For the 2017 financial year, PFI's dividend policy was to distribute between 95% to 100% of its annual distributable profit, subject to the approval of the Board of Directors.

From the 2018 to 2020 financial years, the dividend policy of the Property for Industry Limited Group (the Group) was to distribute between 80% to 90% of Funds From Operations (FFO) and 95% to 100% of Adjusted Funds From Operations (AFFO).

From the 2021 financial year onwards, the dividend policy of the Group is to distribute between 90% to 100% of AFFO on a rolling three-year historic average basis.

AFFO is a non-GAAP financial measure and a common investor metric. It is calculated in accordance with the guidelines issued by the Property Council of Australia.

To provide sufficient flexibility for dividends to be maintained or normalised despite variations in AFFO, the pay-out ratios may be decreased or increased from time to time.

In fixing a dividend for any period, consideration will be given to, amongst other things, the Group’s current and forecast financial performance and position, general business and financial conditions, and the solvency requirements of the Companies Act.

Dividends are paid quarterly, the payment of dividends is not guaranteed by the Group, and the Group’s dividend policy may change from time to time.

The tax treatment of dividends received from PFI is dependent on whether the recipient is a New Zealand resident and whether they are an individual, trustee or corporate. We recommend shareholders seek independent advice if they have any queries regarding the tax treatment of PFI’s dividends.

PFI operates a dividend reinvestment scheme whereby shareholders can elect to receive dividends in the form of additional shares in lieu of a cash dividend, please refer to the Dividend Reinvestment page.