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DNZ Property Fund axes five jobs to cut costs

DNZ Property Fund [NZX: DNZ], the worst performing property stock on the NZX 50 Index the past year, will shed five jobs, including two executives as it looks to cut costs.

The restructure, initiated by chief executive Peter Alexander who joined the company in December, will save $1 million in annual remuneration from the 2016 financial year, the Auckland-based company said in a statement.

In the 2013 financial year DNZ spent $3 million on key management personnel costs, with $2.5 million on salary and other short-term benefits while the remainder was share incentive scheme costs. The two senior executives, Philip Brown, the general manager of investment, development and capital management, and Patrick O'Reilly, the general manager property who acted as chief executive before Alexander joined DNZ, fall under those costs.

DNZ declined to say who the other three employees were, but said they were not reflected in the key management personnel costs. The property fund expected the restructure to be completed this quarter.

Last June the fund asked shareholders to boost the directors' fee pool by 27 percent citing the board presiding over a surging share price since the diversified property investor listed in 2010.

Shares in the property fund rose 0.3 percent to $1.54. The stock has an average recommendation of "hold" according to five analysts surveyed by Reuters, with a median price target of $1.61.In the past year DNZ has declined 14 percent, underperforming the benchmark index's 14 percent gain.

(BusinessDesk)