DNZ 31 March 2013 Valuations and Quarterly Portfolio Update – Fourth Quarter FY13

DNZ 31 March 2013 Valuations and Quarterly Portfolio Update – Fourth Quarter FY13

DNZ 31 March 2013 Valuations and Quarterly Portfolio Update – Fourth Quarter FY13 22/04/2013

Occupancy at 99.6%
Portfolio Value up 2.4%

This DNZ Property Fund Limited (“DNZ”) announcement is to update the market on the Company’s transactional activity and property portfolio statistics. This update covers the fourth quarter, being 1 January 2013 to 31 March 2013 of the 2013 financial year.

Paul Duffy, DNZ Chief Executive said “It is extremely pleasing to announce a portfolio occupancy of 99.6%. This outstanding occupancy rate, combined with a weighted average lease term of 5.2 years, provides an excellent base for the next 12 months. The dedication of the management team and the success in completing transactions over the past 12 months is clearly reflected in these statistics.” 

Portfolio Overview

as at 31 March 2012as at 31 March 2012
Net Lettable Area (sqm)379,965354,502
Net Contract Rental ($)58,202,50457,157,986
Weighted Average Lease Term (WALT) (years)5.45.2
Occupancy Rate (by area) (%)98.7 99.6
Portfolio Value ($)658,340,000667,045,000¹

Lease Transactions

DNZ management completed 29 lease transactions during the quarter that included:

  • 13 rent reviews over 15,118m² for a total annual rental of $3.5 million
  • 4 lease renewals over 1,456m² for a total annual rental of $0.5 million
  • 12 new lettings completed over 2,599m² for a total annual rental of $1.0 million

DNZ Portfolio Value up 2.4%

DNZ has recently completed its annual independent market valuation of the Company’s property portfolio with the portfolio value increasing by a net 2.4% or $15.7 million on a like for like basis². The Company’s property portfolio is now independently valued at $667 million as at 31 March 2013, with a weighted average capitalisation rate across the portfolio of 8.21%.

Following the revaluation of DNZ’s property portfolio the Company’s bank Loan to Value Ratio (LVR) was 36.9% as at 31 March 2013.

¹The market valuations have been completed by independent valuers as at 31 March 2013, are subject to final audit and will be confirmed in DNZ Property Fund Limited’s financial statements for the year ending 31 March 2013.

²The valuations of all properties disposed of during the 12 months from 1 April 2012 have been disregarded in this calculation. The valuation movement includes the movement on those properties purchased during the year. As at 31 March 2012 the portfolio was independently valued at $658 million.

For Further Information Please Contact:
Tim Storey, Chairman, DNZ Property Fund Limited
Mobile: 021 633 089 – Email: [email protected]

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

Jennifer Whooley, Chief Financial Officer, DNZ Property Fund Limited
DDI: 09 913 1150 – Mobile: 021 536 406 – 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 31 March 2013, DNZ Property Fund owned 48 properties with 258 tenants, a weighted average lease term (WALT) of 5.2 years and an occupancy rate of 99.6% over a net lettable area of 354,502m².

DNZ Property Fund Limited is a Portfolio Investment Entity in which investors hold shares and is managed by its own internal management team. DNZ also holds management rights to Diversified NZ Property Fund Limited, a $105 million (as at 31 March 2012) commercial property portfolio.

DNZ’s top 10 tenants as at 31 March 2013: Bunnings, Fletcher Building, NZ Government, Progressive Enterprises (Countdown), Foodstuffs (PAK’nSAVE & New World), ASB, Westpac, Meridian Energy, Lion and Mitre 10. These 10 tenants represent 52% of the Company’s total contract rental.

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