PFI - Q3 Dividend, Development and Divestment Update

Friday 4th November 2022

Property for Industry Limited (PFI, the Company) is pleased to announce a third quarter dividend of 1.85 cents per share and to provide an update on the Company’s development and divestment activity.

Q3 Dividend

The PFI Board today resolved to pay a third quarter cash dividend of 1.8500 cents per share. The dividend will have imputation credits of 0.5058 cents per share attached and a supplementary dividend of 0.2295 cents per share will be paid to non-resident shareholders. The record date for the dividend is 11 November 2022, and the payment date is 22 November 2022. The dividend reinvestment scheme will not operate for this dividend.

Development Update

As noted in the Company’s interim results announcement on 22 August 2022, PFI is planning to redevelop the Company’s Bowden Road site in Mount Wellington. Around 40% of the redevelopment of this 3.9-hectare property has been pre-leased to Tokyo Food for a lease term of 12-years, with an estimated practical completion date of June 2024.

With Auckland industrial vacancy at record lows, PFI has now committed to develop the remainder of the site without tenant commitment. An 11,200sqm warehouse with 790sqm of offices and a 2,900sqm breezeway canopy will be constructed on the remainder of the site from the second quarter of 2023, with tenant commitment to be secured during planning and the 15-month build.

The combined project has an estimated total cost of around $66 million, with a targeted yield on cost including land of more than 5%. The project will target a Five Green Star rating, creating PFI’s first fully Green Star rated industrial estate.

Divestment Update

PFI has divested four properties since the beginning of the year for a combined gross sales price of $22.4 million. These properties have been sold at an average of 11% above the most recent book value.

Campaigns to sell the Company’s Shed 22 property in Wellington and 2 Smart Road property in New Plymouth have now closed. Those campaigns did not secure suitable offers for those properties, and they will now be held as part of the Company’s portfolio.

ENDS

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