As a consequence of 'consistently-high portfolio occupancy', there has been a 16.7 increase in the net operating profit for the first six months, as per the announcement made by Property for Industry today.

But, because of the Government's budget announcements in May, the Auckland-based property investment Company required a unique non-cash adjustment. Though, PFI is now not permitted to claim tax reduction on its buildings, an additional $35.314 million in deferred tax liability had to be shown by it.

In spite of the fact that the Company recorded a $9.2m net operating profit, it witnessed a net loss after tax of $29.030m, which is in comparison to a $15.737m loss, in the same period in 2009.

The distributable profit of the Company was up about 2.5%, when the two prior-year tax credits were deducted, shared General Manager, Ross Blackmore.

Mr. Blackmore shared that with just half office occupancy in one building, the Company's portfolio was 99.9% occupied as at June 30.

Three development projects were also under way in the Company, which will cost about $9m. The Company has also managed to sell one property at Rothwell Ave, North Harbour for an amount of $4.8m.