23 May 2013

DNZ announces $45m profit

8:38 am on 23 May 2013

DNZ Property Fund has more than doubled annual net profit and plans to raise up to $80 million to buy more property.

The trust made a $45.5 million profit for the 12 months to the end of March, boosted by $16.4 million of valuation gains.

DNZ's profit before tax and revaluation gains was up 8.9% but, because of a higher tax charge, its net distributable profit was down nearly 14% to $24 million.

The company wants to raise funds to buy the Silverdale Centre for $78 million and land at the proposed Westgate Town Centre development in Auckland for $25 million.

Three-quarters of the fundraising will be through a placement to institutions and the rest through a share purchase plan for retail investors.

DNZ chairman Tim Storey says the board plans to equal this year's payout of 9 cents a share.

Mr Storey says the company will continue to look for new opportunities and other initiatives to add value and further enhance the quality of the portfolio.

Managing director Paul Duffy says it is a diversified portfolio with weighting in retail sector.

He says shareholders have been told the fund will be exiting from assets in the South Island and repositioning some of that capital in Auckland where the company sees better rental and capital growth in the future.