Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


DNZ Property posts 8.7% drop in annual profit on writedowns

DNZ Property posts 8.7% drop in annual profit on writedowns

By Tina Morrison

May. 22 (BusinessDesk) - DNZ Property Fund, the sixth-biggest property stock on the NZX 50 Index by market capitalisation, posted an 8.7 percent drop in annual profit after writing down the value of development work on its Johnsonville Retail shopping centre in Wellington and a new office building in Albany, Auckland.

Net profit fell to $41.6 million, or 14.47 cents a share, in the year ended March 31, from $45.5 million, or 18.25 cents, a year earlier, the Auckland-based company said in a statement. Net rental income rose 7.2 percent to $57.4 million while corporate expenses increased 14 percent to $9 million.

Chief executive Peter Alexander, who joined the company in December, is aiming to restructure the property investor to boost returns. In the past year, earnings were crimped by a $3.2 million write down of the fund's Johnsonville shopping centre as a delay in construction pushed costs up beyond what the finished project would be worth.

It also recognised a $188,000 write down on the development of a new office building in Albany and booked a $1.3 million loss on the sale of investment properties in Wellington and Christchurch, wider than the $467,000 loss on disposal of properties it posted in the previous year.

Shares in DNZ fell 0.3 percent to $1.595 and have declined 6.7 percent the past year.

In the 2014 financial year, the total value of the fund's properties increased by $18.7 million to $780.2 million with occupancy levels remaining above 99 percent with a weighted average lease term of 5.5 years.

DNZ will pay a fourth-quarter dividend of 2.25 cents a share on June 20, taking total dividends for the year to 9 cents. The fund said it expects dividends to at least be maintained at the current 9 cent annual level even as it funds the development of its Westgate shopping centre north of Auckland.

The fund began construction on the Westgate mall last month and said it has agreements to lease 45 percent of the space, with the opening slated for October 2015.The mall is expected to cost just over $155 million and be worth $160 million on completion.

The board has made an exception to its principle of not having more than 15 percent of the value of its property portfolio under development at any one time, with the measure forecast to peak at under 25 percent during the project.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news