Diversified property investor DNZ Property Fund reports rental income that was little changed in the first half, with profit climbing as expenses fell.
Net profit was $12.1 million in the six months ended September 30, from $8.2 million a year earlier, the Auckland-based company says in a statement.
Rental income was flat at $29.3 million, while property operating expenses dropped about 29% to $2.4 million, resulting in a $1 million net gain in rental income.
Distributable profit fell to $12.7 million or 5.15 cents a share, from $13 million, or 5.27 cents, a year earlier. Finance expenses fell in the period and the company recorded a much smaller loss on disposal of investment properties that in the year earlier period.
The shares rose 0.3% to $1.58 on the NZX and have climbed 26% this year. They are rated a "hold" based on a Reuters survey of five analysts, with a price target of $1.565.
The company says one of the highlights of the first half was to have the share price trading above its net tangible assets, which were $1.55 on an adjusted basis as at September 30.
Trading at a premium to NTA "is a reflection that the listing of the company on the NZX and internalisation of the manager has delivered the benefits to shareholders that were outlined", chairman Tim Storey says.
"The primary focus of the management team continues to be maintaining occupancy levels and rental income streams."
DNZ Property owns 51 properties and has a weighted average lease term (WALT) of 5.7 years and an occupancy rate of 99%.
The company also manages the $105 million property portfolio of Diversified NZ property Fund for Australian institutions.
Its biggest tenants include Bunnings, Fletcher Building, Progressive Enterprises and Foodstuffs.