Revaluations yield record result for PFI
Revaluations of $248.2 million pushed Property For Industry to a 1600 per cent increase in net profit, to $273.5m in its latest half-year — a record for the company.
The business, with more than 90 properties valued at $2.02 billion, had declared only $15.6m profit in the prior interim year.
Chief executive Simon Woodhams said the profit for the half-year to June 30, 2021 was a result of buoyant market conditions and the company’s strategy.
Property for Industry said yesterday that “a $248.2m fair value gain on investment properties, as compared to a $7.8m fair value loss in the prior interim period, was the main contributor to the company’s record interim profit.
“As a result of portfolio and valuation activity, PFI’S passing yield firmed from 5.53 per cent to 4.75 per cent. 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 3 per cent under-rented,” the company said.
Net rental income of $45.9m was up $4.3m or 10.4 per cent on the prior interim period, with positive leasing activity and acquisitions contributing $2.6m each to this increase.
In April the company refinanced a $100m loan with a seven-year, $125m term loan from the Commonwealth Bank of Australia. Last month its $300m syndicated bank facility was refinanced and increased by a further $100m, with a two-year loan facility from the BNZ.
Rent reviews were completed on 66 leases in the latest half-year, resulting in an average annual increase of 3.1 per cent on about $32.6m of contract rent.