PFI Announces Interim Results

NZX and media
announcement
—
22 August | 2023


Page 1

PFI ANNOUNCES INTERIM RESULTS
The PFI management team will present the results via live webcast from 10am NZT on 22 August 2023.
To view and listen to the webcast, please visit https://edge.media-server.com/mmc/p/hvy9xwof. 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/BI3097c5a81d33434cadaff6af14aa117f. Upon registering,
participants will be provided with participant dial-in numbers, a passcode and a unique registrant ID. 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
▪ Interim result: Fair value losses on properties of $55.0 million or 5.3% contributing to a loss after
tax of $30.5 million. Funds From Operations (FFO)
1
down 4.0% from the prior interim period to 4.92
cents per share (cps), Adjusted Funds From Operations (AFFO) in line with the prior interim period
at 4.62 cps, interim cash dividends of 3.90 cps.
▪ Constrained supply driving rental growth: Auckland industrial vacancy remains at all-time lows,
driving rental growth. $32.8 million of contract rent reviewed during H1 2023 delivering an average
annualised uplift of 4.2%, 2.3% of contract rent leased during H1 2023 at an average of 14.7% above
previous contract rents. $2.1 billion industrial property portfolio ~16% under-rented.
▪ Green Star development pipeline progressed: Demolition complete across both active sites,
$140 million of committed spend, all buildings targeting Five Green Star ratings.
▪ Sustainability initiatives advanced: Refreshed sustainability strategy rolled out, in house facilities
management services now live, first solar installation complete, power metering installed at seven
properties.
▪ Balance sheet optimisation: BNZ facility upsized and extended, $199 million of available bank
liquidity and gearing comfortable at 29.2% at the end of the interim period. Green Finance
Framework launched, inaugural Green loan tranches established post interim balance-date.

Property for Industry Limited (PFI, the Company) today announced the Company’s interim result for the
six months ended 30 June 2023.

“Occupier market fundamentals remain robust, and our resilient, well-located portfolio continues to
capture further rental growth. Significant progress has been made across the Company’s Green Star
development pipeline, financed by PFI’s inaugural Green loan tranches, demonstrating our commitment
to long term sustainability initiatives” says PFI Chief Executive Officer, Simon Woodhams.

Interim result
PFI reported a loss after tax for the interim period of $30.5 million (loss of 6.08 cps), down from a profit
of $23.8 million (profit of 4.70 cps) in the prior interim period. A $55.0 million fair value loss on the
independent valuation of 37 investment properties, as compared to a $19.5 million fair value gain on the
independent valuation of 11 properties in the prior interim period, was the main contributor to this
reduction.

At an operating level, net rental income
2
of $47.4 million was down $0.3 million or 0.7% on the prior
interim period, with the commencement of the Company’s brownfield development projects and current
--------

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.

2
Refer note 2.3 of the interim financial statements. Excludes service charge income recovered from tenants and management fee
income.

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and prior year divestment activity contributing $1.8 million to this decrease. Offsetting this, positive
leasing activity contributed to an increase in net rental income totalling $1.5 million.

Interest expense and bank fees increased by $3.2 million, the result of an increase in the Company’s
weighted average cost of debt to 5.34% from 4.07% as at the end of the prior interim period. Current
taxation of $3.3 million was down $2.7 million on the prior interim period, the change from the prior
interim period being largely due to an increase in deductible capital expenditure and tax deductions
associated with the Company’s brownfield redevelopment projects.

As a result, FFO earnings were down 4.0% from the prior interim period to 4.92 cps, whilst AFFO
earnings of 4.62 cps were in line with the prior interim period (4.64 cps).

That being the case, the PFI Board has resolved to pay a second quarter interim cash dividend of 1.95
cps. The dividend will have imputation credits of 0.36 cps attached and a supplementary dividend of
0.16 cps will be paid to non-resident shareholders. The record date for the dividend is 29 August 2023,
and the payment date is 7 September 2023. The dividend reinvestment scheme will not operate for this
dividend.

The second quarter dividend will take cash dividends for the interim period to 3.90 cps, resulting in an
FFO dividend pay-out ratio of 83% (2022: 79%) and an AFFO dividend pay-out ratio of 89% (2022: 92%,
refer Appendix 2).

Consistent with earlier guidance, the PFI Board expects to declare 2023 cash dividends of between 8.10
and 8.30 cps, an increase of up to 2.5% on 2022 dividends. 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 between
8.10 cps and 8.30 cps are anticipated to result in a dividend pay-out at the bottom of this dividend policy
range. Elevated interest rates have the potential to impact forecast earnings, and PFI’s guidance
assumes an average BKBM throughout the remainder of 2023 of around 5.70%, up from 5.25% when
PFI’s 2023 guidance was first issued. 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.

Constrained supply driving rental growth
Portfolio snapshot as at 30 June 2023 31 December 2022
Book value $2,058.9m $2,117.2m
Number of properties 93 94
Number of tenants 128 132
Contract rent $94.4m $98.2m
Occupancy 100.0% 100.0%
Weighted Average Lease Term (WALT) 5.00 years 5.08 years
Auckland property 84.7% 83.2%

PFI’s portfolio again delivered strong levels of rental growth over the first half of 2023.

Rent reviews were completed on 61 leases during the first half of 2023, resulting in an average uplift of
4.7% on ~$32.8 million of contract rent. CBRE predict
3
industrial rental growth over the next five years
to average 3.4% per annum for prime properties and 2.9% per annum for secondary properties, following
growth of 17.4% and 13.8% in 2022, respectively.

--------

3
CBRE “Auckland Property Market Outlook”, July 2023

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Around 36,000 square metres (sqm), $4.4 million or 4.6% of PFI’s portfolio by rent, was leased during
the interim period to eight existing tenants for an average increase in term of 4.7 years, with average
incentives of 0.1 months per year of term negotiated across these leasing transactions. Rents were
agreed on $2.2 million of contract rent, achieving a positive re-leasing spread of around 15% on annual
passing rents. The remaining $2.2 million of contract rent secured during the first half of 2023 will be
subject to market reviews on renewal (all uncapped), with those leases ~9% under-rented at June 2023.

Combined, over 39% of contract rent was reviewed, varied, or leased during the first half of 2023.

At the end of the interim period, the Company’s portfolio was fully occupied and just 3.2% of contract
rent is due to expire in the second half of 2023, with ~75% of remaining 2023 expiries either secured, or
in advanced stages of negotiation, since the end of the interim period. The occupier market for industrial
property remains robust, with vacancy at record low levels. CBRE reports
3
almost no Auckland industrial
vacancy for prime properties and just 0.1% for secondary properties.

Post interim balance date, PFI has secured leases at benchmark portfolio rents across wider Auckland.
On the Rosebank Road peninsula, a warehouse rate of $190 psm has been agreed on a 2,750 sqm
warehouse, representing a 46% uplift on the previous warehouse rate, and a 54% uplift on the previous
passing rent for the facility. At East Tamaki, heads of terms have been signed at a warehouse rate of
$183 psm on a 5,000 sqm manufacturing warehouse, which is a 43% uplift on the previous warehouse
rate, and a 51% uplift on the previous passing rent for the facility. In addition, on a psm basis, these
warehouse rates are 27% and 22% ahead of June 2023 valuer estimates of market rent. With the next
leasing event for 21% of PFI’s properties being an expiry of market rent review, PFI is well positioned to
capture these benchmark rents across the portfolio.

37 properties, representing around half of PFI’s portfolio by value, were revalued at the end of the interim
period, resulting in a fair value loss on those properties of $55.0 million or an average decrease of 5.3%.
These decreases were driven by ~43bps of market capitalisation rate expansion, somewhat offset by
rental growth. A significant factor in the decrease of individual property values was the lack of access to
market rents in the near-term, particularly for assets with longer lease terms. We note these assets will
naturally achieve reversion to market rents as time moves forward, through PFI’s ongoing asset
management activities. As a result of portfolio and valuation activity, PFI’s passing yield softened from
4.50% to 4.73%
4
. 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 16% under-rented.

Net tangible assets (NTA) per share decreased by 10.6 cps from 298.8 cps as at the end of 2022 to
288.2 cps as at the end of the interim period.

Green Star development pipeline progressed
The Company has around $232 million or 11% of the portfolio held in properties where there is an
opportunity for redevelopment, and these properties are referred to as brownfield opportunities. During
the interim period, the PFI team made significant progress at the Company’s committed brownfield
development sites, 30-32 Bowden Road in Mount Wellington and 78 Springs Road in East Tamaki.
Demolition is now complete across both sites, with civil and foundational works underway.

At the Company’s 3.9 hectare 30-32 Bowden Road property, ~40% of the development has been pre-
leased to Tokyo Food for a lease term of 12 years. PFI is developing the remainder of the site without
tenant commitment and expects to complete the project in Q3 2024. The estimated incremental cost of
~$65 million remains unchanged. Both buildings will target a Five Green Star rating, creating PFI’s first
fully Green Star rated industrial estate, with close to 24,000 sqm of covered workable area once
--------

4
Both current and prior period exclude committed brownfield development properties (30-32 Bowden Road and 78 Springs
Road)

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complete.

At 78 Springs Road, the Company is developing a 25,500 sqm warehouse for existing tenant Fisher &
Paykel Appliances, with an option to expand the warehouse to 30,000 sqm. Stage 1 of the project is
expected to complete in Q1 2025 and has an estimated total incremental cost of ~$76 million, with
contract pricing showing signs of construction costs easing. PFI is continuing to work through the
configuration of future stages, with 5.3 hectares of land available across the balance of the site. Future
stages will be committed to on an individual basis, taking into consideration their ability to meet hurdle
rates of return, market conditions and availability of capital, and all significant buildings will target Five
Green Star ratings.

Sustainability initiatives advanced
Further progress has been made across a variety of areas in the Company’s sustainability programme,
including; rolling out a refreshed sustainability strategy to investors, team and key suppliers; embedding
in-house facilities management; completing the Company’s first solar installation; and installing power
metering at seven PFI properties.

As mentioned above, PFI continues to work towards achieving Five Green Star
5
ratings on all buildings
at the Company’s current brownfield development sites, with these projects now backed by Green loans
(see below).

Balance sheet optimisation
PFI’s balance sheet remains conservative with gearing as at 30 June 2023 of 29.2% (covenant: 50%)
and an interest cover ratio for the year then ended of 2.8 times (covenant: 2.0 times). Interest rate
hedging provides for an average of ~61% of the Company’s debt to be hedged at an average fixed rate
of ~2.35% for the remainder of 2023, offering some protection from floating interest rates.

During the interim period, PFI refinanced its $100 million loan facility from the BNZ, extending the facility
expiry date by two years to 31 March 2025 and increasing the facility from $100 million to $175 million,
providing initial funding certainty through to the estimated completion of the Company’s committed
Green Star developments at 30-32 Bowden Road and 78 Springs Road.

Post interim balance date, PFI launched its Green Finance Framework (the Framework), recognising
the Company’s commitment to invest in long-term sustainability initiatives, and concurrently established
its inaugural $150 million Green loan tranches, in accordance with the Framework. The Green loan
facilities were provided by PFI’s long-term banking partners ANZ, BNZ, CBA and Westpac.

Upon establishment of the Green loan facilities, PFI reduced the short-term BNZ facility by $50 million
to $125 million. Following this activity, the weighted average term to expiry of PFI’s bonds and bank
facilities increased to 2.7 years
6
and the Company added $125 million of additional liquidity to the $199
million of available liquidity as at the end of the interim period.

Closing
“Our diligent approach to capital management over the first half of the year will facilitate the execution
of the Company’s Green Star development pipeline, as we work towards the completion of our Bowden
Road and Springs Road projects in 2024 and 2025, respectively” notes PFI Chairman, Anthony
Beverley. “Concurrently, we will continue to extract value from our $2.1 billion industrial property
portfolio, supported by a robust occupier market and record low vacancy in Auckland. Looking ahead,
the Company is well placed to perform against a softer economic backdrop, and indeed capitalise on
any opportunities that arise.”
--------

5
Refer to slide 25 of the interim results presentation for further detail on Green Star ratings
6
As at 20 July 2023

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ENDS

ABOUT PFI & CONTACT

PFI is an NZX listed property vehicle specialising in industrial property. PFI’s nationwide portfolio of 93 properties is leased to
128 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
Interim Results Presentation
Interim Financial Statements

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Appendices
Appendix 1 – FFO and AFFO Calculations
Funds / Adjusted Funds From Operations For the six
months ended
For the six
months ended
(unaudited, $000, unless noted) 30 June 2023 30 June 2022
Profit and total comprehensive income after income
tax attributable to the shareholders of the Company
(30,527) 23,780
Adjusted for:
Fair value loss / (gain) on investment properties and AHFS 55,046 (19,451)
Material damage insurance income (140) -
Loss on disposal of investment properties and AHFS 931 131
Fair value (gain) / loss on derivative financial instruments 2,210 (14,293)
Amortisation of tenant incentives 1,330 1,441
Straight lining of fixed rental increases (323) (681)
Deferred taxation (4,080) 5,934
Goodwill impairment - 29,086
Other 279 (3)
Funds From Operations (FFO) 24,726 25,944
FFO per share (cents) 4.92 5.13
Maintenance capex (1,366) (1,051)
Incentives and leasing fees given for the period (242) (1,556)
Other (incl. reversal of accounting entries for COVID-19 abatement
and deferral deals)
77 129
Adjusted Funds From Operations (AFFO) 23,195 23,466
AFFO per share (cents) 4.62 4.64

Appendix 2 – FFO and AFFO Dividend Pay-out Ratios
2023 2022
Full year dividends per share
(cents, 2023 = mid-point of guidance, 2022 = actuals)
8.20 8.10
Pro-rata share of full year dividends per share
(cents, 2022 = 50% of guidance, 2022 = 50% of actuals)
4.10

4.05
FFO dividend pay-out ratio (%) 83% 79%
AFFO dividend pay-out ratio (%) 89% 92%

---

Results announcement
(for Equity Security issuer/Equity and Debt Security
issuer)
Updated as at June 2023


Results for announcement to the market
Name of issuer Property for Industry Limited (PFI)
Reporting Period 6 months to 30 June 2023
Previous Reporting Period 6 months to 30 June 2022
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$46,411 0.2%
Total Revenue $46,411 0.2%
Net profit/(loss) from
continuing operations
$(30,527) (228.4)%
Total net profit/(loss) $(30,527) (228.4)%
Interim Dividend
Amount per Quoted Equity
Security
$0.01950000
Imputed amount per Quoted
Equity Security
$0.00357915
Record Date 29 August 2023
Dividend Payment Date 7 September 2023
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.882 $3.096
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 unaudited interim
financial statements as at and for the six months ended 30 June
2023. PFI has rearranged the presentation of the information
disclosed in the Consolidated Statement of Comprehensive
Income in the reporting period ended 30 June 2023 and to the
comparative figures for the six months ended 30 June 2022.
Rearrangements have been made to align with the reporting of
other entities in the same industry as PFI and to provide more
relevant and comparable information to the users of the financial
statements. A copy of these unaudited interim financial
statements accompany 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 21 248 6301
Contact email address peirce@pfi.co.nz
Date of release through MAP

22 August 2023

Unaudited interim financial statements accompany this announcement.

---

Distribution Notice

Updated as at June 2023




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 Quarterly
Half Year X Special
DRP applies
Record date 29 August 2023
Ex-Date (one business day before the
Record Date)
28 August 2023
Payment date (and allotment date for
DRP)
7 September 2023
Total monies associated with the
distribution
$9,791,522
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.02307915
Gross taxable amount $0.01278268
Total cash distribution $0.01950000
Excluded amount (applicable to listed
PIEs)
$0.01029647
Supplementary distribution amount $0.00162415
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
$0.00357915
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

22 August 2023

---

SUSTAINABILITY INITIATIVES ADVANCED:
Refreshedsustainabilitystrategyrolledout,inhousefacilities
managementservicesnowlive,firstsolarinstallationcomplete,power
meteringinstalledatsevenproperties.
GREEN STAR DEVELOPMENT PIPELINE PROGRESSED:
Demolitioncompleteacrossbothactivesites,$140millionof
committedspend,allbuildingstargetingFiveGreenStarratings.
Highlights
Interim
Results
Briefing
2023
4
INTERIM RESULT:
Fairvaluelossesonpropertiesof$55.0millionor5.3%contributingtoaloss
aftertaxof$30.5million.FundsFromOperations(FFO)down4.0%fromthe
priorinterimperiodto4.92centspershare(cps),AdjustedFundsFrom
Operations(AFFO)inlinewiththepriorinterimperiodat4.62cps,interimcash
dividendsof3.90cps.
30-32 BOWDEN ROAD
BALANCE SHEET OPTIMISATION:
BNZfacilityupsizedandextended,$199millionofavailablebank
liquidityandgearingcomfortableat29.2%attheendoftheinterim
period.GreenFinanceFrameworklaunched,inauguralGreenloan
tranchesestablishedpostinterimbalance-date.
CONSTRAINED SUPPLY DRIVING RENTAL GROWTH:
Aucklandindustrialvacancyremainsatall-timelows,drivingrental
growth.$32.8millionofcontractrentreviewedduringH12023
deliveringanaverageannualisedupliftof4.2%,2.3%ofcontractrent
leasedduringH12023atanaverageof14.7%aboveprevious
contractrents.
$2.1billionindustrialpropertyportfolio~16%under-rented.

1
2
4
78
1
1
2
3
INCLUDING
BROWNFIELD
LEASES
1
JUNE 2023DECEMBER 2022
BOOK VALUE
$2,058.9m$2,117.2m
NUMBER OF PROPERTIES
9394
NUMBER OF TENANTS
129 (▲1)128132
CONTRACT RENT
$100.3m (▲$5.9m)$94.4m$98.2m
OCCUPANCY
97.0% (▼3.0%)100.0%100.0%
WEIGHTED AVERAGE LEASE TERM
(W ALT)
5.78 years (▲0.78 years)5.00 years5.08 years
AUCKLAND PROPERTY
84.7%83.2%
Portfolio
Snapshot
▪PFI's portfolio is diversified across 93 properties
and 128 tenants, with 100.0% occupancy and a
weighted average lease term of 5.00 years,
weighted towards Auckland
Interim
Results
Briefing
2023
1
6
1
Includes impact of Fisher & Paykel Appliances lease at 78 Springs Road, Tokyo Food lease at 30-32 Bowden Road, and 30-32 Bowden Road spec build

7
1
For those 37 properties
1

▪Rents agreed on $2.2 million of contract
rent secured during H1 2023
▪Rents were settled 14.7% above previous
contract rents
Interim
Results
Briefing
2023
Leasing
eighted
verage
ease
erm
W
A
L
T
across H1 2023
leasing transactions
▪Remaining $2.2 million of contract rent
secured during H1 2023 all subject to
uncapped market reviews on renewal
▪Those renewals ~9% under rented at June
2023
▪Weighted average review date of December
2023
8
▪Total of $4.4 million of contract rent secured
during H1 2023

0.0%
3.2%
15.1%
11.0%
7.6%
11.6%
18.9%
4.2%
3.8%
8.3%
16.2%
0%
5%
10%
15%
20%
25%
Vacant202320242025202620272028202920302031Onwards
Total ExpiriesBrownfield Opportunities
H2 2023
Lease
Expiries
▪Portfolio is 100.0% occupied (0.0% vacancy) and 3.2% of contract rent
is due to expire in H2 2023 (graph below), largest single expiry 22.1% of
that (0.7% of contract rent) (chart on right)
▪Leasing demand remains robust, ~75% of H2 2023 expiries either
secured, or in advanced stages of negotiation, since the end of the
interim period
▪Excluding brownfield developments, FY24 expiries are 9.7% of contract
rent (bottom graph), in line with prior periods
▪Vacancy remains at historically low levels: CBRE reports
1
Auckland
prime industrial vacancy at 0.0%, secondary industrial vacancy at 0.1%
1
CBRE “Auckland Property Market Outlook” July 2023
Interim
Results
Briefing
2023
9

Fixed35.5%
CPI6.1%
Market1.0%
Expiries3.2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
▲
▲
Rent
Reviews
1
CBRE “Auckland Property Market Outlook” July 2023 –includes 2023 rental growth
Interim
Results
Briefing
2023
10
▪61 rent reviews delivered an increase of 4.7% on ~$32.8 million of
contract rent (~4.2% annualised, up from 4.0% in 2022)
−36 fixed reviews delivered an increase of 3.2% on ~$17.9 million
of contract rent (~1.7% annualised)
−Six market rent reviews delivered an increase of 15.7% on $2.0
million of contract rent (annualised increase of 5.9% over an
average review period of 2.7 years), reviews settled at average
of ~12.7% above December 2022 market rental assessment
▪H2 2023 expiries and market reviews (4.2% of contract rent) ~18%
under-rented at June 2023 after factoring in review caps
CBRE five year average rental growth estimates
1
for Auckland:

Presentatio
n title
11

47.4
+0.9
+0.6
+0.1
+0.1
-1.0
-0.8
-0.3
-0.0
47.8
$46m
$47m
$48m
$49m
$50m
H1 2022 net
rental income
Rent reviews &
adjustments
New leases &
renewals
AcquisitionsCOVID-19
support
DevelopmentsDisposalsOtherVacancyH1 2023 net
rental income
Net Rental
Income
▪Net rental income (excluding
service charges) of $47.4 million
down $0.3 million or 0.7% on the
prior interim period ($47.8
million), growth on stabilised
portion of the portfolio of 1.5%
▪Positive leasing activity
contributed to an increase
totalling +$1.5 million
▪Prior year acquisitions resulted
in an increase of +$0.1 million
▪Decreases due to development
projects commencing (-$1.0
million), current and prior year
disposal activity (-$0.8 million)
and other (-$0.3 million)
Interim
Results
Briefing
2023
13

+0.03
+0.54
+0.44
-0.64
-0.31
-0.06
-0.02
4.64
4.62
1.0
2.0
3.0
4.0
5.0
6.0
H1 2022 AFFORebase for
shares
purchased
Current taxationNet rental
income
Interest expense
and bank fees
Administrative
expenses /
Other
Maintenance
capex
Non-recoverable
property costs
H1 2023 AFFO
Adjusted
Funds From
Operations
(cps)
▪AFFO of 4.62 cps in line with prior
interim period
▪Effective tax rate of 12.3% down
7.0% on the prior interim period
following commencement of
brownfield developments
▪Net rental income (including AFFO
adjustments) up $2.2 million or
0.44 cps on the interim period
▪Interest expense and bank fees up
$3.2 million or 0.64 cps on the
prior interim period
▪Admin expenses increased due to
continued investment in key
projects, team and systems (see
next slide)
▪Maintenance capex up $0.3 million
on the prior interim period to 13
basis points
Interim
Results
Briefing
2023
14

Administrative
Expenses
▪Admin expenses up $1,341K or 34% on H1 2022, $739K or 16% on H2 2022
▪Transition to in-house facilities management a key driver of the increase
−H1 2023 and H2 2022 includes facilities management project and team costs (H1 2023: $439K, H2 2022: $329K)
−Existing facilities management contract cost ~$425K p.a. of base fees (captured in “property costs”) and ~$175K p.a. of project related fees (captured as part
of capital expenditure), these fees continued to be incurred during the transition phase (H2 2022, H1 2023)
−Looking forward, facilities management project costs of up to $300K will be incurred in Q3 2023 to finalise the transition
−From Q4 2023 onwards, PFI’s facilities management team will be the only costs incurred, and these are expected to be in line with the existing facilities
management contract cost
▪Other increases in admin expenses are associated with:
−Development projects: development team now ~1.5 FTE, plus costs associated with development systems and processes
−Office move: increased running costs, including depreciation, from move to new corporate office
−Broad based cost pressures: including employee remuneration, audit and other professional fees
Interim
Results
Briefing
2023
15

6.50
6.70
6.90
7.10
7.30
7.50
7.70
7.90
8.10
8.30
8.50
20192020202120222023
DPS (cps)DPS (cps) - Guidance Range
Earnings,
Dividends,
Guidance
▪H1 2023 cash dividends total 3.90 cps,
dividend payments reprofiled in 2023
▪2023 dividend guidance of 8.10 to 8.30 cps, an
increase of up to 0.20 cps or 2.5% on 2022
dividends
▪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
▪Guidance subject to no material adverse
changes in conditions or unforeseen events,
including no material tenant failures
EARNINGSH1 2023 CPSH1 2022 CPSCHANGE
FUNDS FROM OPERATIONS
4.925.13-0.21 cps or -4.0%
ADJUSTED FUNDS FROM OPERATIONS
4.624.64-0.02 cps or -0.5%
Interim
Results
Briefing
2023
16

2,058.9
+18.6
-55.0
-21.0
-0.9
2,117.2
$1,500m
$1,600m
$1,700m
$1,800m
$1,900m
$2,000m
$2,100m
$2,200m
December 2022
investment properties &
AHFS
Fair value lossDisposalsMovement in lease
incentives, fees and
fixed rental income
Capitalised expenditure
& interest
June 2023 investment
properties
Investment
Properties
▪Portfolio value of $2.059 billion
▪Full valuations of 37 properties
resulted in write-down of $55.0
million or 5.0%
▪8A & 8B Canada Crescent,
Christchurch, disposal settled
March 2023
▪Capex at 30-32 Bowden Road
and 78 Springs Road (Green
Star developments), 28 Paraite
Road (yard works), 314 Neilson
Street (warehouse extension)
and 3-5 Niall Burgess Road
(sustainable refurbishment)
Interim
Results
Briefing
2023
17

298.8
288.2
+0.8
-11.0
-0.4
240
250
260
270
280
290
300
310
December 2022 NTAFair value loss on investment
properties
Fair value loss on derivative
financial instruments
Retained earningsJune 2023 NTA
▪Net tangible assets (NTA) per
share decreased by 10.6 cps or
3.5%
▪Change in NTA per share driven
by the decrease in the fair value
of investment properties
(-11.0 cps), a decrease in the
net fair value asset for
derivative financial instruments
(-0.4 cps) and retained earnings
(+0.8 cps)
Net Tangible
Assets
(cps)
Interim
Results
Briefing
2023
18

Funding,
Covenants,
Interest Rates
▪BNZ facility increased to $175 million and extended by
two years to 31 March 2025, subsequently reduced to
$125 million on establishment of the new Green loan
tranches (post interim balance date)
▪Green Finance Framework launched, inaugural $150
million Green loan tranches established post balance
date (see next slide)
▪Post balance date activity has resulted in an additional
$125.0 million of liquidity and an increase in PFI’s
weighted average term to expiry of 0.2 years
▪USPP facility with Pricoaremains undrawn, providing
access to long-term funding should market conditions
suit
▪PFI owns a number of highly ‘liquid’ assets, including
smaller individual holdings, PFI is considering divesting
~$30 –40 million of these assets and recycling this
capital
▪Notwithstanding, PFI’s comfortable gearing, sufficient
hedging and ample bank liquidity combine to provide
certainty on committed brownfield developments
JUNE 2023DECEMBER 2022
FUNDING
BANK FACILITIES DRAWN
$401.3m$403.7m
BANK FACILITIES LIMIT
$600.0m$525.0m
BANK FACILITIES HEADROOM
$198.7m$121.3m
FIXED RATE BONDS
$200.0m$200.0m
FUNDING TERM (AVERAGE)
2.5 years3.0 years
BANKS
ANZ, BNZ, CBA,
Westpac
ANZ, BNZ, CBA,
Westpac
COVENANTS
LOAN-TO-VALUE RATIO (COVENANT: <50%)
29.2%28.5%
INTEREST COVER RATIO (COVENANT: >2.0X)
2.8 times3.4 times
INTEREST RATES
WEIGHTEDAVERAGE COST OF DEBT
5.34%4.77%
INTERESTRATE HEDGING (EXCL. FORWARD
STARTING)
$380m/ 2.34% / 2.8 years$390m/ 2.44% / 3.1 years
FORWARD STARTING INTEREST RATE
$120m / 3.42% / 4.8 years$60m / 2.75% / 4.3 years
Interim
Results
Briefing
2023
20

100.0 100.0
150.0
150.0
125.0
50.0
75.0
25.0
125.0
$m
$50m
$100m
$150m
$200m
$250m
$300m
$350m
$400m
FY23FY24FY25FY26FY27FY28
CBA Term Loan
BNZ 4-yr Green Term Loan
Westpac 4-yr Green Loan
ANZ & CBA 3-yr Green Loan
BNZ Bank Facility
Syndicated Bank Facilities
Bonds
1.5%
1.9%
2.3%
2.7%
3.1%
3.5%
3.9%
$0m
$50m
$100m
$150m
$200m
$250m
$300m
$350m
$400m
Jun-23Dec-23Jun-24Dec-24Jun-25Dec-25Jun-26Dec-26Jun-27Dec-27
Cover (lhs)Interest Rate (rhs)
Debt Facility
Maturity Profile,
Hedging
▪Post establishment of the Green
loan tranches, PFI’s bank facilities
and bonds have an average term
to expiry of ~2.7 years
1
(top graph),
with significant 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
~2.35% during H2 2023, offering
some protection from floating
interest rates
Interim
Results
Briefing
2023
21
1
As at 20 July 2023

Presentatio
n title
23

Presentatio
n title
24

Use of engineered wood products (to meet best practice
formaldehyde limits –target 95% compliance), FSC timber
products and recycled products where available
Cleaning and future irrigation systems to reduce natural
resource consumption
Low flow water fixtures throughout the buildings
Solar Installation and future proofing roof structure for potential
panel increases
30% reduction in peak electricity demand
1
Reduction in ‘Up-front’ and ‘Whole-of-life’ carbon
1
(within our
control)
Dedicated parking for fuel efficient and electric vehicles (with
charging infrastructure)
Sustainability
–Green Star
Inclusions
Interim
Results
Briefing
2023
25
1
Compared to standard industrial reference building

-5%
0%
5%
10%
15%
20232024202520262027
CBRE - Primary Industrial ForecastCBRE - Secondary Industrial Forecast
Market Update
▪Auckland industrial vacancy remains at all-time lows
▪CBRE is forecasting rental growth of ~11% in 2023,
with growth moderating in 2024 and 2025, before
returning to more ‘normal’ levels (~3-5%) in 2026
and 2027 (top graph)
▪PFI’s ~16% portfolio under-renting provides platform
for further rental growth
▪RBNZ raised its interest rate track modestly
following its August meeting, indicating the central
bank now believes there is a greater chance of a
rate hike in the year ahead than a cut, highlighting
the risk that interest rates remain higher for longer
▪Looking forward, PFI’s strong balance sheet and
defensive, well-located portfolio allows the Company
to execute on its Green Star development pipeline
while continuing to extract value from its core assets
CBREAUCKLAND MARKET OUTLOOK
1
JUNE2023
5-YEAR
FORECAST:
JUNE 2023
5-YEAR
FORECAST:
DECEMBER 2022
PRIME INDUSTRIAL –VACANCY0.0%1.3%▲1.2%
–RENTS$196+3.4% (p.a.)▼+5.5% (p.a.)
–YIELDS5.57%5.32%▲4.92%
SECONDARY INDUSTRIAL –VACANCY0.1%0.8%▼2.0%
–RENTS$149+2.9% (p.a.)▼+3.5% (p.a.)
–YIELDS6.14%5.75%▼6.03%
1
CBRE “Auckland Property Market Outlook” July 2023 and “Auckland Rent & Yield Update” July 2023, please note that the yields forecast are cap rates representing initial yields on market rents
Interim
Results
Briefing
2023
27

▪Rental growth momentum has
continued in 2023, with CBRE now
forecasting growth in the range of
~9-12%
1
for both prime and
secondary properties, following
growth of 17.4% and 13.8% in
2022, respectively
▪PFI continues to extract value from
its core property portfolio, post
interim balance date, PFI has
secured leases at benchmark
portfolio rents across wider-
Auckland, as detailed to the right
▪With ~85% of the portfolio located
in Auckland, PFI is well positioned
to capture further rental growth,
with entire portfolio assessed at
~16% under-rented at June 2023
TOTAL RENT
WAREHOUSE
$ / SQM RATE
PREVIOUS PASSING RENT$778K$128
JUNE 2023 MARKET RENT$1,054K$149
NEWLY AGREED PASSING RENT$1,171K$183
UPLIFT VS PREVIOUS PASSING RENT▲$393K (▲51%)▲$54 (▲43%)
UPLIFT VS JUNE 2023 MARKET RENT▲$117K (▲11%)▲$33 (▲22%)
Rental Growth
Interim
Results
Briefing
2023
▪Improvements comprise an office and
warehouse constructed in the late 1990’s,
~2,750 sqm warehouse with a stud-height
of 9.5m at the knee
▪New tenant to commence five-year lease
from September 2024
▪PFI’s Rosebank peninsula industrial estate
combines for $6.2M of contract rent at an
average warehouse rate of $117/sqm
▪~5,000 sqm manufacturing warehouse
with a stud-height of 8.5m at the knee,
zoned heavy industrial
▪Existing tenant to renew for 10-years from
September 2024
▪Lease includes $682K of solar and canopy
works at a return on cost of 8%
1
CBRE “Auckland Property Market Outlook” July 2023, range reflects pessimistic, base, and optimistic views
TOTAL RENT
WAREHOUSE
$ / SQM RATE
PREVIOUS PASSING RENT$587K$130
JUNE 2023 MARKET RENT$696K$150
NEWLY AGREED PASSING RENT$905K$190
UPLIFT VS PREVIOUS PASSING RENT▲$318K (▲54%)▲$60 (▲46%)
UPLIFT VS JUNE 2023 MARKET RENT▲$208K (▲30%)▲$40 (▲27%)
28

Our Portfolio
(Target & Current)
Interim
Results
Briefing
2023
30

Brownfield
Opportunities
▪~$232 million or 11% of the portfolio held in
brownfield opportunities, providing a growing
pipeline of near-term development opportunities
▪30-32 Bowden Road and Stage 1 of 78 Springs
Road redevelopments well progressed, right-of-
renewal being discussed with sitting tenant at 170
Swanson Road
▪Early-stage concepts in place across other key
brownfield opportunities, 304/318 Neilson and 92-
98 Harris Road
▪Additional sites under consideration for medium-
term redevelopment, 9 NesdaleAvenue and 686 /
670 Rosebank Road
▪Redevelopment of obsolete sites to a Green Star
standard is a key part of PFI’s transition to a low-
carbon, climate-resilient portfolio
▪All projects subject to meeting hurdle rates of
return, market conditions and availability of capital
PROPERTYJUNE 2023
VALUE
LETTABLE
AREA(SQM)
SITE
COVERAGE
% OF
CONTRACT
RENT
LEASE
EXPIRY
30-32 BOWDEN ROAD$39.0m
N/A
N/A 0.0%N/A
170 SWANSON ROAD$33.5m
5,183
12%1.2%31-Jan-24
78 SPRINGS ROAD$106.3m
24,510
23%4.2%8-Oct-24
304 NEILSON STREET$20.3m
4,538
22%0.8%30-Jun-27
318 NEILSON STREET$6.1m
59012%0.2%30-Jun-27
92-98 HARRIS ROAD$26.7m
7,194
27%1.5%3-Nov-28
TOTAL$232m
42,015
8.0%
Interim
Results
Briefing
2023
31

Brownfield
Opportunities
30-32 BOWDEN ROAD
▪~40% of development pre-leased to Tokyo Food for a
lease term of 12-years, balance of site being developed
on a speculative basis, estimated completion Q3 2024
▪Estimated project cost unchanged at ~$65 million
▪Both buildings will target a Five Green Star rating,
creating PFI’s first fully Green Star rated industrial
estate, with close to 24,000 sqm of covered workable
area once complete
Interim
Results
Briefing
2023
33

▪PFI to develop a 25,500 sqm warehouse for existing
tenant Fisher & Paykel Appliances, with an option to
expand the warehouse to 30,000 sqm
▪Stage 1 of the project has an estimated total
incremental cost of ~$76 million, contract pricing
shows signs of construction costs easing
▪The facility will target a Five Green Star rating,
estimated completion Q1 2025
▪PFI continuing to work through configuration of future
stages, ~5.3 hectares of available land
Brownfield
Opportunities
.
78 SPRINGS ROAD: STAGE 1 –FISHER & PAYKEL
Interim
Results
Briefing
2023
35

Brownfield
Opportunities
(Near-term)
Interim
Results
Briefing
2023
▪Current lease expiry June 2027
▪318 Neilson Street, purchased in March 2022, provides the
opportunity to enable ‘drive round’ access to 304 Neilson Street,
improving leasing appeal on redevelopment
▪Combined site provides for ~15,000 sqm of workable area
▪Current lease expiry November 2028
▪2.6 ha site currently benefits from site coverage of just 25%
▪Early build concept results in ~19,000 sqm of workable area
36

Brownfield
Opportunities
(Medium-term)
Interim
Results
Briefing
2023
▪Part of PFI’s wider holdings at Rosebank and
Patiki Roads
▪Current lease expiry March 2028, PFI could
gain possession of the site earlier
▪Early concepts provide for ~6,750 sqm of
workable area
▪Purchased in January 2021 and adjacent to
PFI’s wider holdings at Rosebank and Patiki
Roads
▪Located on a 2.8 ha site, 250 metres from
North Western motorway
▪Initial plans allow for ~11,000 sqm of workable
area
▪16,500 sqm site with good access to both
Southern and Northern motorways, proximity
to the airport
▪Site coverage of just 18%
▪PFI envisions ~11,300 sqm of workable area,
with multiple configuration options
37

Review &
Questions
Questions?
CLOSING:
▪Our diligent approach to capital management
over the first half of the year will facilitate the
execution of the Company’s Green Star
development pipeline, as we work towards the
completion of our Bowden Road and Springs
Road projects in 2024 and 2025, respectively.
Concurrently, we will continue to extract value
from our $2.1 billion industrial property portfolio,
supported by a robust occupier market and
record low vacancy in Auckland. Looking
ahead, the Company is well placed to perform
against a softer economic backdrop, and
indeed capitalise on any opportunities that
arise.
HIGHLIGHTS:
▪Interim result
▪Constrained supply driving rental growth
▪Green Star development pipeline progressed
▪Sustainability initiatives advanced
▪Balance sheet optimisation
Interim
Results
Briefing
2023
39

Disclaimer
The information included in this presentation is provided as at 22 August 2023 and should be read in conjunction with the interim financial statements, 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.
Our results are reported under NZ IFRS. This presentation includes non-GAAP financial measures which are not prepared in accordance with NZ IFRS. The non-GAAP financial
measures used in this presentation include Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO). The calculation of FFO and AFFO is set in Appendix 1
of PFI’s interim results announcement to which this presentation is attached.
FFO and AFFO are common property investor metrics and therefore we believe they provide useful information to readers to assist in the understanding of our financial
performance, financial position and returns. They should not, however, be viewed in isolation, nor considered as a substitute for measures reported in accordance with NZ IFRS.
Non-GAAP financial measures may not be comparable to similarly titled measures reported by other entities.
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.
Interim
Results
Briefing
2023
40

---

Interim
Financial
Statements
30 June
OUR
POSITION
OF
STRENGTH
PROPERTY FOR INDUSTRY LIMITED
20
23
STATEMENTS
FINANCIAL

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2023
The accompanying notes form part of these interim financial statements.
ALL VALUES IN $000SNOTE
UNAUDITEDUNAUDITED
6 months ended
30 June 2023
6 months ended
30 June 2022
Rental and management fee income2.355,37854,681
Business interruption insurance proceeds2.6635–
Property costs2.4(9,602)(8,377)
Net property income46,41146,304
Administrative expenses5.1(5,294)(3,953)
Profit before finance income/(expenses), other gains/(losses) and income tax41,11742,351
Finance income/(expenses)
Interest expense and bank fees(14,430)(11,134)
Fair value (loss)/gain on derivative financial instruments3.2(2,210)14,293
Interest income563
(16,584)3,162
Other gains/(losses)
Fair value (loss)/gain on investment properties and non-current assets classified as held for sale2.1, 2.2(55,046)19,451
Loss on disposal of investment properties and non-current assets classified as held for sale(22)(131)
Increase in costs relating to post settlement obligation of disposed property5.6(909)–
Material damage insurance proceeds2.6140–
Goodwill impairment5.3–(29,086)
(55,837)(9,766)
(Loss)/profit before income tax(31,304)35,747
Income tax benefit/(expense)5.2777(11,967)
(Loss)/profit and total comprehensive income after income tax attributable
to the shareholders of the Company4.1(30,527)23,780
Basic earnings per share (cents)4.1(6.08)4.70
Diluted earnings per share (cents)4.1(6.08)4.70
The Group has rearranged the presentation of the information disclosed in the Consolidated Statement of Comprehensive Income in the reporting
period ended 30 June 2023 and to the comparative figures for the six months ended 30 June 2022. The rearrangements have been made to align
with the reporting of other entities in the same industry as the Group and to provide more relevant and comparable information to the users of the
financial statements.
2
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
INTERIM FINANCIALS 2023

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2023
The accompanying notes form part of these interim financial statements.
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 2022 (audited)–505,493,668580,995751980,9161,562,662
Total comprehensive income––––23,78023,780
Dividends and reinvestment
Q4 2021 final dividend - 9/3/20222.45–––(12,388)(12,388)
Q1 2022 interim dividend - 24/5/20221.80–––(9,100)(9,100)
Share buyback (724,527)(1,763)––(1,763)
Long-term incentive plan111,564300(317)–(17)
Balance as at 30 June 2022 (unaudited)–504,880,705579,532434983,2081,563,174
Balance as at 1 January 2023 (audited)–502,050,524572,637615927,0861,500,338
Total comprehensive income––––(30,527)(30,527)
Dividends
Q4 2022 final dividend - 8/3/20232.65–––(13,306)(13,306)
Q1 2023 interim dividend - 23/5/20231.95–––(9,793)(9,793)
Long-term incentive plan78,789266(73)193
Balance as at 30 June 2023 (unaudited)–502,129,313572,903542873,4601,446,905
3

UNAUDITEDAUDITED
ALL VALUES IN $000SNOTE30 June 202331 December 2022
CURRENT ASSETS
Cash at bank1,6961,332
Derivative financial instruments3.21,175287
Accounts receivable, prepayments and other assets4,2274,918
Total current assets7,0986,537
NON-CURRENT ASSETS
Investment properties2.12,058,9112,096,200
Property, plant and equipment3,6103,695
Derivative financial instruments3.230,86535,355
Total non-current assets2,093,3862,135,250
Non-current assets classified as held for sale2.2–21,000
Total assets2,100,4842,162,787
CURRENT LIABILITIES
Accounts payable, accruals and other liabilities2.715,26013,727
Taxation payable3713,002
Total current liabilities15,63116,729
NON-CURRENT LIABILITIES
Borrowings3.1599,386601,523
Derivative financial instruments3.29,40910,801
Deferred tax liabilities5.227,18431,284
Lease liabilities5.51,9692,112
Total non-current liabilities637,948645,720
Total liabilities653,579662,449
Net assets4.21,446,9051,500,338
EQUITY
Share capital572,903572,637
Share-based payments reserve542615
Retained earnings873,460927,086
Total equity 1,446,9051,500,338
These interim financial statements are signed on behalf of Property for Industry Limited and were authorised for issue on 22 August 2023.
Anthony Beverley Carolyn Steele
Chair, Board of Directors Chair, Audit and Risk Committee
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023
The accompanying notes form part of these interim financial statements.
4
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
INTERIM FINANCIALS 2023

The accompanying notes form part of these interim financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2023
UNAUDITEDUNAUDITED
ALL VALUES IN $000SNOTE
6 months ended
30 June 2023
6 months ended
30 June 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Property and management fee income received55,86257,708
Business interruption insurance income2.6628–
Net goods and services tax paid(797)(144)
Interest received563
Interest and other finance costs paid(13,904)(10,566)
Payments to suppliers and employees(15,301)(13,399)
Income tax paid(5,934)(7,356)
Net cash flows from operating activities20,61026,246
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investment properties and non-current assets classified as held for sale20,0699,869
Acquisition of investment properties2.1–(6,843)
Acquisition of property, plant and equipment(213)(10)
Expenditure on investment properties(14,017)(7,137)
Capitalisation of interest on development properties2.1(671)(248)
Material damage insurance income2.6140–
Net cash flows/(outflows) from investing activities5,308(4,369)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (repayment of)/proceeds from syndicated bank facility(2,398)1,423
Principal elements of finance lease payments(57)(57)
Dividends paid to shareholders(23,099)(21,488)
Share buyback costs–(1,763)
Net cash flows from financing activities(25,554)(21,885)
Net increase/(decrease) in cash and cash equivalents364(7)
Cash and cash equivalents at beginning of period1,3321,103
Cash and cash equivalents at end of period1,6961,096
5

NOTES 2023
1. GENERAL INFORMATION7
1.1 Reporting entity7
1.2 Basis of preparation7
1.3 Critical judgements, estimates and assumptions7
1.4 Accounting policies7
1.5 Significant events and transactions7
2. PROPERTY8
2.1 Investment properties8
2.2 Non-current assets classified as held for sale9
2.3 Rental and management fee income10
2.4 Property costs10
2.5 Net rental income11
2.6 Insurance income11
2.7 Accounts payable, accruals and other liabilities11
3. FUNDING12
3.1 Borrowings12
3.2 Derivative financial instruments13
4. INVESTOR RETURNS AND INVESTMENT METRICS15
4.1 Earnings per share15
4.2 Net tangible assets per share15
5. OTHER16
5.1 Administrative expenses16
5.2 Taxation17
5.3 Goodwill18
5.4 Related party transactions19
5.5 Leases19
5.6 Post settlement obligation of disposed property20
5.7 Operating segments20
5.8 Capital commitments21
5.9 Subsequent events21
6
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2023

1. GENERAL INFORMATION
IN THIS SECTION
This section sets out the basis upon which the Group’s Interim Financial Statements are prepared.
1.1. Reporting entity
These unaudited consolidated interim financial statements (the interim 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 interim 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
These interim financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP). They
comply with New Zealand Equivalent to International Accounting Standard 34 ‘Interim Financial Reporting’ (NZ IAS 34) and International Accounting
Standard 34 ‘Interim Financial Reporting’ (IAS 34).
These interim 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.
These interim financial statements should be read in conjunction with the Annual Report for the year ended 31 December 2022 which may be
downloaded from the Company’s website (www.propertyforindustry.co.nz/investor-centre/reports-and-presentations).
1.3. 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 interim financial statements were the
same as those applied to the consolidated financial statements as at and for the year ended 31 December 2022.
1.4. Accounting policies
The accounting policies adopted are the same as those applied by the Group in its consolidated financial statements as at and for the year ended 31
December 2022.
1.5. 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 disposal
On 31 March 2023, the Group settled the disposal of a non-current asset classified as held for sale located at 8a & 8b Canada Crescent, Christchurch for
a gross sale price of $21,000,000.
BNZ Facility
On 28 March 2023, the Group announced that it had extended and increased its loan facility with the Bank of New Zealand (also known as Syndicated
Bank Facility C). The facility expiry was extended to 31 March 2025 and the facility was increased to $175 million.
7
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

NOTES 2023
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 $000S
UNAUDITEDAUDITED
6 months ended
30 June 2023
12 months ended
31 December 2022
Opening balance2,096,2002,158,940
Capital movements:
Additions–6,843
Disposals–(11,125)
Transfer to non-current assets classified as held for sale–(21,000)
Capital expenditure17,94918,014
Capitalised interest67113
Movement in lease incentives, fees and fixed rental income(863)1,250
17,757(6,005)
Unrealised fair value loss (i)(55,046)(56,735)
Closing balance2,058,9112,096,200
(i) Valuation
All investment properties were valued as at 31 December 2022. The Board determined that a desktop review of the property portfolio should be
undertaken by Bayleys, CB Richard Ellis (CBRE), Colliers International (Colliers), Jones Lang LaSalle (JLL) or Savills as at 30 June 2023 to ensure
that investment properties continue to be held at fair value. In addition to this desktop review, the following 37 investment properties were subject
to independent valuations due to a change of plus or minus 5% of the market value assessed in the asset valuation as compared to the prior year end,
or the Board determining that a full valuation was appropriate due to other considerations, such as significant capital expenditure or leasing activity
undertaken during the period:
ALL VALUES IN $000SValuerValuation
314 Neilson Street, PenroseJLL21,250
124 Hewletts Road, Mt MaunganuiJLL70,850
312 Neilson Street, PenroseJLL9,000
124a Hewletts Road, Mt MaunganuiJLL25,200
2-4 Argus Place, HillcrestColliers11,000
3 Hocking Street, Mt MaunganuiJLL3,550
51 Arrenway Drive, RosedaleCBRE9,200
78 Springs Road, East TamakiJLL106,250
92-98 Harris Road, East TamakiColliers26,700
558 Te Rapa Road, HamiltonColliers9,500
124b Hewletts Road, Mt MaunganuiJLL20,800
143 Hutt Park Road, WellingtonCBRE22,100
322 Rosedale Road, RosedaleCBRE23,300
61-69 Patiki Road, AvondaleSavills25,500
8
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

ALL VALUES IN $000SValuerValuation
16 Hugo Johnston Drive, PenroseCBRE8,975
7 Vestey Drive, Mt WellingtonJLL16,750
511 Mt Wellington Highway, Mt WellingtonColliers11,100
212 Cavendish Drive, ManukauJLL54,150
54 Carbine Road & 6a Donnor Place, Mt WellingtonSavills45,750
47 Arrenway Drive, RosedaleColliers5,300
41 William Pickering Drive, RosedaleJLL10,550
36 Neales Road, East TamakiJLL36,400
17 Allens Road, East TamakiJLL30,000
4-6 Mt Richmond Drive, Mt WellingtonJLL25,300
3-5 Niall Burgess Road, Mt WellingtonColliers30,500
30-32 Bowden Road, Mt WellingtonSavills39,000
61 McLaughlins Road, ManukauColliers27,900
28 Paraite Road, New PlymouthCBRE17,475
15 Artillery Place, NelsonCBRE9,650
306 Neilson Street, PenroseJLL18,800
528-558 Rosebank Road, AvondaleSavills63,250
44 Noel Burnside Road, ManukauBayleys78,500
47A Dalgety Drive, ManukauSavills13,250
32 Honan Place, AvondaleJLL2,860
22 Whakatu Road, HastingsBayleys69,750
520 Rosebank Road, AvondaleSavills4,200
318 Neilson Street, PenroseJLL6,100
Total1,009,710
As a result of the independent valuations of the 37 properties above, the unrealised net decrease in the value of investment properties for the six months
ended 30 June 2023 was $55,046,000 (six months ended 30 June 2022: gain of $19,451,000). The portfolio will next be revalued by independent valuers
as at 31 December 2023.
2.2. Non-current assets classified as held for sale
ALL VALUES IN $000S
UNAUDITEDAUDITED
30 June 202331 December 2022
8a & 8b Canada Crescent, Christchurch
1
–21,000
Total non-current assets classified as held for sale–21,000
1 A revaluation gain of $1,211,767 was recorded in the financial year ended 31 December 2022 when revaluing 8a & 8b Canada Crescent based on the actual contracted sales price
of $21,000,000.
2. PROPERTY (continued)
2.1. Investment properties (continued)
9
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

NOTES 2023
2. PROPERTY (continued)
2.3. Rental and management fee income
ALL VALUES IN $000S
UNAUDITEDUNAUDITED
6 months ended
30 June 2023
6 months ended
30 June 2022
Gross rental receipts47,94147,520
Service charge income recovered from tenants7,5646,556
Fixed rental income adjustments322681
Capitalised lease incentive adjustments(757)(457)
Impact of rental income deferred and abated due to the COVID-19 pandemic(78)20
Management fee income386361
Total rental and management fee income55,37854,681
2.4. Property costs
UNAUDITEDUNAUDITED
ALL VALUES IN $000S
6 months ended
30 June 2023
6 months ended
30 June 2022
Service charge expenses(7,880)(6,753)
Bad and doubtful debts expense–(225)
Other non-recoverable property costs(1,722)(1,399)
Total property costs(9,602)(8,377)
Other non-recoverable costs represents property costs not recoverable from tenants, property valuation fees and property leasing costs.
10
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

2.5. Net rental income
UNAUDITEDUNAUDITED
ALL VALUES IN $000S
6 months ended
30 June 2023
6 months ended
30 June 2022
Gross rental receipts47,94147,520
Service charge income recovered from tenants7,5646,556
Fixed rental income adjustments322681
Capitalised lease incentive adjustments(757)(457)
Impact of rental income deferred and abated due to the COVID-19 pandemic(78)20
less: Service charge expenses(7,880)(6,753)
Net rental income47,11247,567
2.6. Insurance income
A small number of the Group’s properties suffered damage in the extreme weather events earlier in the year. As a result, the Group has made insurance
claims for business interruption (loss of rent claims) and material damage on affected properties. The insurance income relating to business interruption
and to material damage is presented in the Consolidated Statement of Comprehensive Income.
2.7. Accounts payable, accruals and other liabilities
ALL VALUES IN $000S
UNAUDITEDAUDITED
30 June 202331 December 2022
Trade creditors and retentions3,1683,780
Accruals10,1646,837
Deposits and bonds from tenants1,2471,723
Other6811,387
Total accounts payable, accruals and other liabilities15,26013,727
2. PROPERTY (continued)
11
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

NOTES 2023
3. FUNDING
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
UNAUDITEDAUDITED
ALL VALUES IN $000S30 June 202331 December 2022
Bilateral CBA bank facility drawn down - non-current125,000125,000
Syndicated bank facility drawn down - non-current276,307278,704
Fixed rate bonds - non-current200,000200,000
Unamortised borrowings establishment costs(1,921)(2,181)
Net borrowings599,386601,523
Weighted average interest rate for drawn debt (inclusive of current interest rate swaps, margins and line fees)5.34%4.77%
Weighted average term to maturity (years)2.533.01
(ii) Composition of borrowings
UNAUDITED
ALL VALUES IN $000S
AS AT 30 JUNE 2023
Issue DateMaturity DateInterest Rate
Facility drawn /
amount
Undrawn
facilityFair Value
PFI01028–Nov–1728–Nov–244.59%100,000–97,095
Syndicated Bank Facility C–31–Mar–25Floating175,000–175,000
Syndicated Bank Facility A–2–Jul–25Floating101,30748,693101,307
PFI0201–Oct–181–Oct–254.25%100,000–96,139
Syndicated Bank Facility B–2–Jul–26Floating–150,000–
Bilateral CBA Bank Facility–16–Apr–28Floating125,000–125,000
Total borrowings601,307198,693594,541
AUDITED
ALL VALUES IN $000S
AS AT 31 DECEMBER 2022
Issue DateMaturity DateInterest Rate
Facility drawn /
amount
Undrawn
facilityFair Value
Syndicated Bank Facility C–2–Jul–24Floating100,000100,000
PFI01028–Nov–1728–Nov–244.59%100,000–97,354
Syndicated Bank Facility A–2–Jul–25Floating150,000–150,000
PFI0201–Oct–181–Oct–254.25%100,000–96,395
Syndicated Bank Facility B–2–Jul–26Floating28,705121,29528,705
Bilateral CBA Bank Facility–16–Apr–28Floating125,000–125,000
Total borrowings603,705121,295597,454
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
provided the Group with a further $175,000,000 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. Refer to note 5.9 for changes to the Group’s financing facilities subsequent to the reporting period ended 30 June 2023.
12
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

The fair value of the fixed rate bonds is based on their quoted market prices at balance date and is classified as Level 1 in the fair value hierarchy
(2022: 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 quoted on the NZX Debt Market.
(iii) Security
The Group’s 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 $1,600,000,000 as at the end of the reporting period (31 December 2022:
$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 bank facilities and the fixed rate bonds.
Refer to note 5.9 for changes to the Group’s security structure subsequent to the reporting period ended 30 June 2023.
3.2. Derivative financial instruments
(i) Fair values
UNAUDITEDAUDITED
ALL VALUES IN $000S30 June 202331 December 2022
Current assets1,175287
Non-current assets30,86535,355
Current liabilities––
Non-current liabilities(9,409)(10,801)
Total22,63124,841
(ii) Notional values, maturities and interest rates
UNAUDITEDAUDITED
30 June 202331 December 2022
Notional value of interest rate swaps – fixed rate payer – start dates commenced ($000s)380,000390,000
Notional value of interest rate swaps – fixed rate receiver¹ – start dates commenced ($000s)200,000200,000
Notional value of interest rate swaps – fixed rate payer – forward starting ($000s)120,00060,000
Total ($000s)700,000650,000
Percentage of borrowings fixed (%)63%65%
Fixed rate payer swaps:
Average period to expiry – start dates commenced (years)2.803.06
Average period to expiry – forward starting (years from commencement)4.844.33
Average (years)3.293.40
Fixed rate payer swaps:
Average interest rate² – start dates commenced (%)2.34%2.44%
Average interest rate² – forward starting (% during effective period)3.42%2.75%
Average (%)2.60%2.48%
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.
3. FUNDING (continued)
3.1. Borrowings (continued)
13
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

NOTES 2023
(iii) Movement in fair value of derivative financial instruments
UNAUDITEDUNAUDITED
ALL VALUES IN $000S
6 months ended
30 June 2023
6 months ended
30 June 2022
Interest rate swaps(2,210)14,293
Total movement in fair value of derivative financial instruments(2,210)14,293
Key estimates and assumptions: Derivative financial instruments
The fair value of derivative financial instruments is determined from valuations prepared by independent treasury advisers using Level 2 valuation
techniques (31 December 2022: 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
30 June 2023 of between 5.71% for the 90 day BKBM (31 December 2022: 4.65%) and 4.49% for the 10 year swap rate (31 December 2022: 4.80%).
There were no changes to these valuation techniques during the reporting period.
3. FUNDING (continued)
3.2. Derivative financial instruments (continued)
14
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

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
UNAUDITEDUNAUDITED
6 months ended
30 June 2023
6 months ended
30 June 2022
Total comprehensive income for the period attributable to the shareholders of the Company ($000s) (30,527)23,780
Weighted average number of ordinary shares (shares) 502,107,548505,504,676
Basic earnings per share (cents) (6.08)4.70
(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 23,629 (30 June 2022: 69,024) rights issued under the Group’s LTI Plan as at 30 June 2023.
This adjustment has been calculated using the treasury share method.
UNAUDITEDUNAUDITED
6 months ended
30 June 2023
6 months ended
30 June 2022
Total comprehensive income for the period attributable to the shareholders of the Company ($000s) (30,527)23,780
Weighted average number of shares for purpose of diluted earnings per share (shares) 502,131,177505,573,700
Diluted earnings per share (cents) (6.08)4.70
4.2. Net tangible assets per share
UNAUDITEDAUDITEDUNAUDITED
30 June 202331 December 202230 June 2022
Net assets ($000s) 1,446,9051,500,3381,563,174
Net tangible assets ($000s) 1,446,9051,500,3381,563,174
Closing shares on issue (shares) 502,129,313502,050,524504,880,705
Net tangible assets per share (cents) 288299310
The Group has no intangible assets.
15
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

NOTES 2023
5. OTHER
IN THIS SECTION
This section includes additional information that is considered less significant in the understanding of the financial performance and position of the
Group, but is disclosed to comply with NZ IAS 34 ‘Interim Financial Reporting’ and IAS 34 ‘Interim Financial Reporting’.
5.1. Administrative expenses
ALL VALUES IN $000S
UNAUDITEDUNAUDITED
6 months ended
30 June 2023
6 months ended
30 June 2022
Audit fees and other fees paid to auditors12581
Employee expense2,7602,233
Directors' fees322284
Office expenses661416
IT - licence fees and support12889
IT - implementation costs18172
Depreciation29775
Other expenses629582
Sustainability5321
Facilities management project301–
Total administrative expenses5,2943,953
16
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

5. OTHER (continued)
5.2. Taxation
(i) Reconciliation of accounting profit before income tax to income tax expense
ALL VALUES IN $000S
UNAUDITEDUNAUDITED
6 months ended
30 June 2023
6 months ended
30 June 2022
(Loss)/profit before income tax(31,304)35,747
Prima facie income tax calculated at 28%8,765(10,009)
Adjusted for:
Non-tax deductible revenue and expenses(8)(13)
Fair value (loss)/gain on investment properties(15,413)5,446
Loss on disposal of investment properties(261)(37)
Goodwill impairment–(8,144)
Depreciation2,7312,925
Disposal of depreciable assets527(263)
Deductible capital expenditure1,039237
Lease incentives, fees and fixed rental income121109
Derivative financial instruments(615)4,002
Impairment allowance–(63)
Current tax prior period adjustment(47)(203)
Other(142)(20)
Current taxation expense(3,303)(6,033)
Depreciation3,603(1,680)
Lease incentives, fees and fixed rental income(131)(141)
Derivative financial instruments615(4,002)
Impairment allowance–63
Other(7)(174)
Deferred taxation benefit/(expense)4,080(5,934)
Total taxation reported in Consolidated Statement of Comprehensive Income777(11,967)
17
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

NOTES 2023
5. OTHER (continued)
5.2. Taxation (continued)
(ii) Deferred tax
ALL VALUES IN $000S
AUDITEDUNAUDITEDUNAUDITED
31 December 2022
As at
6 months ended
30 June 2023
Recognised in
(loss)/profit
30 June 2023
As at
Deferred tax assets
Other(172)(13)(185)
Gross deferred tax assets(172)(13)(185)
Deferred tax liabilities
Investment properties24,543(3,472)21,071
Derivative financial instruments 6,913(615)6,298
Gross deferred tax liabilities31,456(4,087)27,369
Share-based payment reserve–20–
Net deferred tax liability31,284(4,080)27,184
5.3. Goodwill
UNAUDITEDAUDITED
ALL VALUES IN $000S30 June 202331 December 2022
Opening balance–29,086
Impairment loss–(29,086)
Goodwill––
On 30 June 2022, the market value of the Group, based on the quoted market price, was below the value of the 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 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.
18
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

5. OTHER (continued)
5.4. Related party transactions
The Group has a related party relationship with the following party:
Related partyAbbreviationNature of relationship(s)
The Board of DirectorsDirectorsThe Board of Directors.
Bayleys Valuation LimitedBayleysAngela Bull, appointed as a member of the Board of Directors on 20 February 2023, is also a
Non-executive Director of Bayley Corporation Limited. Bayleys Valuation Limited is a wholly owned
subsidiary of Bayley Corporation Limited and an independent valuer used by the Group for investment
property valuations.
The following transactions with related parties took place:
ALL VALUES IN $000SRelated party
UNAUDITEDUNAUDITED
6 months ended
30 June 2023
6 months ended
30 June 2022
Directors’ fees – portion of annual fees paidDirectors 322 284
Valuation fees owing¹Bayleys 16 –
1 Amount owing as at 30 June 2023 is included in the line item ‘Accounts Payable, accruals and other liabilities’ in the Consolidated Statement of Financial Position.
UNAUDITEDAUDITED
NUMBERRelated party30 June 202331 December 2022
Shares held beneficially in the company (number)Directors195,708214,367
No related party debts have been written off or forgiven during the year (2022: NIL).
5.5 Leases
(i) Amounts recognised in the Consolidated Statement of Financial Position
The Consolidated Statement of Financial Position shows the following amounts relating to leases:
UNAUDITEDAUDITED
ALL VALUES IN $000S30 June 202331 December 2022
Right-of-use assets²
Properties1,9582,136
Total right-of-use assets1,9582,136
2 Included in the line item ‘Property, plant and equipment’ in the Consolidated Statement of Financial Position.
Additions to the right-of-use assets for the six months ended 30 June 2023 were $NIL (year ending 31 December 2022: $2,111,619).
UNAUDITEDAUDITED
ALL VALUES IN $000S30 June 202331 December 2022
Lease liabilities
Current³14353
Non-current⁴1,9692,112
Total lease liabilities2,1122,165
3 Included in the line item ‘Accounts payable, accruals and other liabilities’ in the Consolidated Statement of Financial Position.
4 Included in the line item ‘Lease liabilities’ in the Consolidated Statement of Financial Position.
19
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

NOTES 2023
(ii) Amounts recognised in the Consolidated Statement of Comprehensive Income
The Consolidated Statement of Comprehensive Income shows the following amounts relating to leases:
UNAUDITEDUNAUDITED
ALL VALUES IN $000S
6 months ended
30 June 2023
6 months ended
30 June 2022
Depreciation charge of right-of-use assets
5
Properties(179)(47)
Total depreciation charge of right-of-use assets(179)(47)
5 Included in the line item ‘Administrative expenses’ in the Consolidated Statement of Comprehensive Income.
UNAUDITEDUNAUDITED
ALL VALUES IN $000S
6 months ended
30 June 2023
6 months ended
30 June 2022
Interest cost
6
(4)(8)
6 Included in the line item ‘Interest expense and bank fees’ in the Consolidated Statement of Comprehensive Income.
The total cash outflow for leases for the six months ended 30 June 2023 was $57,000 (2022: $57,000).
5.6. Post settlement obligation of disposed property
The Group settled on the sale of the Carlaw Park properties in November 2021 with a post settlement obligation to carry out the seismic works on the
carpark building at the site. A reassessment of the seismic works was carried out during this reporting period, which resulted in seismic costs being
higher than initially estimated at the date of sale. The additional estimated seismic costs of $909,000 from the reassessment is presented in the
Consolidated Statement of Comprehensive Income.
5.7. 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.
5. OTHER (continued)
5.5. Leases (continued)
20
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

5. OTHER (continued)
5.8. Capital commitments
As at 30 June 2023, the Group had capital commitments totalling $146,566,000 (31 December 2022: $145,581,000) as follows:
UNAUDITEDAUDITED
ALL VALUES IN $000S30 June 202331 December 2022
AddressProject
3-5 Niall Burgess RoadRefurbishment–504
314 Neilson StreetWarehouse extension–1,383
54 Carbine & 6a Donnor PlaceOffice & amenities refurbishment and fire system upgrade174–
28 Paraite RoadYard works496–
212 Cavendish Drive Roof replacement893–
30-32 Bowden RoadDesign and build (Green Star development)62,33167,884
78 Springs RoadDesign and build (Green Star development)82,67275,810
Total capital commitments146,566145,581
5.9. Subsequent events
On 20 July 2023, the Group announced the establishment of its $150 million Green Loan tranches provided by ANZ, BNZ, CBA and Westpac to fund the
Group’s committed development projects. Following this establishment, the BNZ facility (also known as Syndicated Bank Facility C) expiring on 31 March
2025 has decreased from $175 million to $125 million. A General Security Deed in relation to the Group’s bank facilities and fixed rate bonds was also
entered into on the same day.
On 22 August 2023, the Directors of the Company approved the payment of a net dividend of 1.950000 cents per share to be paid on 7 September 2023.
The gross dividend (2.307915 cents per share) carries imputation credits of 0.357915 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 30 June 2023 in respect
of this dividend.
21
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2023

Report on the interim financial statements
Our conclusion
We have reviewed the interim financial statements of Property for Industry Limited (the Company) and its controlled entity (the Group), which
comprise the consolidated statement of financial position as at 30 June 2023, and the consolidated statement of comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the six months ended on that date, and notes to the
interim financial statements, which include significant accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements of the Group do
not present fairly, in all material respects, the financial position of the Group as at 30 June 2023, and its financial performance and cash flows for the
six months then ended, in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent
to International Accounting Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410 (Revised) Review of Financial Statements
Performed by the Independent Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibilities are further described in the Auditor’s
responsibilities for the review of the interim financial statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual financial
statements, and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements. Other than in our capacity as
auditor we have no relationship with, or interests in, the Group.
Responsibilities of the Directors for the interim financial statements
The Directors of the Company are responsible on behalf of the Company for the preparation and fair presentation of these interim financial
statements in accordance with IAS 34 and NZ IAS 34 and for such internal control as the Directors determine is necessary to enable the preparation
and fair presentation of the interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibilities for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires us to
conclude whether anything has come to our attention that causes us to believe that the interim financial statements, taken as a whole, are not
prepared in all material respects, in accordance with IAS 34 and NZ IAS 34.
A review of interim financial statements in accordance with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform procedures,
primarily consisting of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other
review procedures. The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with
International Standards on Auditing and International Standards on Auditing (New Zealand) and consequently does not enable us to obtain
assurance that we might identify in an audit. Accordingly, we do not express an audit opinion on these interim financial statements.
Who we report to
This report is made solely to the Company’s Shareholders, as a body. Our review work has been undertaken so that we might state those matters
which we are required to state to them in our review 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 Shareholders, as a body, for our review procedures, for this report, or for the conclusion we have
formed.
The engagement partner on the review resulting in this independent auditor’s review report is Indumin Senaratne (Indy Sena).
For and on behalf of:
Chartered Accountants Auckland
22 August 2023
Independent auditor’s review report
To the shareholders of Property for Industry Limited
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz
22
PROPERTY FOR INDUSTRY LIMITED INTERIM FINANCIAL STATEMENTS — 2023
INTERIM FINANCIALS 2023

www.propertyforindustry.co.nz
YOUR
INDUSTRIAL
PROPERTY
EXPERTS
Property for Industry Limited
Level 4, Hayman Kronfeld Building
15 Galway Street,
Auckland 1010
PO Box 1147,
Shortland Street,
Auckland 1140
T 09 303 9450
E info@propertyforindustry.co.nz