DNZ Quarterly Portfolio Update – Second Quarter FY14

DNZ Quarterly Portfolio Update – Second Quarter FY14

DNZ Quarterly Portfolio Update – Second Quarter FY14 9/10/2013

FY14 and FY15 Lease Expiries Reduced, Occupancy Remains at over 99%.

This DNZ Property Fund Limited (“DNZ”) announcement is to update the market on the Company’s transactional activity and property portfolio statistics. This update covers the second quarter, being 1 July 2013 to 30 September 2013 of the 2014 financial year.

Patrick O’Reilly, DNZ Acting Chief Executive said “It has been another active quarter for DNZ. The second quarter FY14 included the acquisition of the Westgate Zone 5 land in Auckland and management completing 62 lease transactions over 114,732m2 of the portfolio.”

“Key transactions during the quarter include the retention of Lion at the 21,349m2 facility at 11 Springs Road, East Tamaki, Auckland, with the new lease expiring in September 2017. In Wellington, leasing activity included a new 7.5 year lease, from September 2014, to Maritime New Zealand, and a new 9 year lease, from September 2014, to the Independent Police Conduct Authority, both at 1 Grey Street, Wellington.”

“DNZ’s FY14 lease expiries have reduced to 2.0% and FY15 lease expiries have reduced to 10.8%. DNZ’s portfolio’s occupancy remains at over 99%, with the portfolio WALT for the quarter also remaining at 5.6 years.”

Portfolio Overview

as at 31 Mar 2013as at 30 Jun 2013as at 30 Sep 2013
Properties 48 4647
Tenants 258291293
Net Lettable Area (sqm) 354,502 364,219365,912
Net Contract Rental per annum ($) 57,157,98661,825,10461,852,872
Weighted Average Lease Term (WALT) (years)
Occupancy Rate (by area) (%) 99.699.699.4

Lease Transactions

The 62 lease transactions completed by DNZ management during the quarter included:

  • 31 rent reviews over 74,175m2 for a total annual rental of $13.7 million
  • 19 lease renewals over 26,148m2 for a total annual rental of $3.2 million
  • 12 new lettings completed over 14,409m2 for a total annual rental of $2.2 million


For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 – Email: tim.storey@dnzproperty.com

Patrick O’Reilly, Acting Chief Executive, DNZ Property Fund Limited
DDI: 09 913 1065 – Mobile: 021 415 645 – Email: Patrick.O’Reilly@dnzproperty.com

Jennifer Whooley, Chief Financial Officer, DNZ Property Fund Limited
DDI: 09 913 1150 – Mobile: 021 536 406 – Email: jennifer.whooley@dnzproperty.com

DNZ Property Fund Overview
DNZ Property Fund Limited owns one of New Zealand’s largest diversified investment property portfolios with $760.2 million (as at 31 July 2013*) of commercial office, retail and industrial properties located in the main urban areas throughout New Zealand. As at 30 September 2013, DNZ Property Fund owned 47 properties with 293 tenants, a weighted average lease term of 5.6 years and an occupancy rate of 99.4% over a net lettable area of 365,912m².

DNZ Property Fund Limited is a Portfolio Investment Entity in which investors hold shares and is managed by its own internal management team. DNZ also holds management rights to Diversified NZ Property Fund Limited, a $111 million (as at 31 March 2013) commercial property portfolio.

DNZ’s top 10 tenants as at 30 September 2013: Bunnings, Progressive Enterprises (Countdown), NZ Government, Foodstuffs (PAK’nSAVE & New World), ASB, Fletcher Building, The Warehouse, Westpac, Meridian Energy and Lion. These 10 tenants represent 52% of the Company’s total contract rental.

* 31 March 2013 valuations plus the purchase price of the Silverdale Centre and Westgate Zone 5 Land less assets sold post 31 March 2013 balance date.

Retirement of Paul Duffy as Director
DNZ Acting Chief Executive