Underlying half year profit has slipped at Property For Industry, but it says there are signs the property market is improving.
Its portfolio of 50 industrial properties is valued at almost $351 million.
Property for Industry made a distributable profit of $8 million in the six months to June - 13% less than in the same period a year earlier.
Once tax adjustments and one-off items are stripped out, distributable profit fell by 7%.
Rental income fell almost 5% to $17 million, as it sold properties.
PFI managed to reduce debt during the period, but higher lending costs meant interest costs remained steady at about $4 million.
But things seem to be looking up. General manager Ross Blackmore says vacancy rates are low and rents continue to improve.
However, he says well-leased industrial property continues to sell, which means acquisition opportunities are scarce.
Meanwhile, Property For Industry says it has sold a property and some land in Barnes Street in Wellington for $7.35 million, subject to subdivision consent.
Shares in Property for Industry fell 3 cents on Monday to $1.15.