DNZ Property Fund axes five jobs to cut costs

DNZ Property Fund 12-month price history (NZX.com)

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.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot


Sym Price Change
USD 0.7156 -0.0008 -0.11%
AUD 0.9312 -0.0056 -0.60%
EUR 0.6571 -0.0009 -0.14%
GBP 0.5883 0.0000 0.00%
HKD 5.5489 -0.0078 -0.14%
JPY 74.6790 0.0570 0.08%


Commodity Price Change Time
Gold Index 1273.4 11.040 2016-10-25T00:
Oil Brent 50.7 -1.730 2016-10-25T00:
Oil Nymex 49.9 -0.650 2016-10-25T00:
Silver Index 17.8 0.210 2016-10-25T00:


Symbol Open High Last %
NZX 50 7002.9 7013.6 7002.9 -1.55%
NASDAQ 5306.5 5310.3 5309.8 -0.50%
DAX 10786.2 10827.7 10761.2 -0.04%
DJI 18206.5 18241.7 18223.0 -0.30%
FTSE 6986.4 7067.2 6986.4 0.45%
HKSE 23396.1 23464.0 23565.1 -0.69%
NI225 17329.0 17384.8 17365.2 0.07%
ASX 5442.8 5442.8 5442.8 -1.47%