DNZ Quarterly Portfolio Update – Third Quarter FY15

DNZ Quarterly Portfolio Update – Third Quarter FY15

DNZ Quarterly Portfolio Update – Third Quarter FY15 11/02/2015

DNZ Quarterly Portfolio Update – Third Quarter FY15
NorthWest Shopping Centre is over 90% pre-leased
Divestment Programme on track

This announcement is to update the market on DNZ Property Fund Limited’s (“DNZ”) transactional activity and property portfolio statistics for the third quarter, being 1 October 2014 to 31 December 2014, of the 2015 financial year (FY15).

Peter Alexander, DNZ Chief Executive Officer, said, “Good progress was made during the quarter on all fronts – portfolio occupancy, expiry profile, leasing at NorthWest and our divestment programme. The percentage of contract annual rental expiring in FY15 reduced from 3.49% as at 1 October to 2.52% as at 31 December, as a result of renewed leases and new leasing. The occupancy rate has been held at 99% and three more non-core properties have been sold.”

NorthWest Shopping Centre is the name recently given to the Westgate Mall project. “We continue to make good progress at NorthWest, with over 90% of budget rental now confirmed. We are receiving very strong interest from retailers, and construction is on schedule for opening in October 2015.”

DNZ has also commenced design work on the Westgate Stage Two development, being a further 7,000m² of retail, dining and office space on land opposite its $155 million NorthWest Shopping Centre.

Portfolio Overview
as at 31 March 2014as at 31 December 2014
Net Lettable Area (m²)364,916 358,307
Net Contract Rental1 ($ millions)61.261.2
Weighted Average Lease Term (years) 5.55.2
Occupancy Rate (% by area)99.599.0
Lease Transactions

57 lease transactions were completed during the quarter, which included:

  • 38 rent reviews over 59,566m² for a total annual rental of $8.5 million
  • 7 lease renewals over 434m² for a total annual rental of $0.2 million
  • 12 new lettings completed over 5,160m² for a total annual rental of $1.1 million

Divestment Programme

Settlement of the following sales occurred in January 2015:

  • 12 Tyers Road, Wellington – $2.85 million
  • 13 Jarden Mile, Wellington – $2.9 million
  • 709 Te Rapa Road, Hamilton – $12.4 million

Net proceeds have been utilised to repay bank debt. Since announcing its divestment programme, DNZ has settled sales with a total value of $25.3 million.

1 Contract Rental is the amount of rent payable by each tenant, plus other amounts payable to DNZ by that tenant under the terms of the relevant lease and annualised for the 12 month period on the basis of the occupancy level for the relevant property and assuming no default by the tenant.

For Further Information Please Contact:
Peter Alexander, Chief Executive Officer, DNZ Property Fund Limited
DDI: 09 913 1154 – Mobile: 0275 443 678 – Email: peter.alexander@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 $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 31 December 2014, DNZ Property Fund owned 45 properties with 292 tenants, a weighted average lease term (WALT) of 5.2 years and an occupancy rate of 99.0% 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 31 December 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.

FY15 Third Quarter Dividend
DNZ in Second Stage at Westgate