NZSE:PFI

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Property For Industry

Executive Summary

Property For Industry Limited engages in the property investment and management business in New Zealand.


Snowflake Analysis

Proven track record average dividend payer.

Share Price & News

How has Property For Industry's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PFI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.2%

PFI

1.9%

NZ REITs

0.2%

NZ Market


1 Year Return

18.4%

PFI

-6.7%

NZ REITs

-0.3%

NZ Market

Return vs Industry: PFI exceeded the NZ REITs industry which returned -7.2% over the past year.

Return vs Market: PFI exceeded the NZ Market which returned -1.2% over the past year.


Shareholder returns

PFIIndustryMarket
7 Day1.2%1.9%0.2%
30 Day15.3%-0.7%3.7%
90 Day-3.4%-19.4%-10.6%
1 Year22.8%18.4%-2.6%-6.7%3.6%-0.3%
3 Year74.9%52.6%35.4%16.9%37.3%20.1%
5 Year97.2%55.1%64.6%28.7%82.0%41.8%

Price Volatility Vs. Market

How volatile is Property For Industry's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Property For Industry undervalued compared to its fair value and its price relative to the market?

6.93x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PFI (NZ$2.43) is trading above our estimate of fair value (NZ$1.91)

Significantly Below Fair Value: PFI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PFI is good value based on its PE Ratio (6.9x) compared to the REITs industry average (9.9x).

PE vs Market: PFI is good value based on its PE Ratio (6.9x) compared to the NZ market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: PFI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: PFI is overvalued based on its PB Ratio (1.1x) compared to the NZ REITs industry average (0.9x).


Next Steps

Future Growth

How is Property For Industry forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-60.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PFI's earnings are forecast to decline over the next 3 years (-60.3% per year).

Earnings vs Market: PFI's earnings are forecast to decline over the next 3 years (-60.3% per year).

High Growth Earnings: PFI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: PFI's revenue is expected to decline over the next 3 years (-2.8% per year).

High Growth Revenue: PFI's revenue is forecast to decline over the next 3 years (-2.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFI's Return on Equity is forecast to be low in 3 years time (4.5%).


Next Steps

Past Performance

How has Property For Industry performed over the past 5 years?

15.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFI has a large one-off gain of NZ$130.6M impacting its December 31 2019 financial results.

Growing Profit Margin: PFI's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: PFI's earnings have grown by 15.5% per year over the past 5 years.

Accelerating Growth: PFI's earnings growth over the past year (60.1%) exceeds its 5-year average (15.5% per year).

Earnings vs Industry: PFI earnings growth over the past year (60.1%) exceeded the REITs industry -11%.


Return on Equity

High ROE: PFI's Return on Equity (16.7%) is considered low.


Next Steps

Financial Health

How is Property For Industry's financial position?


Financial Position Analysis

Short Term Liabilities: PFI's short term assets (NZ$10.5M) do not cover its short term liabilities (NZ$23.3M).

Long Term Liabilities: PFI's short term assets (NZ$10.5M) do not cover its long term liabilities (NZ$445.4M).


Debt to Equity History and Analysis

Debt Level: PFI's debt to equity ratio (41.1%) is considered high.

Reducing Debt: PFI's debt to equity ratio has reduced from 56.6% to 41.1% over the past 5 years.

Debt Coverage: PFI's debt is not well covered by operating cash flow (11.2%).

Interest Coverage: PFI's interest payments on its debt are well covered by EBIT (4x coverage).


Balance Sheet


Next Steps

Dividend

What is Property For Industry's current dividend yield, its reliability and sustainability?

3.10%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PFI's dividend (3.13%) isn’t notable compared to the bottom 25% of dividend payers in the NZ market (3.25%).

High Dividend: PFI's dividend (3.13%) is low compared to the top 25% of dividend payers in the NZ market (6.43%).


Stability and Growth of Payments

Stable Dividend: PFI's dividends per share have been stable in the past 10 years.

Growing Dividend: PFI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83.3%), PFI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PFI's dividends in 3 years are forecast to be covered by earnings (80.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.3yrs

Average management tenure


CEO

Simon Woodhams

1.33yrs

Tenure

NZ$541,000

Compensation

Mr. Simon Woodhams has been Chief Executive Officer of Property for Industry Ltd. since January 2019. Mr. Woodhams was General Manager of Property for Industry Ltd. since July 2015 until January 2019. Mr.  ...


CEO Compensation Analysis

Compensation vs Market: Simon's total compensation ($USD329.28K) is below average for companies of similar size in the NZ market ($USD649.06K).

Compensation vs Earnings: Simon's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Gregory Reidy
Non-Executive Director8.33yrsNZ$254.00kno data
Simon Woodhams
Chief Executive Officer1.33yrsNZ$541.00k0.014% NZ$164.6k
Craig Peirce
Chief Finance & Operating Officer1.33yrsNZ$541.00kno data
Nathan Williams
Financial Controller2.33yrsno datano data

1.3yrs

Average Tenure

Experienced Management: PFI's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Gregory Reidy
Non-Executive Director8.33yrsNZ$254.00kno data
Dean Bracewell
Independent Directorno dataNZ$7.00k0.0040% NZ$48.5k
Anthony Beverley
Board Chairmanno dataNZ$146.00kno data
Humphry Rolleston
Independent Director25.83yrsNZ$78.00k0.026% NZ$312.1k
Susan Peterson
Independent Director4yrsNZ$91.00k0.0036% NZ$43.2k
David Thomson
Independent Director2.25yrsNZ$78.00kno data

6.2yrs

Average Tenure

Experienced Board: PFI's board of directors are considered experienced (6.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PFI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Property For Industry Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Property For Industry Limited
  • Ticker: PFI
  • Exchange: NZSE
  • Founded: 1994
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: NZ$1.210b
  • Shares outstanding: 498.77m
  • Website: https://www.propertyforindustry.co.nz

Location

  • Property For Industry Limited
  • Shed 24
  • Prince's Wharf
  • Auckland
  • 1140
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFINZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJan 1995

Biography

Property For Industry Limited engages in the property investment and management business in New Zealand. The company invests in industrial properties located in North Harbour, Avondale, Penrose, Mount Wellington, Manukau, Mangere, East Tamaki, Wellington, and Christchurch. As of December 31, 2008, it operated 56 properties. Property For Industry Limited was founded in 1994 and is based in Auckland, New Zealand. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/26 10:35
End of Day Share Price2020/05/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.