Quarterly Portfolio Update – First Quarter FY16

Quarterly Portfolio Update – First Quarter FY16

DNZ Quarterly Portfolio Update – First Quarter FY16 22/07/2015

NorthWest Shopping Centre on schedule to open 1 October 2015

 

This announcement is to update the market on DNZ Property Fund Limited’s (“DNZ”) transactional activity and property portfolio statistics for the first quarter, being 1 April 2015 to 30 June 2015 of the 2016 financial year (FY16).

Peter Alexander, DNZ Chief Executive, said, “A highlight of the quarter’s activities was the occupancy rate increasing above 99% following new lease activity, particularly the lease of 22 Ha Crescent to Tasman Liquor.

“Further progress has also been made with the FY16 lease expiries. The percentage of annual contract rental1 expiring in FY16 reduced from 5.81% as at 31 March 2015 to 2.68% as at 30 June 2015 as a result of renewed leases and new leasing. The FY17 lease expiry has reduced from 13.04% to 7.10%. This is mainly as a result of ASB Bank Limited at 33 Corinthian Drive, Auckland, extending its lease term by nine years from expiry in October 2016.

“NorthWest Shopping Centre is on track to open on 1 October 2015, with all but two of the retail spaces leased. We are now working to close the last seven office tenancies (total 1,768m²). These are progressing well and it is anticipated that the project will exceed the 7.75% net operating income yield on development cost on completion of all leasing, as was forecast when the project was announced.”

DNZ has almost completed design on the Westgate Stage Two development, being a further 7,500m² of retail, dining and office space on land opposite the NorthWest Shopping Centre.

 

Portfolio Overview²

as at 31 March 2015as at 31 December 2015
Properties4142
Tenants281291
Net Lettable Area (m²)334,694337,568
Net Contract Rental2 ($millions)58.560.4
Weighted Average Lease term (years)5.15.4
Occupancy Rate (% by area)96.699.1

Lease Transactions²

45 lease transactions were completed during the quarter, which included:
• 23 rent reviews over 68,922m² for a total annual rental of $8.3 million
• 14 lease renewals over 22,516m² for a total annual rental of $5.2 million
• 8 new lettings completed over 13,078m² for a total annual rental of $1.5 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.

2 Portfolio overview and lease transactions totals include the new letting to Tasman Liquor Company Limited at 22 Ha Crescent, Auckland which commenced 1 July 2015.

 


 

 

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

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 (“DNZ”) owns one of New Zealand’s largest diversified investment property portfolios with $872.4 million (as at 31 March 2015) of commercial office, retail and industrial properties located in the main urban areas throughout New Zealand. As at 30 June 2015, DNZ owned 42 properties with 291 tenants, a weighted average lease term (WALT) of 5.4 years and an occupancy rate of 99.1% over a net lettable area of 337,568m².

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 $118.4 million (as at 31 March 2015) commercial property fund.

DNZ’s top 10 tenants as at 30 June 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 51% of DNZ’s total contract rental.

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