DNZ
12/11/2014 09:18
HALFYR
REL: 0918 HRS DNZ Property Fund Limited
HALFYR: DNZ: DNZ FY15 Interim Results
KEY POINTS:
- DNZ delivers 40.9% lift in Net Profit after Income Tax
- Distributable profit(1) after income tax, of $16.8m or 5.64 cps ($13.8m or
4.97 cps in the prior comparable period) up 21.2%
- 9.5 cps cash dividend guidance for the year ending 31 March 2015 (FY15)
reconfirmed
- 2.375 cps cash dividend for the second quarter (0.6504 cps imputation
credits)
- Independent valuations undertaken on 12 properties, resulting in a net
increase of $10.73m or 1.4%(2)
- Net Tangible Asset Backing (NTA) increased to $1.73 ($1.69 as at 31 March
2014)
- Westgate Mall construction underway, due for completion in October 2015.
Pre-leasing of over 80% of budget rental confirmed.
DNZ has released its Interim Report and Interim Result Presentation for the
six months ended 30 September 2014. DNZ has delivered a positive result for
the six months to 30 September 2014 with a 40.9% lift in Net Profit after
Income Tax.
Chairman Tim Storey said, "This is another solid result and demonstrates that
our strategy is delivering results to shareholders through improved earnings
and distributions."
CEO Peter Alexander added, "We have had an excellent half year with some good
gains in leasing and 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."
Financial Performance Highlights (prior period 30 September 2013 figures in
brackets)
- Net rental income of $29.0m ($28.2m) up 2.7%
- Corporate expenses of $3.0m ($4.1m) down 26.9%
- Operating profit before other income and income tax of $20.1m ($17.6m) up
13.9%
- Net profit after income tax of $26.0m ($18.4m) up 40.9%
- Distributable profit1 before income tax, of $20.5m ($17.5m) up 17.2%
- Distributable profit after income tax, of $16.8m or 5.64 cps ($13.8m or
4.97 cps) up 21.2%
- 9.5 cps cash dividend guidance for the year ending 31 March 2015 (FY15)
reconfirmed
- 2.375 cps cash dividend for the second quarter (0.6504 cps imputation
credits)
- Record date 28 November 2014, payment date 12 December 2014
- Dividend Reinvestment Plan remains suspended for FY15 second quarter
dividend
- Targeting 2.5% minimum annual dividend growth
- Loan to value ratio (LVR) 36.3% (35.0%)
Portfolio Highlights (31 March 2014 figures in brackets)
- Independent valuations undertaken on 12 properties, resulting in a net
increase of $10.73m or 1.4%
- Net Tangible Asset Backing (NTA) increased to $1.73 ($1.69)
- 112 lease transactions completed over 121,292m2 for a total annual rental
of $24.2m
- FY15 lease expiries at 3.49% of the portfolio contract rental
- FY16 lease expiries at 7.07% of the portfolio contract rental
- Occupancy stable at 99.0% (99.5%)
- Weighted average lease term (WALT) 5.4 years (5.5 years)
Developments and Divestments
- Westgate Mall construction underway, due for completion in October 2015.
Pre-leasing of over 80% of budget rental confirmed
- Capital S.M.A.R.T. development at 25 O'Rorke Road, Penrose, Auckland,
completed in October 2014
- $50m divestment plan underway:
- 968 Great South Road sold for $6.8m
- Lot 84, Tauriko sold for $0.3m
Capital Management
- The Loan to Value Ratio was 36.3% as at 30 September 2014
- Post balance date, bank facility refinanced with existing banking partners
extending the term of the two tranches of $200,000,000 each for a further one
year, with Tranche A now expiring 31 October 2017, and Tranche B now expiring
31 October 2019. More favourable line fees and margin achieved.
Activity over the next 12 months will be strongly focused on delivering
Westgate Mall - fully leased and open for business in October 2015. Progress
on site is advancing well and leasing activity is on track with over 80% of
budget rental now confirmed. We are also continuing to evaluate options for
the future of Johnsonville Shopping Centre.
With a skilled management team in place, a strong vision for the future, and
a plan to grow shareholder value, DNZ is well positioned to take advantage of
growth opportunities both from within and outside the current portfolio.
Notes
(1). Distributable profit is a non-GAAP financial measure adopted by DNZ to
assist DNZ and investors in assessing DNZ's profit available for
distribution. It is defined as a net profit/(loss) before income tax adjusted
for non-recurring and/or non-cash items and current tax. Further information,
including the calculation of distributable profit and the adjustments to net
profit before income tax, is set out in note 7 to the interim consolidated
financial statements for the six months ended 30 September 2014.
(2). The valuations of all properties disposed of during the 6 months from 1
April 2014 have been disregarded in this calculation.
END
For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 - Email: [email protected]
Peter Alexander, Chief Executive Officer, DNZ Property Fund Limited
DDI: 09 913 1154 - Mobile: 0275 443 678 - Email:
[email protected]
Jennifer Whooley, Chief Financial Officer, DNZ Property Fund Limited
DDI: 09 913 1150 - Mobile: 021 536 406 - Email:
[email protected]
DNZ Property Fund Overview
DNZ Property Fund Limited owns one of New Zealand's largest diversified
investment property portfolios with $788.0 million (as at 30 September 2014)
of commercial office, retail and industrial properties located in the main
urban areas throughout New Zealand. As at 30 September 2014, DNZ Property
Fund owned 45 properties with 286 tenants, a weighted average lease term
(WALT) of 5.4 years and an occupancy rate of 99.00% over a net lettable area
of 358,307m2.
DNZ Property Fund Limited is a Portfolio Investment Entity in which investors
hold shares and is managed by its own internal management team. DNZ is also
the manager of Diversified NZ Property Fund Limited, a $115.9 million (as at
31 March 2014) commercial property fund.
DNZ's top 10 tenants as at 30 September 2014: Bunnings, Progressive
Enterprises (Countdown), Foodstuffs (PAK'nSAVE & New World), ASB, NZ
Government, Fletcher Building, The Warehouse, Westpac, Meridian and Lion.
These 10 tenants represent 50.2% of the Company's total contract rental.
Attachments provided to NZX:
1. NZX Appendix 1
2. NZX Appendix 7 - Dividend
3. DNZ FY15 Interim Results Presentation
4. DNZ FY15 Interim Report
End CA:00257532 For:DNZ Type:HALFYR Time:2014-11-12 09:18:12
