1 1 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017 INTERIM RESULTS FOR SIX MONTHS ENDED 28 FEBRUARY 2017 2 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017 AGENDA BUSINESS & PORTFOLIO OVERVIEW FINANCIAL OVERVIEW LOOKING AHEAD 01 02 03 QUESTIONS & ANSWERS 04
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INTERIM RESULTS - Dipula Income Fund€¦ · JSE sector Real Estate Investment and Services: Diversified REITS Date listed 17 August 2011 Closing price (28 Feb 2017) DIA R10.50 |
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1
1 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017
INTERIM RESULTSFOR SIX MONTHS ENDED 28 FEBRUARY 2017
2 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017
AGENDA
BUSINESS & PORTFOLIO OVERVIEW
FINANCIAL OVERVIEW
LOOKING AHEAD
01
02
03
QUESTIONS & ANSWERS04
2
3 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017
JSE sectorReal Estate Investment and Services: Diversified REITS
Date listed 17 August 2011
Closing price (28 Feb 2017) DIA R10.50 | DIB R11.95
Market capitalisation (28 Feb 2017) R4.7 billion
Asset manager Dipula Asset Management Trust
Lead property managers Broll | DPM | McCormick | Moolman Group
Shareholding A & B shares (different risk appetites)
Credit rating BBB (ZA) long term, A3 (ZA) short term
B-BBEE Level 2
DIPULA AT A GLANCE
South African focused well DIVERSIFIED REIT that invests in retail, office and industrial property. Dipula is managed by an external MANCO
and management holds a sizable stake in the fund, thus ensuring goal alignment with all shareholders.
4 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017
DIPULA AT A GLANCE
Retail
Office
Industrial
Western Cape
Northern Cape
Limpopo
KwaZulu-Natal
Gauteng
Free State
Eastern Cape
North West
Mpumalanga
21 4
5 2
6
4 2 1
6 1
1 2
6
11 1
69 27 24
7
7
120
25
712
6
3
6
Sectoral split by province (193 properties)
129
32
32
3
BUSINESS AND
PORTFOLIO OVERVIEW01IZAK PETERSEN (CEO)
TRADING ENVIRONMENTHIGHLIGHTS STRATEGY PORTFOLIO
6 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017
R400m
Non-core disposals
28
including post period
R500m
Acquisitions
R200m
Capital raised
to date
R194m
Distributable
earnings
Up 9.5%
Up 6,3%
Combined dividends
per share
HIGHLIGHTS
80%
Interest rate hedging
in excess of
In progress
R200mRevamps
4
BUSINESS AND
PORTFOLIO OVERVIEW 01IZAK PETERSEN (CEO)
TRADING ENVIRONMENT STRATEGY PORTFOLIOHIGHLIGHTS
8 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017
TRADING ENVIRONMENT
› Continued pressure on tenants on the back of weak economic fundamentals
› Increasing funding costs will result in lower distribution growth and muted
acquisition activity
› Political environment not conducive to business confidence
› Violent service delivery protests destructive
› Unrealistic municipal valuations leading to higher cost of occupancy
› Electricity costs moderating while other municipal costs are accelerating
but service delivery remains weak
› Slowing speed of renewals - particularly government
› Tenants require less space, more flexibility and are spoilt for choice
in the office sector
› Mini industrial parks have a high turnover of tenants
› Retailers still looking to expand but are resisting higher rentals
5
BUSINESS AND
PORTFOLIO OVERVIEW 01IZAK PETERSEN (CEO)
STRATEGYTRADING ENVIRONMENT PORTFOLIOHIGHLIGHTS
10 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017
STRATEGY
› Maintaining a diversified portfolio with a retail bias
› Building blocks for residential entry in place
› JV for greenfield and brownfield high value retail opportunities well on track
› Refurbish assets and improve yields through high yielding solar projects
› Pursue sensible corporate action and selective acquisitions
› Rebalance portfolio through strategic disposals
› Conservative management of balance sheet through interest rate hedging
and diversified debt tenure and sources
6
BUSINESS AND
PORTFOLIO OVERVIEWIZAK PETERSEN (CEO)
01
TRADING ENVIRONMENT STRATEGYHIGHLIGHTS PORTFOLIO
12 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017
58%
14%
9%
6%
4%
3%2%2%2% Gauteng
Limpopo
Eastern Cape
KwaZulu-Natal
North West
Free State
Mpumalanga
Western Cape
Northern Cape
OUR PORTFOLIO AT 28 FEBRUARY 2017
Geographic split by GLA Sectoral split by GLA
789 753m²
Total
GLA
R36m
Average
property value
R7bn
Average value
per m² by GLA
4 092m²
Average
property size
R8 842193 properties
7,8%
Average
escalation
Portfolio
value
61%
15%
24%
Retail
Office
Industrial
7
13 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017
LEASE EXPIRY PROFILE
Average monthly gross income
Vacant
Expiring before 31 Aug 2017
Expiring before 31 Aug 2018
Expiring before 31 Aug 2019
Expiring before 31 Aug 2020
Expiring after 31 Aug 2020
Total portfolio
GLA (000m²) Rm
GLA (000m²) Rm GLA (000m²) RmGLA (000m²) Rm
72
195
124 125
60
205
15,7
10,612,2
6,8
18,0
0
3
6
9
12
15
18
21
-
50
100
150
200
250
300
37 67
72 94
42
158
6,27,8
10,5
5,9
14,7
0
4
8
12
16
-
50
100
150
200
250
Retail Office Industrial
18
64
10 7 10 8
6,7
0,80,5 0,6 0,9
-2
0
2
4
6
8
-
50
100
150
200
250
17
64 42
24 8
39
2,8
2,01,2
0,3
2,3
-2
0
2
4
-
50
100
150
200
250
14 INTERIM RESULTS – SIX MONTHS TO 28 FEBRUARY 2017
Retail Office Industrial Total
Number of leases 80 11 3 94
Value of leases 71 563 616 5 031 356 3 226 224 79 821 196
Weighted average gross rental (R/m²) 98.02 96.06 35.78 95.42
Total GLA let (m²) 13 227 1 131 2 006 16 364
Weighted average escalations 8.6% 9.7% 8.0% 8.6%
LEASE ACTIVITY - 1 Sep 2016 to 28 Feb 2017
New leases
Retail Office Industrial Total
Number of leases 85 12 9 106
Value of leases 150 313 727 13 308 898 15 930 185 179 552 810
Average gross rental expiry (R/m²) 104.72 66.07 49.39 83.83
Average gross rental new (R/m²) 103.64 85.39 53.69 88.65