PFI Announces Record Interim Results

NZX and media
announcement
—
20 August | 2021


Page 1

PFI ANNOUNCES RECORD INTERIM RESULTS
The PFI management team will present the results via live webcast from 10am NZT on 20 August 2021.
To view and listen to the webcast, please visit https://edge.media-server.com/mmc/p/w955frcv. Anyone
wishing to participate in the webcast (for example, to ask a question) must pre-register for the conference
call at https://apac.directeventreg.com/registration/event/9886819. Upon registering, participants will be
provided with participant dial-in numbers, a passcode and a unique registrant ID. In the 10 minutes prior
to the call start time, you will need to use the conference access information provided in the email
received at the point of registering, in addition to opening the webcast (using the details above).

Highlights
▪ Record interim result: fair value gains on properties of $248.2 million contributing to a record
interim profit after tax of $273.5 million, Funds From Operations (FFO)
1
earnings up 12.1% from the
prior interim period to 5.36 cents per share, Adjusted Funds From Operations (AFFO) earnings up
24.3% from the prior interim period to 4.71 cents per share, interim cash dividends of 3.60 cents per
share
▪ Robust balance sheet: net tangible assets up 22.9% to 271.4 cents per share, gearing of 30.0%,
bank facilities refinanced and increased post balance date, over $100 million of available liquidity,
proceeds from the contracted divestment of Carlaw Park will provide further funding flexibility
▪ Quality portfolio of scale: portfolio value in excess of $2 billion, weighted average lease term of
4.79 years, occupancy of 99.5%, just 1.1% of contract rent due to expire in the second half of 2021
▪ Strategy refreshed and progressed: strategy refresh announced, $138.3 million invested in core
industrial property, divestment of Carlaw Park for $110.0 million secured, $3.5 million capex
investment in bulk-store facilities near completion, brownfield opportunities progressed
▪ Increased dividend targeted and revised dividend policy: strategy progression, combined with
positive results for the year to date and buoyant market conditions, result in confirmation of targeted
2021 dividends at the upper end of the guidance range of 7.90 cents per share, dividend policy
revised, dividends will reflect 90% to 100% of AFFO on a rolling three-year historic average basis

Property for Industry Limited (PFI, the Company) today announced record interim results for the six
months ended 30 June 2021.

“PFI’s significant and quality portfolio, execution of the Company’s refreshed strategy, and buoyant
market conditions have generated a record interim result. Our balance sheet is in great shape, and we
have high levels of liquidity to continue to execute on our priorities and to deliver strong, stable returns.”
says PFI Chief Executive Officer, Simon Woodhams.

Record interim result
Profit after tax for the interim period totalled $273.5 million (54.46 cents per share), up from $15.6 million
(3.14 cents per share) in the prior interim period. A $248.2 million fair value gain on investment
properties, as compared to a $7.8 million fair value loss in the prior interim period, was the main
contributor to the Company’s record interim profit.

Net rental income of $45.9 million was up $4.3 million or 10.4% on the prior interim period, with positive
leasing activity and acquisitions both contributing $2.6 million each to this increase.

--------

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. Please refer to Appendix 1 for more detail as to how these measures were calculated.

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This increase in net rental income has contributed to an increase in FFO earnings to 5.36 cents per
share, up 0.58 cents per share or 12.1% ahead of the prior interim period. AFFO earnings of 4.71 cents
per share were up 0.92 cents per share or 24.3% when compared to the prior interim period, with a
reduced level of maintenance capex also contributing to that increase.

That being the case, the PFI Board resolved to pay a second quarter interim cash dividend of 1.8000
cents per share. The dividend will have imputation credits of 0.6088 cents per share attached and a
supplementary dividend of 0.2763 cents per share will be paid to non-resident shareholders. The record
date for the dividend is 27 August 2021, and the payment date is 7 September 2021. The dividend
reinvestment scheme will operate with a discount of 2%.

The second quarter dividend will take cash dividends for the interim period to 3.60 cents per share, in
line with the prior interim period, resulting in an FFO dividend pay-out ratio of 74% (H1 2020: 81%) and
an AFFO dividend pay-out ratio of 84% (H1 2020: 102%, refer Appendix 3).

Robust balance sheet
Net tangible assets (NTA) per share increased by 50.5 cents per share or 22.9% from 220.9 cents per
share as at the end of 2020 to 271.4 cents per share as at the end of the interim period, with the increase
in the fair value of investment properties contributing 49.3 cents per share to this increase.

In April, the Company refinanced its $100 million liquidity facility with a seven-year $125 million term
loan facility from the Commonwealth Bank of Australia, New Zealand Branch (CBA). Shortly after the
end of the interim period, in July, the Company’s $300 million syndicated bank facility was also
refinanced, and the Company’s facilities were increased by a further $100 million with a two-year loan
facility from the Bank of New Zealand (BNZ).

Post the July refinancing, the weighted average term to expiry of PFI’s bonds and bank facilities
increased by approximately one year to 4.4 years
2
, with almost $120 million of available liquidity. The
Company also ended the interim period with gearing
3
of 30.0% and an interest cover ratio
4
of 4.5 times.

Chief Finance and Operating Officer, Craig Peirce notes: “High levels of liquidity from a diverse range of
sources, and the proceeds from the contracted divestment of Carlaw Park, provide PFI with funding
flexibility to execute on our strategy.”

Significant quality portfolio
Portfolio snapshot as at 30 June 2021 31 December 2020 30 June 2020
Book value $2,025.3m $1,631.5m $1,470.0m
Number of properties 96 94 93
Number of tenants 148 148 140
Contract rent $96.3m $89.8m $83.6m
Occupancy 99.5% 99.4% 99.0%
Weighted average lease
term
4.79 years 5.28 years 5.28 years
Auckland property 85.9% 84.6% 84.2%
Industrial property 92.9% 91.7% 91.0%

--------

2
As at the day of refinancing, being 2 July 2021.
3
That is, total borrowings as a percentage of the most recent independent valuation of the property portfolio. Covenant: 50%.
4
That is, the ratio of interest expense and bank fees to operating earnings excluding interest expense and bank fees. Covenant:
2 times.

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Further to the valuation announcement in June, PFI recorded an interim increase in the value of its
property portfolio from independent valuations of $240.3 million or 14.5% to $2,025.3 million. A $7.9
million write up of the Company’s Carlaw Park properties to the contracted sale price of $110.0 million
brings total fair value gains on properties to $248.2 million for the interim period. Around 90% of the
valuation outcome was due to movements in yields or cap rates. As a result of portfolio and valuation
activity, PFI’s passing yield firmed from 5.53% to 4.75%. An independent market rental assessment of
the entire portfolio was completed as part of the valuation process, this assessment estimates that PFI’s
portfolio is around 3.0% under-rented.

Around 17,500 square metres of PFI’s portfolio was leased during the interim period to 10 new and
existing tenants for an average increase in term of 4.4 years. Five new leases and five renewals were
secured, and across these leasing transactions average leasing costs of two-thirds of a month per year
of term were observed.

Rent reviews were completed on 66 leases during the interim period, resulting in an average annual
uplift of 3.1% on ~$32.6 million of contract rent. Six market rent reviews on ~$2.6 million of contract rent
delivered an annualised increase of 1.9% over an average review period of 5.7 years.

At the end of the interim period the Company’s portfolio was 99.5% occupied, and commercial terms
have been agreed for all leases that are due to expire in the second half of 2021 (1.1% of contract rent).

The leasing market for industrial property remains robust, with vacancy still at historically low levels.
CBRE reports
5
Auckland Prime industrial vacancy is at just 1.2%, with Secondary industrial vacancy at
1.8%. CBRE predict
5
industrial rental growth over the next five years to average 3.9% per annum for
prime properties and 3.7% per annum for secondary properties, up from 2.5% and 2.3% respectively in
December 2020.

Strategy refreshed and progressed
At the Company’s annual meeting in May, Simon Woodhams outlined a refreshed strategy for PFI, with
four areas of focus: core generic assets, brownfield opportunities, specialised assets and assets held
for sale. The first half of 2021 has been a busy and successful period for all four areas of strategic focus.

The purchase of a “core generic” asset located at 670-680 Rosebank Road in Avondale, Auckland for
$39 million was completed in January 2021. PFI already owned neighbouring industrial properties on
Rosebank and Patiki Roads, and when combined with these sites, an industrial estate of 8.6ha now
valued in excess of $125 million was created, just 250 meters from the North Western motorway system.
This was a strategic acquisition that presents PFI with a longer-term opportunity to create value by
integrating the property with the Company’s existing holdings.

In May, PFI acquired a prime industrial property located at 44 Noel Burnside Road in Wiri, Auckland for
$91.7 million. The property is fully leased on a triple-net basis for an initial two-year period. Because of
the shorter lease, and the potential for an expiry in two years, the PFI team are currently viewing this as
a “brownfields opportunity”. Once a long-term lease is secured, this property would then move into the
“core generic” classification.

Commercial terms have been agreed with a tenant for the Company’s $9 million build-to-lease
development at 47 Dalgety Drive in Wiri, which is due for completion in the first quarter of 2022. The PFI
team have also advanced redevelopment plans for the Company’s Bowden Road site in Mount
Wellington, where an upcoming lease expiry will provide PFI with a significant redevelopment
opportunity.

--------

5
CBRE “Auckland Property Market Outlook”, June 2021

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Works also progressed on PFI’s specialised assets, with the construction of a new $3.5 million breeze-
way canopy helping to improve the environmental performance of the properties at the Company’s
Hewletts Road estate. Following the interim valuations, this estate is now valued at more than $130
million.

PFI has two “assets held for sale”
6
. The divestment of the Company’s Carlaw Park assets for $110
million was secured in February, and settlement is expected towards the end of 2021. Seismic
strengthening works at PFI’s Shed 22 in Wellington are underway, with this property to be divested
following the completion of these works.

On completion of these planned divestments, PFI will have a pro-forma loan to value ratio of 25.4%, the
portfolio will be 98.8% industrial and 85.6% of portfolio will be located in Auckland, positioning the
Company to benefit from trends supporting long-term growth, such as e-commerce.

Increased dividend targeted and revised dividend policy
On 6 May, the Company noted that results for the year to date, combined with the positive impact of the
acquisition of 44 Noel Burnside Road, meant that the PFI Board was reviewing both the dividend policy
and total cash dividends for the 2021 financial year.

Progression of the Company’s strategy, combined with positive results for the year to date and buoyant
market conditions, now mean that the PFI Board expects to declare cash dividends of 7.90 cents per
share for the 2021 financial year, at the upper end of the guidance range of 7.85 - 7.90 cents per share.

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. Accordingly, the PFI Board has revisited the Company’s
dividend policy.

To ensure PFI can continue to grow dividends, whilst at the same time pursuing strategic and value
enhancing initiatives, the PFI Board has decided to amend the Company’s dividend policy to distribute
between 90% to 100% of AFFO on a rolling three-year historic average basis. A copy of the revised
dividend policy can be found in Appendix 4.

Cash dividends of 7.90 cents per share are anticipated to result in a dividend pay-out at the mid-point of
this revised dividend policy range of 90% to 100% of AFFO on a rolling three-year historic average basis.

This guidance is subject to there being no material adverse changes in conditions or unforeseen events,
including no material tenant failures or further material COVID-19 restrictions, other than those in place
as at the date of this announcement.

Closing
Simon Woodhams concludes: “Industrial property has continued to perform. Occupier and investor
demand for industrial property remains robust, supported by continued low levels of vacancy and
projected rental growth. PFI’s portfolio and strategy are benefiting from these dynamics and have
produced record interim results.”

ENDS


--------

6
Please note that the definition of assets held for sale in the interim financial statements excludes Shed 22 as this asset does
not meet the definition of assets held for sale under NZ GAAP.

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20 August | 2021


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ABOUT PFI & CONTACT

PFI is an NZX listed property vehicle specialising in industrial property. PFI’s nationwide portfolio of 96 properties is leased to
148 tenants.

For further information please contact:

SIMON WOODHAMS
Chief Executive Officer
----
Phone: +64 21 749 770
Email: woodhams@pfi.co.nz
CRAIG PEIRCE
Chief Finance and Operating Officer
----
Phone: +64 21 248 6301
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


Attachments
NZX Form – Results Announcement
NZX Form – Distribution Notice
Interim Results Presentation
Interim Financial Statements

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Appendices
Appendix 1 – FFO and AFFO Calculations

Funds / Adjusted Funds From Operations For the six
months ended
For the six
months ended
(unaudited, $000, unless noted) 30 June 2021 30 June 2020
Profit and total comprehensive income after income
tax attributable to the shareholders of the Company
273,542 15,648
Adjusted for:
Fair value loss / (gain) on investment properties (248,196) 7,803
Material damage insurance income (540) (2,151)
Loss / (gain) on disposal of investment properties 4 14
Fair value loss / (gain) on derivative financial instruments (4,912) 1,023
Amortisation of tenant incentives 1,626 1,374
Straight lining of fixed rental increases (826) (999)
Deferred taxation 6,210 1,133
Other (1) 3
Funds From Operations (FFO) 26,907 23,848
FFO per share (cents) 5.36 4.78
Maintenance capex (1,432) (2,169)
Incentives and leasing fees given for the period (2,082) (1,985)
Other (incl. reversal of accounting entries for COVID-19 abatement
and deferral deals)
261 (785)
Adjusted Funds From Operations (AFFO) 23,654 18,909
AFFO per share (cents) 4.71 3.79

Appendix 2 – FFO and AFFO Compared to H1 2020

FFO (CPS) Change AFFO (CPS) Change
H1 2020 4.78 +0.58 CPS or
+12.1%
3.79 +0.92 CPS or
+24.3%
H1 2021 5.36 4.71

Appendix 3 – FFO and AFFO Dividend Pay-out Ratios

2021 2020
Full year dividends per share
(cents, 2021 = guidance, 2020 = actuals)
7.90 7.70
Pro-rata share of full year dividends per share
(cents, 2021 = 50% of guidance, 2020 = 50% of actuals)
3.95

3.85
FFO dividend pay-out ratio (%) 74% 81%
AFFO dividend pay-out ratio (%) 84% 102%

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Appendix 4 – Revised Dividend Policy

PFI’s dividend policy is to distribute between 90% to 100% of Adjusted Funds From Operations (AFFO)
on a rolling three-year historic average basis.

AFFO is a non-GAAP financial measure and a common investor metric. It is calculated in accordance
with the guidelines issued by the Property Council of Australia.

To provide sufficient flexibility for dividends to be maintained or normalised despite variations in AFFO,
the pay-out ratio may be decreased or increased from time to time.

In fixing a dividend for any period, consideration will be given to, amongst other things, the Group’s
current and forecast financial performance and position, general business and financial conditions, and
the solvency requirements of the Companies Act.

Dividends are paid quarterly, the payment of dividends is not guaranteed by the Group, and the Group’s
dividend policy may change from time to time.

---

Template
Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Updated as at 17 October 2019



Results for announcement to the market
Name of issuer Property for Industry Limited (PFI)
Reporting Period 6 months to 30 June 2021
Previous Reporting Period 6 months to 30 June 2020
Currency NZD
Amount (000s) Percentage change
Revenue from continuing
operations
$306,462 +507%
Total Revenue $306,462 +507%
Net profit/(loss) from
continuing operations
$273,542 +1,648%
Total net profit/(loss) $273,542 +1,648%
Interim/Final Dividend
Amount per Quoted Equity
Security
$0.01800000
Imputed amount per Quoted
Equity Security
$0.00608840
Record Date 27 August 2021
Dividend Payment Date 7 September 2021
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$2.714 $2.048
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
This dividend is fully credited with imputation credits to the
extent permitted by the imputation credit rules and to the extent
that the directors of PFI determine were available.
This announcement is extracted from PFI’s unaudited interim
financial statements as at and for the six months ended 30 June
2021. A copy of these unaudited interim financial statements is
attached to this announcement.
Authority for this announcement
Name of person

authorised
to make this announcement
Craig Peirce
Contact person for this
announcement
Craig Peirce
Contact phone number +64 9 303 9651
Contact email address peirce@pfi.co.nz
Date of release through MAP

20 August 2021

Unaudited financial statements accompany this announcement.

---

Distribution Notice

Updated as at 18 December 2019




Section 1: Issuer information
Name of issuer Property for Industry Limited
Financial product name/description Property for Industry Limited Shares
NZX ticker code PFI
ISIN (If unknown, check on NZX
website)
NZPFIE0001S5
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year Quarterly
Half Year X Special
DRP applies X
Record date 27 August 2021
Ex-Date (one business day before the
Record Date)
26 August 2021
Payment date (and allotment date for
DRP)
7 September 2021
Total monies associated with the
distribution
$9,062,619
Source of distribution (for example,
retained earnings)
Retained earnings
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution $0.02408840
Gross taxable amount $0.02174429
Total cash distribution $0.01800000
Excluded amount (applicable to listed
PIEs)
$0.00234411
Supplementary distribution amount $0.00276280
Section 3: Imputation credits and Resident Withholding Tax
Is the distribution imputed Fully imputed X
Partial imputation
No imputation
If fully or partially imputed, please
state imputation rate as % applied
28%
Imputation tax credits per financial
product
$0.00608840
Resident Withholding Tax per
financial product
N/A

Section 4: Distribution re-investment plan (if applicable)
DRP % discount (if any)
2%
Start date and end date for
determining market price for DRP
27 August 2021 2 September 2021
Date strike price to be announced (if
not available at this time)
3 September 2021
Specify source of financial products to
be issued under DRP programme
(new issue or to be bought on market)
New Issue
DRP strike price per financial product
To be determined
Last date to submit a participation
notice for this distribution in
accordance with DRP participation
terms
30 August 2021
Section 5: Authority for this announcement
Name of person

authorised to make
this announcement
Craig Peirce
Contact person for this
announcement
Craig Peirce
Contact phone number +64 21 248 6301
Contact email address peirce@pfi.co.nz
Date of release through MAP

20 August 2021

---

Highlights
Interim
Results
Briefing
2021
RECORD INTERIM RESULT:
ROBUST BALANCE SHEET:
QUALITY PORTFOLIO OF SCALE:
INCREASED DIVIDEND TARGETED AND REVISED
DIVIDEND POLICY:
Nettangibleassetsup22.9%to271.4centspershare,gearingof
30.0%,bankfacilitiesrefinancedandincreasedpostbalancedate,
over$100millionofavailableliquidity,proceedsfromthecontracted
divestmentofCarlawParkwillprovidefurtherfundingflexibility
Portfoliovalueinexcessof$2billion,weightedaverageleaseterm
of4.79years,occupancyof99.5%,just1.1%ofcontractrentdueto
expireinthesecondhalfof2021
Strategyprogression,combinedwithpositiveresultsfortheyearto
dateandbuoyantmarketconditions,resultinconfirmationof
targeted2021dividendsattheupperendoftheguidancerangeof
7.90centspershare,dividendpolicyrevised
Fairvaluegainsonpropertiesof$248.2millioncontributingtoarecord
interimprofitaftertaxof$273.5million,FundsFromOperations(FFO)
earningsup12.1%fromthepriorinterimperiodto5.36centspershare,
AdjustedFundsFromOperations(AFFO)earningsup24.3%fromtheprior
interimperiodto4.71centspershare,interimcashdividendsof3.60cents
pershare
STRATEGY REFRESHED AND PROGRESSED:
Strategyrefreshannounced,$138.3millioninvestedincore
industrialproperty,divestmentofCarlawParkfor$110.0million
secured,$3.5millioncapexinvestmentinbulk-storefacilitiesnear
completion,brownfieldopportunitiesprogressed
4
8 MCCORMACK PLACE, WELLINGTON

JUNE 2021DECEMBER 2020JUNE 2020
BOOK VALUE
$2,025.3m$1,631.5m $1,470.0m
NUMBER OF PROPERTIES
969493
NUMBER OF TENANTS
148148140
CONTRACT RENT
$96.3m$89.8m$83.6m
OCCUPANCY
99.5%99.4%99.0%
WEIGHTED AVERAGE LEASE TERM
4.79 years5.28 years5.28 years
AUCKLAND PROPERTY
85.9%84.6%84.2%
INDUSTRIAL PROPERTY
92.9%91.7%91.0%
Portfolio
Snapshot
▪PFI's portfolio is diversified across 96 properties
and 148 tenants, with 99.5% occupancy and a
weighted average lease term of 4.79 years,
weighted towards Auckland industrial property
6
1
1
4
4
77
4
1
1
3
Interim
Results
Briefing
2021

Our Current
Portfolio
Interim
Results
Briefing
2021
7

Valuations
▪94 properties valued at the half year, resulting in a write up of
$240.3 million or 14.5% to $2,025.3 million
−$7.9 million write up of Carlaw Park properties to
contracted sale price of $110.0 million brings total fair value
gains on properties to $248.2 million for the interim period
▪Independent market rental assessment estimates portfolio is
~3.0% under rented
▪Around 90% of valuation outcome was due to yield compression
▪PFI’s passing yield is now 4.75% (was 5.53%)
▪CBRE estimate
1
Auckland prime industrial yields are 4.22% and
secondary industrial yields are 5.30%
▪Occupier and investor demand for industrial property remains
robust, supported by continued low levels of vacancy and
projected rental growth
1
CBRE “Auckland Yield and Rent Update”, July 2021.
Interim
Results
Briefing
2021
61-69 PATIKI ROAD
8

Leasing
&
Expiries
0.5%
1.1%
9.9%
17.4%
21.5%
9.9%
4.9%
10.6%
6.0%
2.0%
1.5%
14.7%
0%
5%
10%
15%
20%
25%
H2 2021 EXPIRIESTENANT% RENT ROLL
528-558 Rosebank RoadTriquestra0.2%
10 Niall Burgess RoadNEP Broadcast Services0.3%
102 Mays RoadGo Logistics0.6%
TOTAL1.1%
▪Leasing
−10 leases agreed over ~17,500 sqm of space for an average term
of 4.4 years
−Five new leases and five renewals secured
−Average leasing costs two-thirds of a month per year of term
▪Expiries
−Portfolio is 99.5% occupied (0.5% vacancy) and 1.1% of contract
rent is due to expire in H2 2021, a total of just 1.6% (top graph),
down from 2.9% in H2 2020.
−Largest single expiry is $599,202, which is 58% of H2 2021 total
expiries
−Commercial terms agreed for all remaining H2 2021 expiries
−Vacancy still at historically low levels: CBRE reports
1
Auckland
Prime industrial vacancy at 1.2%, Secondary industrial vacancy at
1.8%
Interim
Results
Briefing
2021
1
CBRE “Auckland Property Market Outlook”, June 2021
9

No Event58.3%
Fixed25.1%
CPI11.3%
Market3.7%
Expiry1.1%
Vacant0.5%
Rent
Reviews
▪66 rent reviews delivered an average annual uplift of ~3.1% on
~$32.6 million of contract rent
−Six market rent reviews delivered an annualised increase of
1.9% over an average review period of 5.7 years on $2.6
million of contract rent
▪CBRE predict
1
industrial rental growth over the next five years to
average 3.9% per annum for prime properties and 3.7% per
annum for secondary properties, up from 2.5% and 2.3%
respectively in December 2020
▪Around 42% of PFI’s portfolio is subject to some form of lease
event during H2 2021
1
CBRE “Auckland Property Market Outlook”, June 2021
10
Interim
Results
Briefing
2021

45.9
+2.6
+1.3
+1.0
+0.3
-0.4
-0.3
-0.1
41.6
$39m
$40m
$41m
$42m
$43m
$44m
$45m
$46m
$47m
$48m
H1 2020 net
rental income
AcquisitionsRent reviews &
adjustments
New leases &
renewals
OtherVacancyDisposalsDevelopmentsH1 2021 net
rental income
Net Rental
Income
▪Net rental income of $45.9
million up $4.3 million or 10.4%
on the prior interim period ($41.6
million)
▪Increases due to positive leasing
activity totalling $2.6 million and
acquisitions, also $2.6 million
▪Increases partially offset by lost
rental income from vacancies
($0.4 million), disposals ($0.3
million), and properties now
under re-development ($0.1
million)
12
Interim
Results
Briefing
2021

+1.13
+0.15
+0.11
+0.02
-0.02
-0.30
-0.17
3.79
4.71
3.0
3.5
4.0
4.5
5.0
5.5
H1 2020 AFFORebase for
shares issued
Net rental
income
Maintenance
capex
Non-recoverable
property costs
Interest expense
and bank fees
Current taxationAdministrative
expenses /
Other
H1 2021 AFFO
Adjusted
Funds From
Operations
(cents per share)
▪Profit after tax of $273.5 million
▪FFO earnings of 5.36 cents per
share, 0.58 cents per share or
12.1%, AFFO earnings of 4.71
cents per share, 0.92 cents per
share or 24.3%
▪Net rental income (including
AFFO adjustments) up $5.7
million or 1.13 cents per share
on the prior interim period
▪Maintenance capex down $0.7
million to 16 basis points
(annualised)
▪Effective tax rate of 19.2% up
2.4% on the prior interim
period
▪Admin expenses increase due
to impact of new hires and IT
project, constant as a % of
average property values and
rent
13
Interim
Results
Briefing
2021

6.50
7.00
7.50
8.00
8.50
9.00
9.50
FY16FY17FY18FY19FY20FY21
AFFO (cps)FY21 AFFO (cps)DPS (cps)FY21 DPS (cps)
Earnings,
Dividends,
Guidance
▪H1 2021 cash dividends total 3.60 cps, in line
with H1 2020
▪Dividend reinvestment scheme in place for Q1
and Q2 dividends, 2% discount
▪2021 dividend target at the upper end of the
guidance range of 7.90 cents per share
▪Dividend policy revised, dividends will reflect
90% to 100% of Adjusted Funds From
Operations or AFFO on a rolling three-year
historic average basis
▪Revised policy aims to ensure PFI can
continue to grow dividends, whilst at the same
time pursuing strategic and value enhancing
initiatives
▪Guidance subject to no material adverse
changes in conditions or unforeseen events,
including no material tenant failures or further
material COVID-19 restrictions, other than
those in place as at the date of this
presentation
EARNINGSH1 2021 CPSH1 2020 CPSCHANGE
FUNDS FROM OPERATIONS
5.364.78+0.58 CPS or +12.1%
ADJUSTED FUNDS FROM OPERATIONS
4.713.79+0.92 CPS or +24.3%
14
Interim
Results
Briefing
2021

2,025.3
+248.2
+138.3
+10.9
+0.8
-4.3
1,631.5
$1,500m
$1,600m
$1,700m
$1,800m
$1,900m
$2,000m
$2,100m
December 2020
investment
properties & AHFS
Fair value gainAdditionsCapitalised
expenditure &
interest
Movement in lease
incentives, fees
and fixed rental
income
DisposalsJune 2021
investment
properties & AHFS
Investment
Properties
▪Portfolio value of ~$2.03 billion,
including the Carlaw Park
properties, which are classified
as assets held for sale (AHFS)
▪Total fair value gains on
properties of $248.2 million for
the interim period
▪670-680 Rosebank Road,
Avondale, purchased in January
2021, $39.0 million
▪Additional warehouse at 25
LangelyRoad, Wiri, settled in
February 2021, $7.5 million
▪44 Noel Burnside Road, Wiri,
purchased in May 2021, $91.7
million
▪Significant capex at 59 and 47A
Dalgety Drive (redevelopment
and development) and 124
HewlettsRoad (new breezeway
canopy)
15
Interim
Results
Briefing
2021

220.9
271.4
+49.3
+1.1
+1.0
+0.1
-1.0
200
210
220
230
240
250
260
270
280
December 2020
NTA
Rebase for shares
issued
Fair value gain on
investment
properties
Retained earningsFair value gain on
derivative financial
instruments
Material damage
insurance income
June 2021 NTA
Net Tangible
Assets
(cents per share)
▪Net tangible assets (NTA) per
share increased by 50.5 cents
per share or 22.9%
▪Change in NTA per share driven
by the increase in the fair value
of investment properties (+49.3
cps), retained earnings (+1.1
cps), the decrease in the net fair
value liability for derivative
financial instruments (+1.0 cps)
and material damage insurance
income (+0.1 cps)
16
Interim
Results
Briefing
2021

Funding,
Covenants,
Interest
Rates
▪$100 million CBA liquidity facility increased
to $125 million and extended in April 2021
▪$300 million syndicated facilities refinanced
in July 2021, with an additional $100 million
facility secured from BNZ
▪High levels of liquidity from a diverse range
of sources, and the proceeds from the
contracted divestment of Carlaw Park,
provide PFI with funding flexibility to execute
on strategy
REFINANCEJUNE 2021DECEMBER 2020
FUNDING
BANK FACILITIES DRAWN
-$405.4m $289.9m
BANK FACILITIES LIMIT
$525.0m (▲$100.0m)$425.0m$400.0m
BANK FACILITIES HEADROOM
(▲$100.0m)$19.6m$110.1m
FIXED RATE BONDS
-$200.0m$200.0m
FUNDING TERM (AVERAGE)
(▲~1.0 year)3.5 years2.8 years
BANKS
ANZ, BNZ, CBA,
Westpac
ANZ, BNZ, CBA,
Westpac
ANZ, BNZ, CBA,
Westpac
COVENANTS
LOAN-TO-VALUE RATIO (COVENANT: <50%)
-30.0%30.0%
INTEREST COVER RATIO (COVENANT: >2.0X)
-4.5 times4.1 times
INTEREST RATES
WEIGHTEDAVERAGE COST OF DEBT
-3.40%3.75%
INTERESTRATE HEDGING (EXCL. FORWARD
STARTING)
-
$365m / 2.61% / 3.5
years
$295m/ 3.07% / 3.1
years
FORWARD STARTING INTEREST RATE
-
$90m / 2.78% / 4.0
years
$110m / 3.09% / 3.7
years
18
Interim
Results
Briefing
2021

100.0100.0100.0
150.0
150.0
125.0
0
50
100
150
200
250
300
FY21FY22FY23FY24FY25FY26FY27FY28
BNZ facilityBondsSyndicated facilitiesCBA facility
1.2%
1.6%
2.0%
2.4%
2.8%
$0m
$50m
$100m
$150m
$200m
$250m
$300m
$350m
$400m
Jun-21Dec-21Jun-22Dec-22Jun-23Dec-23Jun-24Dec-24Jun-25Dec-25Jun-26Dec-26Jun-27
CoverInterest Rate
Debt Facility
Maturity
Profile,
Hedging
▪Post refinance, average term to
expiry of bank facilities and
bonds (top graph) of ~4.4 years,
$119.6 million of unutilised bank
facility capacity
▪Fixed rate payer hedging profile
(bottom graph) provides for an
average of ~64% of debt to be
hedged at an average fixed rate
of ~2.59% for the remainder of
2021, with the remainder on low
float interest rates
19
Interim
Results
Briefing
2021

Interim
Results
Briefing
2019

Interim
Results
Briefing
2021
Environmental,
Social and
Governance
(ESG)
21
ESG STRATEGIC PILLARS
▪Health, safety and wellbeing
▪Resource efficiency
▪Long-term thinking
ESG STRATEGIC THEMES
▪Taking care of our team
▪Looking after our tenants
▪Responsible property ownership
▪Delivering for our investors
▪HVAC systems containing ozone-depleting
gases replaced at six properties, resulting
in an estimated 4% reduction in Scope 1
emissions
▪New breezeway canopy built to help
improve the environmental performance of
the properties at the HewlettsRoad estate
▪Ongoing health and safety continuous
improvement, including 65% reduction in
high-risk landlord hazards at PFI properties
▪Employee and investor ESG engagement
sessions held
▪Introduced staff volunteering policy
▪Replacing further HVAC systems containing
ozone-depleting gases
▪Investigating installation of solar panels at
selected PFI properties
▪Targeting Green Star certification for
upcoming developments
▪Engaged S&P Global to investigate
physical climate change risks associated
with individual properties to support TCFD
disclosures
Our ESG Framework2021 -Highlights to date2021 –In progress

Market
Update
▪E-commerce penetration accelerated by COVID-19
pandemic, with online spend continuing to grow in
2021 (top graph)
▪Online sales in New Zealand expected to grow from
the current 11% to 17% (or $9.3Bn) by 2025
1
−Based on this growth in online sales alone, it is
estimated an additional 230,000 sqm of
warehouse space will be needed by 2025
▪PFI’s portfolio set to benefit from this thematic, as
tenant demand for well-located industrial property
close to key transport links continues to grow
▪CBRE “Auckland Property Market Outlook”, June
2021:
−Further rental growth and yield compression
forecast, reflecting favourable supply/demand
conditions and strong economic growth
expectations
−Vacancy outlook remains unchanged on
December 2020
CBREAUCKLAND MARKET OUTLOOKJUNE 2021
5-YEAR
FORECAST:
JUNE 2021
5-YEAR
FORECAST:
DECEMBER 2020
PRIME INDUSTRIAL –VACANCY1.2%1.1%◄►1.1%
–RENTS$147+3.9%▲+2.5%
–YIELDS4.22%4.15%▼4.26%
SECONDARY INDUSTRIAL –VACANCY1.8%1.6%◄►1.6%
–RENTS$118+3.7%▲+2.3%
–YIELDS5.30%5.09%▼5.22%
23
Interim
Results
Briefing
2021
250
300
350
400
450
500
550
600
650
JanFebMarAprMayJunJulAugSepOctNovDec
$m
NZ Post Total Online Spend
2
201920202021
1
CBRE “Auckland Property Market Outlook”, June 2021,
2
NZ Post Data

Purpose
Vision and
Strategy
Interim
Results
Briefing
2021
25

Looking
Forward
Interim
Results
Briefing
2021
26

Our Current
Portfolio
Interim
Results
Briefing
2021
27

Core
Generic
Holdings
Interim
Results
Briefing
2021
▪Purchased for $39.0 million in January 2021
▪Located on a 2.8ha site, 250 metres from
North Western motorway
▪PFI already owned neighbouring sites on
Rosebank and Patiki Roads, together these
create a 8.6ha industrial estate, valued in
excess of $125 million
▪Opportunity to create value by integrating with
existing properties
Add photo of 670-
680 Rosebank Road
28
670-680 ROSEBANK ROAD, AVONDALE

Brownfield
Opportunities
Interim
Results
Briefing
2021
29
44 NOEL BURNSIDE ROAD, WIRI
▪Purchased for $91.7 million in May 2021
▪Large, modern 17,500 sqm warehouse with
2,200 sqm of canopies and 12,250 sqm of
yards
▪Property is fully leased on a triple-net basis for
an initial two-year period, with a
commencement rental of $3.64 million
▪Once a long-term lease is secured, this
property would then move into “core generic”
classification

Brownfield
Opportunities
Interim
Results
Briefing
2021
30
30-32 BOWDEN ROAD, MTWELLINGTON
▪Large 3.9ha site in one of Auckland’s prime
industrial locations
▪Good links to Southern Motorway, dual access
from both Bowden Road and GabadorPlace
▪Versatile site that can accommodate large-
scale or multiple tenant designs
▪March 2023 lease expiry to provide PFI with a
significant redevelopment opportunity, which
could involve an investment of ~$50 million

Assets
Held For
Sale
Interim
Results
Briefing
2021
▪Contracted divestment of Carlaw Park
expected to settle towards end of FY21
▪Shed 22 seismic strengthening works
underway, to be divested following the
completion of works
▪After planned divestments:
−Pro forma LVR of 25.4%;
−Portfolio will be 98.8% industrial;
−85.6% of portfolio will be located in
Auckland
31
JUNE 2021
CARLAW
PARK
DIVESTMENT
SHED 22
DIVESTMENT
PRO FORMA
INVESTMENT PROPERTIES &
AHFS
$2,025.3m-$110.0m▼-$11.4m▼$1,904.0m
TOTAL DRAWN BORROWINGS$605.4m-$110.0m▼-$11.4m▼$484.1m
CONTRACT RENT$96.3m-$6.8m▼-$0.9m▼$88.6m
LOAN-TO-VALUE RATIO 30.0%-3.7%▼-0.8%▼25.4%
AUCKLAND PROPERTY85.9%-0.8%▼+0.5%▲85.6%
INDUSTRIAL PROPERTY92.9%+5.3%▲+0.6%▲98.8%

Specialised
Assets
Interim
Results
Briefing
2021
32
▪New $3.5 million breezeway canopy near
completion
▪Canopy to help improve the environmental
performance of the properties at the Hewletts
Road estate
▪Following interim valuations, the estate is now
valued at more than $130 million
124 HEWLETTS ROAD, TAURANGA

Review &
Questions
Questions?
34
LOOKING FORWARD:
▪Industrial property continues to perform
▪Occupier and investor demand for industrial
property remains robust, supported by
continued low levels of vacancy and
projected rental growth
▪Demand for industrial space due to
increased e-commerce volumes, favourable
supply/demand conditions and strong
economic growth expectations
▪PFI’s portfolio and strategy are benefiting
from these dynamics
▪Outlook subject to no further material
COVID-19 restrictions, other than those in
place as at the date of this presentation
HIGHLIGHTS:
▪Record interim result
▪Robust balance sheet
▪Quality portfolio of scale
▪Strategy refreshed and progressed
▪Increased dividend targeted and
revised dividend policy
Interim
Results
Briefing
2021

Disclaimer
The information included in this presentation is provided as at 20 August 2021 and should be read in conjunction with the NZXresults
announcement, NZX Form –Results Announcement, NZX Form –Distribution Notice, and interim financial statements issued on that
same day.
Property for Industry Limited (PFI) does not guarantee the repayment of capital or the performance referred to in this presentation.
Past performance is not a reliable indicator of future performance.
The presentation includes a number of forward looking statements. Forward looking statements, by their nature, involve inherent risks
and uncertainties. Many of those risks and uncertainties are matters which are beyond PFI’s control and could cause actual results to
differ from those predicted. Variations could either be materially positive or materially negative.
While every care has been taken in the preparation of this presentation, PFI makes no representation or warranty as to the accuracy or
completeness of any statement in it including, without limitation, any forecasts.
This presentation has been prepared for the purpose of providing general information, without taking account of any particular
investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the
appropriateness of the information in this presentation, and seek professional advice, having regard to the investor’s objectives,
financial situation and needs.
This presentation is solely for the use of the party to whom it is provided.
35
Interim
Results
Briefing
2021

---

Property
for
Industry
Limited
Group
Interim
Financial
Statements
30 June
2021
FINANCIAL
STATEMENTS.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2021
The accompanying notes form part of these interim financial statements.
UNAUDITEDUNAUDITED
ALL VALUES IN $000SNOTE
6 months ended
30 June 2021
6 months ended
30 June 2020
INCOME
Rental and management fee income2.352,72148,026
Fair value gain on investment properties and non-current assets classified as held for sale2.1, 2.2248,196–
Fair value gain on derivative financial instruments4,912–
Business interruption insurance income2.693108
Material damage insurance income2.65402,320
Total income306,46250,454
EXPENSES
Property costs2.4(7,976)(8,185)
Interest expense and bank fees(9,149)(9,250)
Administrative expenses5.1(3,357)(2,701)
Loss on disposal of investment properties(4)(14)
Fair value loss on investment properties and non-current assets classified as held for sale2.1, 2.2–(7,803)
Fair value loss on derivative financial instruments–(1,023)
Total expenses(20,486)(28,976)
Profit before taxation285,97621,478
Income tax expense5.2(12,434)(5,829)
Profit and total comprehensive income after income tax attributable
to the shareholders of the Company4.1 273,542 15,649
Basic earnings per share (cents)4.1 54.46 3.14
Diluted earnings per share (cents)4.1 54.45 3.14
2
PROPERTY FOR INDUSTRY LIMITED GROUP INTERIM FINANCIAL STATEMENTS — 2021
INTERIM FINANCIALS 2021

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2021
The accompanying notes form part of these interim financial statements.
Cents
per Share
(cents)
No. of
Shares
(#)
Ordinary
Shares
($000s)
Share-Based
Payments
Reserve
($000s)
Retained
Earnings
($000s)
Total
Equity
($000s)
Balance as at 1 January 2020 (audited)–498,723,330562,429270491,3381,054,037
Total comprehensive income–––15,64915,649
Dividends and reinvestment
Q4 2019 final dividend - 4/3/20202.15–––(10,724)(10,724)
Q1 2020 interim dividend - 26/5/20201.80–––(8,978)(8,978)
Q1 2020 dividend reinvestment1,086,0322,555––2,555
Long-term incentive plan45,35215547–202
Balance as at 30 June 2020 (unaudited)–499,854,714565,139317487,2851,052,741
Balance as at 1 January 2021 (audited)–501,302,888569,169615566,8291,136,613
Total comprehensive income–––273,542 273,542
Dividends and reinvestment
Q4 2020 final dividend - 10/3/20212.25–––(11,281)(11,281)
Q4 2020 dividend reinvestment1,105,0733,087––3,087
Q1 2021 interim dividend - 24/5/20211.80–––(9,044)(9,044)
Q1 2021 dividend reinvestment986,1612,737––2,737
Long-term incentive plan84,685177(124)–53
Balance as at 30 June 2021 (unaudited)–503,478,807575,170491820,0461,395,707
3

UNAUDITEDAUDITED
ALL VALUES IN $000SNOTE30 June 202131 December 2020
CURRENT ASSETS
Cash at bank1,2801,414
Accounts receivable, prepayments and other assets3,0855,397
Total current assets4,3656,811
NON-CURRENT ASSETS
Investment properties2.11,915,3151,524,785
Property, plant and equipment495561
Derivative financial instruments3.214,55319,415
Goodwill29,08629,086
Total non-current assets1,959,4491,573,847
Non-current assets classified as held for sale2.2110,000106,701
Total assets2,073,8141,687,359
CURRENT LIABILITIES
Derivative financial instruments3.2506340
Accounts payable, accruals and other liabilities2.722,0329,152
Taxation payable6,0783,252
Total current liabilities28,61612,744
NON-CURRENT LIABILITIES
Borrowings3.1602,976487,649
Derivative financial instruments3.215,10225,041
Deferred tax liabilities5.231,30925,160
Lease liabilities5.4104152
Total non-current liabilities649,491538,002
Total liabilities678,107550,746
Net assets4.21,395,7071,136,613
EQUITY
Share capital575,170569,169
Share-based payments reserve491615
Retained earnings820,046566,829
Total equity1,395,7071,136,613
These interim financial statements are signed on behalf of Property for Industry Limited and were authorised for issue on 20 August 2021.
Anthony Beverley Susan Peterson
Chairman Chair, Audit and Risk Committee
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2021
The accompanying notes form part of these interim financial statements.
4
PROPERTY FOR INDUSTRY LIMITED GROUP INTERIM FINANCIAL STATEMENTS — 2021
INTERIM FINANCIALS 2021

The accompanying notes form part of these interim financial statements.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2021
UNAUDITEDUNAUDITED
ALL VALUES IN $000SNOTE
6 months ended
30 June 2021
6 months ended
30 June 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Property and management fee income received61,80646,342
Business interruption insurance income2.6103108
Net goods and services tax paid(489)(890)
Interest received–2
Interest and other finance costs paid(9,135)(9,221)
Payments to suppliers and employees(8,867)(7,374)
Income tax paid(3,398)(16,337)
Net cash flows from operating activities40,02012,630
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investment properties9,2936,865
Acquisition of investment properties2.1(138,315)–
Acquisition of property, plant and equipment(20)(26)
Expenditure on investment properties(12,277)(9,278)
Capitalisation of interest on development properties2.1(341)(38)
Material damage insurance income2.65402,320
Net cash flows from investing activities(141,120)(157)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from / (repayment of) syndicated bank facility90,523(43,296)
Net proceeds from bilateral CBA bank facility25,00050,000
Principal elements of finance lease payments(56)(55)
Dividends paid to shareholders net of reinvestments(14,501)(17,147)
Net cash flows from financing activities100,966(10,498)
Net (decrease) / increase in cash and cash equivalents(134)1,975
Cash and cash equivalents at beginning of period1,4141,185
Cash and cash equivalents at end of period1,2803,160
5

NOTES 2021
1. GENERAL INFORMATION7
1.1 Reporting entity7
1.2 Basis of preparation7
1.3 Critical judgements, estimates and assumptions7
1.4 Accounting policies7
1.5 Significant events and transactions7
1.6 Definitions
2. PROPERTY8
2.1 Investment properties8
2.2 Non-current assets classified as held for sale9
2.3 Rental and management fee income9
2.4 Property costs10
2.5 Net rental income10
2.6 Insurance income10
2.7 Accounts payable, accruals and other liabilities10
3. FUNDING11
3.1 Borrowings11
3.2 Derivative financial instruments12
4. INVESTOR RETURNS AND INVESTMENT METRICS13
4.1 Earnings per share13
4.2 Net tangible assets per share13
5. OTHER14
5.1 Administrative expenses14
5.2 Taxation15
5.3 Related party transactions16
5.4 Leases17
5.5 Operating segments18
5.6 Capital commitments18
5.7 Subsequent events18
6
PROPERTY FOR INDUSTRY LIMITED GROUP INTERIM FINANCIAL STATEMENTS — 2021
NOTES TO THE INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2021

1. GENERAL INFORMATION
IN THIS SECTION
This section sets out the basis upon which the Group’s Interim Financial Statements are prepared.
1.1. Reporting entity
These unaudited consolidated interim financial statements (the interim financial statements) are for Property for Industry Limited (the Company) and
its subsidiary P.F.I. Property No. 1 Limited (PFI No. 1) (together, the Group). The Company is a limited liability company incorporated in New Zealand
and is registered under the New Zealand Companies Act 1993. The Company is a FMC reporting entity under Part 7 of the Financial Markets Conduct
Act 2013 and the Financial Reporting Act 2013 and these interim financial statements have been prepared in accordance with the requirements of the
NZX Listing Rules. The Company is listed on the NZX Main Board (NZX: PFI).
The Group’s principal activity is property investment and management in New Zealand.
1.2. Basis of preparation
These interim financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting Practice (NZ GAAP).
They comply with NZ IAS 34 ‘Interim Financial Reporting’ and IAS 34 ‘Interim Financial Reporting’.
These interim financial statements have been prepared on the historical cost basis except where otherwise identified. All financial information is
presented in New Zealand dollars and has been rounded to the nearest thousand.
These interim financial statements should be read in conjunction with the Annual Report for the year ended 31 December 2020 which may be
downloaded from the Company’s website (www.propertyforindustry.co.nz/investor-centre/reports-and-presentations).
1.3. Critical judgements, estimates and assumptions
In applying the Group’s accounting policies, the Board and Management regularly evaluate judgements, estimates and assumptions that may have an
impact on the Group. The significant judgements, estimates and assumptions made in the preparation of these interim financial statements were the
same as those applied to the consolidated financial statements as at and for the year ended 31 December 2020.
1.4. Accounting policies
The accounting policies adopted are the same as those applied by the Group in its consolidated financial statements as at and for the year ended
31 December 2020.
1.5. Significant events and transactions
The financial position and performance of the Group was affected by the following events and transactions that occurred during the reporting period:
Investment property acquisitions and disposals
On 29 January 2021, the Group settled the acquisition of the properties located at 670-680 Rosebank Road, Avondale, for a net purchase price of
$39.00 million.
On 10 February 2021, the Group announced the divestment of Carlaw Gateway Building and Carlaw Park Office Complex, Parnell for a contracted
gross sales price of $110.00 million. These properties are classified as non-current assets classified as held for sale in these financial statements.
On 30 April 2021, the Group settled the disposal of a non-current asset classified as held for sale located at 127 Waterloo Road, Christchurch for
a gross sales price of $4.41 million.
On 6 May 2021, the Group announced an agreement to purchase the property located at 44 Noel Burnside Road, Wiri, for a net purchase price of
$91.68 million. Settlement of this acquisition took place on 27 May 2021.
Bilateral bank facility
On 16 April 2021, the Group extended the expiry date of its bilateral bank facility provided by Commonwealth Bank of Australia (CBA) out to
16 April 2028 and increased it to $125 million. A bilateral bank facility is a facility agreement between a single lender (a bank) and a single
borrower (a corporate customer).
1.6. Definitions
The COVID-19 global pandemic
In March 2020, the World Health Organisation designated COVID-19 to be a ‘Global Pandemic’ (the COVID-19 pandemic), threatening the health and
well-being of large numbers of people across multiple countries. The COVID-19 pandemic has caused varying levels of societal uncertainty. New Zealand
experienced a nationwide ‘Alert Level 4’ lockdown in March-April 2020, with the Auckland region required to undertake two further ‘Alert Level 3’
lockdowns in August 2020 and February-March 2021 due to the re-emergence of the virus in the community. As noted in note 5.7, on 17 August 2021,
New Zealand moved back to ‘Alert Level 4’ due to the re-emergence once again of the virus in the community. However, the impact of the COVID-19
pandemic has been immaterial on the reporting period.
7
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

NOTES 2021
2. PROPERTY
IN THIS SECTION
This section shows the real estate assets used to generate the Group’s trading performance which are considered to be the most relevant to the
operations of the Group.
2.1. Investment properties
ALL VALUES IN $000S
UNAUDITEDAUDITED
6 months ended
30 June 2021
12 months ended
31 December 2020
Opening balance 1,524,785 1,469,285
Capital movements:
Additions 138,315 65,148
Disposals – –
Transfer to non-current assets classified as held for sale – (106,701)
Capital expenditure 10,633 18,976
Capitalised interest 341 199
Movement in lease incentives, fees and fixed rental income 918 5,332
150,207 (17,046)
Unrealised fair value gain (i) 240,323 72,546
Closing balance
1
1,915,315 1,524,785
1 Included in the 2021 balance is a right-of-use asset of $4.00 million (2020: $3.75 million) primarily in relation to a ground lease, with an associated immaterial lease liability. Also
included in the balance is $7.37 million in prepaid rent (2020: NIL), with an associated liability of equal amount (within accounts payable, accruals and other liabilities).
(i) Valuation
All investment properties were valued by independent valuers as at 31 December 2020. The Board determined that a desktop review of the property
portfolio should be undertaken by CB Richard Ellis (CBRE), Colliers International (Colliers), Jones Lang LaSalle (JLL) or Savills as at 30 June 2021 to
determine the current valuation of each property in the portfolio. Following this desktop review, and due to the significant number of properties subject
to a change of plus or minus 5% of the market value assessed in the asset valuation as at the prior year end, the Board determined that full independent
valuations were appropriate for the whole property portfolio as at 30 June 2021, with the exception of Carlaw Park as noted below. The acquisition of
the property located at 44 Noel Burnside Road, Wiri, settled on 27 May 2021 and as such the Board determined that the acquisition valuation of
$91.68 million remained the best estimate of fair value at period end.
As a result of the independent valuations, and the revaluation gain recorded when revaluing the Carlaw Gateway Building and Carlaw Park Office
Complex (recorded as non-current assets classified as held for sale) based on the actual contracted sales price, the unrealised net movement in the
value of investment properties for the six months ended 30 June 2021 was a gain of $248,196,000 (six months ended 30 June 2020: loss of $7,803,000).
The portfolio will next be revalued by independent valuers as at 31 December 2021.
8
PROPERTY FOR INDUSTRY LIMITED GROUP INTERIM FINANCIAL STATEMENTS — 2021
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

2. PROPERTY (continued)
2.2. Non-current assets classified as held for sale
ALL VALUES IN $000S
UNAUDITEDAUDITED
30 June 202131 December 2020
127 Waterloo Road, Christchurch– 4,301
Carlaw Park Office Complex
1
77,118 72,300
Carlaw Park Gateway Building
1
32,882 30,100
Total non-current assets classified as held for sale 110,000 106,701
1 A combined revaluation gain of $7,873,000 was recorded when revaluing the Carlaw Gateway Building and Carlaw Park Office Complex based on the actual contracted sales price of
$110,000,000 (2020: a revaluation loss of $40,000 recorded on transferring 127 Waterloo Road to non-current assets classified as held for sale).
On 18 February 2019, the Group announced its strategy of replacing its non-industrial assets with quality industrial properties in sought-after areas,
either via acquisitions or by value-add strategies within the existing portfolio. As at 30 June 2021, however, the non-industrial property within investment
properties - Shed 22, 23 Cable Street (valued at $11.35 million) - cannot be classified as a non-current asset classified as held for sale as it does not
meet the defined requirements. These requirements are that the asset is available for immediate sale in its present condition, the appropriate level of
management are committed to a plan to sell the asset, an active programme to locate a buyer has been initiated, the asset must be actively marketed for
sale at a reasonable price, and the sale should be expected to qualify for recognition as a completed sale within one year from the date of classification.
2.3. Rental and management fee income
ALL VALUES IN $000S
UNAUDITEDUNAUDITED
6 months ended
30 June 2021
6 months ended
30 June 2020
Gross rental receipts 45,362 38,965
Service charge income recovered from tenants 6,449 6,101
Fixed rental income adjustments 826 999
Capitalised lease incentive adjustments (200) 645
Impact of rental income deferred and abated due to the COVID-19 pandemic (57) 984
Management fee income 341 332
Total rental and management fee income 52,721 48,026
9
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

NOTES 2021
2.4. Property costs
UNAUDITEDUNAUDITED
ALL VALUES IN $000S
6 months ended
30 June 2021
6 months ended
30 June 2020
Service charge expenses (6,449) (6,101)
Bad and doubtful debts recovery / (expense)
1
149 (410)
Other non-recoverable property costs (1,676) (1,674)
Total property costs (7,976) (8,185)
1 Included in the 2021 balance is an $84,000 recovery (2020: $184,000 expense) specifically relating to COVID-19 rent deferrals provided and NIL (2020: $86,000 expense) relating to
tenants adversely affected by COVID-19.
Other non-recoverable costs represents property maintenance not recoverable from tenants, property valuation fees and property leasing costs.
2.5. Net rental income
UNAUDITEDUNAUDITED
ALL VALUES IN $000S
6 months ended
30 June 2021
6 months ended
30 June 2020
Gross rental receipts 45,362 38,963
Service charge income recovered from tenants 6,449 6,101
Fixed rental income adjustments 826 999
Capitalised lease incentive adjustments (200) 645
Impact of rental income deferred and abated due to the COVID-19 pandemic (57) 984
less: Service charge expenses (6,449) (6,101)
Net rental income 45,932 41,591
2.6. Insurance income
On 21 April 2019, 314 Neilson Street, Penrose sustained fire damage. The fire has resulted in a business interruption (loss of rents claim) and
a material damage claim. The insurance income relating to business interruption and to material damage is presented in the Consolidated Statement
of Comprehensive Income. Further insurance proceeds are expected to be received and recognised in subsequent periods.
2.7. Accounts payable, accruals and other liabilities
ALL VALUES IN $000S
UNAUDITEDAUDITED
30 June 202131 December 2020
Trade creditors and retentions3,6451,441
Accruals3,4684,188
Deposits and bonds from tenants
2
13,6302,213
Operating expense accounts
3
463–
Other8261,310
Total accounts payable, accruals and other liabilities22,0329,152
2 The increase in this balance is driven by $7.37 million in prepaid rent relating to the acquisition of 44 Noel Burnside Road, Wiri and $5.00 million received in deposits relating to the
divestment of Carlaw Park, Parnell.
3 As at 31 December 2020 the balance of the operating expense accounts was an asset and was therefore classified as ‘Accounts receivable, prepayments and other assets’.
2. PROPERTY (continued)
10
PROPERTY FOR INDUSTRY LIMITED GROUP INTERIM FINANCIAL STATEMENTS — 2021
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

3. FUNDING
IN THIS SECTION
This section outlines how the Group manages its capital structure, financing costs and exposure to interest rate risk.
3.1. Borrowings
(i) Net borrowings
UNAUDITEDAUDITED
ALL VALUES IN $000S30 June 202131 December 2020
Bilateral CBA bank facility drawn down - non-current 125,000 100,000
Syndicated bank facility drawn down - non-current 280,400 189,877
Fixed rate bonds - non-current 200,000 200,000
Unamortised borrowings establishment costs (2,424) (2,228)
Net borrowings 602,976 487,649
Weighted average interest rate for drawn debt (inclusive of current interest rate swaps, margins and line fees)3.40%3.75%
Weighted average term to maturity (years)3.472.82
(ii) Composition of borrowings
UNAUDITED
ALL VALUES IN $000S
AS AT 30 JUNE 2021Issue DateMaturity DateInterest Rate
Facility drawn /
amount
Undrawn
facilityFair Value
Syndicated Bank Facility A–4-Nov-22Floating 150,000 – 150,000
Syndicated Bank Facility B–4-Nov-23Floating 130,400 19,600 130,400
PFI01028-Nov-1728-Nov-244.59% 100,000 – 110,163
PFI0201-Oct-181-Oct-254.25% 100,000 – 108,349
Bilateral CBA Bank Facility–16-Apr-28Floating 125,000 – 125,000
Total borrowings 605,400 19,600 623,912
AUDITED
ALL VALUES IN $000S
AS AT 31 DECEMBER 2020Issue DateMaturity DateInterest Rate
Facility drawn /
amount
Undrawn
facilityFair Value
Bilateral CBA Bank Facility–19-Mar-22Floating 100,000 – 100,000
Syndicated Bank Facility A–4-Nov-22Floating 150,000 – 150,000
Syndicated Bank Facility B–4-Nov-23Floating 39,877 110,123 39,877
PFI01028-Nov-1728-Nov-244.59% 100,000 – 111,015
PFI0201-Oct-181-Oct-254.25% 100,000 – 110,486
Total borrowings 489,877 110,123 511,378
The Group has long-term revolving facilities (A and B) with a banking syndicate comprising ANZ Bank New Zealand Limited (ANZ), Bank of New Zealand
(BNZ), Commonwealth Bank of Australia (CBA) and Westpac New Zealand Limited (Westpac) (each providing $75,000,000), for $300,000,000. In addition,
the long-term bilateral facility with CBA was increased to $125,000,000 during the period, extending the expiry date from 19 March 2022 to 16 April 2028.
The carrying values of the bank facilities approximate the fair value of the facilities because the loans have floating rates of interest that reset every
30-90 days.
The fair value of the fixed rate bonds is based on their listed market prices at balance date and is classified as Level 1 in the fair value hierarchy
(2020: Level 1). Interest on the PFI010 Bonds is payable quarterly in February, May, August and November in equal instalments, while interest on
the PFI020 Bonds is payable quarterly in January, April, July and October; also in equal instalments. Both bonds are listed on the NZDX.
11
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

NOTES 2021
(iii) Security
The Group’s bank facilities and fixed rate bonds are secured by way of a security trust deed and registered mortgage security which is required to be
provided over Group properties with current valuations of at least $1,250,000,000 (31 December 2020: $1,200,000,000). In addition to this, the bank
facility agreements and the fixed rate bond terms also contain a negative pledge. The Company and PFI No. 1 are guarantors to the bank facilities and
the fixed rate bonds.
3.2. Derivative financial instruments
(i) Fair values
UNAUDITEDAUDITED
ALL VALUES IN $000S30 June 202131 December 2020
Non-current assets 14,553 19,415
Current liabilities (506) (340)
Non-current liabilities (15,102) (25,041)
Total (1,055) (5,966)
(ii) Notional values, maturities and interest rates
UNAUDITEDAUDITED
30 June 202131 December 2020
Notional value of interest rate swaps - fixed rate payer - start dates commenced ($000s) 365,000 295,000
Notional value of interest rate swaps - fixed rate receiver
1
- start dates commenced ($000s) 200,000 200,000
Notional value of interest rate swaps - fixed rate payer - forward starting ($000s) 90,000 110,000
Total ($000s) 655,000 605,000
Percentage of borrowings fixed (%)60%60%
Fixed rate payer swaps:
Average period to expiry - start dates commenced (years) 3.46 3.06
Average period to expiry - forward starting (years from commencement) 4.00 3.73
Average (years) 3.56 3.24
Fixed rate payer swaps:
Average interest rate
2
- start dates commenced (%)2.61%3.07%
Average interest rate
2
- forward starting (% during effective period)2.78%3.09%
Average (%)2.64%3.07%
1 The Group has $200 million fixed rate receiver swaps for the duration of the two $100 million fixed rate bonds, the effect of the fixed rate receiver swaps is to convert the two $100
million fixed rate bonds to floating interest rates.
2 Excluding margin and fees.
Key estimates and assumptions: Derivative financial instruments
The fair value of derivative financial instruments are determined from valuations prepared by independent treasury advisers using Level 2 valuation
techniques (31 December 2020: Level 2). These are based on the present value of estimated future cash flows accounting for the terms and maturity
of each contract and the current market interest rates at reporting date. Fair values also reflect the current creditworthiness of the derivative
counterparty. These values are verified against valuations prepared by the respective counterparties. The valuations were based on market rates at
30 June 2021 of between 0.35% for the 90 day BKBM (31 December 2020: 0.27%) and 1.88% for the 10 year swap rate (31 December 2020: 0.99%).
There were no changes to these valuation techniques during the reporting period.
3. FUNDING (continued)
3.1. Borrowings (continued)
12
PROPERTY FOR INDUSTRY LIMITED GROUP INTERIM FINANCIAL STATEMENTS — 2021
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

4. INVESTOR RETURNS AND INVESTMENT METRICS
IN THIS SECTION
This section summarises the earnings per share and net tangible assets per share, which are common investment metrics.
4.1. Earnings per share
(i) Basic earnings per share
UNAUDITEDUNAUDITED
6 months ended
30 June 2021
6 months ended
30 June 2020
Total comprehensive income for the period attributable to the shareholders of the Company ($000s) 273,542 15,649
Weighted average number of ordinary shares (shares) 502,300,565 498,956,350
Basic earnings per share (cents) 54.46 3.14
(ii) Diluted earnings per share
The calculation of diluted earnings per share has been based on the profit attributable to ordinary shareholders and weighted-average number of
ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares. Weighted average number of shares for the
purpose of diluted earnings per share has been adjusted for 93,087 (30 June 2020: 50,931) rights issued under the Group’s LTI Plan as at 30 June 2021.
This adjustment has been calculated using the treasury share method.
UNAUDITEDUNAUDITED
6 months ended
30 June 2021
6 months ended
30 June 2020
Total comprehensive income for the period attributable to the shareholders of the Company ($000s) 273,542 15,649
Weighted average number of shares for purpose of diluted earnings per share (shares) 502,393,652 499,007,281
Diluted earnings per share (cents) 54.45 3.14
4.2. Net tangible assets per share
UNAUDITEDAUDITEDUNAUDITED
30 June 202131 December 202030 June 2020
Net assets ($000s) 1,395,707 1,136,613 1,052,741
Less: Goodwill ($000s) (29,086) (29,086) (29,086)
Net tangible assets ($000s) 1,366,621 1,107,527 1,023,655
Closing shares on issue (shares) 503,478,807 501,302,888 499,854,714
Net tangible assets per share (cents) 271 221 205
13
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

NOTES 2021
5. OTHER
IN THIS SECTION
This section includes additional information that is considered less significant in the understanding of the financial performance and position of the
Group, but is disclosed to comply with NZ IAS 34 ‘Interim Financial Reporting’ and IAS 34 ‘Interim Financial Reporting’.
5.1. Administrative expenses
ALL VALUES IN $000S
UNAUDITEDUNAUDITED
6 months ended
30 June 2021
6 months ended
30 June 2020
Audit fees and other fees paid to auditors 63 57
Employee expense 1,927 1,546
Directors' fees 264 290
Office expenses 468 309
Depreciation 91 84
Other expenses544 415
Total administrative expenses 3,357 2,701
14
PROPERTY FOR INDUSTRY LIMITED GROUP INTERIM FINANCIAL STATEMENTS — 2021
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

5. OTHER (continued)
5.2. Taxation
(i) Reconciliation of accounting profit before income tax to income tax expense
ALL VALUES IN $000S
UNAUDITEDUNAUDITED
6 months ended
30 June 2021
6 months ended
30 June 2020
Profit before income tax 285,976 21,478
Prima facie income tax calculated at 28% (80,073) (6,014)
Adjusted for:
Non-tax deductible revenue and expenses 140 (75)
Fair value gain / (loss) on investment properties 69,495 (2,185)
Loss on disposal of investment properties (1) (4)
Depreciation
1
2,186 2,177
Disposal of depreciable assets (210)–
Deductible capital expenditure 441 1,143
Lease incentives, fees and fixed rental income 351 380
Derivative financial instruments 1,375 (286)
Impairment gains / (allowance) 42 (115)
Current tax prior period adjustment 157 8
Other (127) 275
Current taxation expense (6,224) (4,696)
Depreciation (4,530) (877)
Lease incentives, fees and fixed rental income (204) (410)
Derivative financial instruments (1,376) 286
Impairment (allowance) / gains (42) 63
Other (58) (195)
Deferred taxation expense (6,210) (1,133)
Total taxation reported in Consolidated Statement of Comprehensive Income (12,434) (5,829)
1 As part of the assistance package offered by the Government on 25 March 2020 due to the impact of the COVID-19 pandemic, depreciation allowances were re-introduced for
commercial building structure effective from 1 April 2020, backdated to 1 January 2020, and this has been reflected in the table above.
15
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

NOTES 2021
5. OTHER (continued)
5.2. Taxation (continued)
(ii) Deferred tax
ALL VALUES IN $000S
AUDITEDUNAUDITEDUNAUDITED
31 December 2020
As at
6 months ended
30 June 2021
Recognised in profit
30 June 2021
As at
Deferred tax assets
Derivative financial instruments (1,671) 1,376 (295)
Impairment gains (126) 42 (84)
Other (60) (3) (63)
Gross deferred tax assets (1,857) 1,415 (442)
Deferred tax liabilities
Investment properties 27,017 4,734 31,751
Gross deferred tax liabilities 27,017 4,734 31,751
Share-based payment reserve– 61 –
Net deferred tax liability 25,160 6,210 31,309
5.3. Related party transactions
The Group has related party relationships with the following parties:
Related partyAbbreviationNature of relationship(s)
Commonwealth
Bank of Australia
CBASusan Peterson, a member of the Board of Directors, was also a Director of ASB Bank Limited (ASB),
a 100% subsidiary of CBA, however she resigned from this position effective 30 June 2020.
The Board of DirectorsDirectorsThe Board of Directors.
The following transactions with related parties took place:
ALL VALUES IN $000SRelated party
UNAUDITEDUNAUDITED
6 months ended
30 June 2021
6 months ended
30 June 2020
Directors' fees - annual feesDirectors 264 290
Related party debts written off or forgiven–––
Interest expense and bank fees incurredCBA N/A (1,082)
Interest income receivedCBA N/A 482
16
PROPERTY FOR INDUSTRY LIMITED GROUP INTERIM FINANCIAL STATEMENTS — 2021
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

5. OTHER (continued)
5.3. Related party transactions (continued)
The following positions were held with related parties:
UNAUDITEDUNAUDITED
ALL VALUES IN $000SRelated party30 June 202130 June 2020
Amounts owingCBA N/A (274)
Amounts owedCBA N/A 116
Bank facility providedCBA N/A 125,000
Bank facility drawnCBA N/A 93,070
Notional value of interest rate swaps:
Current fixed rate payer swapsCBA N/A 60,000
Forward starting fixed rate payer swapsCBA N/A 50,000
Current fixed rate receiver swapsCBA N/A 50,000
UNAUDITEDAUDITED
NUMBERRelated party30 June 202131 December 2020
Shares held beneficially in the company (number)Directors 194,133 193,868
5.4. Leases
(i) Amounts recognised in the Consolidated Statement of Financial Position
The Consolidated Statement of Financial Position shows the following amounts relating to leases:
UNAUDITEDAUDITED
ALL VALUES IN $000S30 June 202131 December 2020
Right-of-use assets
1
Properties 183 229
Total right-of-use assets 183 229
1 Included in the line item ‘Property, plant and equipment’ in the Consolidated Statement of Financial Position.
Additions to the right-of-use assets during the 2021 financial year were NIL (year ending 31 December 2020: $6,000).
ALL VALUES IN $000S30 June 202131 December 2020
Lease liabilities
Current
2
96 93
Non-current
3
104 152
Total lease liabilities 200 245
2 Included in the line item ‘Accounts payable, accruals and other liabilities’ in the Consolidated Statement of Financial Position.
3 Included in the line item ‘Lease liabilities’ in the Consolidated Statement of Financial Position.
17
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

NOTES 2021
(ii) Amounts recognised in the Consolidated Statement of Comprehensive Income
The Consolidated Statement of Comprehensive Income shows the following amounts relating to leases:
UNAUDITEDUNAUDITED
ALL VALUES IN $000S
6 months ended
30 June 2021
6 months ended
30 June 2020
Depreciation charge of right-of-use assets
4
Properties (51) (45)
Total depreciation charge of right-of-use assets (51) (45)
4 Included in the line item ‘Administrative expenses’ in the Consolidated Statement of Comprehensive Income.
UNAUDITEDUNAUDITED
ALL VALUES IN $000S
6 months ended
30 June 2021
6 months ended
30 June 2020
Interest cost
5
(11) (13)
5 Included in the line item ‘Interest expense and bank fees’ in the Consolidated Statement of Comprehensive Income.
The total cash outflow for leases in 2021 was $56,000 (2020: $55,000).
5.5. Operating segments
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. The chief operating
decision-maker has been identified as the Board of Directors. The Group is internally reported as a single operating segment to the chief operating
decision-maker.
5.6. Capital commitments
As at 30 June 2021, the Group had capital commitments totalling $7,972,000 (31 December 2020: $58,754,000) as follows:
ALL VALUES IN $000S30 June 202131 December 2020
AddressProject
314 Neilson StreetDesign and build– 334
47 Dalgety DriveDesign and build 4,634 6,311
59 Dalgety DriveRefurbishment– 1,993
25 Langley RoadAcquisition of warehouse on completion of construction– 7,532
124 Hewletts RoadRefurbishment 1,227 3,318
Shed 22, 23 Cable StreetSeismic works 2,111 2,266
670-680 Rosebank RoadAcquisition (net of deposit paid)– 37,000
Total capital commitments 7,972 58,754
5.7. Subsequent events
On 2 July 2021, the Group announced that it had refinanced its $300 million syndicated bank facility, extending the expiry dates by approximately
two years and eight months, from 4 November 2022 and 2023, to 2 July 2025 and 2026. The Group also increased its facilities by a further $100 million
with a two-year loan facility from BNZ, expiring on 2 July 2023.
On 17 August 2021, all regions in New Zealand, except for the Auckland and Coromandel regions, moved to Alert Level 4 for a period of three days
(Auckland and Coromandel regions: seven days) in response to several cases of the COVID-19 virus in the community, following an extended period with
no cases. At this stage the impact is unknown.
On 20 August 2021, the Directors of the Company approved the payment of a net dividend of 1.800000 cents per share to be paid on 7 September 2021.
The gross dividend (2.408840 cents per share) carries imputation credits of 0.608840 cents per share. The payment of this dividend will not have any tax
consequences for the Group and no liability has been recognised in the Consolidated Statement of Financial Position as at 30 June 2021 in respect of
this dividend.
5. OTHER (continued)
5.4. Leases (continued)
18
PROPERTY FOR INDUSTRY LIMITED GROUP INTERIM FINANCIAL STATEMENTS — 2021
NOTES TO THE INTERIM FINANCIAL STATEMENTS
(
continued
)
FOR THE SIX MONTHS ENDED 30 JUNE 2021

Report on the interim financial statements
Our conclusion
We have reviewed the interim financial statements of Property for Industry Limited (the Company) and its controlled entity (the Group), which
comprise the consolidated statement of financial position as at 30 June 2021, and the consolidated statement of comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the period ended on that date, and significant
accounting policies and other explanatory information.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial statements of the Group
do not present fairly, in all material respects, the financial position of the Group as at 30 June 2021, and its financial performance and cash flows for
the period then ended, in accordance with International Accounting Standard 34 Interim Financial Reporting (IAS 34) and New Zealand Equivalent
to International Accounting Standard 34 Interim Financial Reporting (NZ IAS 34).
Basis for conclusion
We conducted our review in accordance with the New Zealand Standard on Review Engagements 2410 (Revised) Review of Financial Statements
Performed by the Independent Auditor of the Entity (NZ SRE 2410 (Revised)). Our responsibility is further described in the Auditor’s responsibility
for the review of the interim financial statements section of our report.
We are independent of the Group in accordance with the relevant ethical requirements in New Zealand relating to the audit of the annual financial
statements, and we have fulfilled our other ethical responsibilities in accordance with these ethical requirements. Other than in our capacity as
auditor we have no relationship with, or interests in, the Group.
Directors’ responsibility for the interim financial statements
The Directors of the Company are responsible on behalf of the Company for the preparation and fair presentation of these interim financial
statements in accordance with IAS 34 and NZ IAS 34 and for such internal control as the Directors determine is necessary to enable the
preparation and fair presentation of interim financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s responsibility for the review of the interim financial statements
Our responsibility is to express a conclusion on the interim financial statements based on our review. NZ SRE 2410 (Revised) requires us
to conclude whether anything has come to our attention that causes us to believe that the interim financial statements, taken as a whole,
are not prepared in all material respects, in accordance with IAS 34 and NZ IAS 34. A review of interim financial statements in accordance
with NZ SRE 2410 (Revised) is a limited assurance engagement. We perform procedures, primarily consisting of making enquiries,
primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.
The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International
Standards on Auditing and International Standards on Auditing (New Zealand) and consequently does not enable us to obtain assurance
that we might identify in an audit. Accordingly, we do not express an audit opinion on these interim financial statements.
Who we report to
This report is made solely to the Company’s Shareholders, as a body. Our review work has been undertaken so that we might state to the
Company’s Shareholders those matters which we are required to state to them in our review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other than the Company’s Shareholders, as a body, for our review
procedures, for this report, or for the conclusion we have formed.
The engagement partner on the review resulting in this independent auditor’s review report is Indumin Senaratne (Indy Sena).
For and on behalf of:
Chartered Accountants Auckland
20 August 2021
Independent auditor’s review report
To the shareholders of Property for Industry Limited
PricewaterhouseCoopers, PwC Tower, 15 Customs Street West, Private Bag 92162, Auckland 1142 New Zealand
T: +64 9 355 8000, www.pwc.co.nz
19

Property for Industry Limited
Shed 24,
Prince’s Wharf,
147 Quay Street,
Auckland 1010
PO Box 1147,
Shortland Street,
Auckland 1140
T 09 303 9450
E info@propertyforindustry.co.nz
www.propertyforindustry.co.nz