EARNINGS AND DIVIDEND GROWTH, MANAGEMENT TRANSITION

EARNINGS AND DIVIDEND GROWTH, MANAGEMENT TRANSITION The PFI management team will present these results via live webcast from 10.30 am NZT today. To view and listen to the webcast, please visit https://edge.media-server.com/m6/p/3d97n233. We recommend you log on a few minutes before the start time, and if you cannot attend the live webcast, a recording will be available on PFI s website shortly after the conclusion of the live event. Alternatively, you can listen to the live presentation by dialling in on 0800 667 018 and using the access PIN 5292536. Highlights Earnings and dividend growth: profit after tax up $58.4 million, 3.2% increase in Funds From Operations (FFO) 1 earnings per share, Adjusted Funds From Operations (AFFO) earnings per share in line with the prior year, cash dividend up 1.3% to 7.55 cents per share Valuation gains: $66.4 million or 5.3% increase in the value of the property portfolio from independent valuations, net tangible assets (NTA) per share up 14.5 cents or 8.9% to 177.7 cents per share Strong balance sheet: second $100 million senior secured fixed rate 7-year bond issue, refinancing of $37.5 million of bank facilities, gearing of 30.3% Significant portfolio activity: over 100,000 square metres or 15% of the portfolio leased during the year to 30 tenants for an average increase in term of 6.2 years Auckland industrial acquisitions: two properties acquired for $28.4 million Management changes: former General Manager, Simon Woodhams, appointed as Chief Executive Officer, former Chief Financial Officer, Craig Peirce, appointed as Chief Finance and Operating Officer, former Managing Director, Greg Reidy, to transition to Non-Executive Director by June 2019 Property for Industry Limited (PFI, the Company) ended 2018 delivering on its promise of strong, stable returns and implementing a management transition to ensure such performance continues. The management transition announced late last year is about strategic continuity and regeneration, says PFI Chairman, Anthony Beverley. Investors will recognise that we are focused on retaining the expertise and experience that help us deliver on our promise of strong, stable returns. Financial performance Net rental income for the year increased by $6.1 million or 8.4% to $79.1 million, as increases from acquisitions ($4.9 million) and positive leasing activity ($3.0 million) partially offset a decrease due to increased vacancy ($1.8 million). Average occupancy during 2018 was 98%, before rising back to in excess of 99% at the end of the year. Not only did this lower level of occupancy weigh on net rental income, but property costs net of recoveries from tenants also increased slightly by $0.2 million or 8.0% as a result. Interest expense and bank fees increased $1.0 million or 5.6%, with year-end borrowings increasing by $27.6 million or 7.4% as a result of capital expenditure and two investment property acquisitions during the year. -------- 1 Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) are non-gaap financial information and are common 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. Page 1

No management fees were incurred in 2018 due to the June 2017 internalisation, and this reduction in management fees of $2.9 million more than offset a $1.8 million increase in administrative expenses incurred in lieu of management fees. Also as a result of the June 2017 internalisation, PFI recorded no current taxation expense in 2017 and a reduced level of current taxation expense in 2018. Excluding the impact of the internalisation, PFI s effective current tax rate was 21.0% in 2017 and 20.2% in 2018. All told, the Company made a profit after tax for the year of $110.1 million or 22.08 cents per share, up $58.4 million or 10.83 cents per share on the prior period. FFO and AFFO As a result of cost savings offsetting a reduction in net rental income (on a per share basis), PFI recorded a 3.2% increase in FFO earnings per share as compared to the prior year. With maintenance capex increasing from 23 basis points in 2017 to 35 basis points in 2018, AFFO earnings per share were in line with the prior year. Distributable profit 2, the measure previously used by the PFI Board to determine dividends, increased 3.7% on a per share basis over the prior year. Measure 2018 CPS 2017 CPS Change FFO 8.84 8.57 3.2% AFFO 7.46 7.49-0.4% Distributable Profit 8.38 8.08 3.7% Dividend The PFI Board has today resolved to pay a fourth quarter final cash dividend of 2.1000 cents per share. The dividend will have imputation credits of 0.4417 cents per share attached and a supplementary dividend of 0.2004 cents per share will be paid to non-resident shareholders. The record date for the dividend is 4 March 2019 and the payment date is 13 March 2019. The dividend reinvestment scheme will not operate for this dividend. This fourth quarter dividend will take cash dividends for the year to 7.55 cents per share, up 0.10 cents per share or 1.3% from the prior year, resulting in the dividend pay-out ratios noted below 3 : Measure Policy 2018 Pay-out Ratio 2017 Pay-out Ratio FFO 80 90% 85% 87% AFFO 95 100% 101% 99% Distributable Profit 95 100% 90% 96% Guidance PFI Chief Executive Officer, Simon Woodhams, noted: As was the case in 2018, in 2019, PFI s results will be influenced by working through the incentives from recent deals completed, and the leasing to be completed, at Carlaw Park. Anthony Beverley adds: As we have previously explained to the market, the PFI Board recognises the importance of a rewarding dividend yield for shareholders. We are however mindful of balancing the competing priorities of growing AFFO earnings to cover dividends, whilst at the same time, maintaining -------- 2 Distributable profit is the measure previously used by the PFI Board to determine dividends. Please refer to Appendix 2 for more detail as to how this measure was calculated. 3 Figures in the table are calculated on a per share basis. If these calculations are done on the basis of the dollar value of earnings and dividends, and not on a per share basis, the 2017 pay-out ratios would be 90% for FFO and the 103% for AFFO. Page 2

or gradually increasing cash dividends, which historically have increased by approximately 0.05 cps each year, if performance allowed. Balancing these factors, and the leasing programme ahead of us, we are guiding to a cash dividend of 7.60 cents per share for the 2019 financial year, an increase of 0.05 cents per share on the 2018 dividend. The Company expects that this level of full year cash dividends will approximate 80% to 90% of FFO earnings and 95% to 100% of AFFO earnings, in line with the Company s dividend policy. Net tangible assets (NTA) PFI s NTA per share increased by 14.5 cents per share or 8.9% from 163.2 cents per share as at the end of 2017 to 177.7 cents per share as at the end of the 2018. The change in NTA per share was driven by the increase in the fair value of investment properties (described below, +13.3 cents per share), retained earnings (+0.8 cents per share) and the decrease in the net fair value liability for derivative financial instruments (+0.4 cents per share). Capital management PFI carried out several capital management initiatives during the second half of 2018 to ensure that the Company maintained a strong balance sheet with diversified and long-dated sources of funding. In October, a second $100 million senior secured 7-year bond issue was completed at a rate of 4.25%, reflecting a margin of 1.60% per annum 4. The Company also cancelled $100 million of bank facilities that were due to expire on 4 May 2020 on allotment of the bond issue. PFI Chief Finance and Operating Officer, Craig Peirce notes: Our second bond issue has further reduced our reliance on bank funding and was completed at attractive rates with longer tenor than what is normally available from banks. In December, the Company refinanced $37.5 million of bank facilities. Tranche A, which previously totalled $87.5 million, is due to expire on 4 May 2020. Following the refinancing, Tranche A was reduced to $50 million. Tranche B, which totals $187.5 million and is due to expire 4 May 2021, remains unchanged. A new third tranche, Tranche C, totalling $37.5 million, was provided by existing lenders ANZ, BNZ, CBA and Westpac, with an expiry date of 4 May 2022. At 31 December 2018, the weighted average term to expiry of PFI s bonds and bank facilities stands at 4.0 years, up from 3.7 years at the end of 2017. Craig Peirce continued: Capital management initiatives completed during the second half of 2018 ensure that PFI has all core debt 5 secured in a mix of bonds and bank facilities with expiry dates in excess of 2.3 years at year-end, with additional liquidity and flexibility available in the shorter dated Tranche A. PFI s current hedge rate is forecast to remain at low rates during 2019: based on current hedging and debt levels, an average of approximately 54% of the Company s debt will be hedged at an average rate of approximately 4.01%. PFI s weighted average cost of debt 6 reduced slightly during the year to 4.86% as at 31 December 2018 from 4.96% as at 31 December 2017. -------- 4 The bond issue was swapped back to float interest rates via fixed rate receiver swaps. 5 PFI defines core debt as 105% of forecast debt requirements. 6 Weighted average cost of debt comprises BKBM, hedging, margins and all borrowings related fees. Page 3

The Company ended the year with gearing 7 of 30.3%, well within the self-imposed gearing limit of 40% and bank covenants of 50%, and the Company has approximately $74 million of unutilised bank facilities, as at the end of the year. The interest cover ratio 8 of 3.9 times was also well within bank covenants of 2.0 times. Portfolio performance Portfolio snapshot as at 31 December 2018 31 December 2017 Book value $1,322.0m $1,210.8m Number of properties 94 92 Number of tenants 148 148 Contract rent $82.0m $79.6m Occupancy 99.3% 99.9% Weighted avg. lease term 5.39 years 5.33 years Auckland property 83.1% 82.4% Industrial property 87.3% 86.4% Further to the in December 2018, PFI recorded an annual increase from independent valuations in the value of its property portfolio of $66.4 million or 5.3% to $1,322.0 million. Around onethird of this valuation outcome was due to rental growth, which in part reflects the successful leasing outcomes described below. High levels of demand for industrial property from both investors and owner occupiers also influenced the increase, with movements in cap rates contributing the remaining two thirds of the increase in value. As a result of the year-end valuation process, PFI s passing yield firmed from 6.57% to 6.21%, and on a portfolio basis there continues to be no over or under renting. Over 100,000 square metres, representing more than 15% of PFI s existing portfolio by rent, was leased during the year to 30 new and existing tenants for an average increase in term of 6.2 years. Lease renewals accounted for almost 70% of the contract rent secured, with 22 PFI tenants retained for an average increase in term of 5.7 years. In addition to this, eight new leases were secured for an average term of 7.4 years. Across these renewals and new leases, low levels of incentives and capital expenditure were required to attract and retain tenants. Rent reviews were completed on 100 leases during the year, resulting in an average annual uplift of 2.5% on $46.4 million of contract rent. 17 market rent reviews on $5.8 million of contract rent delivered an annualised increase of 2.3% over an average review period of 3.5 years. Around 75% of PFI s portfolio is subject to some form of lease event during 2019. In their December 2018 Auckland Market Outlook, CBRE predict industrial rental growth over the next five years to average 3.1% per annum for Prime properties and 4.1% per annum for Secondary properties. PFI will continue to access this projected market rental growth as approximately 22% of the Company s 2019 s lease events 9 are market related. At the end of the year, the Company s portfolio was 99.3% occupied and 9.4% of contract rent is due to expire in 2019 (a total of 10.1%, FY17: 7.5%). Simon Woodhams noted: In recent communications, we have noted that leasing at PFI s Auckland cityfringe Carlaw Park office and mixed-use property has been more challenging than industrial leasing. That being the case, we are pleased to announce that, during the second half of 2018, more than 2,300 -------- 7 That is, total borrowings as a percentage of the most recent independent valuation of the property portfolio. 8 That is, the ratio of interest expense and bank fees to operating earnings excluding interest expense and bank fees. 9 Being ~17% of total contract rent. Page 4

square metres of space has been leased to the Department of Internal Affairs for a six-year term, and more than 900 metres of space has been leased to NZ Behavioural Health part of the Acurity Health Group for a 10-year term. Renewals at two small retail tenancies were also secured. At year end, Carlaw Park represents 34% of PFI s current vacancy and 2019 expiries. Simon Woodhams continued: We also have had a good start to 2019 at this property. An early renewal of the Quest serviced apartments hotel has been secured post balance date, and terms have been agreed with Jacobs for a reduced footprint. All told, over the past 14 months we have leased almost 70% of this property, and dealing with the remainder of this property is a key priority in 2019. For more detail on PFI s Carlaw Park property, please refer to the slide in the Company s annual results presentation, released today. Acquisitions PFI has maintained a cautious stance towards acquisition activity during the year. That said, the Company did purchase two Auckland industrial properties in 2018: one in June, located at 306 Neilson Street in Penrose, for $16.07 million, and the other in October, located at 12 Hautu Drive in Manukau, for $12.36 million. For more detail on these acquisitions, please refer to the slide in the Company s annual results presentation, released today. Development A successful marketing campaign secured Kiwi Steel in March 2018 on a 15-year term for $0.459 million per annum to PFI s new 2,500 square metre warehouse on surplus land at 212 Cavendish Drive, Manukau. Completion of this project is expected April 2019. Disposal In December 2018, PFI announced the sale of the Company s 50 Parkside Road property in Wellington for a net sales price of $3.3 million. The property was marketed for sale by Bayleys and settlement took place on 23 January 2019. Market update ANZ s latest economic outlook sees annual GDP growth averaging 2.5% over the next couple of years, but they don t expect inflation pressures to intensify in this environment. They point to the ANZ Truckometer indexes weakening in December, and the Quarterly Survey of Business Opinion released in January, as two measures that suggest that momentum in the New Zealand economy is coming off the boil. As a result, a continued low interest rate environment is forecast, with those monetary conditions likely to be supportive of property values. In their December 2018 Auckland Market Outlook, CBRE note that: Our return forecasts have been revised slightly upwards for some asset classes based on the more bullish short-term yield forecasts and / or stronger rent growth. Both secondary and prime industrial property have benefited from these trends. CBRE also report that secondary industrial continues as the market with the best return outlook: Their forecast of annual returns over the next five years totals 11.0% per annum (June 2018: 10.7%), comprising an income return of 6.3% (June 2018: 6.4%) and capital growth of 4.8% (June 2018: 4.2%). Prime industrial ranks second in their forecasts, up from third in June 2018, with annual returns over the next five years expected to total 8.7% per annum (June 2018: 7.8%), comprising an income return of 5.3% (June 2018: 5.5%) and capital growth of 3.4% (June 2018: 2.4%). Page 5

2019 priorities Simon Woodhams notes: Following a review of our Purpose, Vision and Strategy, we have set our sights on being one of New Zealand s foremost Listed Property Vehicles. In order to deliver on this Vision, in 2019 we plan to begin replacing PFI s non-industrial assets with quality industrial properties in sought-after areas, either via acquisitions or by value-add strategies within the existing portfolio. As noted earlier, Carlaw Park is also a key priority for us in 2019, as is the leasing of our vacant and expiring industrial spaces. Simon Woodhams concludes: With an excellent portfolio, a strong balance sheet, and favourable market conditions, we are well positioned to deliver on our Purpose: creating strong, stable income for investors and generating prosperity for New Zealand. ENDS ABOUT PFI & CONTACT PFI is an NZX listed property vehicle specialising in industrial property. PFI s nationwide portfolio of 93 properties is leased to 147 tenants. For further information please contact: SIMON WOODHAMS CRAIG PEIRCE Chief Executive Officer Chief Finance and Operating Officer --- --- Phone: +64 9 303 9652 Phone: +64 9 303 9651 Email: woodhams@propertyforindustry.co.nz Email: peirce@propertyforindustry.co.nz --- Property for Industry Limited Shed 24, Prince s Wharf, 147 Quay Street, Auckland 1010 PO Box 1147, Shortland Street, Auckland 1140 --- www.propertyforindustry.co.nz Attachments Appendix 1 Appendix 7 Annual Results Presentation Annual Report Page 6

Appendices Appendix 1 Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO) Funds / Adjusted Funds From Operations (unaudited, $000, unless noted) Profit and total comprehensive income after income tax attributable to the shareholders of the Company Adjusted for: For the year ended 31 December 2018 For the year ended 31 December 2017 110,094 51,684 Fair value gain on investment properties (66,370) (43,595) Material damage insurance income - (504) Gain on disposal of investment properties (53) (1,949) Fair value (gain) / loss on derivative financial instruments (2,009) 1,230 Amortisation of tenant incentives 2,330 2,287 Straight lining of fixed rental increases (1,203) (490) Deferred taxation 3,314 (2,142) Termination of management agreement - 42,869 Adjustment to current taxation for the deductibility of the termination of the management agreement (1,994) (10,010) Funds From Operations (FFO) 44,109 39,380 FFO per share (cents) 8.84 8.57 FFO dividend pay-out ratio (%) 85% 87% Maintenance capex (4,476) (2,641) Incentives and leasing fees given for the period (2,426) (2,316) Other (10) (12) Adjusted Funds From Operations (AFFO) 37,197 34,411 AFFO per share (cents) 7.46 7.49 AFFO dividend pay-out ratio (%) 101% 99% Page 7

Appendix 2 Distributable Profit Distributable Profit (unaudited, $000, unless noted) Profit / (loss) and total comprehensive income after income tax attributable to the shareholders of the Company Adjusted for: For the year ended 31 December 2018 For the year ended 31 December 2017 110,094 51,684 Fair value gain on investment properties (66,370) (43,595) Material damage insurance income - (504) Gain on disposal of investment properties (53) (1,949) Tax on depreciation claw-back on disposals of investment properties - 34 Fair value (gain) / loss on derivative financial instruments (2,009) 1,230 Deferred taxation 3,314 (2,142) Movement in fixed rent reviews (1,203) (490) Termination of management agreement - 42,869 Adjustment to current taxation for the deductibility of the termination of the management agreement (1,994) (10,010) Other (10) (12) Distributable profit 41,769 37,115 Distributable profit per share (cents) 8.38 8.08 Dividends paid relating to period reported 37,654 35,536 Pay-out ratio (%) 90% 96% Page 8