Property For Industry (PFI) got the reporting season proper off to a good start yesterday by lifting its operating earnings and reported profit for the six months ended June.
The operating profit was up 12% to $9.56 million but the reported profit was up 68% to $11.8 million, thanks to PFI paying less tax in the period.
Distributable profit was down slightly to $7.6 million. The company paid out 3.4 cents per share as a dividend, or 99% of the distributable profit.
PFI joint general manager Nick Cobham said major leasing progress had occurred since the start of 2012.
''This progress, coupled with 2012's acquisitions and disposals, has translated into sound financial results for the first half of 2013.''
The merger of PFI and Direct Property Fund became effective on July 1, following the receipt of shareholder and High Court approvals. PFI had risen to 28th on the NZX-50 index and was now the fifth-largest property vehicle on the NZX main board.
Chairman Peter Masfen said the strong show of support from PFI and DPF shareholders reinforced the board's belief in the merger proposition.
With the integration of PFI and DPF now cemented, directors looked forward to delivering on shareholders' expectations of the merged entity.
Forsyth Barr broker Suzanne Kinnaird said modest growth was expected as the reporting season continued.
She forecast a continuation of positive earnings per share growth (EPS) at the aggregated level - albeit flat at the median level.
''This is the larger of the quarterly reporting seasons, with 44 companies reporting. The season is largely dominated by companies who are releasing their full-year 2013 results.''
Forsyth Barr analysts were forecasting revenue growth of 3.6% at an aggregated level (median up 5.6%), with operating profit forecasts at 6.3% (media up 6.5%).
EPS growth was forecast to be 4.8% and dividend growth was forecast to be up 5.1% at an aggregated level but flat at a median level, Ms Kinnaird said.
On balance, while the retail and building sectors were supporting the positive EPS growth, utilities, telecommunications and food, beverage and agricultural sectors had negative growth expectations and were depressing the overall aggregated market growth expectations, she said.
Of the 44 companies reporting this season, 12 companies in total had EPS expected growth in excess of 20%. They included Air New Zealand, Cavalier, Michael Hill International, NZX, Oceana Gold, Summerset and The Warehouse Group.
Next week, Freightways reports on Monday, followed by Opus, PGG Wrightson, Summerset Group on Tuesday, SkyCity Entertainment on Wednesday, Nuplex on Thursday and Michael Hill and Steel and Tube Holdings on Friday.
Forsyth Barr was forecasting operating profit of $77.1 million for Freightways in the year ended June and a reported profit of $38.2 million.
