DNZ Property Fund Ltd delivered a 40.9% increase in net profit after tax for the September half-year, increased net tangible asset backing by 4c to $1.73/share and has preleased more than 80% of its major project for the next year, its Westgate mall.
Chief executive Peter Alexander said this week: “We have had an excellent half-year, with some good gains in leasing & cost management. Our major retail development at Westgate continues to progress well, with over 80% of budget rental now confirmed. Construction is on budget, and the development is on target to open in October 2015.”
DNZ continues to evaluate options for the future of the Johnsonville Shopping Centre, Wellington.
Highlights of the half-year:
- Net profit after tax rose by $7.6 million to $26 million
- Operating profit before other income & income tax rose 13.9% to $20.1 million ($17.6 million)
- Distributable profit before tax rose 17.2% to $20.5 million ($17.5 million)
- Distributable profit after tax rose 21.2% to $16.8 million ($13.8 million), or 5.64c/unit (4.97c/unit)
- Net tangible asset backing rose to $1.73/unit ($1.69 at 31 March)
- Net rental income rose 2.7% to $29 million ($28.2 million)
- Corporate expenses were cut by 26.9% to $3 million ($4.1 million)
Loan:value ratio 36.3% (35.0%)
Portfolio highlights (March figures in brackets):
- Independent valuations on 12 properties resulting in a 1.4% ($10.73 million) net increase
- 112 lease transactions completed over 121,292m² for a total annual rental of $24.2 million
- Occupancy stable at 99.0% (99.5%)
- Capital Smart Repairs development at 25 O’Rorke Rd, Penrose, completed in October
- $50 million divestment plan underway – 968 Great South Rd, Penrose, sold for $6.8 million; lot 84, Tauriko, outside Tauranga, sold for $300,000
Post-balance date, DNZ refinanced its bank facility with existing banking partners, extending the terms of the 2 tranches of $200 million by a year at more favourable line fees & margin. Tranche A now expires on 31 October 2017, tranche B on 31 October 2019.
Attribution: Company release.