Property for Industry Limited Analysis

Overview

Property for Industry Limited ("PFI") is an NZX listed property vehicle specialising in industrial property.

PFI's nationwide portfolio of more than 90 properties is leased to around 150 tenants.

PFI was formed in 1993, and has been listed on the NZX under the code "PFI" since December 1994.

Performance

The following information has been extracted from Property for Industry's H1 FY26 Results, released on 24 February 2026:

“PFI has delivered a very strong interim result, demonstrating the resilience of our industrial portfolio and the benefits of our long-term strategy,” says Chief Executive Officer, Simon Woodhams. “Robust rental growth, strong re-leasing outcomes and disciplined capital management are supporting earnings momentum, while growing valuations have added to reported profit and reinforced confidence in the portfolio. Together, these factors have underpinned the PFI Board’s decision to increase FY26 dividend guidance, reinforcing the Company’s focus on delivering growing dividends for shareholders over the long term.”

Highlights

▪ Interim results: Profit after tax of $46.9m, up $18.2m on the prior interim period, Funds From Operations (FFO) up 32.2% to 6.40 cents per share (cps), Adjusted Funds From Operations (AFFO) up 23.9% to 5.39 cps, interim cash dividends of 4.40 cps.

▪ Industrial valuations growing, supported by realised rental growth: Valuation growth continues across PFI’s $2.25b portfolio, 19 properties revalued at the half-year, fair value gains on those properties of $17.1m or 3.2%, net tangible assets (NTA) up 1.7% to $2.88 per share, $46.2m of contract rent reviewed during H1 FY26 delivering an average annualised uplift of 7.3%, $3.1m of contract rent leased during H1 FY26 at an average of 14.9% above previous contract rents, occupancy stable at 99.9%.

▪ Key Green Star development projects advanced: Stage 2 of 78 Springs Road continues to track under-budget and ahead of programme, demolition complete at 92-98 Harris Road with redevelopment to be tenant-led, Stage 1 of Spedding Road to commence on a speculative basis, PFI retains optionality to deploy up to ~$325m on Green Star certified projects over the medium-term.

▪ Robust capital position: $100m tranche of syndicated bank facility reclassified as ‘Green’ debt, $100m PFI020 bonds repaid, ~$154m of facility headroom, December 2025 gearing of 34.2% lifting to ~36.3% after all committed acquisitions, divestments and development projects, considering potential retail bond offer.

▪ FY26 dividend guidance increased: Reflecting a strong H1 FY26 performance and positive trading conditions, PFI expects to declare FY26 cash dividends of at least 9.05 cps, an increase of at least 5.2% on FY25 dividends.