Photo: 123rf
Auckland developer Property for Industry (PFI) has reported a half-year profit of $21.2 million.
Chief executive Simon Woodhams said PFI’s leasing of industrial property in Auckland continues to generate cashflow and maintain stability.
“While vacancies for industrial property in the Auckland market have begun to rise slightly, weakening demand is expected to be somewhat mitigated by high levels of new supply already being pre-committed,” Woodhams said.
An analyst said the solid result reflected higher financing costs and a dip in the value of its property portfolio to $2.1 billion.
PFI changed its balance date and reported adjusted funds from operations for the six months to June, slightly below the prior year.
Its portfolio is 98.6 percent occupied (1.4 percent vacancy) with no large expires in the next 12 months.
The modern Bowden Road distribution warehouse in a prime Mt Wellington location is fully leased and on track for completion in October.
“Strong leasing continues to generate cashflow,” Woodhams said.
Woodhams confirmed the new Bowden Road project and another Springs Roads development were on track.
“At Springs Road, 60 percent of Stage 2 is leased, with the remaining 4800 sqm to be developed on a speculative basis.
“Overall we are pleased with our performance given the slowing economic conditions.
“In line with our climate commitments, all significant new developments will target a minimum 5 Green Star rating and the projects add to our credentials in successfully undertaking large-scale, highest-quality industrial development.”
PFI said three quarters of deals completed during the period were renewals.