PFI Secures $50M Liquidity Facility

PFI SECURES $50M LIQUIDITY FACILITY Property for Industry Limited (PFI, the Company) is pleased to announce that, in response to the risks associated with the COVID-19 pandemic, it has secured a new $50 million liquidity facility from the Commonwealth Bank of Australia, New Zealand Branch (CBA). The new facility is for 18 months and is in addition to the bonds and syndicated bank facility PFI already has in place, which are detailed in the table below: Bonds and bank facilities: (see attached PDF for the table) The weighted average term to expiry of PFI's bonds and bank facilities stands at 3.7 years as at today's date, and there are no expiries in the current financial year, as illustrated in the graph below: Debt facility maturity profile ($m): (see attached PDF for the graph) PFI Chief Executive Officer, Simon Woodhams, notes: "With the impacts of COVID-19 continuing to evolve, we have taken a pro-active step to secure additional liquidity from one of our key banking partners, CBA." PFI Chief Finance and Operating Officer, Craig Peirce, continues: "As at 31 December 2019, PFI had bonds and bank facilities drawn to a total of around $415.6M, and that position is largely unchanged as at today's date. At that time, the Company also had capital commitments over the next 24 months totalling $81.5M, which we planned to fund using a combination of undrawn bank facilities and the proceeds from the divestment of PFI's remaining non-industrial properties, which had a combined book value as at 31 December 2019 of $119.4M(1). Securing this additional liquidity gives the Company in excess of $130M of undrawn facilities, which allows us to meet our capital commitments regardless of the progress of our divestment programme." Simon Woodhams concludes: "PFI ended the 2019 financial year with gearing(2) of 28.2% and an interest cover ratio(3) of 4.0 times. While the negative impacts from the COVID-19 pandemic on PFI's business are not yet clear, headroom to covenant levels and high levels of liquidity provide PFI with a strong balance sheet position." ENDS ABOUT PFI & CONTACT PFI is an NZX listed property vehicle specialising in industrial property. PFI's nationwide portfolio of 93 properties is leased to 142 tenants. For further information please contact: SIMON WOODHAMS Chief Executive Officer --- Phone: +64 21 749 770 Email: woodhams@propertyforindustry.co.nz --- CRAIG PEIRCE Chief Finance and Operating Officer --- Phone: +64 21 248 6301 Email: peirce@propertyforindustry.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 End notes: (1) PFI had already secured the sale of 2 Pacific Rise, Mount Wellington, Auckland, on 17 December 2019 and settled the sale of this property on 13 March 2020. (2) That is, total borrowings as a percentage of the most recent independent valuation of the property portfolio. Covenant: 50%. (3) That is, the ratio of interest expense and bank fees to operating earnings excluding interest expense and bank fees. Covenant: 2.0 times. End CA:00350647 For:PFI Type:GENERAL Time:2020-03-25 11:52:01