23 Apr DNZ Increases Dividend Guidance
DNZ increases Dividend Guidance 23/04/2015
DNZ has revised its dividend guidance for the financial year ended 31 March 2015
(FY15) from 9.5 cents per share (cps) to no less than 10 cps.
Previously DNZ had forecast a dividend of 9.5 cps for FY15 and has already made three quarterly dividend payments totaling 7.125 cps. DNZ now expects to make a payment for the full FY15 of no less than 10 cps, with a final fourth quarter dividend, for the period 1 January 2015 to 31 March 2015, of no less than 2.875 cps.
DNZ Chairman Tim Storey said that “We are indicating that the FY15 dividend will be increased at least 11% on the previous year’s dividend of 9.0 cps, and we are still targeting annual dividend growth of at least 2.5% in the future. The final amount of the dividend will be determined by the Board following completion of the FY15 annual accounts. Updated guidance on future dividends will be provided with the annual result on 21 May 2015.”
Mr Storey noted that “the higher dividend expected for FY15 is largely due to increased net rental revenue from better than forecast leasing activities and revised timing of property sales, together with lower corporate costs and progress on the NorthWest Shopping Centre project.”
DNZ has previously announced that development projects and new acquisitions will be funded from a combination of current bank facilities and divestment of non-core assets.
“Based on sales to date and the latest portfolio valuation, forecast debt levels on completion of NorthWest will be within our target range” said Mr Storey. “The Company remains committed to the divestment programme as part of an ongoing repositioning in line with its investment strategy.”
For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 – Email: firstname.lastname@example.org
Peter Alexander, Chief Executive Officer, DNZ Property Fund Limited
DDI: 09 913 1154 – Mobile: 0275 443 678 – Email: email@example.com
Jennifer Whooley, Chief Financial Officer, DNZ Property Fund Limited
DDI: 09 913 1150 – Mobile: 021 536 406 – Email: firstname.lastname@example.org
DNZ Property Fund Overview
DNZ Property Fund Limited owns one of New Zealand’s largest diversified investment property portfolios with $872.4 million (as at 31 March 2015 (subject to final audit) of commercial office, retail and industrial properties located in the main urban areas throughout New Zealand. As at 31 March 2015, DNZ Property Fund owned 41 properties with 281 tenants, a weighted average lease term (WALT) of 5.1 years and an occupancy rate of 96.6% over a net lettable area of 334,694m².
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 March 2015: Bunnings, Progressive Enterprises (Countdown), Foodstuffs (PAK’nSAVE & New World), ASB, NZ Government, The Warehouse, Fletcher Building, Westpac, Meridian and Lion. These 10 tenants represent 52% of DNZ’s total contract rental.