Industrial property landlord Property for Industry says leasing activity is picking up but it is having to sweeten deals with incentives.
The listed property investor, which owns 49 industrial properties worth $356 million, made a distributable profit of $15.8 million last year - 13% less than in the previous year.
Rental income slipped more than 5% to $31 million as it sold properties and lost tenants, while interest and tax costs rose.
But Property for Industry's general manager Nick Cobham says occupancy is showing signs of improving this year and he is cautiously optimistic that will continue.
Nick Cobham says rents are holding steady but the company is having to offer incentives to attract long-term leases.