Dipula Properties Limited Class B · JSE:DIB
Dipula Properties Limited Class B — H1 2021 Earnings Presentation
39 slides from Dipula Properties Limited Class B's earnings presentation, May 2021
Slide 1: Interim Results Presentation for the six months ended 28 February 2021
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 28 FEBRUARY 2021
Slide 2: Agenda
AGENDA 01 B US I N E S S UPDATE 02 FINANCIAL OVERVIEW 03 OUTLOOK CONSISTENT STABLE RESOURCEFUL DISCIPLINED DIVERSIFIED SUSTAINABLE Interim Results for the six months ended 28 February 2021 2
Slide 3: Key Corporate Information
KEY CORPORATE INFORMATION JSE sector Real Estate Date listed Closing price Investment Trusts: 17 August (26 Feb 2021) Diversified REITS 2011 DIA R5.55 | DIB R1.52 Market capitalisation Portfolio size Gearing Debt NAV per share (26 February 2021) R10.59 R1.9 billion R9.1 billion* 35.7% R3.4 billion E
Slide 4: Business Update
01 BUSINESS UPDATE IZAK PETERSEN CEO
Slide 5: Business Update: Performance Highlights
BUSINESS UPDATE PERFORMANCE HIGHLIGHTS Contractual up Distributable up Distributable earnings up income 2% earnings 8.5% per A share 3% Distributable earnings up Loan to Value down NAV per A up per B share 17% 35.7% 11% and B share 4% Covid discounts Collection average Covid-19 related deferred thro
Slide 6: Business Update: Trading Environment
BUSINESS UPDATE TRADING ENVIRONMENT THE BAD THE GOOD ▪ Sustained slow economic growth ▪ Improving trading conditions from hard lockdown ▪ Unreliable power supply ▪ Retailers seeking expansion and adapting business models ▪ Poor municipal service delivery ▪ Lower interest rates a buffer ▪ Adverse eff
Slide 7: Rental Collections During Covid-19 Pandemic
BUSINESS UPDATE RENTAL COLLECTIONS DURING COVID-19 PANDEMIC Sectoral and portfolio average April 2020 - April 2021 99% 98% 96% 92% 98% % 160 140 120 100 80 60 40 Retail Office Industrial Residential Portfolio 20 0 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Apr May Jun Jul Aug Sep Oct Nov De
Slide 8: Portfolio
PORTFOLIO OVERVIEW LEASE ACTIVITY (1 SEP 2020 – 28 FEB 2021) ▪ Portfolio vacancies increased to 7.6% (2020: 5.8%) NEW LEASES ▪ Disposals of R12m (BV R11.7m) during the period with R78.4m (BV R78.1m) in the process of transfer Number of leases 136 ▪ Refurbs of R28m completed Value of leases (Rm) 138
Slide 9: Retail
RETAIL OVERVIEW LEASE ACTIVITY (1 SEP 2020 – 28 FEB 2021) ▪ Vacancy increased to 9.9% (2020: 7.6%) NEW LEASES ▪ Weighted average rentals per m² increased to R134.39 (2020: R130.28) Number of leases 114 ▪ Tenant retention rate 74% (2020: 74%) Value of leases (Rm) 122 ▪ Weighted average escalation red
Slide 10: Office
OFFICE OVERVIEW LEASE ACTIVITY (1 SEP 2020 – 28 FEB 2021) NEW LEASES ▪ Vacancy increased to 11.6% (2020: 7.2%) due to covid related space reductions and space oversupply Number of leases 10 Value of leases (Rm) 5 ▪ Weighted average rentals per m² increased to R141.24 (2020: R134.40) Total GLA (m²) 1
Slide 11: Industrial
INDUSTRIAL OVERVIEW LEASE ACTIVITY (1 SEP 2020 – 28 FEB 2021) NEW LEASES ▪ Vacancy increased to 3.2% (2020: 2.8%) Number of leases 12 ▪ Weighted average rentals per m² increased to R39.14 (2020: R37.36) Value of leases (Rm) 11 Total GLA (m²) 8 741 ▪ Tenant retention rate 83% (2020: 82%) Weighted ave
Slide 12: Residential
RESIDENTIAL OVERVIEW NORWOOD PALM SPRINGS# Average Average Average Average Average Average Unit type rental rental unit size rental rental unit size (R) (R/m²) (m²) (R) (R/m²) (m²) Studio 5000 192 26 - - 1 Bed 6000 158 38 4725 139 34 2 Bed 8713 118 74 5250 114 46 3 Bed 9800 98 100 - - RESIDENTIAL VA
Slide 13: Financial Overview
02 FINANCIAL OVERVIEW RIDWAAN ASMAL CFO
Slide 14: Financial Highlights
FINANCIAL HIGHLIGHTS REVENUE DISTRIBUTABLE DISTRIBUTABLE EARNINGS DISCOUNT TO NAV EARNINGS PER SHARE (CENTS) (28 FEB 2021) R668 million R276 million 104.12 (Feb 2020: (Feb 2020: Combined (Feb 2020: 95.97) Combined 67% R661 million) R254 million) 8.5% 1.0% 8.5% 59.02 INVESTMENT INTEREST-BEARING PROPE
Slide 15: Distribution Statement
DISTRIBUTION STATEMENT 28 Feb 2021 29 Feb 2020 R 000 R 000 Variance Revenue 668 336 661 404 1.0% Property expenses (225 152) (219 096) 2.8% Net property income 443 184 442 308 0.2% Administration and corporate costs (24 249) (21 322) 13.7% Net operating profit 418 935 420 986 -0.5% Net finance cost
Slide 16: Sectoral Performance
SECTORAL PERFORMANCE RENTAL INCOME & RECOVERIES PROPERTY EXPENSES NET PROPERTY INCOME 2% 3% 2% 15% 9% 9% 15% 18% 18% 18% 19% 19% 19% 20% 20% 66% 70% 72% 64% 60% 62% FEB 2021 FEB 2020 FEB 2021 FEB 2020 FEB 2021 FEB 2020 Retail Office Industrial Residential Interim Results for the six months ended 28
Slide 17: Statement of Financial Position (Extracts)
STATEMENT OF FINANCIAL POSITION (EXTRACTS) 28 Feb 2021 29 Feb 2020 Variance R 000 R 000 Investment property * 9 119 036 8 953 135 1.9% Trade and other receivables 188 334 169 578 11.1% Loan receivable 136 312 204 356 -33.3% Intangible assets 18 750 56 250 -66.7% Cash and cash equivalents 124 605 69
Slide 18: Cash Flow
CASH FLOW ‒ Rm 1 SEPTEMBER 2020 TO 28 FEBRUARY 2021 1 SEPTEMBER 2019 TO 29 FEBRUARY 2020 49 Opening balance 119 406 Cash generated from operations 419 - 127 Net finance cost - 153 - 13 Dividend paid - 266 - 28 Acquisitions and capex - 34 12 Disposals 49 -0.2 Non-controlling interest -0.04 -4 Repayme
Slide 19: Debt Profile
DEBT PROFILE Debt expiry Hedge expiry 30% 28,1% 24,7% 24,7% 18,8% 19,5% 20% 9,4% 10,5% 10% 8,6% 8,1% 5,4% 3,4% 0% 0% FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 >FY 2025 Debt facilities All-in weighted Weighted average Weighted average Debt hedged renewed average cost of debt debt expiry hedge expiry R5
Slide 20: Outlook
03 OUTLOOK IZAK PETERSEN CEO
Slide 21: Way Forward
WAY FORWARD Focus on matters within our control Continue to improve the quality of our assets, income & tenants Upgrade our assets to sustain rentals Train and retain our team Continuously implement electronic systems to improve productivity and efficiencies Find a solution for our capital structure
Slide 22: Questions & Answers
04 QUESTIONS & ANSWERS Interim Results for the six months ended 28 February 2021
Slide 23: Annexures
05 ANNEXURES Interim Results for the six months ended 28 February 2021
Slide 24: Strategy
STRATEGY Remaining Buying Managing SHAREHOLDER VALUE CREATION disciplined well brilliantly ▪ Geographically diversified SA OUR VALUE PROPOSITION ▪ Economically active locations focused ▪ Sectorally diversified ▪ A diversified REIT that is growing, improving and ▪ Predominantly retail (convenience, r
Slide 25: Strategic Capital Allocation
STRATEGIC CAPITAL ALLOCATION AT LISTING CURRENT FUTURE 10% 19% Retail 29% 20% Office 54% By income 65% By income 60% By income 15% Industrial 10% 17% 1% Residential ▪ Allocation of capital into areas of core competency STRATEGIC GROWTH DRIVERS ▪ Build capacity for operational excellence ▪ Tactically
Slide 26: Geographic Snapshot
GEOGRAPHIC SNAPSHOT TOTAL OF 189 PROPERTIES Retail 100 Gauteng Limpopo Office 35 North West 62 29 33 2 18 15 3 Industrial 52 Mpumalanga 7 1 Residential 2 126 8 7 Northern Cape 3 2 2 5 KwaZulu-Natal 1 1 12 5 7 Western Cape 8 Free State 4 1 1 2 Eastern Cape 3 2 3 1 4 Interim Results for the six months
Slide 27: Portfolio - Key Indicators
PORTFOLIO ‒ KEY INDICATORS SECTORAL SPLIT SECTORAL SPLIT Portfolio Total GLA Average WALE by GLA BY GLA BY GROSS INCOME value property size 14% Retail R8.6 bn * 926 648m² 4 903m² 2.8 years 65% Office 49% 19% Feb 2020: Feb 2020: Feb 2020: Feb 2020: 36% Industrial R8.5bn 916 593m² 4 824m² 3.5 years Re
Slide 28: Retail - Key Indicators
RETAIL ‒ KEY INDICATORS Average Portfolio value Total GLA WALE by GLA property size R5.4 bn* 447 395m² 4 474m² 2.7 years Feb 2020: R5.5bn Feb 2020: 448 946m² Feb 2020: 4 359m² Feb 2020: 3.0 Average Average value Weighted average Weighted average property value per m² by GLA gross rentals gross renta
Slide 29: Office - Key Indicators
OFFICE ‒ KEY INDICATORS Average Portfolio value* Total GLA WALE by GLA property size R1.8 bn 132 620m² 3 789m² 1.4 years Feb 2020: R1.8bn Feb 2020: 129 245m² Feb 2020: 3 801m² Feb 2020: 2.0 Average Average value Tenant retention Vacancy property value per m² by GLA R52m R13 791 78% 11.6% Feb 2020: R
Slide 30: Industrial - Key Indicators
INDUSTRIAL ‒ KEY INDICATORS Average Average Portfolio value Total GLA property size property value R1.2 bn 335 931m² 6 460m² R24m Feb 2020: R1.3bn Feb 2020: 338 401m² Feb 2020: 6 385m² Feb 2020: R24m WALE by GLA Average value Tenant retention Vacancy per m² by GLA 3.8 years R3 669 83% 3.2% Feb 2020:
Slide 31: Top Ten Properties
TOP TEN PROPERTIES Value Value Building name Region GLA m² Rm R/m² SAPS VIP Gauteng 21 478 388 18 070 Gillwell Mall Eastern Cape 22 090 341 15 414 Chilli Lane Gauteng 13 607 294 21 569 Seshego Circle Limpopo 15 229 272 17 879 Umzimkhulu Mall KwaZulu-Natal 15 863 243 15 312 Nquthu Plaza KwaZulu-Natal
Slide 32: Top Ten Retail Properties
TOP TEN RETAIL PROPERTIES Value Value Building name Region GLA m² Rm R/m² Gillwell Mall Eastern Cape 22 090 341 15 414 Chilli Lane Gauteng 13 607 294 21 569 Seshego Circle Limpopo 15 229 273 17 951 Umzimkhulu Mall KwaZulu-Natal 15 759 243 15 413 Nquthu Plaza KwaZulu-Natal 14 912 228 15 263 Gezina Ga
Slide 33: Top Ten Office Properties
TOP TEN OFFICE PROPERTIES Value Value Building name Region GLA m² Rm R/m² SAPS VIP Gauteng 21 478 388 18 070 Avanti Office Park Western Cape 8 370 180 21 541 Firestation Rosebank Gauteng 4 259 124 29 068 SAPS IJS Gauteng 7 874 124 15 723 Valley View Office Park Gauteng 6 793 100 14 706 Carnation Pla
Slide 34: Top Ten Industrial Properties
TOP TEN INDUSTRIAL PROPERTIES Value Value Building name Region GLA m² Rm R/m² Corporate Park II Polokwane Limpopo 28 058 192 6 847 New Brighton PE Eastern Cape 24 515 137 5 588 Range Road Blackheath Western Cape 12 905 96 7 470 Renaissance Park Gauteng 10 680 62 5 758 Sterkolite Rosslyn Gauteng 12 7
Slide 35: Residential Property
RESIDENTIAL PROPERTY Value Value Building name Region GLA m² Rm R/m² Urban Village Palm Springs* Gauteng 9 398 122 12 953 Urban Village Norwood Gauteng 1 304 22 16 871 Total 10 702 144 Percentage of total portfolio 1% 1% * Excluding NCI Interim Results for the six months ended 28 February 2021 35
Slide 36: 5-Year Interim Dividend Per Share History
5-YEAR INTERIM DIVIDEND PER SHARE HISTORY cps Average growth on combined share of 3.7% over 5 years 120 A- share B- share Total 8.5% 0.6% (1.4%) 100 4.6% 104,12 96,75 97,33 95,97 92,49 80 4.6% 2.9% 60 4.0% 4.1% 57,36 59,02 52,67 5.4% 54,83 (3.6%) (9.2%) 16.8% 50,65 40 44,08 45,10 41,84 42,50 38,61 2
Slide 37: 5-Year Combined Price-to-Book Ratio
5-YEAR COMBINED PRICE-TO-BOOK RATIO cents Market price NAV Premium / Discount 3 000 50% 12% 3% -3% 2 500 -47% -49% -50% -67% 2 245 2 000 2 090 2 118 2 118 -150% 2 014 2 024 1 976 2 036 1 921 1 500 -250% 1 000 1 090 1 090 -350% 707 500 -450% -550% Feb 2017 Feb 2018 Feb 2019 Feb 2020 Feb 2021 Current
Slide 38: 5-Year Market Indicators
5-YEAR MARKET INDICATORS 5-YEAR MARKET PRICE HISTORY cents 1400 1195 DIA DIB 1200 1112 1070 1000 1050 885 1020 800 740 809 600 555 350 400 205 152 200 0 Feb Feb Feb Feb Feb Current 2017 2018 2019 2020 2021 7 May 2021 Interim Results for the six months ended 28 February 2021 38
Slide 39: Receipts as % of Billing
RECEIPTS AS % OF BILLING Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr Average 2020 2020 2020 2020 2020 2020 2020 2020 2020 2021 2021 2021 2021 for Period Essential 88 89 119 87 111 88 100 99 94 103 106 101 99 100 Government 110 79 119 88 134 85 120 125 50 60 64 120 38 90 Non-essential medium