Valuation, Portfolio and Earnings Update

VALUATION, PORTFOLIO AND EARNINGS UPDATE NZX listed industrial property landlord Property for Industry Limited (PFI, the Company) today announced an expected annual increase from independent valuations in the value of its property portfolio of approximately $44 million or 3.8% to $1.210 billion, an update on the portfolio and upgraded earnings guidance. Valuation PFI began the year with a portfolio of 84 properties valued at $1.083 billion(1). Nine properties were acquired for a combined total of $84 million and one property was sold for a book value of $12 million. Capital expenditure and property related prepayments of $11 million, together with the expected uplift of $44 million(2), provide the bridge to the December 2017 portfolio of 92 properties which is expected to be valued at $1.210 billion. Independent valuers CBRE, Colliers International, Jones Lang LaSalle and Savills carried out the valuations, which remain subject to finalisation and audit. Portfolio A key driver of this valuation outcome was the successful leasing of nearly 88,000 square metres - representing ~12% of PFI's existing portfolio - during the year to date. 24 new and existing tenants have been secured for an average term of 5.5 years, with approximately half of the contract rent secured as a result of lease renewals with nine PFI tenants for an average term of 4.3 years. In addition to this, 15 new leases were secured for an average term of 6.4 years, and the portfolio is expected to be almost fully occupied at the end of the year. Earnings PFI Chairman Peter Masfen noted: "The second half of 2017 has delivered strong leasing outcomes, continuing the trend we reported on in our interim results announcement in August. A series of important strategic initiatives have also been completed during the year, with the internalisation of management, portfolio acquisition, rights offer and bond offer all contributing to a successful year. These factors have combined to allow us to increase guidance for full year distributable profit from 7.7 - 7.9 cents per share to around 8.0 cents per share. Guidance for full year cash dividends totalling 7.45 cents per share is unchanged." Annual results announcement A final valuation, portfolio and earnings announcement will be made on Monday, 12 February 2018. ENDS ABOUT PFI & CONTACT PFI is New Zealand's only listed company specialising in industrial property. PFI's portfolio of 92 properties located in Auckland, Hamilton, Mount Maunganui, New Plymouth, Napier, Wellington, Nelson, Blenheim and Christchurch is leased to 149 tenants. For further information please contact: SIMON WOODHAMS General Manager --- Phone: +64 9 303 9652 Email: woodhams@pfi.co.nz --- CRAIG PEIRCE Chief Financial Officer and Company Secretary --- Phone: +64 9 303 9651 Email: peirce@pfi.co.nz --- Property for Industry Limited Shed 24, Prince's Wharf, 147 Quay Street, Auckland 1010 PO Box 1147, Shortland Street, Auckland 1140 --- www.propertyforindustry.co.nz (1) 31 December 2016 figures are adjusted for the sale of 27 Zelanian Drive, which had been unconditionally sold as at 31 December 2016 and settled on 1 February 2017. (2) Includes $6.0 million recognised in the six months to 30 June 2017. End CA:00311969 For:PFI Type:MKTUPDTE Time:2017-12-14 12:08:01