Dipula Properties Limited Class B · JSE:DIB
Dipula Properties Limited Class B — H1 2023 Earnings Presentation
41 slides from Dipula Properties Limited Class B's earnings presentation, Feb 28, 2023
Slide 1: Interim Results Presentation
INTERIM RESULTS PRESENTATION FOR THE SIX MONTHS ENDED 28 FEBRUARY 2023
Slide 2: Business Update, Financial Update, Way Forward
FIRESTATION GAUTENG 01 BUSINESS UPDATE 02 FINANCIAL UPDATE 03 WAY FORWARD Interim Results for the six months ended 28 February 2023 2
Slide 3: Key Corporate Information at 28 February 2023
KEY CORPORATE INFORMATION AT 28 FEBRUARY 2023 JSE sector Closing price Real Estate (28 Feb 2023) Number of shares Investment Trusts: Date listed DIB R4.19 in issue Diversified REITS 17 August 2011 (Feb 2022: DIB R4.20) 893 664 473 # NAV per share Market capitalisation Portfolio size Gearing Debt R6.
Slide 4: Business Update
PPIMVILLE SQUARE GAUTENG 01 BUSINESS UPDATE IZAK PETERSEN CEO Interim Results for the six months ended 28 February 2023 4
Slide 5: Business Update: Performance Highlights
BUSINESS UPDATE Performance highlights Contractual rental income of up up Retail turnover R556 million 3% 21% Interim distributable earnings per share down up Gearing of 36.9% of 28.72 cents 7% 0.5% Net Asset Value up up Vacancy of 9.9% of R5.9 billion 7% 6.5% up Disposals of R183m Tenant retention
Slide 6: Business Update: Trading Environment and Portfolio Overview
BUSINESS UPDATE GLA 179 properties 915 243 m² R9.2 billion# Trading environment ▪ Solid operational performance under tough trading conditions ▪ Interest rate hiking cycle adversely affected performance ▪ Loadshedding a concern ▪ Low economic growth and sticky high inflation Portfolio overview ▪ Dis
Slide 7: Portfolio Leasing (Excluding Residential)
PORTFOLIO LEASING (EXCLUDING RESIDENTIAL) Lease expiry profile Lease activity (1 Sep 2022 – 28 Feb 2023) GLA (000 m²) Rental (Rm) New leases 300 22 25 Number of leases 99 18 19 20 Value of leases (Rm) 120 200 Total GLA (m²) 20 825 12 255 15 182 10 Weighted average gross asking rental (R/m²) 122.64 1
Slide 8: Retail Portfolio
RETAIL PORTFOLIO GLA Period on Period Turnover and Trading Density by Category 96 properties 444 295m² R6.0 billion Retail Category % GLA Turnover Trading Density Food 48% 27% 8% Apparel 20% 23% 13% Overview Food Services 6% 21% 6% Department Stores 2% -10% -10% ▪ Sold 13 properties for R95 million
Slide 9: Retail Portfolio: Lease Expiry and Activity
RETAIL PORTFOLIO Lease expiry profile Lease activity (1 Sep 2022 – 28 Feb 2023) GLA (000 m²) Rental (Rm) New leases 200 20 Number of leases 76 14 14 Value of leases (Rm) 104 150 15 Total GLA (m²) 15 195 11 10 100 10 Weighted average gross asking rental (R/m²) 137.24 7 92 108 Weighted average gross r
Slide 10: Retail Portfolio: Revamps
RETAIL PORTFOLIO Revamps Atrium @ 45 Chilli Lane Shopping Centre Kroonstad Circle Johannesburg CBD, Gauteng Sunninghill, Gauteng Kroonstad, Free State Completion date: April 2024 Completion date: November 2023 Completion date: Phase 1 complete, Phase 2 Oct 23 Gillwell Mall Dobsonpoint Shopping Centr
Slide 11: Office Portfolio
OFFICE PORTFOLIO GLA 34 properties 130 348m² R1.7 billion Overview Portfolio trends ▪ Negotiating on government leases ▪ Vacancy increased to 27.4% (Feb 2022: 17.3%) ▪ Enquiries for approximately 8000m² ▪ College House fully let (1 774m²) ▪ Weighted average rentals per m² by GLA R154.82 (Feb 2022: R
Slide 12: Office Portfolio: Lease Expiry and Activity
OFFICE PORTFOLIO Lease expiry profile Lease activity (1 Sep 2022 – 28 Feb 2023) GLA (000 m²) Rental (Rm) New leases 70 8 7 Number of leases 18 60 Value of leases (Rm) 14 50 6 Total GLA (m²) 3 348 40 47 4 Weighted average gross asking rental (R/m²) 109.55 30 34 2 2 2 Weighted average gross rental ach
Slide 13: Office Portfolio: Residential Conversion
OFFICE PORTFOLIO Residential Conversion Bruma Boulevard Bruma, Gauteng Completion date: June 2024 Interim Results for the six months ended 28 February 2023 13
Slide 14: Industrial Portfolio
INDUSTRIAL PORTFOLIO GLA 45 properties 311 076m² R1.2 billion Overview Portfolio trends ▪ Vacancy of 3.6% (Feb 2022: 3.9%) ▪ Range Road conversion completed ▪ Weighted average rentals per m² by GLA R43.20 (Feb 2022: R40.71) ▪ Sold two properties for R83 million (Book value: R67 million) ▪ Weighted a
Slide 15: Industrial Portfolio: Lease Expiry and Activity
INDUSTRIAL PORTFOLIO Lease expiry profile Lease activity (1 Sep 2022 – 28 Feb 2023) GLA (000 m²) Rental (Rm) New leases 250 5 Number of leases 5 4 200 4 Value of leases (Rm) 2 3 3 Total GLA (m²) 2 282 150 3 2 Weighted average gross asking rental (R/m²) 44.65 100 140 2 1 Weighted average gross rental
Slide 16: Residential Portfolio
RESIDENTIAL PORTFOLIO * GLA 4 properties 29 525m² 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 renta
Slide 17: 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% - - - 8% 1 Bed - 16 2 3 21 1 B
Slide 18: Residential Portfolio: Units and GLA per Asset
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 - 1 008 229 1 263 1 Bed 1
Slide 19: Business Update: ESG
BUSINESS UPDATE ESG ▪ Appointed Ernst & Young to assist in designing framework ▪ Setting sustainability targets ▪ To utilise new debt and capital from sales for solar and back-up power rollout ▪ B-BBEE score improved to a level 6, targeting level 3 ▪ Three non-executive board members retiring have b
Slide 20: Financial Update
MEADOW POINT GAUTENG 02 FINANCIAL UPDATE SUDESH MOODLEY CFO Interim Results for the six months ended 28 February 2023 20
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue Dividend per share Net property income Distributable earnings (excluding straight line) post capital structure R257 million Interim dividend (Six months) R698 million* R449 million (Feb 2022: R276 million) (Feb 2022: R683 million) (Feb 2022: R443 million) 25.85 cents 6.9
Slide 22: Distribution Statement
DISTRIBUTION STATEMENT 28 Feb 2023 28 Feb 2022 Variance R 000 R 000 Revenue 698 197 682 702 2.2% Property related expenses (248 845) (239 975) 3.7% Net property income 449 352 442 727 1.4% Administration and corporate costs (34 262) (23 616) 45.1% Net operating profit 415 090 419 111 (1.0%) Net fina
Slide 23: Sectoral Performance
SECTORAL PERFORMANCE Rental income & recoveries Property related expenses Net property income 3% 3% 4% 6% 2% 2% 15% 15% 8% 8% 18% 18% 16% 15% 16% 18% 17% 19% 66% 72% 71% 64% 63% 61% FEB 2023 FEB 2022 FEB 2023 FEB 2022 FEB 2023 FEB 2022 Retail Office Industrial Residential Interim Results for the six
Slide 24: Statement of Financial Position (Extracts)
STATEMENT OF FINANCIAL POSITION (EXTRACTS) 28 Feb 2023 28 Feb 2022 Variance R 000 R 000 Investment property and held for sale 9 679 766 9 228 522 4.9% Trade and other receivables 203 101 189 134 7.4% Cash and cash equivalents 130 795 64 208 103.7% Derivative asset 60 356 10 065 499.7% Other assets 1
Slide 25: Cash Flow
CASH FLOW ‒ Rm 1 SEPTEMBER 2022 TO 28 FEBRUARY 2023 1 SEPTEMBER 2021 TO 28 FEBRUARY 2022 64 Opening balance 63 427 Cash generated from operations 457 - 136 Net finance cost - 119 - 291 Dividend paid - 300 - 80 Acquisitions and capex - 45 17 Disposals 50 - 16 Shares acquired in terms of share based p
Slide 26: Debt Profile
DEBT PROFILE 50% 40,8% Debt expiry Hedge expiry 40% 30% 28,6% 25,4% 22,5% 19,1% 20% 13,6% 11,4% 10% 8,2% 3,3% 0% 0% 0% 0% FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 >FY 2027 Debt facilities All-in weighted New debt facilities Weighted average Weighted average renewed during Debt hedged average subseque
Slide 27: Way Forward
RENAISSANCE PARK GAUTENG 03 WAY FORWARD IZAK PETERSEN CEO Interim Results for the six months ended 28 February 2023 27
Slide 28: Way Forward
WAY FORWARD Finalise ESG targets and reporting framework Complete debt restructuring Continue with focus on portfolio enhancing capex Effectively manage loadshedding risk Renew government leases High interest rates, inflation and sluggish economic risk to persist in H2FY23 Interim Results for the si
Slide 29: Questions & Answers
14 KRAMER GAUTENG 04 QUESTIONS & ANSWERS Interim Results for the six months ended 28 February 2023 29
Slide 30: Annexures
21 GIRTON GAUTENG 05 ANNEXURES Interim Results for the six months ended 28 February 2023 30
Slide 31: Strategy
STRATEGY Remaining Buying Managing Shareholder value creation disciplined well brilliantly ▪ Geographically diversified SA ▪ Economically active locations Our value proposition focused ▪ Sectorally diversified ▪ Predominantly retail (convenience, rural & township) ▪ A diversified REIT that is growin
Slide 32: Geographic Snapshot
GEOGRAPHIC SNAPSHOT Retail 96 Limpopo 15 3 Office 34 179 Industrial 45 Gauteng 58 29 26 4 Residential 4 North West Mpumalanga 6 1 3 2 2 Free State KwaZulu-Natal 3 2 5 7 Northern Cape 1 Eastern Cape 4 4 Western Cape 1 1 2 Interim Results for the six months ended 28 February 2023 32
Slide 33: Total Portfolio: Key Indicators
TOTAL PORTFOLIO ‒ KEY INDICATORS Sectoral split Portfolio Total GLA Average WALE value property size by GLA # 14% Retail R9.2 bn * 915 243m² 5 113m² 2.3 years 64% Office BY GROSS 18% 49% BY GLA INCOME Industrial 34% Feb 2022: Feb 2022: R8.8bn 925 251m² Feb 2022: 4 974m² Feb 2022: 2.5 years 14% Resid
Slide 34: Retail Portfolio: Key Indicators
RETAIL PORTFOLIO ‒ KEY INDICATORS Average WALE Portfolio value Total GLA property size by GLA R6.0 bn* 444 295m² 4 628m² 2.5 years Feb 2022: R5.5bn Feb 2022: 446 467m² Feb 2022: 4 510m² Feb 2022: 2.4 years Average Average value property value per m² by GLA Tenant retention Vacancy R63m R13 527 84% 9
Slide 35: Office Portfolio: Key Indicators
OFFICE PORTFOLIO ‒ KEY INDICATORS Average WALE Portfolio value* Total GLA property size by GLA R1.7 bn 130 348m² 3 834m² 1.5 years Feb 2022: R1.7bn Feb 2022: 130 227m² Feb 2022: 3 830m² Feb 2022: 1.1 years Average Average value Tenant retention Vacancy property value per m² by GLA R50m R13 109 97% 2
Slide 36: Industrial Portfolio: Key Indicators
INDUSTRIAL PORTFOLIO ‒ KEY INDICATORS Average WALE Portfolio value* Total GLA property size by GLA R1.2 bn 311 076m² 6 913m² 3.3 years Feb 2022: R1.2bn Feb 2022: 335 931m² Feb 2022: 6 587m² Feb 2022: 3.2 years Average Average value Tenant retention Vacancy property value per m² by GLA R26m R3 792 94
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
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
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
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
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 to