Property for Industry lifted bottom-line first-half profit by nearly 70%, due to a jump in the value of its interest rate hedging contracts and a tax benefit.
However, distributable profit at 3.44 cents per share was down 11.3% because of timing differences in buying and selling properties.
Late last year, PFI sold a property in Mt Wellington and bought properties at Swanson in Auckland and Hornby in Christchurch.
PFI, which merged with the Direct Property Fund last month, lifted net profit by $4.8 million to $11.9 million for the six months to the end of June.
Rental income rose 8.8% in the six months compared with the same six months last year.
Joint general manager Nick Cobham said the outlook for rental growth is positive.
He said bottom-line profits are likely to be boosted in future by the company's extensive hedging contracts.
PFI has $218 million of interest rate hedges in place at an average rate of 4.45% for an average duration of 4.2 years.