Q4 FY25 Update

NZX and media
announcement
—
27 June 2025

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Q4 FY25 UPDATE

Property For Industry Limited (PFI), attaches a copy of a Q4 FY25 update presentation that its Chief
Executive Officer, Simon Woodhams, along with Chief Finance & Operating Officer, Craig Peirce, are
giving at Craigs Investment Partners’ offices in Auckland, today.

The update provides details on PFI’s portfolio, which continues to demonstrate solid fundamentals,
with 99.9% occupancy, a steady weighted average lease term, and a healthy tenant base, leading to
continued high levels of cash collection.

A preliminary independent valuation outcome for H2 FY25 has also been provided in the presentation,
along with an update on the Green Star rated developments at Stage 2 of 78 Springs Road, East
Tamaki, Auckland, and Spedding Road in North-West Auckland. Both projects are expected to benefit
from the Government’s recently announced ‘Investment Boost’ tax changes.

PFI has also taken the opportunity to reiterate its previously announced FY25 and FY26 dividend
guidance, of 8.60 cps and 8.80 cps – 8.90 cps, respectively.

Further details will be provided when PFI releases its annual results for the year to 30 June 2025 to the
NZX on 25 August 2025.

ENDS













ABOUT PFI & CONTACT

PFI is an NZX listed property vehicle specialising in industrial property. PFI’s nationwide portfolio of 91 properties is leased to
around 126 tenants.

For further information please contact:

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

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1
All numbers within this presentation are presented as at 31 May 2025 unless otherwise stated,
2
As at 23 June 2025

▪Independent valuations undertaken across entire portfolio at end of
June 2025
▪Preliminary valuation uplift of ~$55m for H2 FY25, pro-forma portfolio
value of ~$2.16b
▪H2 FY25 uplift translates to an indicative ~11 cents per share uplift in
Net Tangible Assets (NTA), pro-forma NTA per share of ~$2.84
▪Preliminary valuation outcome driven by ~15 basis points of market
cap rate compression, as well as realised rental growth
▪Portfolio under-renting gap closed slightly to ~12% (Dec-24: ~14%)
1
Excludes the redevelopment component of 78 Springs Road

▪~16,000sqm of 5 Green Star rated
1
industrial area, 60% pre-leased to MiTek
▪Full construction tender received from Haydn + Rollett, resulting in a cost reduction of ~$5m or
~15% as compared to December 2024 estimates
▪Programme ~3-4 months ahead of schedule, estimated completion now early-Q4 FY26
▪These two factors have combined to lift expected Return-on-Cost ~6.5% (including land, but
excluding any Investment Boost benefit – see next slide)
▪Titles expected to be issued in Q1 FY26, triggering initial settlement payment ($18m)
▪Build-out to occur across three stages – Stage 1 could commence Q3 FY26
▪PFI contemplating undertaking Stage 1 (~12,500sqm of covered workable area) on a speculative
basis, to take advantage of attractive construction market conditions
▪Current speculative developments (~40% of 78 Springs Road) just ~1.3% of contract rent, lifting to ~3.7% if Stage 1 of Spedding included. With just ~15% of total contract rent
expiring in the next ~24 months, the low near-term leasing risk supports selectively progressing speculative development opportunities
▪May 2025 gearing of 33.4% expected to increase to ~35% (the middle of PFI’s target range) after committed acquisitions and projects
2
, partly offset by H2 FY25 revaluation
1
Targeting a 5 Green Star – NZ Design and As Built v.1.1 Rating,
2
Includes Stage 2 of 78 Springs Road and the full settlement of the Spedding Road land.

▪On 22 May 2025, the New Zealand Government announced ‘Investment
Boost’, a new tax incentive to invest in productive assets
▪Effective from announcement, businesses will be able to deduct 20%
upfront of the cost of any new assets (or improvement to existing assets):
−The balance of the asset cost will continue to be depreciable (if
depreciation deductions apply)
−While commercial buildings remain non-depreciable, they will be
eligible for the 20% investment boost
▪Material benefit for the property industry given the removal of depreciation
on building structures in 2024
▪PFI expected to be a large beneficiary of the ‘Investment Boost’ given its
(previously announced) ~$350m medium-term development pipeline
▪When applying the ‘Investment Boost’ to Stage 2 of 78 Springs Road, which
has a total project cost of ~$38m, we estimate a benefit to AFFO of ~0.20
cps, or ~2.3% earnings accretion in FY26 from this project alone

6.50
7.00
7.50
8.00
8.50
9.00
2019 A2020 A2021 A2022 A2023 AFP24 AFY25 FFY26 F
DPS (cps)DPS (cps) - Guidance
▪FY25 earnings guidance upgraded on 28 April 2025, reflecting:
−Lower-than-expected current tax (following tax
depreciation adjustments)
−Reduced maintenance capex forecasts
▪On 9 May 2025:
−FY25 dividend guidance lifted from 8.50 cps to 8.60 cps
−FY26 dividend guidance introduced at 8.80 cps - 8.90 cps,
representing an increase of up to 3.5% on FY25 dividends
▪‘Investment Boost’ tax announced as part of the NZ
Government’s 2025 Budget on 22 May 2025
▪Following the application of the ‘Investment Boost’ to Stage 2 of
78 Springs Road, FY26 dividends of 8.80 cps – 8.90 cps are now
expected to result in a dividend pay-out ratio at the bottom of
PFI’s dividend policy range, and below 90% of AFFO on a one-
year basis
▪FY25 & FY26 guidance implies a dividend CAGR of ~2.5% from
2019 – a period spanning a full interest rate cycle – whilst
ending that period at the lower end of the dividend policy range
1
FP24 dividends annualised to provide a useful comparison,
2
Mid-point of FY26 guidance range, being 8.85 cps.
21

The information in this presentation was prepared by Property for Industry Limited (PFI) as at 27 June 2025.
PFI makes no representation or warranty as to the accuracy or completeness of the information in this presentation. Any opinions, including estimates and projections, in this
presentation constitute the current judgement of PFI as at the date of this presentation and are subject to change without notice. Such opinions are not guarantees or
predictions of future performance.
This presentation is provided for information purposes only and does not constitute investment advice.
Neither PFI, nor any of its directors, officers, employees, advisers or other representatives will be liable for any damage, loss or cost incurred by any recipient of this
presentation or other person in connection with this presentation.
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