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

 

Retail: International Websites To Pay GST

New rules would be aimed at imported goods valued at or below $1,000. Customs would retain responsibility for collecting GST on imported parcels valued more than $1,000. More>>

ALSO:

High-Level Advice: PM’s Business Advisory Council Membership Announced

The Prime Minister’s Business Advisory Council brings together a mix of experts, six women and seven men with small to large business experience, from across New Zealand, to provide advice. More>>

ALSO:

Improving: Report Shows New Zealand Air Quality 'Good'

Our air 2018, produced by the Ministry for the Environment and Stats NZ, shows that while some previously known issues persist, progress has been made and levels of some pollutants are declining. More>>

ALSO:

Greenpeace: Govt Extends OMV Exploration Permit

The Government has just granted oil giant OMV a two-year extension to drill in the Great South Basin, despite issuing a ban on new oil and gas exploration permits in April. More>>

ALSO:

Collective Bargaining For Contractors: Working Group's Model For Screen Sector

A recommended model to allow collective bargaining for contractors in the screen sector has today been unveiled by the Government-convened Film Industry Working Group. More>>

ALSO:

Kauri Dieback: DOC Closing Tracks To Protect Trees

The Department of Conservation will close 21 tracks across kauri land to help prevent the spread of kauri dieback. An additional 10 tracks will also be partially closed and the open sections upgraded... More>>