DNZ first-half profit rises 41% on revaluations, reduced costs

Wednesday 12th November 2014

DNZ Property Fund, the listed property investor, posted a 41 percent gain in first-half profit after recognising an increase in the value of its portfolio and trimming corporate and finance costs.

Profit rose to $25.98 million in the six months ended Sept. 30, from $18.4 million a year earlier, the Auckland based company said in a statement. Net rental income rose 2.7 percent to $28.96 million.

Profit included a $10.7 million, or 1.4 percent, gain from the revaluation of 12 properties, compared to a year earlier accounting adjustment of $5.2 million. Corporate expenses fell to $3 million from $4.1 million, while finance costs declined to about $6.6 million from $7.3 million.

The property investor said distributable profit, which strips out one time items, rose 21 percent to $16.8 million and it affirmed its guidance for annual dividends of 9.5 cents a share, including a 2.375 cent payment for the second quarter to be made on Dec. 12 with a record date of Nov. 28.

It said the occupancy rate was 99 percent, compared to 99.5 percent a year earlier, while the weighted average lease term, or Walt, fell to 5.4 years from 5.5 years.

The company's Westgate Mall development is on schedule with a target for completion of October 2015. it has pre leased more than 80 percent of budgeted rentals. Its Capital S.M.A.R.T. development in Penrose, Auckland, was completed last month, it said.

DNZ Property sold its property at 968 Great South Road sold for $6.8 million and its lot 84, Tauriko, for $300,000, as part of a planned $50 million of divestments, it said.

Shares of DNZ Property slipped 0.3 percent $1.76 and have gained 15 percent this year.

BusinessDesk.co.nz

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