Property for Industry Limited

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 Full Year Results, released on 24 August 2026:

“PFI has delivered double-digit growth in dividends,” says Chief Executive Officer, Simon Woodhams. “The FY26 result reflects the resilience of our industrial property portfolio, with strong leasing outcomes and high-quality cashflows driving double-digit FFO and AFFO1 earnings growth. We also achieved important Green Star development milestones during the year, while maintaining gearing below the mid-point of PFI’s target range, supporting our ability to continue delivering growing dividends for shareholders.”

Highlights

▪ Annual results: Profit after tax2 of $77.7m, down $28.3m on FY25, incorporating fair value gains on properties of $16.1m, as compared to gains of $70.7m in FY25, FFO up 20.7% to 12.90 cents per share (cps), AFFO up 14.0% to 10.93 cps, FY26 cash dividends of 9.50 cps, an increase of 10.5% on FY25 cash dividends.

▪ Stable valuations and resilient cashflows: Stable valuations across PFI's $2.30b industrial property portfolio despite ongoing economic and geopolitical volatility, fair value gains on properties of $16.1m or 0.7%, net tangible assets (NTA) up 2.3% to $2.90 per share. Portfolio cashflows remain highly resilient, with growth in contract rents of 7.7% supported by 98.7% occupancy and high cash collection rates, portfolio under-renting of ~7.1% providing future rental growth opportunities.

▪ Green Star development milestones achieved: Stage 2 of 78 Springs Road construction completed in H2 FY26, Stage 1 of Totara Creek Estate3 construction tracking in line with programme and budget, PFI in advanced negotiations with a prospective tenant to enable Stage 1 of the redevelopment of 92–98 Harris Road, ability to deploy a further ~$335m across Green Star development pipeline.

▪ Enhanced funding flexibility for future growth: $600m syndicated bank facilities refinanced post-balance date enabling Green funding to increase alongside growth in Green assets, $200m PFI040 bonds issued in April 2026, year-end gearing of 34.2% lifting to ~35.7% after committed acquisitions and development projects.

▪ FY27 dividend outlook: Subject to events beyond PFI's control, dividend growth expected to continue in FY27, with guidance of 9.75–9.85 cps, an expected increase of ~2.6–3.7% on FY26 dividends, supported by strong earnings and a payout ratio towards the lower bound of PFI’s dividend policy.