According to the organisation’s latest interim report, it recorded a pre-tax profit of about $14.6 million, up $4.2m from the last comparable period.
DCHL oversees the finances and sustainability of eight assets it owns on behalf of the Dunedin City Council.
It attributed the rise in profits "principally" to an improved performance at Aurora Energy, which made headlines recently due to a proposal to sell the lines company.
It produced a net profit of $12.9m over the past six months, up $5.1m.
Half year revenue had increased by $7.8m, while operating expenses rose by about $700,000.
DCHL chairman Tim Loan said that despite being a top contributor to this period’s profits, a successful sale would result in a diversified fund being set up which would continue to contribute to council.
"Our expectations are that the overall contribution to the city will be enhanced as a result of this," he said.
City Forests produced a profit of $2.3m after tax, falling $900,000 from last year, which was driven by reduced returns from export logging markets as market conditions are expected to remain unsettled.
Profit after tax for Delta dropped by $100,000 compared to the previous year, due to inflationary pressures and challenges around retaining skilled staff.
The report said all other entities were tracking similar to the last comparable period, but Dunedin Railways Ltd recorded a loss of $780,000, which was larger than expected.
Mr Loan said this was due to the railway service being put into hibernation, and it was only making revenue through a limited passenger service.
Dunedin Venues Management Ltd recorded a pre-tax profit of $1,049,000 after hosting six Fifa Women’s World Cup matches and an All Blacks test against Australia.
The report also stated DCHL was expected to pay a dividend of $11m to the council, before June 30.
While the organisation was "comfortable that this is achievable" it highlighted $10m of dividend would be funded from a "special dividend" resulting from a continued capital restructure of City Forests.
It involved liquidating some of the company’s assets, such as carbon credits, to increase the company’s value, he said.
The remaining portion of the dividend payment would be made up by Delta and Dunedin International Airport.
