Dipula Properties Limited Class B · JSE:DIB
Dipula Properties Limited Class B — FY2023 Earnings Presentation
59 slides from Dipula Properties Limited Class B's earnings presentation, November 2023
Slide 1: Sustainable Property Returns – Annual Results Presentation 2023
SUSTAINABLE PROPERTY RETURNS ANNUAL RESULTS PRESENTATION 20 FOR THE YEAR ENDED 31 AUGUST 2023 23
Slide 2: Business Update, Financial Update, Way Forward
01 BUSINESS 02 FINANCIAL 03 WAY UPDATE UPDATE FORWARD Annual Results for the year ended 31 August 2023 2
Slide 3: Key Corporate Information at 31 August 2023
KEY CORPORATE INFORMATION AT 31 AUGUST 2023 JSE sector Closing price Number of shares Real Estate Investment Date listed DIB R4.08 in issue and Services: Diversified REITs 17 August 2011 (2022: DIB R3.95) 912 001 700 NAV per share Market capitalisation Portfolio size Gearing Debt R6.64 R3.7 billion
Slide 4: FY2023 Strategic Priorities
FY2023 STRATEGIC PRIORITIES Objective Outcome Result Improve the liquidity and tradability of our share Trading volumes up 203% year-on-year Reduce portfolio vacancy to 7.5% Portfolio vacancy of 6.4% Board succession implementation Three non-executive board members rotated Achieved Continuous proces
Slide 5: Business Update
01 BUSINESS UPDATE IZAK PETERSEN CEO Annual Results for the year ended Palm31Court August 2023 - Gauteng
Slide 6: Business Update: Economic and Market Data
BUSINESS UPDATE 170 Economic and market data 5-year growth trend properties GLA 885 612m² R9.8 billion US inflation (i) R billion GLA (000 m²) Trading environment 10% 15 924 924 927 918 950 8% 886 6% 900 § High interest rates likely to remain for longer 10 § Global uncertainty due to conflicts in Ru
Slide 7: Business Update: Performance and Balance Sheet
BUSINESS UPDATE Performance Balance sheet Revenue R1.40 bn +3% Portfolio value R9.8 bn +1.7% (2022: R1.35 billion) (2022: R9.6bn) Distributable earnings R514m -6.9% Net Asset Value R6.1bn +2.1% (2022: R553 million) (2022: R5.9 bn) 188 new leases concluded * R288m 50 344m² Net debt R3.6bn +1.1% (2022
Slide 8: Portfolio Leasing (Excluding Residential)
PORTFOLIO LEASING (EXCLUDING RESIDENTIAL) Lease expiry profile Lease activity (1 Sep 2022 – 31 Aug 2023) GLA (000 m²) Rental (Rm) New leases 300 32 40 Number of leases 188 274 30 Value of leases (Rm) 288 200 15 15 20 Total GLA (m²) 50 344 13 100 158 Weighted average gross asking rental (R/m²) 113.46
Slide 9: Portfolio Valuation Comparison
PORTFOLIO VALUATION COMPARISON 2023 Total portfolio Average Average Average Like-for-like by value Exit Cap Rates Discount Rates value y-o-y Sector (%) (%) (%) R/m² (% Change) Retail 64 9.9 13.7 14 265 2.9 Office 17 10.3 14.2 12 857 (2.5) Industrial 15 10.8 14.2 4 196 9.7 Residential 4 9.0 13.1 13 8
Slide 10: Retail Portfolio
RETAIL PORTFOLIO 86 GLA 425 313m² R6.1 billion properties Overview Portfolio trends Vacancy analysis % exposure § Year-on-year like-for-like valuation Sub Sector by income Vacancy growth of 2.9% § Portfolio vacancy decreased to 7.5% (2022: 9.8%) § Prioritising refurbs § Weighted average rentals per
Slide 11: Retail Portfolio: Lease Expiry and Activity
RETAIL PORTFOLIO Lease expiry profile Lease activity (1 Sep 2022 – 32 Aug 2023) GLA (000 m²) Rental (Rm) New leases 120 16 18 Number of leases 149 100 13 15 114 11 Value of leases (Rm) 237 80 10 12 95 Total GLA (m²) 29 725 60 6 9 64 62 Weighted average gross asking rental (R/m²) 139.52 40 6 44 Weigh
Slide 12: Retail Portfolio: Trading Densities and Cost of Occupation
RETAIL PORTFOLIO Monthly trading densities and cost of occupation Retail centre trading stats Trading density Cost of GLA TD Growth Cost of YoY Category R/m² / month occupation Centre Region (m²) YoY % Occupancy T/O Growth Food & Grocery 4 282 2.7% Gillwell Mall Eastern Cape 21 378 30% 6.5% 13.7% Fa
Slide 13: Retail Portfolio: Revamps
RETAIL PORTFOLIO Revamps The Atrium Chilli Lane Shopping Centre Kroonstad Circle Johannesburg CBD, Gauteng Sunninghill, Gauteng Kroonstad, Free State Status: In progress Completion date: November 2023 Status: Phase 1 complete, Phase 2 November 23 Gillwell Mall Dobsonpoint Shopping Centre East London
Slide 14: Office Portfolio
OFFICE PORTFOLIO 35 GLA 130 101m² properties R1.7 billion Overview Portfolio trends Vacancy analysis § Year-on-year like-for-like valuation % exposure decrease of 2.5% § Portfolio vacancy of 15.0% (2022: 28.5%) Sub Sector by income Vacancy § Redevelopment properties to either § Weighted average rent
Slide 15: Office Portfolio: Lease Expiry and Activity
OFFICE PORTFOLIO Lease expiry profile Lease activity (1 Sep 2022 – 31 Aug 2023) GLA (000 m²) Rental (Rm) New leases 60 9 10 Number of leases 27 50 54 8 Value of leases (Rm) 33 40 Total GLA (m²) 7 446 6 30 Weighted average gross asking rental (R/m²) 119.29 3 4 20 Weighted average gross rental achieve
Slide 16: Industrial Portfolio
INDUSTRIAL PORTFOLIO 45 GLA 300 673m² R1.3 billion properties Overview Portfolio trends Vacancy analysis § Year-on-year like-for-like valuation § Portfolio vacancy of 1.7% (2022: 2.2%) % exposure growth of 9.7% Sub Sector by income Vacancy § Weighted average rentals per m² by GLA R45.17 (2022: R42.3
Slide 17: Industrial Portfolio: Lease Expiry and Activity
INDUSTRIAL PORTFOLIO Lease expiry profile Lease activity (1 Sep 2022 – 31 Aug 2023) GLA (000 m²) Rental (Rm) New leases 140 7 8 Number of leases 12 120 7 18 Value of leases (Rm) 100 6 106 109 Total GLA (m²) 13 173 5 80 4 Weighted average gross asking rental (R/m²) 51.36 60 2 2 3 Weighted average gro
Slide 18: Residential Portfolio
RESIDENTIAL PORTFOLIO 4 GLA 28 828m² * R409 million properties Average rentals and unit size by asset NORWOOD PALM SPRINGS URBAN VILLAGE MIDRAND URBAN VILLAGE BRUMA Average Average Average Average Average Average Average Average Average Average Average Average Unit type rental rental unit size renta
Slide 19: Residential Portfolio: Units and GLA per Asset
RESIDENTIAL PORTFOLIO Number of units and GLA per asset By unit type 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 - 1 008 229 1 263 1 Bed 1 96
Slide 20: Residential Portfolio: Vacancy Profile
RESIDENTIAL PORTFOLIO Vacancy profile by unit type 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 1 - - - 1 Studio 100% - - - 3% 1 Bed - 8 - 1 9 1 Bed
Slide 21: Business Update: ESG
BUSINESS UPDATE ESG § Continued improvement of employee wellbeing § Work from the office with flexibility § Improved B-BBEE score being actively pursued for 2023/24 § Back-up power high on the agenda § Diesel under recovery of R1.8 million for FY2023 § Adopted the JSE ESG reporting framework § Utili
Slide 22: Financial Update
02 FINANCIAL UPDATE SUDESH MOODLEY CFO Annual Results for the year ended 31 August Chilli on 2023 Top - Gauteng
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue Net property income Distributable earnings per B-share Dividend per B-share R1.4 billion R901.4 million R514.2 million Final (Six months) (Aug 2022: R1.35 billion) (Aug 2022: R885 million) (Aug 2022: R552.6 million) 25.42 cents (Aug 2022: 30.98 cents) 3.2% 1.8% 6.9% Inve
Slide 24: Distribution Statement
DISTRIBUTION STATEMENT 31 Aug 2023 31 Aug 2022 Variance R 000 R 000 Revenue 1 403 701 1 365 293 3.2% Rental income 1 111 308 1 083 119 2.6% Recoveries 292 393 282 174 3.6% Property expenses (502 343) (480 300) 4.6% Net property income 901 358 884 993 1.8% Administration and corporate costs (55 355)
Slide 25: Sectoral Performance
SECTORAL PERFORMANCE Rental income & recoveries Property related expenses Net property income 4% 3% 5% 5% 3% 3% 15% 15% 8% 8% 18% 18% 17% 17% 16% 18% 16% 18% 65% 64% 70% 70% 63% 61% Aug 2023 Aug 2022 Aug 2023 Aug 2022 Aug 2023 Aug 2022 Retail Office Industrial Residential Annual Results for the year
Slide 26: Statement of Financial Position (Extracts)
STATEMENT OF FINANCIAL POSITION (EXTRACTS) 31 Aug 2023 31 Aug 2022 Variance R 000 R 000 Investment property and held for sale* 9 772 651 9 621 301 1.7% Trade and other receivables 206 835 209 273 (1.2%) Loans receivable 6 122 7 965 (23.1%) Cash and cash equivalents 61 551 64 242 (4.2%) Derivative fi
Slide 27: Cash Flow
CASH FLOW ‒ Rm 31 AUGUST 2023 31 AUGUST 2022 64 Opening balance 63 847 Cash generated from operations 865 (299) Net finance cost (265) (536) Dividend paid (588) (16) Shares acquired in terms of share-based payment 0 64 Dividend re-investment plan share exercise price 0 (187) Acquisitions and capex (
Slide 28: Debt Facilities Maturity Profile
DEBT FACILITIES MATURITY PROFILE 50% 41,8% Debt expiry Hedge expiry 39,1% 40% 35,4% 35,2% 30% 23,1% 20% 17,1% 10% 5,7% 2,8% 0% FY2024 FY2025 FY2026 FY2027 FY2028 >FY2028 All-in weighted Debt renewed Debt Weighted average Weighted average Debt facilities renewed average cost New debt facilities Debt
Slide 29: Liquidity in Dipula Shares
LIQUIDITY IN DIPULA SHARES Gross number Average of shares daily volume ^ issued # Volume traded Rand value during traded during the year # Ratio of volume the year # 760k 911.9 million * traded to 2022: shares issued # 2022: 198 million 314k 893.6 million * R745m +142% yoy 2022: 65.3 million 21.7% 2
Slide 30: Way Forward
03 WAY FORWARD IZAK PETERSEN CEO Annual Results for the year ended 31 August 14 Kramer 2023 - Gauteng
Slide 31: Way Forward
WAY FORWARD Navigate high interest rate and low growth environment Focus on tenant retention Portfolio improving capex Leasing of vacancies Non-core disposals Roll out ESG strategy Annual Results for the year ended 31 August 2023 31
Slide 32: Questions & Answers
04 QUESTIONS & ANSWERS Annual Results for the year Dobson ended 31 Point- August Gauteng 2023
Slide 33: Annexures
05 ANNEXURES Annual Results for the Gillwell Mall year ended - Eastern 31 August Cape 2023
Slide 34: 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
Slide 35: Geographic Snapshot
GEOGRAPHIC SNAPSHOT Limpopo Retail 86 10 3 Office 35 170 Gauteng 53 30 27 4 Industrial 45 North West Mpumalanga 6 1 3 2 2 Residential 4 KwaZulu-Natal Free State 5 6 3 2 Northern Cape 1 Eastern Cape 4 4 Western Cape 1 1 2 Annual Results for the year ended 31 August 2023 35
Slide 36: Total Portfolio – Key Indicators
TOTAL PORTFOLIO ‒ KEY INDICATORS Sectoral split Portfolio Total GLA Average WALE by value property size income / GLA # 15% Retail 63% R9.4 bn * 885 612m² 5 209m² 2 years / 19% Office 3 years 48% BY GROSS BY GLA INCOME 34% Industrial 2022: 917 925m² 2022: 2022: R9.3bn 2022: 5 044m² 2 years / 3 years
Slide 37: Retail Portfolio – Key Indicators
RETAIL PORTFOLIO ‒ KEY INDICATORS Average WALE by Portfolio value Total GLA property size income / GLA R6.1 bn* 425 313m² 4 945m² 3 years / 3 years 2022: R6.0bn 2022: 446 958m² 2022: 4 515m² 2022: 3 years / 3 years Average Average value property value per m² by GLA Tenant retention Vacancy R71m R14
Slide 38: Office Portfolio – Key Indicators
OFFICE PORTFOLIO ‒ KEY INDICATORS Average WALE by Portfolio value Total GLA property size income / GLA R1.7 bn* 130 101m² 3 717m² 2 years / 2 years 2022: R1.7bn 2022: 130 358m² 2022: 3 834m² 2022: 2 year / 1 years Average Average value Tenant retention Vacancy property value per m² by GLA R48m R12 8
Slide 39: Industrial Portfolio – Key Indicators
INDUSTRIAL PORTFOLIO ‒ KEY INDICATORS Average WALE by Portfolio value Total GLA* property size income / GLA R1.3 bn* 300 673m² 6 681m² 2 years / 2 years 2022: R1.2bn 2022: 311 076m² 2022: 6 913m² 2022: 2 years / 3 years Average Average value Tenant retention Vacancy property value per m² by GLA R28m
Slide 40: Top Ten Properties by Value
TOP TEN PROPERTIES BY VALUE Value Value Building name Region GLA m² Rm R/m² SAPS VIP Gauteng 21 478 382 17 786 Gillwell Mall Eastern Cape 21 378 330 15 413 Seshego Circle Limpopo 15 619 325 20 795 Chilli Lane Gauteng 13 597 310 22 813 Gezina Galleries Gauteng 16 956 302 17 829 Umzimkhulu Mall KwaZul
Slide 41: Top Ten Retail Properties
TOP TEN RETAIL PROPERTIES Value Value Building name Region GLA m² Rm R/m² Gillwell Mall Eastern Cape 21 378 330 15 413 Seshego Circle Limpopo 15 619 325 20 795 Chilli Lane Gauteng 13 597 310 22 813 Gezina Galleries Gauteng 16 956 302 17 829 Umzimkhulu Mall KwaZulu-Natal 15 759 280 17 806 Nquthu Plaz
Slide 42: 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 21 478 382 17 786 Avanti Office Park Western Cape 8 817 170 19 281 SAPS IJS Gauteng 7 874 129 16 408 Firestation Rosebank Gauteng 4 259 120 28 176 Carnation Place Gauteng 4 541 103 22 616 Valley View
Slide 43: Top Ten Industrial Properties by Value
TOP TEN INDUSTRIAL PROPERTIES BY VALUE Value Value Building name Region GLA m² Rm R/m² Corporate Park Limpopo 28 058 200 7 114 New Brighton Eastern Cape 24 515 175 7 122 Sterkolite Gauteng 12 782 85 6 681 Renaissance Park Gauteng 10 680 66 6 208 Reclam - Isipingo KwaZulu Natal 25 062 62 2 454 Range
Slide 44: Residential Property
RESIDENTIAL PROPERTY Value Value Building name Region GLA m² Rm R/m² Urban Village Palm Springs Gauteng 18 796 250 13 290 Urban Village Bruma* Gauteng 5 288 83 15 696 Urban Village Midrand Gauteng 4 138 54 13 150 Urban Village Norwood* Gauteng 1 304 22 16 871 29 525 409 13 853 Percentage of total po
Slide 45: Geographic Profile – Total Portfolio
GEOGRAPHIC PROFILE – TOTAL PORTFOLIO No of Average Value Value GLA m² Properties Rm Rm Gauteng 511 861 114 50 5 712 Limpopo 83 505 13 78 1 011 KwaZulu-Natal 75 611 11 72 788 Eastern Cape 103 697 8 98 784 North West 35 065 7 66 463 Western Cape 27 176 4 67 268 Mpumalanga 29 077 7 33 229 Free State 17
Slide 46: Geographic Profile – Retail
GEOGRAPHIC PROFILE – RETAIL No of Average Value Value GLA m² Properties Rm Rm Gauteng 228 261 53 61 3 258 Limpopo 49 138 10 78 775 KwaZulu-Natal 41 954 5 143 715 Eastern Cape 46 221 4 137 546 North West 29 659 6 76 455 Mpumalanga 11 175 3 56 167 Free State 13 647 3 39 117 Western Cape 3 162 1 22 22
Slide 47: Geographic Profile – Office
GEOGRAPHIC PROFILE – OFFICE No of Average Value Value GLA m² Properties Rm Rm Gauteng 112 878 30 48 1 439 Western Cape 8 817 1 170 170 Mpumalanga 4 530 2 18 36 Free State 3 875 2 14 27 Total 130 101 35 48 1 672 Annual Results for the year ended 31 August 2023 47
Slide 48: Geographic Profile – Industrial
GEOGRAPHIC PROFILE – INDUSTRIAL No of Average Value Value GLA m² Properties Rm Rm Gauteng 141 197 27 22 605 Limpopo 57 476 4 59 237 Eastern Cape 34 368 3 79 236 KwaZulu-Natal 15 197 2 38 76 Western Cape 33 658 6 12 74 Mpumalanga 13 372 2 13 25 North West 5 407 1 9 9 Total 300 673 45 28 1 262 Annual
Slide 49: Geographic Profile – Residential
GEOGRAPHIC PROFILE – RESIDENTIAL No of Average Value Value GLA m² Properties Rm Rm Gauteng * 29 525 4 102 409 Total 29 525 4 102 409 * Including NCI Annual Results for the year ended 31 August 2023 49
Slide 50: Tenant Profile
TENANT PROFILE Tenant grading by Income Top 10 tenants by Income Government and local authorities 12% 17% Shoprite Group 10% A Pick n Pay Group 5% Pepkor Group 4% B Reclamation Group 3% 16% DSV 2% C Cashbuild 2% 67% Spar Group 2% ABSA Bank 1% The Foschini Group 1% 40% Tenant grading by GLA Top 10 te
Slide 51: Tenant Categories
TENANT CATEGORIES Supermarket & Wholesale % of GLA % of Gross Rental Fashion Banking & Financial Services Building & Hardware <1% <1% 1%1% 1%1% Restaurants & Fast Food 1%1% 1% 2% Speciality 2% Furniture & Appliances 2% 1% 3% 2% 1% 2% Health & Beauty 2% 2% 25% 28% Services 2% 2% Liquor 2% 2% Footwear
Slide 52: Vacancy by Province
VACANCY BY PROVINCE Portfolio vacancy contribution Vacancy % Vacancy Free State 43% Gauteng 8% North West 5% Western Cape 7% Mpumalanga 2% Eastern Cape 3% Gauteng 72% Limpopo 1% Northern Cape 0% Free State 13% KwaZulu-Natal 1% KwaZulu-Natal 1% Eastern Cape 5% Mpumalanga 1% North West 3% Northern Cap
Slide 53: Vacancy by Sub-Sector
VACANCY BY SUB-SECTOR Retail sub-sector Office region % portion of vacancy % portion of vacancy Mixed-use CBD 32% Johannesburg 65% Retail centre 51% Ekurhuleni 22% Stand-alone 0% Midrand 3% Strip Retail 13% Cape Town 2% Pretoria 5% Strip Retail CBD 4% Other 3% Total Retail 100% Total Office 100% Ind
Slide 54: Retail Portfolio by Type of Centre
RETAIL PORTFOLIO BY TYPE OF CENTRE Sector By Income By GLA 82% Retail centre 82% 73% 73% Mixed-use CBD 4% 9% Strip Retail 8% 9% 9% Stand-alone 3% 5% 1% 3% 9% 5% 4% Strip Retail CBD 1% 3% 3% 8% 1% 1% Other 1% 1% Total 100% 100% Annual Results for the year ended 31 August 2023 54
Slide 55: Retail Portfolio by Market Segment
RETAIL PORTFOLIO BY MARKET SEGMENT Sector By Income By GLA 29% Rural Centre 29% 28% 28% Rural Strip 4% 6% 4% 6% 24% 23% Urban Center 35% 28% 28% Urban Strip 8% 15% 15% 8% 35% Urban Township Centre 24% 23% Total 100% 100% Annual Results for the year ended 31 August 2023 55
Slide 56: Office Portfolio Grading
OFFICE PORTFOLIO GRADING 80% Office Grading By Income By GLA 62% A-Grade 80% 62% B-Grade 20% 38% 38% Total 100% 100% 20% Annual Results for the year ended 31 August 2023 56
Slide 57: Industrial Portfolio by Type
INDUSTRIAL PORTFOLIO BY TYPE By Income By GLA Light industrial 60% 69% 60% 69% 10% Mini units 10% 19% 19% Warehousing & logistics 30% 21% 21% Total 100% 100% 30% Annual Results for the year ended 31 August 2023 57
Slide 58: Portfolio Space Exposure
PORTFOLIO SPACE EXPOSURE 75% By Income By GLA Mult-tenanted 75% 62% 62% Single-tenanted 25% 38% Total 100% 100% 38% 25% Annual Results for the year ended 31 August 2023 58
Slide 59: Sector Space Exposure
SECTOR SPACE EXPOSURE By Income Retail Office Industrial Residential Total Multi tenanted 95% 39% 33% 100% 75% Single tenanted 5% 61% 67% 0% 25% Total 100% 100% 100% 100% 100% By GLA Retail Office Industrial Residential Total Multi tenanted 90% 49% 27% 100% 62% Single tenanted 10% 51% 73% 0% 38% Tot