Dipula Properties Limited Class B · JSE:DIB

Dipula Properties Limited Class B — FY2022 Earnings Presentation

58 slides from Dipula Properties Limited Class B's earnings presentation, November 2022

  1. Slide 1: Annual Results Presentation

    ANNUAL RESULTS PRESENTATION FOR THE YEAR ENDED 31 AUGUST 2022

  2. Slide 2: Business Update, Financial Update, Way Forward

    AVANTI WESTERN CAPE 01 BUSINESS UPDATE 02 FINANCIAL UPDATE 03 WAY FORWARD Annual Results for the year ended 31 August 2022 2

  3. Slide 3: Key Corporate Information at 31 August 2022

    KEY CORPORATE INFORMATION AT 31 AUGUST 2022 JSE sector Real Estate Investment Trusts: Date listed Closing price Diversified REITS 17 August 2011 DIB R3.95 Portfolio size Gearing Debt NAV per share Market capitalisation R6.63 R3.6 billion R9.6 billion* 35.9% R3.5 billion* Interest rate Average Asset

  4. Slide 4: FY2022 Strategic Priorities

    FY2022 STRATEGIC PRIORITIES Objective Outcome Result Address risks related to A&B structure Capital restructure implemented in June 2022 Distributable income growth of -5% Distributable income growth of 0.1% to R552 million Achieved Implemented Thrive, study assistance and internship programmes. Sta

  5. Slide 5: Business Update

    SAPS VIP GAUTENG 01 BUSINESS UPDATE IZAK PETERSEN CEO Annual Results for the year ended 31 August 2022 5

  6. Slide 6: Business Update: Performance Highlights

    BUSINESS UPDATE Performance highlights Contractual down Distributable up income 0.5% earnings 0.1% Full year DIB 73.19 Final DIB 30.98 dividend per share cents dividend per share cents Gearing down Net Asset Value R6.63 Average collection rate 99% 35.9% 1.6% per share Discount to NAV Growth in inves

  7. Slide 7: Macro and Sector Outlook

    BUSINESS UPDATE Macro and sector outlook 5-year growth trend GLA 182 Services inflation vs Goods inflation ^ properties 917 925 m² R9.3 billion# 12% R billion GLA (000 m²) 10% 20 930 927 950 924 924 Trading environment 8% 918 % YoY 6% 15 4% 900  Global inflation and interest rate hikes 2% 8,6 8,8 9

  8. Slide 8: Portfolio Leasing (Excluding Residential)

    PORTFOLIO LEASING (EXCLUDING RESIDENTIAL) Lease expiry profile Lease activity (1 Sep 2021 – 31 Aug 2022) GLA (000 m²) Rental (Rm) New leases 29 18 300 12 8 15 35 Number of leases 203 10 Value of leases (Rm) 334 200 239 -15 233 Total GLA (m²) 63 826 100 155 -40 Weighted average gross asking rental (R

  9. Slide 9: Portfolio Valuation Comparison

    PORTFOLIO VALUATION COMPARISON 2022 Total portfolio Average Average Average Like-for-like by value Discount Rates Exit Cap Rates value y-o-y Sector (%) (%) (%) R/m² (% Change) Retail 65 13.4 9.9 13 486 9.4 Office 18 14.3 10.3 13 109 -1.6 Industrial 13 14.3 10.8 3 789 3.0 Residential 4 13.5 8.8 13 11

  10. Slide 10: Retail Portfolio

    RETAIL PORTFOLIO GLA Turnovers 99 properties 446 958m² R6.0 billion Weighted Average Average Turnover average gross Rent/ gross rental growth rental growth Property Region GLA (m²) Turnover R/m² y-o-y y-o-y Overview Gillwell Mall Eastern Cape 22 090 6.6% 140 2.6% 2.8%  Property valuation up 9.4% Ch

  11. Slide 11: Retail Portfolio

    RETAIL PORTFOLIO Lease expiry profile Lease activity (1 Sep 2021 – 31 Aug 2022) GLA (000 m²) Rental (Rm) New leases 200 20 Number of leases 162 16 Value of leases (Rm) 261 150 13 15 Total GLA (m²) 34 730 10 Weighted average gross asking rental (R/m²) 126.01 9 100 10 108 6 Weighted average gross rent

  12. Slide 12: Office Portfolio

    OFFICE PORTFOLIO GLA 34 properties 130 358m² R1.7 billion Overview Portfolio trends  Government lease negotiations on track  Portfolio vacancy increased to 28.5% (2021: 16.3%)  Some properties earmarked for conversions  Weighted average rentals per m² by GLA R160.94 up 12.4% (2021: R143.21)  Of

  13. Slide 13: Office Portfolio

    OFFICE PORTFOLIO Lease expiry profile Lease activity (1 Sep 2021 – 31 Aug 2022) GLA (000 m²) Rental (Rm) New leases 70 9 10 Number of leases 23 60 Value of leases (Rm) 23 8 50 57 Total GLA (m²) 3 702 40 6 Weighted average gross asking rental (R/m²) 119.79 30 37 4 Weighted average gross rental achiev

  14. Slide 14: Industrial Portfolio

    INDUSTRIAL PORTFOLIO GLA 45 properties 311 076m² R1.2 billion Overview Portfolio trends  Portfolio vacancy decreased to 2.2% (2021: 3.6%)  Experiencing good demand for small to medium boxes  Weighted average rentals per m² by GLA R42.39 up 9.7% (2021: R38.65)  Replacement values higher than valu

  15. Slide 15: Industrial Portfolio

    INDUSTRIAL PORTFOLIO Lease expiry profile Lease activity (1 Sep 2021 – 31 Aug 2022) GLA (000 m²) 5 Rental (Rm) New leases 250 5 Number of leases 18 200 4 Value of leases (Rm) 50 3 3 Total GLA (m²) 25 395 150 3 59.06 Weighted average gross asking rental (R/m²) 100 140 2 Weighted average gross rental

  16. Slide 16: Residential Portfolio

    RESIDENTIAL PORTFOLIO * # GLA 4 properties 29 532m² R387 million Residential unit profile NORWOOD PALM SPRINGS (100%) URBAN VILLAGE MIDRAND URBAN VILLAGE BRUMA Average Average Average Average Average Average Average Average Average Average Average Average Unit type rental rental unit size rental ren

  17. Slide 17: Residential Portfolio

    RESIDENTIAL PORTFOLIO Vacancy profile Vacant units % Vacant units URBAN URBAN URBAN URBAN PALM VILLAGE VILLAGE TOTAL PALM VILLAGE VILLAGE TOTAL NORWOOD SPRINGS MIDRAND BRUMA RESIDENTIAL NORWOOD SPRINGS MIDRAND BRUMA RESIDENTIAL Studio - - - - - Studio - - - - - 1 Bed 1 8 9 1 19 1 Bed - 9% 11% 1% 8%

  18. Slide 18: Residential Portfolio

    RESIDENTIAL PORTFOLIO Number of units and GLA per asset Number of units GLA (m²) URBAN URBAN URBAN URBAN* PALM VILLAGE VILLAGE TOTAL PALM VILLAGE VILLAGE TOTAL* NORWOOD SPRINGS MIDRAND BRUMA RESIDENTIAL NORWOOD* SPRINGS MIDRAND BRUMA RESIDENTIAL Studio 1 - 44 9 54 Studio 26 - 1 039 229 1 294 1 Bed 1

  19. Slide 19: Business Update: ESG

    BUSINESS UPDATE ESG People Planet  Energy and water  83 staff members  Waste management  Staff retention rate of 96%  Alternative energy  Numerous indirect jobs created  Phase one solar roll out at 30 properties  Use local labour  EPC consultant appointed  88% of our people are PDI’s  Com

  20. Slide 20: Financial Update

    CHILLI ON TOP GAUTENG 02 FINANCIAL UPDATE Annual Annual Results Results for for the the year RIDWAAN ASMAL CFO year ended ended 31 31 August August 2022 2022 20

  21. Slide 21: Financial Highlights

    FINANCIAL HIGHLIGHTS Revenue Distributable earnings Net Asset Value Discount to NAV R1.36 billion* R552.6 million R5.9 billion (2021: R1.35 billion) (2021: R552.2 million) (2021: R5.5 billion) 40% 0.9% 0.1% 8.7% Investment properties Interest-bearing borrowings Dividend per share post capital restru

  22. Slide 22: Distribution Statement

    DISTRIBUTION STATEMENT 31 Aug 2022 31 Aug 2021 Variance R 000 R 000 Revenue 1 365 293 1 352 648 0.9% Rental income 1 083 119 1 089 104 -0.5% Recoveries 282 174 263 544 7.1% Property expenses (480 300) (455 660) 5.4% Net property income 884 993 896 988 -1.3% Administration and corporate costs (40 017

  23. Slide 23: Sectoral Performance

    SECTORAL PERFORMANCE Rental income & recoveries Property expenses Net property income 3% 4% 5% 4% 3% 4% 15% 14% 8% 8% 18% 17% 17% 18% 18% 19% 18% 19% 64% 70% 70% 63% 61% 60% AUG 2022 AUG 2021 AUG 2022 AUG 2021 AUG 2022 AUG 2021 Retail Office Industrial Residential Annual Results for the year ended 3

  24. Slide 24: Statement of Financial Position (Extracts)

    STATEMENT OF FINANCIAL POSITION (EXTRACTS) 31 Aug 2022 31 Aug 2021 Variance R 000 R 000 Investment properties* 9 621 301 9 210 212 4.5% Trade and other receivables 209 273 233 183 -10.3% Loans receivable 7 965 9 502 -16.2% Cash and cash equivalents 64 242 62 576 2.7% Derivative financial instruments

  25. Slide 25: Cash Flow

    CASH FLOW ‒ Rm 31 AUGUST 2022 31 AUGUST 2021 63 Opening balance 49 863 Cash generated from operations 771 - 261 Net finance cost - 258 - 588 Distribution paid - 302 -3 Taxation paid - 86 - 153 Acquisitions and capex - 89 97 Disposals 28 -6 Non-controlling interest 2 Loans advanced 32 -8 Repayment of

  26. Slide 26: Debt Profile

    DEBT PROFILE 40% 31,9% Debt expiry Hedge expiry 31,7% 29,4% 30% 26,1% 23,1% 20% 14,0% 10% 8,4% 7,0% 3,3% 0% 0% 0% 0% FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 >FY 2027 Debt facilities Weighted average Weighted average Weighted average Debt capital Renewed debt facilities Debt hedged renewed during cos

  27. Slide 27: Way Forward

    FIRE STATION GAUTENG 03 WAY FORWARD IZAK PETERSEN CEO Annual Results for the year ended 31 August 2022 27

  28. Slide 28: Way Forward

    WAY FORWARD ESG Debt restructuring Board succession Address liquidity and tradability of our share Preserve balance sheet and allocate capital responsibly We expect a credible performance in 2023 Annual Results for the year ended 31 August 2022 28

  29. Slide 29: Questions & Answers

    14 KRAMER GAUTENG 04 QUESTIONS & ANSWERS Annual Results for the year ended 31 August 2022 29

  30. Slide 30: Annexures

    RENAISSANCE PARK GAUTENG 05 ANNEXURES Annual Results for the year ended 31 August 2022 30

  31. Slide 31: Strategy

    STRATEGY Remaining Buying Managing Shareholder value creation disciplined well brilliantly  Geographically diversified SA focused  Economically active locations Our value proposition  Sectorally diversified  Predominantly retail (convenience, rural & township)  A diversified REIT that is growin

  32. Slide 32: Geographic Snapshot

    GEOGRAPHIC SNAPSHOT Retail 99 Limpopo 15 3 Office 34 182 Industrial 45 Gauteng 60 29 26 4 Residential 4 North West Mpumalanga 7 1 3 2 2 Free State KwaZulu-Natal 3 2 5 7 Northern Cape 1 Eastern Cape 4 4 Western Cape 1 1 2 Annual Results for the year ended 31 August 2022 32

  33. Slide 33: Total Portfolio - Key Indicators

    TOTAL PORTFOLIO ‒ KEY INDICATORS Sectoral split by Gross Income Portfolio Total GLA Average WALE by value property size Income / GLA # Retail 62% 62% R9.3 bn * 917 925m² 5 044m² 2 / 3 years 18% Office Aug 20% Aug 2022 2021 Industrial 2021: R8.8bn 2021: 926 765m² 2021: 4 956m² 2021: 2.0 / 2.2 14% 14%

  34. Slide 34: Retail Portfolio - Key Indicators

    RETAIL PORTFOLIO ‒ KEY INDICATORS Average WALE by Portfolio value Total GLA property size income / GLA R6.0 bn* 446 958m² 4 515m² 3.0 / 3.0 years 2021: R5.5bn 2021: 448 731m² 2021: 4 487m² 2021: 2.1 / 2.3 Average Average value Weighted average Weighted average property value per m² by GLA gross rent

  35. Slide 35: Office Portfolio - Key Indicators

    OFFICE PORTFOLIO ‒ KEY INDICATORS Average WALE by Portfolio value* Total GLA property size income / GLA R1.7 bn 130 358m² 3 834m² 2.0 / 1.0 years 2021: R1.7bn 2021: 129 509m² 2021: 3 809m² 2021: 1.6 / 1.4 Average Average value Tenant retention Vacancy property value per m² by GLA R50m R13 108 62% 28

  36. Slide 36: Industrial Portfolio - Key Indicators

    INDUSTRIAL PORTFOLIO ‒ KEY INDICATORS Average Average Portfolio value * Total GLA property size property value R1.2 bn 311 076m² 6 913m² R26m 2021: R1.2bn 2021: 322 786m² 2021: 6 587m² 2021: R24m WALE by Average value income / GLA Tenant retention Vacancy per m² by GLA 2.0 / 3.0 R3 792 89% 2.2% year

  37. Slide 37: Top Ten Properties by Value

    TOP TEN PROPERTIES BY VALUE Value Value Building name Region GLA m² Rm R/m² SAPS VIP Gauteng 21 478 409 19 041 Gillwell Mall Eastern Cape 22 090 356 16 129 Seshego Circle Limpopo 15 579 314 20 140 Chilli Lane Gauteng 13 597 299 21 968 Umzimkhulu Mall KwaZulu-Natal 15 759 270 17 146 Gezina Galleries

  38. Slide 38: Top Ten Retail Properties

    TOP TEN RETAIL PROPERTIES Value Value Building name Region GLA m² Rm R/m² Gillwell Mall Eastern Cape 22 090 356 16 129 Seshego Circle Limpopo 15 579 314 20 140 Chilli Lane Gauteng 13 597 299 21 968 Umzimkhulu Mall KwaZulu-Natal 15 759 270 17 146 Gezina Galleries Gauteng 16 708 270 16 148 Nquthu Plaz

  39. Slide 39: Top Ten Office Properties by Value

    TOP TEN OFFICE PROPERTIES BY VALUE Value Value Building name Region GLA m² Rm R/m² SAPS VIP Gauteng 21 478 409 19 041 Avanti Office Park Western Cape 8 776 164 18 642 SAPS IJS Gauteng 7 874 138 17 530 Firestation Rosebank Gauteng 4 259 131 30 758 Carnation Place Gauteng 4 541 102 22 374 Valley View

  40. Slide 40: Top Ten Industrial Properties by Value

    TOP TEN INDUSTRIAL PROPERTIES BY VALUE Value Value Building name Region GLA m² Rm R/m² Corporate Park II Polokwane Limpopo 28 058 193 6 878 New Brighton Eastern Cape 24 515 156 6 347 Sterkolite Building Gauteng 12 782 74 5 797 Renaissance Park Gauteng 10 680 64 5 946 Range Road Blackheath Western Ca

  41. Slide 41: Residential Property

    RESIDENTIAL PROPERTY Value Value Building name Region GLA m² Rm R/m² Urban Village Palm Springs* Gauteng 18 796 225 12 008 Urban Village Bruma# Gauteng 5 294 82 15 536 Urban Village Midrand Gauteng 4 138 58 13 896 Urban Village Norwood# Gauteng 1 304 22 16 794 Total 29 532 387 13 104 Percentage of t

  42. Slide 42: Geographic Profile - Total Portfolio

    GEOGRAPHIC PROFILE – TOTAL PORTFOLIO No of Average Value Value GLA m² Properties Rm Rm Gauteng 526 194 119 48 5 725 Limpopo 91 412 18 56 1 008 KwaZulu-Natal 84 367 12 64 772 Eastern Cape 104 409 8 95 764 North West 36 137 8 53 420 Western Cape 27 193 4 65 260 Mpumalanga 29 077 7 30 210 Free State 17

  43. Slide 43: Geographic Profile - Retail

    GEOGRAPHIC PROFILE – RETAIL No of Average Value Value GLA m² Properties Rm Rm Gauteng 240 580 60 55 3 275 Limpopo 57 045 15 52 781 KwaZulu-Natal 42 074 5 138 691 Eastern Cape 46 932 4 141 563 North West 30 730 7 59 413 Mpumalanga 11 175 3 54 161 Free State 13 164 3 36 108 Western Cape 3 161 1 25 25

  44. Slide 44: Geographic Profile - Office

    GEOGRAPHIC PROFILE – OFFICE No of Average Value Value GLA m² Properties Rm Rm Gauteng 113 177 29 51 1 483 Western Cape 8 776 1 164 164 Mpumalanga 4 530 2 18 36 Free State 3 875 2 13 26 Total 130 358 34 50 1 709 Annual Results for the year ended 31 August 2022 44

  45. Slide 45: Geographic Profile - Industrial

    GEOGRAPHIC PROFILE – INDUSTRIAL No of Average Value Value GLA m² Properties Rm Rm Gauteng 142 906 26 22 579 Limpopo 34 368 3 76 228 Eastern Cape 57 476 4 50 200 KwaZulu-Natal 42 293 7 12 81 Western Cape 15 255 2 36 72 Mpumalanga 13 372 2 6 12 North West 5 406 1 7 7 Total 311 076 45 26 1 179 Annual R

  46. Slide 46: Geographic Profile - Residential

    GEOGRAPHIC PROFILE – RESIDENTIAL No of Average Value Value GLA m² Properties Rm Rm Gauteng * 29 532 4 97 387 Total 29 532 4 97 387 * Including NCI Annual Results for the year ended 31 August 2022 46

  47. Slide 47: Vacancy by Province

    VACANCY BY PROVINCE Portfolio vacancy contribution Vacancy % Vacant sector Free State 27% Gauteng 14% North West 8% Western Cape 7% Mpumalanga 3% Eastern Cape 3% Gauteng 83% Limpopo 1% Northern Cape 3% Free State 5% KwaZulu-Natal 1% KwaZulu-Natal 1% Eastern Cape 4% Mpumalanga 1% North West 3% Northe

  48. Slide 48: Vacancy by Sub-Sector

    VACANCY BY SUB-SECTOR Retail sub-sector Office region % portion of vacancy % portion of vacancy Urban Strip 49% Johannesburg 58% Urban Centre 28% Ekurhuleni 22% Rural Strip 11% Midrand 9% Rural Centre 5% Cape Town 4% Pretoria 4% Urban Township Centre 7% Other 3% Total retail 100% Total office 100% I

  49. Slide 49: Portfolio Sectoral Split

    PORTFOLIO SECTORAL SPLIT Sector By Income By GLA Retail 62% 49% 62% 14% Office 20% 14% 49% Industrial 14% 34% 20% 34% Residential 4% 3% 3% Total 100% 100% 14% 4% Annual Results for the year ended 31 August 2022 49

  50. Slide 50: Retail Portfolio by Type of Centre

    RETAIL PORTFOLIO BY TYPE OF CENTRE Sector By Income By GLA 34% Rural Centre 28% 26% 4% 27% Rural Strip 4% 6% 6% 19% Urban Center 34% 27% 10% 26% 28% Urban Strip 10% 19% 22% 24% Urban Township Centre 24% 22% Total 100% 100% Annual Results for the year ended 31 August 2022 50

  51. Slide 51: Office Portfolio Grading

    OFFICE PORTFOLIO GRADING Office Grading By Income By GLA 78% A-Grade 78% 63% 63% B-Grade 22% 37% Total 100% 100% 37% 22% Annual Results for the year ended 31 August 2022 51

  52. Slide 52: Industrial Portfolio by Type

    INDUSTRIAL PORTFOLIO BY TYPE By Income By GLA 64% General industrial 64% 72% 72% 7% Mini units 7% 7% 7% Warehousing & 29% 21% Logistics 21% 29% Total 100% 100% Annual Results for the year ended 31 August 2022 52

  53. Slide 53: Portfolio Space Exposure

    PORTFOLIO SPACE EXPOSURE 74% By Income By GLA Mult-tenanted 74% 63% 63% Single-tenanted 26% 37% Total 100% 100% 37% 26% Annual Results for the year ended 31 August 2022 53

  54. Slide 54: Sector Space Exposure

    SECTOR SPACE EXPOSURE By Income Retail Office Industrial Residential Total Multi tenanted 92% 39% 34% 100% 74% Single tenanted 8% 61% 66% 0% 26% Total 100% 100% 100% 100% 100% By GLA Retail Office Industrial Residential Total Multi tenanted 89% 48% 27% 100% 63% Single tenanted 11% 52% 73% 0% 37% Tot

  55. Slide 55: Tenant Profile

    TENANT PROFILE Tenant grading by Income Top 10 tenants by Income Government and local authorities 13% 19% Shoprite Group 10% Pick 'n Pay Group 4% A Pepkor Group 4% B Cashbuild 2% 15% DSV 2% C Massmart 2% 66% Spar Group 1% Bidvest 1% Woolworths <1% 39% Tenant grading by GLA Top 10 tenants by GLA Gove

  56. Slide 56: 5-Year Combined Market Price to NAV

    5-YEAR COMBINED MARKET PRICE TO NAV cents Market price NAV Premium / Discount 3 000 0% -10% -22% -38% -40% -34% 2 500 -50% -66% 2 000 -100% 2 006 2 050 2 000 2 060 1 805 1 500 1 598 -150% 1 280 1 000 -200% 500 683 663 663 -250% 395 437 -300% Aug 2018 Aug 2019 Aug 2020 Aug 2021 Aug 2022 14 Nov 2022 A

  57. Slide 57: 5-Year Distribution per Share History

    5-YEAR DISTRIBUTION PER SHARE HISTORY cps A-share B-share Total 23.5% (6.1%) 200 205,5 208,7 Aug 22 is not comparable to 193,0 (12.4%) the previous year due to the capital restructure in Jun 22 169,0 150 (35.2%) 3.9% 135,2 3.8% 4.2% 119,0 110,3 114,5 100 105,8 (17%) 64.7% 99,7 (18.4%) 89,7 (47.9%) 8

  58. Slide 58: 5-Year Market Price

    5-YEAR MARKET PRICE 5-YEAR MARKET PRICE HISTORY DIA DIB cents 1 200 1 050 960 1 000 870 800 845 559 600 437 395 410 548 400 124 200 Aug 2018 Aug 2019 Aug 2020 Aug 2021 Aug 2022 14 Nov 2022 Annual Results for the year ended 31 August 2022 58

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