Listed industrial property manager Property for Industry has reported a more than 50 percent jump in full-year profit following its takeover of Direct Property Fund and stronger economic conditions.
It reported a net profit of $40.5 million for calendar 2013, compared with $26.9 million in the 2012 financial year.
In June last year, shareholders from the two property companies agreed to a merger, which resulted in an increase in Property for Industry's portfolio from 50 properties to 83, and it has since sold a property.
Property for Industry joint general manager Simon Woodhams said the company was happy with the results.
"It's obviously been a successful merger in terms of we've beaten all the statistics that we put down in the merger document," he said.
"I guess there's been a strengthening in the wider economy within New Zealand, which is flowing through into the industrial market, so we're seeing ... further compression within the capped rates across prime industrial property."
As well, the company was starting to see movement in net effective rentals so those things, coupled with good capital management on the back of the merger, had all flowed through into a positive result, Mr Woodhams said.
