DNZ Quarterly Portfolio Update – Second Quarter FY12

DNZ Quarterly Portfolio Update – Second Quarter FY12

DNZ Quarterly Portfolio Update – Second Quarter FY12 17/10/2011

This announcement from DNZ Property Fund Limited (DNZ) is to update the market on the Company’s transactional activity and property portfolio statistics. This update covers the second quarter of the 2012 financial year, being 1 July to 30 September 2011.

 

Portfolio Overview

As at 31 March 2011As at 30 September 2011
Properties5048
Tenants283261
Net Lettable Area (sqm)371,481360,683
Net Contract Rental ($)56,024,25853,922,571
Weighted Average Lease Term (WALT) (years)4.324.51
Occupancy Rate (by area) (%) 5097.998.3


Note: The above table does not include t he purchase of three Foodstuffs supermarkets which settled on 4 October 2011. If these three properties, with 18 year leases, were included, the Company’s WALT (as at 30 September 2011 above) would increase to 5.23 years.

Paul Duffy, Chief Executive of DNZ, said “It has been a satisfying and active second quarter evidenced by DNZ’s occupancy rate being further increased to 98.3% and the portfolio’s WALT lengthened to 4.51 years as at 30 September 2011.”

Lease Transactions

The DNZ management team completed 63 lease transactions during the quarter that included:

  • 30 rent reviews over 38,776m² for a total annual rental of $7.7 million
  • 19 lease renewals completed over 9,947m² for a total annual rental of $2.3 million
  • 14 new lettings completed over 5,253m² for a total annual rental of $1.8 million
  • Major Lease Transactions Completed

    TenantCommencementArea m²Term
    Carter Holt HarveyDecember 20123,3406 years
    healthAllianceApril 20122,1413 years
    ArmourguardDecember 20111,1823 years
    Gibson SheatAugust 20127899 years
    BeiersdorfOctober 20113525 years

    Acquisitions and Divestments

    The sale of the two properties at 129 Hurstmere Road, Auckland, and 99-105 Customhouse Quay, Wellington, were settled during the quarter.

    Summary

    Mr Duffy concluded by saying “The management team has been extremely active during the quarter, successfully completing 63 lease transactions over a total net lettable area of 53,976m². It is also pleasing to note that DNZ’s remaining expiries in FY12 have been significantly reduced from 13% at the beginning of the financial year to under 3% as at 30 September 2011.”

    DNZ will release its interim result for the 6 months to 30 September 2011 in mid-November.
     


     
    For Further Information Please Contact:
    Paul Duffy, Chief Executive, DNZ Property Fund Limited
    DDI: 09 913 1154 – Mobile: 021 843 758 – Email: [email protected]

    DNZ Property Fund Overview
    DNZ Property Fund Limited owns one of New Zealand’s largest diversified investment property portfolios with commercial office, retail and industrial properties located in the main urban areas throughout New Zealand.

    As at 30 September 2011, DNZ Property Fund owned 48 properties with 261 tenants, a weighted average lease term (WALT) of 4.5 years, an occupancy rate of 98.3% over a net lettable area of 360,683m².

    DNZ Property Fund Limited is a Portfolio Investment Entity in which investors hold shares and is managed by its own internal management team. DNZ Property Fund Limited also manages the property portfolio of Diversified NZ Property Fund Limited for Australian institutional investors.

    DNZ Negotiates Reduced Bank Finance Costs of $2.0 million per annum.
    DNZ Sells Auckland Property