Industrial property landlord Property For Industry increased its profit and dividend payout in the year ended December, citing strong financial and operational results following the merger with Direct Property Fund.
Total revenue increased 32.6% to $63.8 million in the period, the operating profit increased 36.9% to $36.9 million and the reported profit increased 47.8% to nearly $60 million.
The total dividend increased to 7.25 cents per share (cps) from 7.2cps in the previous corresponding period.
The company hinted it could increase the dividend next year.
Operating expenses for the year were up 27.1% because of the merger but the ratio of expenses to revenue of 42.2% was in line with the previous year's.
Joint general manager Nick Cobham said leasing demand last year was solid, a continuing trend over the last two years that was reflected in total occupancy across the portfolio of 98.5%.
''This compares favourably with the wider industrial market.''
Coupled with the increased demand from occupiers, Property For Industry continued to benefit from the strong investor sentiment towards industrial investment property.
The confidence in the sector had flowed through to market capitalisation rates firming for investment grade industrial property.
Looking ahead, Mr Cobham said the opportunity to acquire prime industrial property to add value to shareholder returns looked a continuing challenge in 2015, given the dearth of investment grade property available and the competition to acquire, particularly from private investors and owner occupiers.
However, consistent with the company's strategy for managing its lease expiries and vacancy, Property For Industry would continue to review its portfolio and seek to take advantage in the market to recycle capital out of non-core assets, reposition existing properties and undertake development on expansion land in the portfolio when an opportunity presented itself.
