Sharechat Logo

DNZ boosts annual earnings 27%, flags dividend rise in 2013

Wednesday 23rd May 2012

Text too small?

NZX-listed DNZ Property Fund has lifted annual earnings 27 percent and signalled a bigger return to shareholders in the coming year.

Distributable profit, property investors' favoured way of measuring earnings since unrealised changes in property values are excluded, rose to $27.8 million, or 11.22 cents per share, in the year to March 31. That compares with the previous year's earnings of $21.9 million, or 9.6 cents per share, the company said in a statement.

Net profit, including portfolio revaluations, was $20.8 million, compared to a net loss of $35.7 million in a year when the company took a hit on its portfolio value and paid $31.8 million to bring its management contract in-house.

Directors declared a final quarter dividend of 2.2 cents, taking the full-year payment to 8.5 cents per share, and expect to pay out 9 cents per share in 2013, following a change in distribution policy.

"DNZ is well-placed with high occupancy rates and long-term contracted rental income streams," chairman Tim Storey said. "We will also continue to look for new opportunities and other initiatives to add value and further enhance the quality of our portfolio, either through investment in new properties or through our on-going proactive management of our existing tenants and lease tenure within the portfolio."

The shares rose 0.4 percent to $1.45 in trading today, and have climbed 49 percent since listing on the stock exchange in August 2010, outpacing the 15 percent gain in the NZX 50 Index over the same period.

DNZ lifted annual rental income to $52.9 million from $52 million across its 51 properties, occupancy rates rose to 98.7 percent from 97.9 percen, and the weighted average lease term increased to 5.4 year from 4.3 years in 2011.

The value of the property investor's portfolio rose to $658.3 million as at March 31 from $638 million a year earlier, and its bank borrowings increased to $267.3 million from $252.9 million, giving it a loan-to-value ratio of 40.6 percent.

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

DNZ appoints Auckland Airport property GM Peter Alexander as new chief
DNZ Property sells $60M of shares to institutions at 1.8 percent discount
DNZ annual earnings fall 14 percent, signals $80M capital raising for new acquisitions
DNZ Property Fund increases occupancy rate to 99.2 percent
DNZ boss Duffy cashes in at share price peak with $1.65M sale
DNZ Property lifts first half profit on stable rents, falling expenses
DNZ lifts contracted rentals slightly, extends lease term
DNZ portfolio's value steady, occupancy & lease terms rise
DNZ sells in Wellington, buys in Auckland
DNZ extends average lease term