – – 13,450
Lease liabilities 2,112 79 2361,1586922,165
Derivative financial instruments
1
(24,841) (5,978) (5,045) (14,386) (3,833) (29,242)
Borrowings 601,523 35,231 231,983 298,008 127,130 692,352
Total as at 31 December 2022 592,244 42,782 227,174 284,780 123,989 678,725
Accounts payable, accruals and other liabilities 12,072 12,072 – – – 12,072
Lease liabilities 53 101 53 – – 154
Derivative financial instruments
1
(6,305) 1,521 (1,149) (5,488) (1,635) (6,751)
Borrowings 598,653 15,161 113,810 393,941 128,855 651,767
Total as at 31 December 2021 604,473 28,855 112,714 388,453 127,220 657,242
1. The carrying amount of derivative financial instruments shown is the net position of both derivative financial instrument assets and derivative financial instrument
liabilities.
(d) Capital risk management
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern whilst maximising the
return to shareholders through maintaining an optimal balance of debt and equity to optimise the cost of capital. In order to maintain
or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders,
issue new shares, buy back shares, or sell assets to reduce debt.
The Group’s capital structure includes borrowings and shareholders’ equity. The Group monitors capital on the basis of the loan to value
ratio and borrowing covenant compliance. The loan to value ratio is calculated as borrowings divided by investment properties. The Group’s
strategy is to maintain a loan to value ratio of no more than 40%. The covenants on all borrowings require a loan to value ratio of no more
than 50%, and this was complied with during the year.
The Group operates a Dividend Reinvestment Scheme (DRS) which allows eligible shareholders to reinvest dividends in shares. The Board,
at its sole discretion, may suspend the DRS at any time and/or apply a discount to which shares are issued under the DRS.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
78
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

5. OTHER (continued)
5.8. Related party transactions
(i) Key management personnel
ALL VALUES IN $000S20222021
Directors’ fees – annual fees
2
596 547
Leadership Team remuneration 2,502 2,452
key management personnel 3,098 2,999
2. In 2022, there were changes to the composition of the Board of Directors of the Group, with the appointment of a Carolyn Steele as an independent director and a
member of the Audit and Risk Committee effective from 22 August 2022 and the retirement of Susan Peterson on 15 December 2022.
(ii) Other related party transactions
The Group also has related party relationships with the following parties:
Related partyAbbreviationNature of relationship(s)
The Board of DirectorsDirectorsThe Board of Directors
The following transactions with related parties took place:
ALL VALUES IN $000SRelated party31 Dec 202231 Dec 2021
Shares held beneficially in the companyDirectors 214,367 194,367
Shares held non-beneficially in the companyDirectors – –
No related party debts have been written off or forgiven during the year (2021: NIL).
5.9. Share-based payments
Long-term incentive plan (Equity settled)
The long-term incentive plan (LTI Plan) was introduced for selected senior executives in the Group on 2 December 2019 (“2019 Grant”).
Under this plan, Performance Share Rights (PSRs) were issued to these senior executives which give them the right to receive ordinary
shares in the Group after a 1-3 year period, subject to achieving the performance hurdles outlined below. These are at-risk payments
designed to align the reward of these senior executives with the enhancement of shareholder value over a multi-year period. A second
grant of PSRs (“2020 Grant”) on 17 February 2020, a third grant of PSRs (“2021 Grant”) on 22 February 2021, and a fourth grant of PSRs
(“2022 Grant”) on 21 February 2022 were issued to these senior executives under equivalent conditions to the 2019 Grant.
The key terms and conditions related to the PSRs under the LTI Plan are as follows:
• The PSRs are granted for nil consideration and have a nil exercise price.
• The participant must remain an employee of the Group as at the relevant vesting date for each tranche of PSRs.
• Each grant under the LTI Plan has three tranches with two separate performance hurdles applying to each tranche. The three tranches
enable a third of the PSRs to vest after one year, two years and three years from the service commencement dates of 1 January 2020,
1 January 2021 and 1 January 2022. For each tranche:
–50% of the PSRs are subject to a performance hurdle of the Company’s rolling three year Funds From Operations (FFO) growth
equalling or exceeding the three year CPI growth to September immediately prior to the vesting date (“Part A”); and
–50% of the PSRs are subject to a performance hurdle of the Company’s Total Shareholder Returns (TSR) outperforming the TSR of
a property peer group (comprising other listed property issuers) over the period from the commencement date to the vesting date
for the relevant tranche (“Part B”).
• At vesting, subject to meeting performance hurdles, each PSR is converted to one ordinary share. The LTI Plan is a dividend protected
LTI Plan and the senior executives will receive additional shares representing the value of dividends paid over the vesting period.
The senior executives are liable for tax on the shares received at this point.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
79

NOTES 2022
5. OTHER (continued)
5.9. Share-based payments (continued)
The following table reconciles the opening PSR balance as at 1 January 2022 to the closing PSR balance as at 31 December 2022.
GRANT YEAR
2021 Opening
(PSRs)
2021 Granted
(PSRs)
2021 Vested
(PSRs)
2021 Closing /
2022 Opening
(PSRs)
2022 Granted
(PSRs)
2022 Vested
(PSRs)
2022 Lapsed
(PSRs)
2022 Closing
(PSRs)
2022 – – – 166,910 (41,728) (13,909) 111,273
2021 – 155,174 (51,725) 103,449 – (38,794) (12,931) 51,724
2020 110,186 – (55,093) 55,093 – (41,319) (13,774) –
2019 65,341 – (65,341) – – – –
Total 175,527 155,174 (172,159) 158,542 166,910 (121,841) (40,614) 162,997
The PSRs outstanding at 31 December 2022 had a weighted – average contractual life of 1.34 years (31 December 2021: 1.33 years).
The LTI Plan has resulted in a share-based payment reserve totalling $615,000 as at 31 December 2022 (2021: $751,000).
Fair value measurement of LTI Plan
The fair value of the PSRs have been measured using a Monte Carlo simulation model. Service and non-market performance conditions
were not taken into account in measuring fair value. The TSR performance metric is a market condition and has been factored into the
fair value of the PSRs at grant date. However, the FFO performance metric is a non-market condition and is not factored into the fair value
of the PSRs.
The inputs used in the measurement of the fair values at grant date were as follows.
Performance Share Rights
2022 Grant2021 Grant2020 Grant
Part APart BPart APart BPart APart B
Weighted average fair value at grant date$2.80$1.66$2.88$1.49$2.49$1.18
Share price at grant date$2.80$2.80$2.88$2.88$2.49$2.49
Expected volatility (weighted-average)N/A11.8%N/A21.9%N/A10.3%
Expected life (weighted-average)22 months22 months22 months22 months22 months22 months
Risk-free interest rateN/A2.23%N/A0.30%N/A1.22%
The expected volatility and correlation measures are based on the standard deviation and correlation of weekly returns of the property peer
group, over a three year period.
The risk-free rate was based on government bond yields over a period of 1, 2 and 5 years.
Recognition and Measurement
The PSRs are measured at fair value at grant date and expensed over the period during which the participant becomes unconditionally
entitled to the shares, based on an estimate of shares that will eventually vest. The corresponding entry of the expense is equity. The fair
value of the PSRs which are vested – and the corresponding shares which are issued – are transferred from the share-based payment
reserve to share capital on issue of the shares.
Key estimates and assumptions: Long-term incentive plan
It has been assumed that the selected senior executives will remain employed with the Company on each of the vesting dates and that
the non-market performance conditions will be met.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
80
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

5. OTHER (continued)
5.10. Leases
(i) Amounts recognised in the Consolidated Statement of Financial Position
The Consolidated Statement of Financial Position shows the following amounts relating to leases:
ALL VALUES IN $000S20222021
Right-of-use assets
1
Properties 2,136 140
Total right-of-use assets 2,136 140
1. Included in the line item ‘Property, plant and equipment’ in the Consolidated Statement of Financial Position.
Additions to the right-of-use assets during the 2022 financial year were $2,111,619 (2021: $3,000).
ALL VALUES IN $000S20222021
Lease liabilities
Current
2
53 101
Non-current
3
2,112 53
Total lease liabilities 2,165 154
2. Included in the line item ‘Accounts payable, accruals and other liabilities’ in the Consolidated Statement of Financial Position.
3. Included in the line item ‘Lease liabilities’ in the Consolidated Statement of Financial Position.
(ii) Amounts recognised in the Consolidated Statement of Comprehensive Income
The Consolidated Statement of Comprehensive Income shows the following amounts relating to leases:
ALL VALUES IN $000S20222021
Depreciation charge of right-of-use assets
4
Properties (115) (97)
Total depreciation charge of right-of-use assets (115) (97)
4. Included in the line item ‘Administrative expenses’ in the Consolidated Statement of Comprehensive Income.
ALL VALUES IN $000S20222021
Interest cost
5
(12) (19)
5. Included in the line item ‘Interest expense and bank fees’ in the Consolidated Statement of Comprehensive Income.
The total cash outflow for leases in 2022 was $114,000 (2021: $112,000).
5.11. Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The
chief operating decision-maker has been identified as the Board of Directors. The Group is internally reported as a single operating segment
to the chief operating decision-maker.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
81

NOTES 2022
5. OTHER (continued)
5.12. Capital commitments
As at 31 December 2022, the Group had capital commitments totalling $145,581,000 (31 December 2021: $4,875,000) as follows:
ALL VALUES IN $000S20222021
AddressProject
Shed 22, 23 Cable StreetSeismic works – 413
47A Dalgety DriveDesign and build – 1,558
3-5 Niall Burgess RoadRefurbishment 504 2,904
314 Neilson StreetWarehouse extension 1,383–
30-32 Bowden RoadDesign and build (Green Star development) 67,884 –
78 Springs RoadDesign and build (Green Star development) 75,810 –
Total capital commitments 145,581 4,875
5.13. Subsequent events
On 20 February 2023, the Board of Directors of the Company approved the payment of a net dividend of 2.650000 cents per share to be paid
on 8 March 2023. The gross dividend (3.107973 cents per share) carries imputation credits of 0.457973 cents per share. The payment of
this dividend will not have any tax consequences for the Group and no liability has been recognised in the Consolidated Statement of
Financial Position as at 31 December 2022 in respect of this dividend.
At the end of January 2023, the Auckland region experienced severe flooding and in the middle of February 2023 Cyclone Gabrielle’s impact
was felt across much of the North Island and the upper South Island of New Zealand. A small number of the Group’s properties suffered
damage. It is the Group’s expectation that any losses will be covered by material damage and business interruption insurances and
accordingly the Group does not expect the impact to have an adverse material impact at the date of signing these accounts.
NOTES TO THE FINANCIAL STATEMENTS (continued)
FOR THE YEAR ENDED 31 DECEMBER 2022
82
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

Independent auditor’s report
To the shareholders of Property for Industry Limited
Our opinion
In our opinion, the accompanying financial statements of Property for Industry Limited (the Company),
including its subsidiary (the Group), present fairly, in all material respects, the financial position of the
Group as at 31 December 2022, its financial performance and its cash flows for the year then ended
in
accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS)
and International Financial Reporting Standards (IFRS).
What we have audited
The Group's financial statements comprise:
●the consolidated statement of financial position as at 31 December 2022;
●the consolidated statement of comprehensive income for the year then ended;
●the consolidated statement of chan
ges in equity for the year then ended;
●the consolidated statement of cash flows for the year then ended; and
●the notes to the financial statements, which include significant accounting policies and other
explanatory information.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our
responsibilities under those standards are
further described in theAuditor’s responsibilitiesfor the audit of the financial statementssectionof our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1International
Code of Ethics for A
ssurance Practitioners (including International Independence Standards) (New
Zealand)(PES 1) issued by the New Zealand Auditingand Assurance Standards Board and the
International Code of Ethics for Professional Accountants (including International Independence
Standards)issued by the International Ethics StandardsBoard for Accountants (IESBA Code), and we
have fulfilled our other ethical responsibilit
ies in accordance with these requirements.
Our firm carries out other services for the Group in the areas of providing market remuneration data
relating to executive levels and access to general training material. The provision of these other
services have not impaired our independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, we
re of most significance in
our audit of the financial statements of the current year. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.

PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz

Independent auditor’s report
To the shareholders of Property for Industry Limited
Our opinion
In our opinion, the accompanying financial statements of Property for Industry Limited (the Company),
including its subsidiary (the Group), present fairly, in all material respects, the financial position of the
Group as at 31 December 2022, its financial performance and its cash flows for the year then ended
in
accordance with New Zealand Equivalents to International Financial Reporting Standards (NZ IFRS)
and International Financial Reporting Standards (IFRS).
What we have audited
The Group's financial statements comprise:
●the consolidated statement of financial position as at 31 December 2022;
●the consolidated statement of comprehensive income for the year then ended;
●the consolidated statement of chang
es in equity for the year then ended;
●the consolidated statement of cash flows for the year then ended; and
●the notes to the financial statements, which include significant accounting policies and other
explanatory information.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) (ISAs
(NZ)) and International Standards on Auditing (ISAs). Our r
esponsibilities under those standards are
further described in theAuditor’s responsibilitiesfor the audit of the financial statementssectionof our
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with Professional and Ethical Standard 1International
Code of Ethics for As
surance Practitioners (including International Independence Standards) (New
Zealand)(PES 1) issued by the New Zealand Auditingand Assurance Standards Board and the
International Code of Ethics for Professional Accountants (including International Independence
Standards)issued by the International Ethics StandardsBoard for Accountants (IESBA Code), and we
have fulfilled our other ethical responsibiliti
es in accordance with these requirements.
Our firm carries out other services for the Group in the areas of providing market remuneration data
relating to executive levels and access to general training material. The provision of these other
services have not impaired our independence as auditor of the Group.
Key audit matters
Key audit matters are those matters that, in our professional judgement, wer
e of most significance in
our audit of the financial statements of the current year. These matters were addressed in the context
of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.

PricewaterhouseCoopers, 15 Customs Street West, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz

83
AuDITORS 2022

Description of the key audit matterHow our audit addressed the key audit matter
Valuation of investment properties
The valuations were carried out by
independent third-party valuers who
performed their work in accordance with
New Zealand International Accounting
Standard 40Investment Propertyand
relevant property valuation standards. The
valuers are rotated across the portfolio on
a three-yearly cycle, with the exception of
certain properties as disclosed in note 2.1.
The Group has a
dopted the assessed
values determined by the valuers.
In determining a property’s valuation, two
approaches are generally used to
determine the fair value of an investment
property: the direct capitalisation
approach and the discounted cash flow
approach, to arrive at a range of valuation
outcomes from which the valuers derive a
point estimate.
The valuers take into account property
specific information such
as the
contracted tenancy agreements and rental
income earned by the asset. They apply
assumptions in relation to market
capitalisation rates, discount rates and
market rental and the rental growth rate,
based on current market assessments.
The valuers have also considered but
made no explicit adjustments in respect of
climate change matters.
The existence of significant estimation
uncertainty, coupled with
the fact that only
a small percentage difference in individual
property valuation assumptions, when
aggregated, could result in material
misstatement, is why we have given
specific audit focus and attention to this
area.

In assessing the valuation of the investment
properties, our procedures included the following:
We held discussions with management to understand:
●movements in the Group’s investment pro
perty
portfolio;
●significant changes in the condition of properties;
and
●the controls in place over the valuation process.
For a selection of properties, the carrying value was
agreed to the external valuation reports and we held
discussions with the valuers. Applying a risk-based
approach, we agreed the carrying values of a
selection of properties to the external valuation
reports.
The valuers confirmed t
hat the valuation approach for
the properties was in accordance with accounting and
valuation standards, and that climate change matters
were considered as part of their valuation process.
We assessed the valuers’ qualifications, expertise and
their objectivity and we found no evidence to suggest
that their objectivity was compromised in their
performance of the valuations.
We carried out procedures, on a
sample basis, to test
whether the property specific information supplied to
the valuers by the Group reflected the underlying
property records held by the Group.
Assumptions
Our work over the assumptions used in the valuations
focused on those properties where the assumptions
used and/or year-on-year fair value movement were
considered unusual. We engaged our own in-house
valuation specialist to assess th
e methodologies and
critique and challenge, against market evidence and
current market conditions, the key assumptions used
by the valuers.
PwC

84
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
AuDITORS 2022

Description of the key audit matterHow our audit addressed the key audit matter
Goodwill impairment assessment
As disclosed in note 5.5 of the financial
statements, the goodwill balance of $29.1
million was recognised when the
Company merged with Direct Property
Fund Limited.
As at the 30 June 2022 interim reporting
date the market capitalisation of the
Group, based on the quoted market price,
was below the net assets of the Group.
This was considered an indicator of
impairment.
With t
he assistance of management's
expert, management assessed whether
objective evidence of impairment of
goodwill existed. Management estimated
the recoverable amount using fair value
less costs of disposal (FVLCOD) as the
higher of the two valuation approaches,
being FVLCOD and value in use. The
significant estimates and judgement relate
to the control premium and costs of
disposal.
This resulted in an impairm
ent loss of
$29.1 million against the carrying amount
of goodwill as at 30 June 2022 interim
reporting period. The goodwill balance at
31 December 2022 was nil.
The impairment testing of goodwill is
considered a key audit matter due to the
size of the balance, the impact on the net
loss for the year and the significant level
of management estimation and judgement
applied in performing the impairment
assessme
nt.

We considered management’s process for testing
goodwill impairment and performed the following
procedures:
●engaged with our in-house valuation specialist to
assess the reasonableness of management’s
assessment including:
₋assessed the appropriateness of using FVLCD
approach against New Zealand International
Accounting Standard 36Impairment of Assets;
₋considered the reasonableness of the control
premiu
m and performed sensitivity analysis
around the control premium assumption to
ascertain the extent of change that would be
required for the goodwill balance not to be
impaired; and
₋assess the reasonableness of the cost of
disposal estimate;
●agreed the 1 day volume-weighted average share
price at 30 June 2022 to NZX trading data;
●assessed management’s calculation that the
FVLCD was below the Group’s net a
ssets as the
30 June 2022; and
●assessed the appropriateness of the financial
statement disclosures.
PwC

85

Our audit approach
Overview
Overall group materiality: $3.1 million, which represents
approximately 5% of profit before tax excluding valuation movements
relating to investment properties and interest rate derivatives, and
goodwill impairment.
We chose this benchmark because, in our view, it presents a more
stable basis against which the performance of the Group is most
likely to be measured by users.
Fol
lowing our assessment of the risk of material misstatement, a full
scope audit was performed over the consolidated Group balances.
As reported above, we have two key audit matters, being:
●Valuation of investment properties; and
●Goodwill impairment assessment.

As part of designing our audit, we determined materiality and assessed the risks of material
misstatement in the financial statements. In parti
cular, we considered where management made
subjective judgements; for example, in respect of significant accounting estimates that involved
making assumptions and considering future events that are inherently uncertain. As in all of our audits,
we also addressed the risk of management override of internal controls, including among other
matters, consideration of whether there was evidence of bias that
represented a risk of material
misstatement due to fraud.
Materiality
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
Misstatements may arise due to fraud or error. They are considered material if, individually or in
aggregate, they could reasonably be
expected to influence the economic decisions of users taken on
the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Group materiality for the financial statements as a whole as set out above. These,
together with qualitative considerations, helped us to determine the scope of our audit, the nat
ure,
timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and in aggregate, on the financial statements as a whole.
How w e tailored our group audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion
on the financial statements as a whole, taking into account the structure of the Group, the a
ccounting
processes and controls, and the industry in which the Group operates.
PwC

86
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
AuDITORS 2022

Other information
The Directors are responsible for the other information. The other information comprises the
information included in the Annual report, but does not include the financial statements and our
auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express
any form of audit opinion or assurance conclusion thereon.
In connection
with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. If, based on the work we have performed on the other information that we obtained prior to
the date of th
is auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the financial statements in accordance with NZ IFRS and IFRS,
and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Group’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
goi
ng concern basis of accounting unless the Directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole,
are free from material misstatement, whether due to fraud or error, and t
o issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influen
ce the economic decisions of users
taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the
External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/
This description forms part of our auditor’s report.
PwC

87

Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body,
for our
audit work, for this report or for the opinions we have formed.

The engagement partner on the audit resulting in this independent auditor’s report is Indumin
Senaratne (Indy Sena).
For and on behalf of:
Chartered AccountantsAuckland
20 February 2023
PwC

88
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
AuDITORS 2022

YEAR ENDED 31 DECEMBER 20222021202020192018
ALL VALUES IN $M UNLESS OTHERWISE NOTED
FINANCIAL PERFORMANCE
Income73.2517.1176.1229.3158.3
Expenses(79.8)(44.3)(40.4)(38.9)(36.0)
Profit before taxation(6.5)472.8135.7190.4122.3
Total taxation (expense) / benefit(7.4)(20.0)(22.2)(14.1)(12.2)
Total comprehensive income after tax(13.9)452.8113.5176.3110.1
Weighted average number of ordinary shares (‘000 shares)504,674503,302499,650498,723498,723
IFRS basic earnings per share (cents per share)(2.70)89.9722.7135.3522.08
DISTRIBuTIONS
Total comprehensive income after tax(13.9)452.8113.5176.3110.1
Distribution adjustments58.5(406.1)(73.4)(137.5)(72.9)
Adjusted Funds From Operations (AFFO)44.646.740.138.837.2
Weighted average number of ordinary shares (‘000 shares)504,674503,302499,650498,723498,723
AFFO per share (cents per share)8.839.298.037.797.46
Gross dividends paid relating to the year reported (cents per share)10.199.999.7310.209.33
Net dividends paid relating to the year reported (cents per share)8.107.907.707.607.55
AFFO pay-out ratio (%)91.7%85.1%95.9%97.6%101.2%
FINANCIAL POSITION
Investment properties2,096.22,158.91,524.81,469.31,318.7
Goodwill–29.129.129.129.1
Other assets66.629.0133.524.311.2
Total assets2,162.82,217.01,687.41,522.71,358.9
Borrowings601.5598.7487.6412.9398.2
Other liabilities60.955.663.255.845.5
Total liabilities662.4654.3550.8468.7443.8
Total equity1,500.31,562.71,136.61,054.0915.1
Closing shares on issue (‘000 shares)502,051505,494501,303498,723498,723
Net tangible (excluding goodwill) assets (cents per share)298.8303.4220.9205.5177.7
Gearing (%)28.5%27.7%30.0%28.2%30.3%
PROPERTY PORTFOLIO METRICS
Number of properties (#)9497949494
Number of tenants (#)132136148144148
Contract rent98.295.689.884.982.0
Occupancy (%)100.0%100.0%99.4%99.0%99.3%
Net lettable area including yard (sqm) 930,453 940,204 838,403 809,183 780,092
Weighted average lease term (years)5.085.405.285.385.39
Portfolio capitalisation rate (%)5.0%4.4%5.5%5.7%6.1%
89
FINANCIALS 2022
FIVE-YEAR PERFORMANCE SuMMARY

90
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022

91
OTHER
DISCLOSU
-

RES
Property
for
Industry
Limited
Group
Annual
Report
31 December
2022

OTHER DISCLOSURES
92
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
COMPANY STRuCTuRE AND
STATuTORY INFORMATION
Property for Industry Limited (the Company, PFI) is a publicly listed company established in 1994. The Board currently has five
Directors, all of whom are independent.
More information on the PFI Board and Management Team is available on the PFI website at https://www.propertyforindustry.co.nz/
about-pfi/our-people/.
PRINCIPAL ACTIVITY
PFI is a listed industrial property investment company. PFI and its subsidiary, P.F.I. Property No. 1 Limited (together, the Group),
invest solely in New Zealand. There has not been any change in the nature of the Company’s or Group’s business in the year ended
31 December 2022, nor in the classes of business in which the Company has an interest.
GOVERNANCE
The Board of PFI is committed to the highest standards of business behaviour and accountability. The Board regularly reviews and
assesses the Group’s governance structures and processes to ensure they are consistent with best practice standards.
As part of the Board’s ongoing monitoring and review of the Group’s governance framework, the Board has developed a Corporate
Governance Manual (the Manual) that forms the Group’s corporate governance framework. It incorporates the NZX Listing Rules
relating to corporate governance and the recommendations of the NZX Corporate Governance Code (the NZX Code), and was last
updated in August 2022.
A copy of the Manual is available on the PFI website at https://www.propertyforindustry.co.nz/about-pfi/governance/ and includes:
1. Code of Ethics;
2. Board Charter;
3. Audit and Risk Committee Charter;
4. People Committee Charter, which includes the Company’s Remuneration Policy;
5. Continuous Disclosure Policy;
6. Financial Product Trading Policy; and
7. Diversity and Inclusion Policy.
COMPLIANCE WITH NZX REQuIREMENTS
PFI considers that it complied with the NZX Code in the year ended 31 December 2022.
NZX CODE: kEY PRINCIPLES
This section sets out PFI’s corporate governance policies, practices and processes by reference to the NZX Code’s eight key
principles and supporting recommendations.

93
Principle One: Code of Ethical Behaviour
Directors should set high standards of ethical behaviour, model this behaviour and hold management accountable for these
standards being followed throughout the organisation.
Code of Ethics
The Board has developed a Code of Ethics that forms part of the Manual. The Code of Ethics provides a set of expectations for PFI’s
Directors, employees and contractors surrounding their business conduct when representing PFI. The Code intends to facilitate
behaviour that is consistent with PFI’s business standards.
PFI monitors compliance with the Code of Ethics through its management processes as well as through the whistleblowing
procedures set out in the Code of Ethics itself. PFI provides access to a confidential third-party agency for whistleblowing purposes.
All Directors and employees are informed of the content of the Code of Ethics prior to commencing such roles and will be informed
of any future change to the Code of Ethics. Training on ethical conduct was last provided to employees in 2022, following the
August 2022 review of the Code of Ethics and related internal policies.
Financial Product Trading Policy
PFI is committed to transparency and fairness in financial product dealing. The rules for dealing in PFI’s listed securities are
contained in its Financial Product Trading Policy. The policy’s main purpose is to ensure no Director, employee or contractor uses
their position or knowledge of PFI or its business to engage in financial product dealing for personal benefit, or to provide a benefit
to any third party.
The Financial Product Trading Policy applies to Directors, employees and contractors of PFI and its subsidiary, and trusts and
companies controlled by those persons (Restricted Persons).
The key points of the policy are:
§
a prohibition on “insider trading”, meaning persons who hold non-publicly available price-sensitive information must not pass
on that information, nor acquire or dispose of PFI’s listed securities at any time;
§
Restricted Persons must obtain consent to trade PFI listed securities at any time; and
§
no trading is permitted by Restricted Persons during “blackout periods” from the balance date and the half-year balance date
until the day following the release of the relevant results to NZX.

OTHER DISCLOSURES
94
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
Principle Two: Board Composition & Performance
To ensure an effective Board, there should be a balance of independence, skills, knowledge, experience and perspectives.
Board Charter
The Board has developed a charter that sets out its authority, duties and responsibilities. The Board, through a set of formal policies
and procedures:
§
establishes a clear framework for oversight and management of PFI’s operations and for defining the respective roles and
responsibilities of the Board and Management;
§
structures itself to be effective in discharging its responsibilities and duties;
§
sets standards of behaviour expected of the Company’s employees and representatives;
§
safeguards the integrity of the Company’s financial reporting;
§
ensures timely and balanced disclosure;
§
respects and facilitates the rights of shareholders;
§
recognises and manages risk;
§
encourages Board and management effectiveness;
§
ensures remuneration of Directors, employees and contractors is fair and reasonable;
§
recognises the legitimate interests of all stakeholders (including stakeholder expectations around ESG and sustainability); and
§
promotes a corporate culture which embraces inclusion and diversity.
The Board’s primary focus is on the creation of long-term shareholder wealth and ensuring PFI is run in accordance with
appropriate management and corporate governance practices. The Board has an obligation to protect and enhance the value of
the assets of PFI for the benefit of PFI and its shareholders. It achieves this through approval of appropriate corporate strategies,
business plans and budgets, and monitoring actual results against the Company’s strategic objectives. PFI’s Board pays particular
attention to capital structure, capital expenditure, acquisition and divestment proposals, performance against PFI’s sustainability
strategy, and ensuring effective audit, risk and compliance procedures are in place to protect PFI’s assets and ensure integrity of
reporting. The Board is also responsible for approving PFI’s Corporate Governance Manual and maintaining corporate and Board
values to ensure PFI acts to the highest ethical standards and integrity.
The Board delegates implementation of the adopted corporate strategies to the Management Team and reviews the performance
of the Management Team on a regular basis.

95
Board Composition
The Company’s constitution requires the Company to comply with the minimum board composition requirements under the NZX
Listing Rules (being at least three directors). As at 31 December 2022, there were five Directors, all of whom are independent.
The NZX Listing Rules require at least two Independent Directors, and it is the Company’s policy that there should always be a
majority of Independent Directors.
The Directors of the Company who held the office during the 12 months to 31 December 2022, their status, date of appointment
and meeting attendances follows:
DIRECTOR STATUS
DATE OF
APPOINTMENT
LAST
RE-ELECTED
DATE CEASED
TO BE A DIRECTOR
MEETINGS
ATTENDED
(TEN MEETINGS
HELD)
Anthony BeverleyIndependent Director
Board Chair
2 July 20013 June 2020N/A10
Carolyn SteeleIndependent Director
Audit and Risk Committee
Chair
1
22 August 2022N/AN/A3
David ThomsonIndependent Director12 February 201819 May 2021N/A10
Dean BracewellIndependent Director
People Committee
Chair
29 November 20193 June 2020N/A10
Gregory ReidyNon-Executive Director20 January 201219 May 2021N/A10
Susan PetersonIndependent Director
Audit and Risk Committee
Chair
1
24 May 201613 May 202214 December 2022
2
9
All current Directors are also Directors of the Company’s subsidiary, P.F.I. Property No. 1 Limited.
The Board reviews its performance as a whole as well as the performance of individual members and each committee.
Director Skills and Experience
A profile of each Director outlining their skills, experience and length of service can be found on the PFI website. The Board strives
to ensure that PFI has the right mix of skills and experience for PFI to achieve its strategic goals. The skills and experience
represented on the Board are summarised in the diagram below:
Property
Capital Markets
Financial
Governance
Executive Leadership
Legal
Health and Safety
Sustainability
Technology
Directors are encouraged to undertake continuing education to develop and maintain their skills and knowledge.
Key:
Strong skills or experience
Some skills or experience
Limited skills or experience
1. Carolyn Steele replaced Susan Peterson as Chair of the Audit and Risk Committee effective 14 December 2022.
2. Independent Director Susan Peterson retired from the Board on 14 December 2022. Susan Peterson also retired as a director of P.F.I. Property No. 1 Limited on
that date.

OTHER DISCLOSURES
96
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
Carolyn Steele, who joined PFI’s Board on 22 August 2022 and is now Chair of the Audit and Risk Committee, is considered to
be PFI’s financial expert. Carolyn has a background in investment management, capital markets and mergers and acquisitions,
having spent six years as a portfolio manager at the Guardians of New Zealand Superannuation, and a further ten years prior to
that in investment banking at Forsyth Barr and First NZ Capital / Credit Suisse. Carolyn is also Audit and Risk Committee Chair
for Green Cross Health, WEL Networks and Vulcan Steel and an Investment Committee member at Oriens Capital. PFI’s Board
and Management consider that Carolyn has a strong financial background for the purposes of Listing Rule 2.13.2.
Director Independence
Director independence is determined in accordance with the requirements of the NZX Listing Rules. The Board has determined
that, as at 31 December 2022 all Directors of the Company were independent: Anthony Beverley, David Thomson, Dean Bracewell,
Gregory Reidy, and Carolyn Steele. This assessment is based on the fact that these Directors all share the following characteristics:
§
They are all Non-Executive Directors.
§
They are not currently, or within the last three years have not been, employed in an executive role by the Company, or any of
its subsidiaries, and / or there has been a period of at least three years between ceasing such employment and serving on
the Board.
§
They are not currently holding, or within the last 12 months they have not held, a senior role in a provider of material
professional services to the Company or any of its subsidiaries.
§
They do not currently have, or within the last three years they have not had, a material business relationship (e.g. as a supplier
or customer) with the Company or any of its subsidiaries.
§
They are not a substantial product holder of the Company, or a senior manager of, or a person otherwise associated with,
a substantial product holder of the Company.
§
They do not currently have, or within the last three years they have not had a material contractual relationship with the
Company or any of its subsidiaries, other than as a director.
§
They do not currently have close family ties with anyone in the categories listed above.
§
No director has been a Director with the Company for a length of time that may compromise independence.
The Board has resolved that Gregory Reidy is now considered to be independent as more than three years have passed since his
role as Managing Director.
Anthony Beverley has served on the Board of PFI for 21 years and has been Chair of the Board for four years. When assessing
independence, the Board considered the effect of Anthony Beverley’s length of tenure, and has concluded that Anthony Beverley’s
length of tenure has not in practice impacted his ability to bring an independent view to decisions in relation to the Company, act in
the best interests of the Company, and represent the interests of the Company’s financial product holders generally, having regard
to the factors described in the NZX Code that may impact Director independence.
The PFI Board is continuing to progress its succession planning, and notes that any change in Board composition needs to be
balanced with ensuring that necessary skills, experience and depth of understanding are retained on the Board, particularly when
facing economic uncertainty. As with existing Directors, future appointees will be expected to provide governance leadership
potential in addition to their specific skills.
Details of Directors’ relevant interests in the Company’s financial products as at 31 December 2022 can be found in the section
entitled Principle Four: Reporting and Disclosure.
Under the Board Charter (described in further detail above) any Chief Executive Officer of PFI is not eligible to be appointed as
the Chair of the Board.
Director Appointments
In compliance with Listing Rule 2.7.1, each Director must not hold office without re-election past the third annual meeting following
the Director’s appointment or three years, whichever is longer. Any Director appointed by the Board must not hold office (without
re-election) past the next annual meeting following the Director’s appointment. As such, Director Carolyn Steele was appointed to
the Board on 22 August 2022 and is required to retire and stand for re-election at the Annual Meeting of Shareholders in 2023.
Where a Board vacancy arises or the Board otherwise determines a need to appoint a new Director, it is the responsibility of the
People Committee to identify and nominate external candidates to fill Board vacancies as and when they arise (see Principle Three
below for further information). PFI enters into a formal written agreement with all new Directors, which establishes the terms of
their appointment.

97
Diversity and Inclusion
The breakdown of the gender composition of PFI’s Directors, Officers and Senior Leadership Team as at the end of the previous two
financial years is as follows:
FINANCIAL YEAR
MALE FEMALE
DIRECTORSOFFICERS
SENIOR
LEADERS
1
DIRECTORSOFFICERS
SENIOR
LEADERS
Year ending 31 December 2021433101
Year ending 31 December 2022433101
The Board believes that a diverse and inclusive work environment is critical to the sustainability of PFI. At PFI diversity means
recognising and valuing the many ways that we are different. This includes differences that relate to gender, age, culture, ethnicity,
disability, religion, and sexual orientation, as well as differences in background, skills, perspective, and experiences.
The Board has established a Diversity and Inclusion Policy in accordance with the NZX Code. The PFI Board believes that an
inclusive work environment where everyone is treated equitably and fairly and is supported to be successful in their roles is
essential for it to be able to deliver its strategic objectives and continue to meet its responsibilities to its customers, its employees,
the communities in which it works, and its shareholders.
The Board has evaluated PFI’s performance against the Company’s Diversity and Inclusion Policy through regular employee
engagement surveys to ensure that our overall work culture remains inclusive. The Board also sets Diversity and Inclusion targets
annually, which are monitored quarterly. The Board considers that it, in conjunction with the Management Team, has fostered a
work environment where diversity and inclusion, together with different skills, abilities and experiences, is recognised and valued,
and employees are treated equitably and fairly in order that talented people who will contribute to the achievement of our strategic
objectives are attracted to work for PFI and are able to be retained.
The Board is committed to taking steps that will see diversity in the composition of both the Board and leadership team move
progressively over time. It is important to note that PFI has a small team comprising 19 permanent and dedicated team members
and that nine of these team members are female (2021: seven out of 16).
Principle Three: Board Committees
The Board should use committees where this will enhance its effectiveness in key areas, while still retaining Board
responsibility.
Audit and Risk Committee
The Board has established an Audit and Risk Committee in accordance with the NZX Code. The Board has approved a written
charter that outlines the committee’s authority, duties, responsibilities, relationship with the Board and a policy on audit
independence. The committee develops and monitors procedures to ensure the Board is properly and regularly informed and
updated on corporate financial matters. The Board is required to regularly review the performance of the Audit and Risk Committee.
The Audit and Risk Committee’s functions include:
§
recommending the appointment and removal of external auditors (see Principle Seven: Auditors for further detail);
§
reviewing PFI’s financial reporting documents with the view to ensuring PFI maintains accurate financial and accounting
records; and
§
reviewing earnings releases and financial reports.
In addition to the committee’s audit and financial reporting related functions, it is also responsible for providing a view on PFI’s
business and financial risk management process, including the adequacy of the overall control environment, independence from
management and controls in selected areas representing significant risk.
The Audit and Risk Committee generally meets four times a year, and at least twice a year (or more frequently if required) with the
Group’s auditor to review the outcome of the interim review (30 June) and annual audit (31 December). Employees only attend
Audit and Risk Committee meetings at the invitation of the committee.
1. Includes officers

OTHER DISCLOSURES
98
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
The Audit and Risk Committee must have a minimum of three Directors as members and the majority must be Independent
Directors. No executive may be a member of the Audit and Risk Committee. The Chair of the Board is not eligible to be chair
of the Audit and Risk Committee.
At 31 December 2022, the members of the Audit and Risk Committee were Carolyn Steele (Chair of the Audit and Risk Committee),
Anthony Beverley and David Thomson. Former Director Susan Peterson was Chair of the Audit and Risk Committee until
14 December 2022. Carolyn Steele became a member of the Audit and Risk Committee on 22 August 2022 and became Chair of
the Audit and Risk Committee on 14 December 2022. Anthony Beverley and David Thomson were members of the committee at
all times during 2022. Susan Peterson, Anthony Beverley and David Thomson attended the four meetings of the committee held
during 2022, whilst Carolyn Steele attended one meeting as a member of the Audit and Risk Committee in December 2022.
People Committee
The Board has also established a People Committee (previously known as the Nomination and Remuneration Committee) in
accordance with the NZX Code. The Board has approved a written charter to assist the committee to fulfil this purpose, which
outlines the Committee’s authority, duties, responsibilities and relationship with the Board. The Board is required to regularly
review the performance of the People Committee and undertakes a review annually of its objectives and activities.
The People Committee’s role includes identifying and recommending individuals for nomination to be members of the Board
and its committees, regularly reviewing composition and successions plans and, where appropriate, recommending changes
to the composition of the Board to ensure PFI maintains the right composition of Directors to effectively govern and provide
guidance to the business. The Committee is also responsible for assisting the Board with performance reviews, assessing
independence of PFI’s Directors, and regularly reviewing the remuneration policy (for further information on remuneration,
see Principle Five: Remuneration).
When nominating candidates, the Committee considers a range of factors as well as perceived needs of the Board at the time.
Some of these factors include qualifications, experience, diversity, requirements of the NZX Listing Rules and the ability to
exercise an independent perspective and informed judgment on matters that come before the Board. While the Committee has
the authority to obtain legal or other independent professional advice, it may only nominate a person to be a Director of PFI with
approval of the Board.
The People Committee must have at least two members, all of whom must be Independent Directors.
At 31 December 2022, the members of the People Committee were Dean Bracewell (Chair of the People Committee), Anthony
Beverley and David Thomson. Dean Bracewell and Anthony Beverley were members of the committee at all times during 2022
and attended the five meetings of the committee held during 2022. Former Director, Susan Peterson, was a member of the People
Committee until her retirement from PFI’s Board on 14 December 2022 and attended the five meetings of the committee held
during 2022. David Thomson was appointed as a People Committee member on 14 December 2022. There were no further
meetings of the committee after that date during 2022.
Other Committees
The Board does not consider that any additional Board committees as standing Board committees need to be established at
this stage.

99
Principle Four: Reporting & Disclosure
The Board should demand integrity in non-financial reporting, and in the timeliness and balance of corporate disclosures.
Continuous Disclosure Policy
PFI is committed to its obligation to inform shareholders and market participants of all material information that might affect the
price of its listed securities in accordance with the NZX Listing Rules and the Financial Markets Conduct Act 2013. Accordingly, the
Board has adopted a Continuous Disclosure Policy which applies to the Group, and the Directors and all relevant employees of PFI.
The Board has also appointed the Chief Finance and Operating Officer to act as the Group Disclosure Officer. The Group Disclosure
Officer is responsible for ensuring policy compliance and for investigating any alleged breaches.
Corporate Governance Documents
PFI’s Board and committee charters, annual and interim reports, company announcements, the policies recommended in the
NZX Code and other investor-related material are available on PFI’s website.
Financial Reporting
PFI is committed to appropriate financial reporting. Oversight of the Company’s financial reporting is applied through the Audit
and Risk Committee.
Non-Financial Disclosure
PFI is committed to non-financial disclosure, including reporting on environmental, social sustainability and governance factors
and practices. PFI acknowledges it will be required to provide climate-related disclosures as a climate reporting entity under the
Financial Sector (Climate-related Disclosures and Other Matters) Amendment Act 2021 in its FY23 Annual Report, and notes that
the Company already voluntarily reports climate-related disclosures in line with TCFD recommendations (see pages 36-43).
You can find more information on PFI’s approach to sustainability on pages 25-35.
You can find more information about PFI’s approach to risk management, including health and safety risks, in the section entitled
Principle Six: Risk Management.
Directors’ Relevant Interests
Details of Directors’ dealings in the Company’s financial products in the year ended 31 December 2022 are as follows:
DIRECTOR
NO. OF SHARES
(ACQUIRED)
CONSIDERATION
PER SHARE DATE
Dean Bracewell20,000$2.71052 March 2022
Details of Directors’ relevant interests in the Company’s financial products as at 31 December 2022 are as follows:
DIRECTOR NATURE OF RELEVANT INTEREST NUMBER OF SHARES
Gregory ReidyBeneficial holder155,708
Dean BracewellBeneficial holder40,000
No Director had a relevant interest in the Company’s bonds.

OTHER DISCLOSURES
100
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
Principle Five: Remuneration
The remuneration of Directors and executives should be transparent, fair and reasonable.
Director Remuneration
As noted under Principle Three, the Board, in setting the Directors’ remuneration, is to be guided by the Remuneration Policy that
forms part of the People Committee Charter. The table below sets out the remuneration that was approved by shareholders at the
2021 PFI annual meeting:
ROLE
$ PLUS GST
(IF ANY)
Board Chair170,000
Independent Director / Non-Executive Director 90,000
Audit and Risk Committee Chair15,000
Audit and Risk Committee Member7,500
People Committee Chair10,000
People Committee Member5,000
Hourly rates for abnormal and particularly time intensive projects or transactions outside the scope of typical
Board work
350 per hour
Other than as noted in this report, neither the Company nor its subsidiary have provided any other benefits to a Director for services
as a Director or in any other capacity.
Neither the Company nor its subsidiary have made loans to a Director.
Neither the Company nor its subsidiary have guaranteed any debts incurred by a Director.

101
The table below sets out the total remuneration received by the Company’s Directors during the year to 31 December 2022 and the
prior year comparative:
DIRECTOR ROLE
FEES PAID
2022
$000
FEES PAID
2021
$000
Anthony BeverleyBoard Chair80 79
Independent Director90 87
Audit and Risk Committee Member––
People Committee Member––
Carolyn Steele
1
Audit and Risk Committee Chair1–
Independent Director33–
Audit and Risk Committee Member2–
David ThomsonIndependent Director90 87
Audit and Risk Committee Member55
People Committee Member––
Dean Bracewell People Committee Chair1010
Independent Director90 87
Gregory Reidy Non-Executive Director 9087
Susan Peterson
2
Audit and Risk Committee Chair14 15
Independent Director86 87
People Committee Member53
Total 596548
Employee Remuneration Strategy
The Board supports a remuneration strategy that is aligned to our investors’ interests and encourages the achievement of our
strategic objectives. The remuneration of the Chief Executive Officer and other employees is designed to attract and retain the
most talented and effective individuals. Packages include a base salary, together with a short-term and (in some cases) a long-term
incentive (LTI) component.
1. Carolyn Steele was appointed to the Board on 22 August 2022. Carolyn Steele was an Audit and Risk Committee member from 22 August 2022 and became Chair of the
Audit and Risk Committee from 14 December 2022.
2. Susan Peterson ceased to be a Director on 14 December 2022.

OTHER DISCLOSURES
102
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
Chief Executive Officer Remuneration
The Chief Executive Officer’s (CEO) remuneration is comprised of a base salary and benefits, a short-term incentive (STI) and
participation in PFI’s LTI plan.
The CEO’s STI is paid on achievement of annual targets which are aligned to the delivery of PFI’s key operational objectives.
Target areas for the CEO’s key performance indicators for 2022 are outlined below:
TARGET AREAWEIGHTING
Leadership objectives including staff engagement15%
Strategic execution15%
Portfolio metrics15%
Operational performance including ESG performance15%
Financial performance 40%
STI payments are endorsed by the People Committee and approved by the Board, based on achievement of the objectives and
targets. In 2022 and 2021, the People Committee endorsed, and the Board approved, the payment of 100% of the potential STI
payable.
Further details on the LTI plan can be found on pages 79 to 80.
There is no commitment to making a severance payment in the CEO’s contract.
Simon Woodhams became CEO on 1 January 2019. Simon Woodhams’ remuneration as CEO for all four reporting periods since his
appointment as CEO is set out below:
YEAR ENDINGSALARYBENEFITS
1
SUBTOTAL
PAY FOR PERFORMANCE
TOTAL
REMUNERATIONSTILTI
2
SUBTOTAL
31 December 2019$450,000$31,711$481,711$200,000$39,148$239,148$720,859
31 December 2020$500,000$30,824$530,824$225,000$52,376$277,376$808,200
31 December 2021$550,000$40,199$590,199$250,000$68,107$318,107$908,306
31 December 2022$576,640$44,939$621,579$263,250$54,903$318,153$939,733
Simon Woodhams’ participation in PFI’s LTI plan is as follows:
YEAR ENDING
SHARE RIGHTS
GRANTED
(SHARES)
SHARE RIGHTS
VESTED DURING
THE YEAR
3
(SHARES)
SHARE RIGHTS
LAPSED DURING
THE YEAR
(SHARES)
SHARE RIGHTS
OUTSTANDING AT
THE END OF THE
YEAR (SHARES)
31 December 201985,22728,409–56,818
31 December 202073,22452,817–77,225
31 December 202167,24275,231–69,236
31 December 202279,87255,08518,36275,662
1. Benefits include KiwiSaver and insurance.
2. The LTI is based on the fair value of the vested awards recognised in the financial statements.
3. The share rights vested does not include shares vesting as a result of dividend protection.

103
Long Term Incentive Plan
LTIs are at-risk payments designed to align the reward of certain executives with the enhancement of shareholder value over
a multi-year period.
The current LTI plan commenced in the year ended 31 December 2019, and is a dividend protected share rights plan. Under the
plan, invited executives are granted a number of share rights determined by dividing the face value of the grant by the value of
one PFI share at the date of the grant. At vesting, subject to meeting performance hurdles, each share right is converted to one
ordinary share. The executive may also receive additional shares representing the value of dividends paid over the vesting period.
The executive is liable for tax on the shares received at this point.
Each grant under the LTI Plan has three tranches with two separate performance hurdles applying to each tranche. The three
tranches enable a third of the share rights to vest after one year, two years and three years from the commencement date.
For each tranche:
§
50% of the share rights are subject to a performance hurdle of the Company’s rolling three year Funds From Operations growth
equalling or exceeding the three year CPI growth to the September immediately prior to the vesting date; and
§
50% of the share rights are subject to a performance hurdle of the Company’s Total Shareholder Returns (TSR) outperforming
the TSR of a property peer group (comprising other listed property issuers) over the period from the commencement date to
the vesting date for the relevant tranche.
Grants are intended to continue to be made annually with performance measured over a three year period.
The total share rights granted, vested, and lapsed during 2022 and 2021, and the share rights outstanding at the end of
31 December 2021 and 31 December 2022 are as follows:
YEAR ENDING
SHARE RIGHTS
GRANTED
(SHARES)
SHARE RIGHTS
VESTED DURING
THE YEAR
(SHARES)
1
SHARE RIGHTS
LAPSED DURING
THE YEAR
(SHARES)
SHARE RIGHTS
OUTSTANDING AT
THE END OF THE
YEAR (SHARES)
31 December 2021155,174172,159–158,542
31 December 2022166,910121,84140,614162,997
Employee Remuneration
During the years ended 31 December 2022 and 31 December 2021, the number of employees who received remuneration with a
combined total value exceeding $100,000
2
is set out below:
REMUNERATION RANGE
NUMBER OF EMPLOYEES
REMUNERATION RANGE
NUMBER OF EMPLOYEES
2022202120222021
$930,001 – $940,0001$190,001 - $200,00011
$900,001 - $910,0001$170,001 - $180,0001
$790,001 - $800,0001$160,001 - $170,00021
$750,001 - $760,0001$150,001 - $160,000
11
$410,001 - $420,0001
$130,001 - $140,00011
$370,001 - $380,0001
$120,001 - $130,0003
$230,001 - $240,00011
$110,001 - $120,0001
$210,001 - $220,0001
$100,001 - $110,00023
1. The share rights vested does not include shares vesting as a result of dividend protection.
2. Includes LTI vested during the year based on the fair value of the vested awards recognised in the financial statements.

OTHER DISCLOSURES
104
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
Principle Six: Risk Management
Directors should have a sound understanding of the material risks faced by the issuer and how to manage them. The Board
should regularly verify that the issuer has appropriate processes that identify and manage potential and material risks.
Risk Governance
PFI has established a Risk Management Framework to ensure that risks are managed within PFI’s Board-approved risk appetite.
The Risk Management Framework was last reviewed and approved by PFI’s Board in November 2021. PFI has established the
following responsibilities for risk governance:
ROLERESPONSIBILITY
BoardThe Board sets the risk appetite, risk tolerances and desired risk culture. It oversees the
assessment, management and reporting of key business risks.
Audit and Risk Committee
(A&RC)
The A&RC supports the Board by providing a specific focus on risk and compliance matters,
including providing risk oversight and ensuring an appropriate risk management framework
is in place, appointing the external auditor and overseeing the internal control environment.
Senior Leadership Team The Senior Leadership Team are responsible for promoting good risk practices by their teams.
StaffEvery staff member is responsible for the identification, management and escalation of risks
as part of their role.

105
Key Risks
PFI has a robust risk assessment process. Risk assessments are carried out by the Management Team at least annually in
accordance with PFI’s Risk Management Framework. A risk assessment includes: identification of material risks; assessment
of the consequences and likelihood of the risk; and development of controls to achieve a level of residual risk that is within
PFI’s Board-approved risk appetite.
The table below outlines some of PFI’s key business risks following the latest refresh of its risk register, how these risks are
managed, and a commentary on these risks for 2022.
RISK DESCRIPTIONHOW PFI MANAGES THE RISK2022 COMMENTARY
Economic and market risk:
The risk of adverse changes in the
economic environment, political
environment or the broader
investment market, impacting
property values and income.
We monitor both wider economic
conditions and the industrial
property market through research
and relationships with market
participants. Quarterly reporting
on market conditions is provided
to the Board.
PFI has continued to carefully monitor the
impacts of the COVID-19 pandemic, supply
chain constraints, inflation, and other market
challenges during 2022. PFI has responded
early to address changing market conditions
and has continued to deliver robust results
during FY22.
Strategic risk:
The risk of failing to appropriately
set, execute or adapt PFI’s strategy
(for example, failing to ensure
portfolio optimisation or adapt to
changing market preferences).
PFI’s strategy is reviewed regularly
by the Board and Management Team.
Quarterly reporting on strategy
implementation is provided to
the Board.
Good progress was made during 2022
on the implementation of PFI’s strategy
as set out on pages 12-17 of this report.
In particular, PFI committed to major
brownfields development projects at
30-32 Bowden Road and 78 Springs Road,
which will commence during 2023.
Health, safety and wellbeing risk:
The risk of failing to manage
health, safety and wellbeing
hazards at a PFI property.
Health, safety and wellbeing risks are
actively managed by PFI’s health and
safety committees. A wide variety of
risk mitigants are in place, including
monitoring visits and proactive
responses to the identification of
potential hazards.
Continuous improvement of PFI’s health,
safety and wellbeing management has been
a key focus during 2022. PFI continues to
experience a low level of incidents. Further
information on health, safety and wellbeing
can be found in the Sustainability section of
this Annual Report.
Financial performance risk:
The risk of financial performance
not being managed to expectations.
PFI has a wide suite of controls for
this risk, including a delegations
policy, analytical reviews, forecasting,
budgeting, and proactive management.
PFI continued to carefully and successfully
manage its financial performance risk as
outlined on pages 4 to 6.
People Risk:
The risk of failing to attract and
retain talented staff or deterioration
in staff performance.
PFI actively manages this risk through
a suite of controls, including training of
staff, documentation of key processes,
annual staff engagement surveys,
annual review of staff performance
and pay adjustments.
PFI has carefully monitored this risk during
2022 in light of the difficult labour market.
However, the Company continues to achieve
strong employee engagement (84% in 2022)
and low turnover.
PFI also completes annual climate change risk assessments. The risks identified through this assessment are embedded in
a range of risks on PFI’s risk register, including economic and market risk, emerging regulation risk and physical damage risk.
Further information on PFI’s climate-related risks can be found in the Climate-Related Disclosures (TCFD) section of this annual
report (pages 36-43).

OTHER DISCLOSURES
106
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
Principle Seven: Auditors
The Board should ensure the quality and independence of the external audit process.
Together with the Audit and Risk Committee (see Principle Three), the Board is responsible for establishing the Company’s audit
framework and ensuring that communication is maintained with external auditors or accountants. Annexed to the Audit and Risk
Committee Charter is a separate Policy on Audit Independence, which covers the provision of services by external auditors.
Under the policy, it is the Audit and Risk Committee’s role to approve the appointment of PFI’s external auditors and assess PFI’s
internal controls and systems that support external financial reporting.
PFI’s external auditors are subject to a rotation system, which requires the external auditor or lead audit partner to change every
five years. There is also a mandatory stand down period before those partners can next be engaged by PFI. Neither will a former
Independent Contractor or employee of PFI be engaged in an external audit role within two years of ceasing to be employed by PFI.
The external auditor attends PFI’s Annual Meeting each year to answer any questions relating to the audit.
The Audit and Risk Committee must pre-approve all audit services, as well as all non-audit services provided by the auditor. The
Policy on Audit Independence sets out a number of principles to guide the committee in assessing whether the services could be
perceived as conflicting with the independent role of the auditor. To illustrate, approval will not be granted to produce financial
statements (such that they might be perceived as auditing their own work), implement financial systems, or perform any function of
management. This ensures that there is a clear separation between internal and external audit roles. The Audit and Risk Committee
monitors, and may limit, the amount of non-audit related work being undertaken by the firm holding office as auditor, if that work
may, in its opinion, impair the independence of the external auditor.
PFI does not have an internal audit function. The process it employs for evaluating and continually improving the effectiveness of
its risk management and internal processes can be found in the section entitled Principle Six: Risk Management.
Principle Eight: Shareholder Rights & Relations
The Board should respect the rights of shareholders and foster constructive relationships with shareholders that encourage
them to engage with the issuer.
PFI encourages an open dialogue with its shareholders and stakeholders. The Corporate Governance Manual, annual report,
financial information, and all NZX announcements are available on the Company’s website. PFI shareholders are encouraged
to receive shareholder communications electronically.
In respect of voting rights, PFI shareholders have one vote per share they hold in PFI, and will have the right to vote on major
decisions which may change the nature of PFI in accordance with the NZX Listing Rules.
In order for shareholders to fully participate in meetings, the Board endeavours to post the annual shareholders’ notice of meeting
on PFI’s website as soon as possible and at least 20 working days prior to the meeting. In 2022, a hybrid annual meeting was held
(providing for both virtual and in-person attendance), allowing wider participation by shareholders.
OTHER MATTERS
Directors’ Interests Register
During the year, the Board authorised the renewal of the Directors’ and Officers’ insurance cover as at 30 June 2022 for a period
of 12 months and has certified, in terms of section 162 of the Companies Act 1993, that this cover is fair to the Company.
As permitted by the Company’s constitution and the Companies Act 1993, the Company has also executed a deed indemnifying its
Directors against potential liabilities and costs they may incur for acts or omissions in their capacity as Directors of the Company
and its subsidiary.
Please refer to the Directors’ Relevant Interests section above for information regarding the acquisition and disposal of relevant
interests in the Company’s financial products by its Directors.
No Director has sought authorisation to use Company information.

107
Section 140(1) of the Companies Act 1993 requires a director of a company to disclose certain interests. Under subsection (2)
a director can make disclosure by giving a general notice in writing to the company of a position held by a director in another
named company or entity. The following are details of Directors’ general disclosures entered in the Interests Register for the
Company during the 12 months ending 31 December 2022. Any entry added by notices given by the Directors during the year
ended 31 December 2022 is denoted with a *. Any entry removed by notices given by the Directors during the year ended
31 December 2022 is denoted with a ~.
DIRECTOR POSITION COMPANY
Anthony BeverleyDirector; Chair of Audit and Risk Committee~; Chair
of Board*
Arvida Group Limited
Carolyn SteeleDirector; Chair of Audit and Risk CommitteeGreen Cross Health Limited*
Director; Chair of Audit and Risk CommitteeWEL Networks Limited*
Director; Investment Committee MemberOriens Capital GP 2 Limited*
Director; Chair of Audit and Risk CommitteeVulcan Steel Limited*
Director; Chair of BoardHalberg Foundation*
DirectorTuatahi First Fibre (UFF Holdings Limited
and First Fibre Bidco)~
Dean BracewellDirectorTainui Group Holdings Limited
Executive Board MemberHalberg Foundation
DirectorAra Street Investments Limited
DirectorAir New Zealand Limited
DirectorPort of Tauranga Limited*
Gregory ReidyDirectorMRC2 Limited
DirectorResidentiae (Edwin Street) GP Limited (as
General Partner of Residentiae (Edwin
Street) Limited Partnership)
DirectorH&R MRC Limited
DirectorResident Properties Limited
DirectorArea Management Limited
TrusteeGrammar Rugby Incorporated
DirectorReidy & Co Limited
DirectorMSR GP Limited (as General Partner of
MSR Limited Partnership)
DirectorArdea Properties Limited*
Susan Peterson
1
Director; Chair of Nomination and Remuneration
Committee~; Chair of Board*
Vista Group International Limited
Director; Chair of Remuneration CommitteeXero Limited
Board MemberGlobal Women
DirectorArvida Group Limited
DirectorMercury NZ Limited*
Other than noted in this report, there were no other interest register entries recorded for the Company or its subsidiary for the year
ended 31 December 2022.
1. Susan Peterson retired from PFI’s Board of Directors on 14 December 2022, and therefore her interests are current and as that date except as noted.

OTHER DISCLOSURES
108
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
Donations
The Company made the following donations during 2022:
§
$10,000 to the Auckland City Mission to help with emergency food parcels for families and individuals in need; and
§
$5,000 to KidsCan to provide Kiwi children with the basics they need to get through their day safely, including food, raincoats,
shoes and socks.
The Company is a sponsor of the Keystone New Zealand Property Education Trust and paid the Trust $10,000 by way of
sponsorship during the year.
The subsidiary did not make any donations during the year.
Substantial Product Holders as at 31 December 2022
As at 31 December 2022, the total number of ordinary shares on issue was 502,050,524. The Company has only ordinary shares
on issue.
The persons, who, for the purposes of section 293 of the Financial Markets Conduct Act 2013, were substantial product holders
as at 31 December 2022 are:
SECURITY HOLDER
NO. OF SHARES WHEN
NOTICE WAS FILED
% WHEN NOTICE
WAS FILED
ANZ New Zealand Investments Limited, ANZ Bank New Zealand Limited
and ANZ Custodial Services New Zealand Limited
41,932,2198.328%
Accident Compensation Corporation (ACC)37,489,726 7.425%
Details of Dividends Paid
The following dividends have been paid by the Company in the past two financial years:
DIVIDENDS DATE PAID
CENTS PER
SHARE
TOTAL
PAID
2022
$000
TOTAL
PAID
2021
$000
Q4 2020 final dividend10 March 20212.2511,279
Q1 2021 interim dividend24 May 20211.809,045
Q2 2021 interim dividend7 September 20211.809,063
Q3 2021 interim dividend23 November 20211.859,332
Q4 2021 final dividend9 March 20222.4512,385
Q1 2022 interim dividend24 May 20221.809,101
Q2 2022 interim dividend7 September 20221.809,088
Q3 2022 interim dividend22 November 20221.859,325
Total dividends per statement of changes in equity 39,89938,719
NZX Waivers
The Company did not rely on any NZX waivers during 2022.

109
SHAREHOLDER STATISTICS
GEOGRAPHICAL SPREAD AS AT 31 JANUARY 2023
ORDINARY SHARES HOLDING
%
HOLDING
Auckland & Northern Region 271,640,568 54.12%
Hamilton & Surrounding
Districts
110,272,654 21.96%
Wellington & Central Districts 74,167,891 14.77%
Dunedin & Southland 29,939,933 5.96%
Nelson, Marlborough &
Christchurch
13,611,038 2.71%
Overseas 2,418,440 0.48%
Total 502,050,524 100.00%
SHAREHOLDER SPREAD AS AT 31 JANUARY 2023
ORDINARY SHARES
NUMBER
OF
HOLDERS HOLDING
%
HOLDING
Up to 4,999 1,327 3,301,671 0.66%
5,000 - 9,999 1,097 7,791,808 1.55%
10,000 - 49,999 2,167 45,514,233 9.07%
50,000 - 99,999 322 21,424,648 4.27%
100,000 - 499,999 258 50,635,213 10.09%
500,000 and above 74 373,382,951 74.36%
5,245 502,050,524 100.00%
20 LARGEST REGISTERED SHAREHOLDERS AS AT 31 JANUARY 2023
HOLDER HOLDING
%
HOLDING
Custodial Services Limited 61,543,156 12.26%
Accident Compensation Corporation – NZCSD 40,121,683 7.99%
ANZ Wholesale Trans-Tasman Property Securities Fund – NZCSD 26,479,237 5.27%
BNP Paribas Nominees (NZ) Limited – NZCSD 22,475,408 4.48%
FNZ Custodians Limited 25,752,235 5.13%
Forsyth Barr Custodians Limited 17,485,913 3.48%
New Zealand Depository Nominee Limited 16,328,929 3.25%
HSBC Nominees (New Zealand) Limited – NZCSD 11,371,996 2.27%
Tea Custodians Limited, Client Property Trust Account – NZCSD 8,629,668 1.72%
ANZ Wholesale Property Securities – NZCSD 7,659,956 1.53%
Messrs. Wildermoth, Wilson and Young and Ms Wildermoth 6,948,605 1.38%
MFL Mutual Fund Limited – NZCSD 6,930,708 1.38%
Citibank Nominees (New Zealand) Limited – NZCSD 6,594,665 1.31%
Investment Custodial Services Limited 6,373,059 1.27%
Mr. Mckee and Ms. Mckee 5,566,373 1.11%
JBWere (NZ) Nominees Limited 5,563,027 1.11%
PT (Booster Investments) Nominees Limited 5,007,384 1.00%
Masfen Securities Limited 4,767,744 0.95%
Heatherfield Investments Limited 4,199,149 0.84%
Simplicity Nominees Limited 4,163,875 0.83%
Shares held by top 20 shareholders 293,962,770 58.55%
Balance of shares 208,087,754 41.45%
Total of issued shares 502,050,524 100.00%

OTHER DISCLOSURES
110
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
20 LARGEST REGISTERED BONDHOLDERS AS AT 31 JANUARY 2023
HOLDER
PFI 010
HOLDING
PFI010 %
HOLDING
PFI 020
HOLDING
PFI020 %
HOLDING
Custodial Services Limited 23,394,000 23.39% 34,014,000 34.01%
Forsyth Barr Custodians Limited 21,020,000 21.02% 16,843,000 16.84%
FNZ Custodians Limited 10,317,000 10.32% 11,608,000 11.61%
Citibank Nominees (New Zealand) Limited - NZCSD–0.00% 10,037,000 10.04%
Generate Kiwisaver Public Trust Nominees Limited - NZCSD–0.00% 5,813,000 5.81%
Forsyth Barr Custodians Limited –0.00% 901,000 0.90%
NZPT Custodians (Grosvenor) Limited - NZCSD 8,549,000 8.55% 780,000 0.78%
National Nominees Limited - NZCSD 5,000,000 5.00%–0.00%
HSBC Nominees (New Zealand) Limited - NZCSD 4,075,000 4.08% 3,900,000 3.90%
Tea Custodians Limited Client Property Trust Account - NZCSD 3,473,000 3.47% 3,310,000 3.31%
Hobson Wealth Custodian Limited 2,053,000 2.05% 1,310,000 1.31%
Investment Custodial Services Limited 2,035,000 2.04% 869,000 0.87%
JML Capital Limited–0.00% 600,000 0.60%
Forsyth Barr Custodians Limited 1,802,000 1.80%–0.00%
FNZ Custodians Limited 1,065,000 1.07% 597,000 0.60%
Kiwigold.co.nz Limited –0.00% 300,000 0.30%
Dunedin Diocesan Trust Board –0.00% 250,000 0.25%
Custodial Services Limited–0.00% 203,000 0.20%
JBWere (NZ) Nominees Limited 774,000 0.77%–0.00%
Woolf Fisher Trust Incorporated–0.00% 184,000 0.18%
Mint Nominees Limited - NZCSD–0.00% 170,000 0.17%
FNZ Custodians Limited 410,000 0.41%–0.00%
Forsyth Barr Custodians Limited 382,000 0.38% 290,000 0.29%
Investment Custodial Services Limited 350,000 0.35%–0.00%
Hobson Wealth Custodian Limited 322,000 0.32%–0.00%
Hobson Wealth Custodian Limited 233,000 0.23%–0.00%
Custodial Services Limited 220,000 0.22% 185,000 0.19%
John Collingwood King and Pravir Atindra Tesiram (King Family) 200,000 0.20%–0.00%
Forsyth Barr Custodians Limited 195,000 0.20%–0.00%
Bonds held by top 20 Bondholders 85,869,000 85.87% 92,164,000 92.16%
Total Remaining Holders Balance 14,131,000 14.13% 7,836,000 7.84%
Total of issued Bonds 100,000,000 100.00% 100,000,000 100.00%
BONDHOLDER SPREAD: PFI010 AS AT 31 JANUARY 2023
BONDS
NO. OF
HOLDERS HOLDING
%
HOLDING
5,000 - 9,999 66 352,000 0.35%
10,000 - 49,999 406 7,641,000 7.64%
50,000 - 99,999 46 2,679,000 2.68%
100,000 - 499,999 35 5,343,000 5.34%
500,000 - 999,999 1 774,000 0.77%
1,000,000 and above 8 83,211,000 83.22%
Total 562 100,000,000 100.00%
BONDHOLDER SPREAD: PFI020 AS AT 31 JANUARY 2023
BONDS
NO. OF
HOLDERS HOLDING
%
HOLDING
5,000 - 9,999 41 234,000 0.23%
10,000 - 49,999 208 4,381,000 4.38%
50,000 - 99,999 24 1,351,000 1.35%
100,000 - 499,999 22 3,157,000 3.16%
500,000 - 999,999 4 2,967,000 2.97%
1,000,000 and above 5 87,910,000 87.91%
Total 304 100,000,000 100.00%
BONDHOLDER STATISTICS

111
GRI INDEX
DISCLOSURE TITLEGRILOCATION / INFORMATION
General Disclosures
Organisational details 2-1Property for Industry Limited (PFI); https://www.
propertyforindustry.co.nz/about-pfi/; https://www.
propertyforindustry.co.nz/contact-us/; New Zealand.
Entities included in the organisation’s
sustainability reporting
2-2PFI is comprised of a single holding parent company, Property
for Industry Limited (PFI) and a subsidiary company, P.F.I.
Property No. 1. For the purposes of reported information,
there is no difference between PFI and P.F.I. Property No. 1.
Reporting period, frequency and contact point2-31 January 2022 to 31 December 2022; annual reporting
frequency (both financial and sustainability reporting);
Publication date is 20 February 2023.
Contact point: info@pfi.co.nz
Restatements of information 2-4There have been no restatements of information made from
previous reporting periods.
External assurance 2-5PwC Audit Report, pages 83-88; PFI’s sustainability reporting
has not been externally assured for 2022. We did, however,
receive an external quality review of our carbon footprint
from Ekos.
Activities, value chain and other business
relationships
2-6a. PFI operates in the property sector.
b. Sustainability Report, pages 25-35.
c. PFI’s business relationships include a number of tenants,
partners and suppliers, most notably our external facilities
management and construction partners.
d. There have been no significant changes to PFI’s business
relationships during 2022.
Employees 2-7Company Structure and Statutory Information – Diversity and
Inclusion, page 97; Sustainability Report – 2022 Highlights,
pages 26-27; At 31 December 2022, we had a team of 19
permanent staff (ten male and nine female) based in Auckland,
and one contractor. This information is obtained in the
recruitment process and maintained in personel records.
Workers who are not employees2-8PFI relies on a wide range of contractors and occassionally
employs temporary staff for a number of its activities.
Governance structure and composition2-9Company Structure and Statutory Information – Board
Composition and Performance, pages 94-97.
Nomination and selection of the highest
governance body
2-10Company Structure and Statutory Information – Board
Composition and Performance, pages 94-97.
Chair of the highest governance body2-11The Chair of the Board is not a senior executive in the
organisation; Company Structure and Statutory Information –
Board Composition and Performance, pages 94-97.
Role of the highest governance body in
overseeing the management of impacts
2-12PFI Board and Committee Charters:
https://www.propertyforindustry.co.nz/about-pfi/governance/
Delegation of responsibility for impacts 2-13Climate-related Disclosures, TCFD Report – Governance, page 37.
Role of highest governance body in
sustainability reporting
2-14Climate-related Disclosures, TCFD Report – Governance, page 37.
Conflicts of interest2-15PFI Code of Ethics: https://www.propertyforindustry.co.nz/
about-pfi/governance/

OTHER DISCLOSURES
112
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
DISCLOSURE TITLEGRILOCATION / INFORMATION
Communication of critical concerns2-16PFI Code of Ethics: https://www.propertyforindustry.co.nz/
about-pfi/governance/; There were no critical concerns
communicated to the Board during the reporting period ended
31 December 2022.
Collective knowledge of the highest
governance body
2-17Sustainability is an agenda item at quarterly Board meetings;
Climate-related Disclosures, TCFD Report – Governance, page 37.
Evaluation of the performance of the
highest governance body
2-18Company Structure and Statutory Information - Board
Composition and Performance, pages 94-97; PFI People
Committee Charter: https://www.propertyforindustry.co.nz/
about-pfi/governance/.
Remuneration policies2-19PFI People Committee Charter: https://www.
propertyforindustry.co.nz/about-pfi/governance/; Company
Structure and Statutory Information – Remuneration,
pages 100-103.
Process to determine remuneration2-20PFI People Committee Charter: https://www.
propertyforindustry.co.nz/about-pfi/governance/; Company
Structure and Statutory Information - Remuneration,
pages 100-103.
Annual total compensation ratio2-21PFI has not disclosed data on compensation ratios due to
privacy considerations. We will review this disclosure in FY23.
Statement on sustainable
development strategy
2-22Sustainability Report, pages 25-35.
Policy commitments2-23PFI Code of Ethics: https://www.propertyforindustry.co.nz/
about-pfi/governance/
Embedding policy commitments2-24Sustainability Report – People and Wellbeing, pages 34-35.
Processes to remediate negative impacts2-25Sustainability Report – 2030 Strategy, pages 28-29.
Mechanisms for seeking advice and
raising concerns
2-26PFI Code of Ethics: https://www.propertyforindustry.co.nz/
about-pfi/governance/
Compliance with laws and regulations2-27PFI has had no significant instances of non-compliance
during 2022.
Membership associations2-28New Zealand Green Building Council, Property Council of
New Zealand.
Approach to stakeholder engagement2-29Sustainability Report, pages 25-35. Company Structure and
Statutory Information, page 106.
Collective bargaining agreements2-30None of PFI’s employees are covered by collective bargaining
agreements, and all employee working conditions and terms of
employment are determined irrespective of the collective
bargaining agreements from other organisations.
Material Topics
Process to determine material topics 3-1Sustainability Report – 2030 Strategy, pages 28-29.
List of material topics3-2Sustainability Report – 2030 Strategy, pages 28-29.
Greenhouse Gas Emissions
Management of material topics3-3Sustainability Report – Greenhouse Gas Emissions, pages 30-33.
Direct (Scope 1) GHG emissions305-1Sustainability Report – Greenhouse Gas Emissions, Our carbon
footprint, page 30.
GRI INDEX

113
DISCLOSURE TITLEGRILOCATION / INFORMATION
Energy indirect (Scope 2) GHG emissions305-2Sustainability Report – Greenhouse Gas Emissions, Our carbon
footprint, page 30.
Other indirect (Scope 3) GHG emissions305-3Sustainability Report – Greenhouse Gas Emissions, Our carbon
footprint, page 30.
Reduction of GHG emissions305-5Sustainability Report – Greenhouse Gas Emissions, Scope 1 and
2 emissions, pages 32-33.
Economic Value
Management of material topics3-3Sustainability Report – Economic Value, page 35.
Direct economic value generated
and distributed
201-1Financial Statements, pages 46-82.
Financial implications and other risks and
opportunities due to climate change
201-2Climate-related Disclosures, TCFD Report, pages 36-43. PFI is
developing its approach to estimate and quantify the financial
implications of climate-related risks in accordance with the
incoming Aotearoa New Zealand Climate Standards.
Significant indirect economic impacts203-2Sustainability Report, pages 25-35.
Resources and Waste
Management of material topics3-3Sustainability Report – Resources and Waste, page 33.
Waste generation and significant
waste-related impacts
306-1Sustainability Report – Resources and Waste, page 33.
Management of significant
waste-related impacts
306-2Sustainability Report – Resources and Waste, page 33.
Waste generated306-3Omission: PFI is collaborating with suppliers to begin
estimating total generated waste from developments and
refurbishments and its composition. We expect to have initial
estimates in the next two years.
People and Wellbeing
Management of material topics3-3Sustainability Report – People and Wellbeing, pages 34-35.
Occupational health and safety
management system
403-1Sustainability Report – People and Wellbeing, pages 34-35.
Promotion of worker health403-6Sustainability Report – People and Wellbeing, pages 34-35.
Prevention and mitigation of occupational
health and safety impacts directly linked
by business relationships
403-7Sustainability Report – People and Wellbeing, pages 34-35.
Work-related injuries403-9Sustainability Report – People and Wellbeing, pages 34-35.
Diversity of governance bodies
and employees
405-1Company Structure and Statutory Information – Diversity and
Inclusion, page 97. PFI does not collect data on age and other
diversity indicators due to the small team size.
Disaster and Climate Resilience
N/AN/ASustainability Report – Disaster and Climate Resilience,
page 34. Disaster and Climate Resilience is a topic of
strategic importance to PFI. However, Disaster and Climate
Resilience does not trigger specific topic disclosures under
the GRI Standards.

114
PROPERTY FOR INDUSTRY LIMITED ANNUAL REPORT — 2022
DIRECTORY
_ Level 4, Hayman
Kronfeld Building,
15 Galway Street,
Auckland
FUTURE
-

FIT

115
2023
FEBRUARY
§
2022 Full-year announcement
§
2022 Annual report released
MARCH
§
2022 Final dividend payment
§
Annual meeting
MAY
§
2023 First-quarter announcement
§
2023 First-quarter dividend payment
AUGUST
§
2023 Half-year announcement
§
2023 Interim financial statements
released
SEPTEMBER
§
2023 Half-year dividend payment
NOVEMBER
§
2023 Third-quarter announcement
§
2023 Third-quarter dividend payment
2024
FEBRUARY
§
2023 Full-year announcement
§
2023 Annual report released
MARCH
§
2023 Final dividend payment
§
Annual meeting
ISSUER OF SHARES AND BONDS
Property for Industry Limited
Level 4, Hayman Kronfeld Building
15 Galway Street
PO Box 1147
Auckland 1140
Tel: +64 9 303 9450
propertyforindustry.co.nz
info@propertyforindustry.co.nz
DIRECTORS
Anthony Beverley (Chair)
Carolyn Steele
David Thomson
Dean Bracewell
Gregory Reidy
CHIEF EXECUTIVE OFFICER
Simon Woodhams
Tel: +64 9 303 9652
woodhams@propertyforindustry.co.nz
CHIEF FINANCE AND OPERATING
OFFICER
Craig Peirce
Tel: +64 9 303 9651
peirce@propertyforindustry.co.nz
AUDITOR
PricewaterhouseCoopers
Level 27, PwC Tower
15 Customs Street West
Private Bag 92162
Auckland 1142
Tel: +64 9 355 8000
Fax: +64 9 355 8001
CORPORATE LEGAL ADVISOR
Chapman Tripp
Level 34, PwC Tower
15 Customs Street West
PO Box 2206
Auckland 1140
Tel: +64 9 357 9000
VALUATION PANEL
Bayleys Valuation Limited
CBRE Limited
Colliers International New Zealand
Limited
Jones Lang LaSalle Limited
Savills (NZ) Limited
BANKERS
ANZ Bank New Zealand Limited
Bank of New Zealand
Commonwealth Bank of Australia
Westpac New Zealand Limited
SECURITY TRUSTEE
New Zealand Permanent Trustees
Limited
SAP Tower, Level 16,
151, Queen Street, Auckland 1010
PO Box 1598
Auckland 1140
Tel: 0800 371 471
BOND SUPERVISOR
Public Trust
SAP Tower, Level 16,
151, Queen Street, Auckland 1010
PO Box 1598
Auckland 1140
Tel: +64 9 985 5300
REGISTRAR
Computershare Investor Services
159 Hurstmere Road
Private Bag 92119
Auckland 1142
Tel: +64 9 488 8777
Fax: +64 9 488 8787
investorcentre.com/nz
This Annual Report is dated 20 February 2023 and signed on behalf of the
Board by:
Anthony Beverley Carolyn Steele
Chair Chair, Audit and Risk Committee
DIRECTORYCALENDAR
insight
creative.co.nz
PFI213

www.propertyforindustry.co.nz
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