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

 


DNZ Property targets minimum 2.5% annual dividend growth

DNZ Property targets minimum 2.5% annual dividend growth

By Paul McBeth

Sept. 5 (BusinessDesk) - DNZ Property Fund, the country's sixth-biggest listed property investor by market value, wants to lift its dividends by at least 2.5 percent a year after the board evaluated the current market and make-up of the firm's property portfolio.

The property investor expects to pay a dividend of 9.5 cents per share in the 2015 financial year, up from 9 cents a year earlier, and expects that return to lift every year, chairman Tim Storey told shareholders in Auckland. DNZ operates a dividend policy of paying between 95 percent and 100 percent of distributable profit, a practice Storey described as "prudent and good practice" to maintain the company's financial position.

"After a careful review, we are confident that DNZ can continue to deliver a positive dividend growth path," Storey said, according to speech notes published on the NZX. "That target takes into account current market conditions and outlook, portfolio review and expiry profile, completion of the Westgate project and planned divestment activity, and is based on the current distribution policy."

Shares of DNZ were unchanged at $1.735, giving the stock a dividend yield of 5.24 percent.

DNZ appointed Peter Alexander as chief executive this year, and tasked the former Auckland International Airport executive with restructuring the property company to boost returns.

Alexander told shareholders DNZ cut staff numbers by 15 percent, and anticipates savings of about $1 million a year, coming into full-effect from the 2016 financial year.

"In making the changes, we took particular care to ensure that the company is fully resourced to continue business as usual activity, as well as successfully deliver important initiatives such as the Westgate project," Alexander said.

Construction on DNZ's Westgate mall development began earlier this year, and Alexander said the firm will be strongly focused on having the site fully leased and open for business in October next year.

Work on DNZ's other major retail development, Johnsonville Mall, was deferred last year, and Alexander today said the company is reviewing the project due to changes in the economic and retail environments. DNZ expects to have some preliminary conclusions on the review by early next year, he said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Court Ruling: Kiwifruit NZ Ordered To Consider Collaborative Marketing Proposals

The High Court has told kiwifruit marketer Zespri to reconsider collaborative marketing proposals from Splice Fruit and Seeka Kiwifruit to sell fruit offshore that its board had previously rejected. More>>

ALSO:

Electric Vehicles: No Road User Charges Feature In Govt Package

Drivers of electric vehicles won't have to pay road user charges and will be allowed to drive in bus lanes as part of a new government plan to double EV numbers annually to a target 64,000 by 2021. More>>

ALSO:

Pre-Budget: Computer Emergency Response Team, Assemble!

John Key told the country's first ever Cyber Security Summit in Auckland that the government had earmarked funding set up a national Computer Emergency Response Team to help prevent and act on cyber incidents in partnership with the private sector and other organisations. More>>

ALSO:

Job Cutter Goes: Mark Weldon To Step Down As MediaWorks CEO

“When I joined MediaWorks in August 2014, I had a mandate to lead a significant change programme to bring the business back from receivership into a position where it could once again be a strong competitor in the market, with a sound and sustainable future. It was a big brief, laden with inherent challenges, but I took it in good faith and have dedicated myself fully to the goal since." More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news