DNZ Property Fund has announced a revaluation of its property portfolio for the 12 months to March 31 of $700.1 million, down $24.5 million or 3.4%.
The independent market valuations were completed by Jones Lang LaSalle and Colliers International and are subject to final audit.
As well as the $46.9 million of property sales settled during the financial year another $36.6 million has also been contracted with settlement after the March 31 balance date.
DNZ Property Fund chairman Tim Storey said, “The significant international financial crisis with the subsequent flow-on effects to global business and property markets has required the board to actively manage the funds debt position during this difficult economic period.”
He said a controlled sales programme undertaken over the last 12 months has ensured the fund remains within its banking covenants with the unaudited loan to value ratio of 46.9%.
“The sales process has been prolonged due to these difficult economic conditions, however the management team have negotiated transactions at near valuation, an excellent result given the current market,” Mr Storey said.
The manager also concluded 157 lease transactions during the year over 224,000sqm of space contributing $35.4m in rental income, he added.
Following the revaluation and asset sales programme DNZ Property Fund Limited’s preliminary unaudited NZ IFRS adjusted net tangible asset backing as at March 31 is $2.02, down 8c from $2.10 as at September 30 2009.
The board has approved a dividend payment of 1.3c per share for the March quarter, which is scheduled to be paid to shareholders on May 13.
DNZ has had a turbulent time over the last 12 months, with an aborted attempt at listing and the resignation of independent director Simon Botherway.
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