Wiri Acquisition, Q1 Dividend, Guidance Upgrade

WIRI ACQUISITION, Q1 DIVIDEND, GUIDANCE UPGRADE

Property for Industry Limited (PFI, the Company) is pleased to announce the acquisition of an industrial property located at 44 Noel Burnside Road in Wiri, Auckland. The Company is also pleased to announce a first quarter dividend of 1.800000 cents per share and to provide an update on the guidance given on 22 February 2021.

Wiri Acquisition
PFI has been successful in acquiring a prime industrial property located at 44 Noel Burnside Road in Wiri, Auckland (the Property) for $91.68 million. The Property consists of a large, modern 17,500 sqm warehouse, with 2,200 sqm of canopies and 12,250 sqm of yards. Located on a 3.64 ha site on the corner of Noel Burnside Road and Cavendish Drive, the property is very well located within a prime industrial area and benefits from exceptional transport links via State Highway 20.

The Property is fully leased on a triple-net basis to ABC Tissue Products (NZ) Limited for an initial two-year period with rights of renewal for a further three, two-year terms. The commencement rental is $3.64 million, with annual increases of 2.5%, including on renewals, should they be exercised.

PFI Chief Executive Officer, Simon Woodhams, notes: “Due to the location and quality of this industrial property, the PFI team view this acquisition as a good replacement for the recently divested non-core Carlaw Park property, which is due to settle later this year.”

Settlement of the acquisition of the Property will take place at the end of this month.

Q1 Dividend
Property for Industry Limited (PFI) is pleased to announce a first quarter dividend of 1.800000 cents per share.

The PFI Board has today resolved to pay a first quarter cash dividend of 1.800000 cents per share, in line with the dividend paid for the same period in the prior year.

The dividend will have imputation credits of 0.592142 cents per share attached and a supplementary dividend of 0.268703 cents per share will be paid to non-resident shareholders. The record date for the dividend is 13 May 2021, and the payment date is 24 May 2021.

The dividend reinvestment scheme (DRS) will operate with a discount of 2%. The last date for receipt of an application for participation in the DRS is one business day after the record date, being 14 May 2021. If you have previously completed an application to participate in the DRS, you do not need to do anything further. You will receive shares instead of cash, in accordance with your application. If you wish to change your previous participation, you will need to complete a new application.

Guidance Upgrade
On 22 February 2021, the Company provided guidance of cash dividends of 7.85 to 7.90 cents per share for the 2021 financial year. It was also noted that level of full year cash dividends would approximate 80% to 90% of Funds From Operations(1) (FFO) earnings and 95% to 100% of Adjusted Funds From Operations (AFFO) earnings, in line with the Company’s dividend policy.

Results for the year to date, combined with the positive impact of the acquisition of 44 Noel Burnside Road, now mean that the Board expects to declare cash dividends of at least 7.90 cents per share for the 2021 financial year.

Cash dividends of 7.90 cents per share are anticipated to result in a dividend pay-out ratio below 80% of forecast FFO and 95% of forecast AFFO and accordingly the Board is currently reviewing both the dividend policy and total cash dividends for the 2021 financial year.

An update will be provided to the market on the outcome of that review in due course.

Annual Meeting
A further update on the Company’s operations will be provided at PFI’s Annual Meeting, which is to be held as a hybrid meeting at 11.00am on 19 May 2021.

If Auckland is at COVID-19 Alert Level 1, attendees will have the option of attending in person at the Level 4 Lounge, South Stand, Gate G, Eden Park, Carpark P5, Reimers Ave, Mount Eden, Auckland 1024, or virtually. If Auckland is at COVID-19 Alert Level 2 or above, or the Board otherwise considers it appropriate in the circumstances, only virtual attendance will be available.

For more detail on the Annual Meeting, please visit https://www.propertyforindustry.co.nz/investor-centre/annual-meeting/.

ENDS

ABOUT PFI & CONTACT

PFI is an NZX listed property vehicle specialising in industrial property. PFI’s nationwide portfolio of 95 properties is leased to 150 tenants.

For further information please contact:

SIMON WOODHAMS
Chief Executive Officer
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Phone: +64 21 749 770
Email: [email protected]
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CRAIG PEIRCE
Chief Finance and Operating Officer
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Phone: +64 21 248 6301
Email: [email protected]
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Property for Industry Limited
Shed 24, Prince’s Wharf, 147 Quay Street, Auckland 1010
PO Box 1147, Shortland Street, Auckland 1140
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www.propertyforindustry.co.nz

Attachment
NZX Form – Distribution Notice

(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.

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Announcement PDF