DNZ Property Fund says earnings rose 8.7 per cent in its first half and it expects dividends won't fall below current levels for the next two years even as it ramps up investment.

Distributable profit, which strips out unrealised movements in the value of the property portfolio, rose to $13.8 million in the six months ended September 30, from $12.7m a year earlier, the Auckland-based property investor said in a statement.

Shares in DNZ Property gained 3.25 per cent to a five-day high of $1.59 on Wednesday morning.

The stock has shed 13 per cent the past six months, making it the worst performing property company on the NZX during that period.

Rental income increased five per cent to $28.2m. DNZ Property raised $69.8m of equity during the first half to help advance its plans to increase investment in the fast-growing Auckland region.

The funds were used to partially fund the $78m purchase of the retail Silverdale Centre in May and the $25m purchase of 6.23 hectares of development land as part of the proposed Westgate Town Centre development, as well as provide capacity for any future acquisitions.

“The board expects to be able to provide greater detail on the Westgate development early next year,” chairman Tim Storey said.

“We do not anticipate the company’s proposed Westgate development, which we believe is being undertaken at the right time in the economic cycle, will reduce dividends for FY14 and FY15 below the current level of 9 cents per share.”