Dipula Properties Limited Class B · JSE:DIB
Dipula Properties Limited Class B — H1 2024 Earnings Presentation
41 slides from Dipula Properties Limited Class B's earnings presentation, May 13, 2024
Slide 1: Sustainable Property Returns
SUSTAINABLE PROPERTY RETURNS INTERIM RESULTS PRESENTATION 20 FOR THE SIX MONTHS ENDED 29 FEBRUARY 24 Interim Results for the six months ended 29 February 2024
Slide 2: Business Update, Financial Update, Way Forward
01 BUSINESS UPDATE 02 FINANCIAL UPDATE 03 WAY FORWARD Interim Results for the six months ended 29 February 2024 2
Slide 3: Key Corporate Information at 29 February 2024
KEY CORPORATE INFORMATION AT 29 FEBRUARY 2024 Closing price JSE sector (29 Feb 2024) Number of shares Real Estate Investment Date listed DIB R4.30 in issue and Services: Diversified REITs 17 August 2011 (Feb 2023: DIB R4.19) 912 001 700# NAV per share Market capitalisation Portfolio size Gearing Deb
Slide 4: Business Update
01 BUSINESS UPDATE IZAK PETERSEN CEO Seshego Interim Results Circle for the six - Polokwane, months Limpopo ended 29 February 2024 4
Slide 5: Business Update: Performance highlights
BUSINESS UPDATE Performance highlights Revenue R755m +9% Retail turnovers up 14% (Feb 2023: R692 million) Contractual rental income R566m +2% Gearing reduced to 36% (Feb 2023: R556 million) (Feb 2023: 37%) Net property income R474m +6% Vacancy* down to 8% (Feb 2023: R447 million) (Feb 2023: 10%) Dis
Slide 6: Business Update: Trading environment and portfolio overview
BUSINESS UPDATE GLA 166 properties 879 007 m² R9.4 billion# (Feb 2023: 179) (Feb 2023: 915 243m²) (Feb 2023: R9.2 billion) Trading environment SA property still facing headwinds due to current economic conditions Lower new developments activity to provide support Anticipated interest rate redu
Slide 7: Portfolio Leasing (Excluding Residential)
PORTFOLIO LEASING (EXCLUDING RESIDENTIAL) Lease expiry profile Lease activity GLA (000 m²) Rental (Rm) New leases 400 35 Feb 2024 Feb 2023 32 30 300 Number of leases 72 99 25 16 22 Value of leases (Rm) 105 120 20 200 18 14 15 12 15 15 Total GLA (m²) 19 090 20 825 274 13 100 9 169 10 162 158 127 183
Slide 8: Retail Portfolio
RETAIL PORTFOLIO GLA Period on period turnover and trading density by category Trading Cost of 83 properties 419 164m² R6.0 billion Retail Category GLA Turnover density occupancy (Feb 2023: 96) (Feb 2023: 444 295m²) (Feb 2023: R6.0 billion) Food & groceries 45.0% 12.6% 0.7% 2.9% Overview Fashion & f
Slide 9: Retail Portfolio
RETAIL PORTFOLIO Lease expiry profile Lease activity GLA (000 m²) Rental (Rm) 150 17 18 New leases 16 11 13 Feb 2024 Feb 2023 100 11 12 11 Number of leases 56 76 10 10 8 50 114 6 95 117 6 Value of leases (Rm) 77 104 66 64 64 62 67 31 30 44 52 Total GLA (m²) 9 256 15 195 0 0 Weighted average gross as
Slide 10: Office Portfolio
OFFICE PORTFOLIO GLA 34 properties 129 487m² R1.7 billion (Feb 2023: 35) (Feb 2023: 130 101m²) (Feb 2023: R1.7 billion) Overview Portfolio trends Vacancy decreased to 23.1% (Feb 2023: 27.4%) Portfolio significantly de-risked following government lease renewals Weighted average rentals per m² b
Slide 11: Office Portfolio
OFFICE PORTFOLIO Lease expiry profile Lease activity GLA (000 m²) Rental (Rm) 60 10 New leases 9 50 8 Feb 2024 Feb 2023 40 6 Number of leases 12 18 30 5 54 3 20 4 Value of leases (Rm) 24 14 2 3 38 10 17 23 2 24 1 2 Total GLA (m²) 5 243 3 348 11 1 12 23 6 5 1 6 8 1 0 0 Weighted average gross asking r
Slide 12: Industrial Portfolio
INDUSTRIAL PORTFOLIO GLA 45 properties 300 761m² R1.3 billion (Feb 2023: 45) (Feb 2023: 311 076m²) (Feb 2023: R1.2 billion) Overview Portfolio trends Vacancy increased to 4.7% (Feb 2023: 3.6%) Weighted average rentals per m² by GLA R45.72 (Feb 2023: R43.20) Portfolio yielded stable performance
Slide 13: Industrial Portfolio
INDUSTRIAL PORTFOLIO Lease expiry profile Lease activity GLA (000 m²) Rental (Rm) 120 8 New leases 7 100 106 6 109 111 Feb 2024 Feb 2023 6 80 Number of leases 4 5 60 85 4 Value of leases (Rm) 4 2 3 40 2 2 2 Total GLA (m²) 4 591 2 282 2 1 2 20 32 28 33 28 Weighted average gross asking rental (R/m²) 3
Slide 14: Residential Portfolio
RESIDENTIAL PORTFOLIO GLA 4 properties 29 525m² R409 million (Feb 2023: 4) (Feb 2023: 29 525m²) (Feb 2023: R387 million) Achieved average rentals NORWOOD PALM SPRINGS URBAN VILLAGE MIDRAND URBAN VILLAGE BRUMA Average Average Average Average Average Average Average Average Average Average Average Ave
Slide 15: Residential Portfolio
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 2 Studio 100% - - 11% 6% 1 Bed - 10 1 5 16 1
Slide 16: 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 - 1 008 229 1 263 1 Bed 1
Slide 17: Business Update: Sustainability
BUSINESS UPDATE Sustainability Improved B-BBEE rating from level 6 to level 4 Phase 1 of solar roll-out successfully tendered Solar to increase four-fold to 7MW Investigating waste management strategies Lower loadshedding relative to prior period, diesel net under recovery R513 thousand (2
Slide 18: Financial Update
02 FINANCIAL UPDATE SUDESH MOODLEY FD Fin Forum Interim Results for the six months ended - Gauteng 29 February 2024 18
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue Investment properties Distributable earnings R729 million* R9.8 billion R249 million (Feb 2023: R698 million) (Feb 2023: R9.7 billion) (Feb 2023: R257 million) 4.4% 1.0% 3.1% Distributable earnings Net Property Income Interest-bearing liabilities per share (Six months) R
Slide 20: Distribution Statement
DISTRIBUTION STATEMENT 29 Feb 2024 28 Feb 2023 Variance R 000 R 000 Revenue 728 611 698 197 4.4% Property related expenses (285 676) (248 845) 14.8% Net property income 442 935 449 352 (1.4%) Administration and corporate costs (26 192) (34 262) (23.6%) Net operating profit 416 743 415 090 0.4% Net f
Slide 21: Distribution per Share (Cents)
DISTRIBUTION PER SHARE (CENTS) -0.66 Net property income Distribution decrease = 4.9% (down 1.41 cents) Interim Results for the six months ended 29 February 2024 21
Slide 22: Sectoral Performance
SECTORAL PERFORMANCE Rental income & recoveries Property related expenses Net property income 4% 3% 5% 4% 3% 2% 14% 15% 9% 8% 18% 17% 17% 16% 16% 16% 15% 17% 66% 66% 69% 72% 65% 63% FEB 2024 FEB 2023 FEB 2024 FEB 2023 FEB 2024 FEB 2023 Retail Office Industrial Residential Interim Results for the six
Slide 23: Statement of Financial Position (Extracts)
STATEMENT OF FINANCIAL POSITION (EXTRACTS) 29 Feb 2024 28 Feb 2023 Variance R 000 R 000 Investment property and held for sale 9 799 498 9 679 766 1.2% Trade and other receivables 236 551 203 101 16.5% Cash and cash equivalents 138 172 130 795 5.6% Derivative asset 40 960 60 356 (32.1%) Other assets
Slide 24: Net Asset Value per Share (Cents)
NET ASSET VALUE PER SHARE (CENTS) 0.3% Increase in NAV per share Interim Results for the six months ended 29 February 2024 24
Slide 25: Debt Profile
DEBT PROFILE 50% Debt expiry Hedge expiry 39,6% 40% 30,8% 29,6% 30% 25,7% 21,7% 20% 10% 8,1% 5,4% 0% 0% 0% 0% 0,0% 0% FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 New debt facilities All-in weighted Weighted average Weighted average Debt hedged Liquidity subsequent to period end average cost of d
Slide 26: Cash Flow - Rm
CASH FLOW ‒ Rm 29 FEBRUARY 2024 28 FEBRUARY 2023 62 Opening balance 64 410 Cash generated from operations 427 - 173 Net finance cost - 136 - 245 Dividend paid - 291 - 72 Acquisitions and capex - 80 22 Disposals 17 - 14 Shares acquired in terms of share-based payment - 16 Non-controlling interest -23
Slide 27: Way Forward
03 WAY FORWARD IZAK PETERSEN CEO Corporate Interim Results for the six months ended Park - Limpopo 29 February 2024 27
Slide 28: Way Forward
WAY FORWARD Lower interest rates expected later in 2024 Delay in The Atrium scheme affecting 2024 performance Benefits of solar to filter through in the 2025 financial year Second half impacted by lower government renewals, but stable performance expected in the office portfolio in 2025 and beyond F
Slide 29: Questions & Answers
04 QUESTIONS & ANSWERS Carnation Interim Results for the six months Place ended - Gauteng 29 February 2024 29
Slide 30: Annexures
05 ANNEXURES Interim Results for the six months 14 Kramer ended - Gauteng 29 February 2024 30
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
Slide 32: Geographic Snapshot
GEOGRAPHIC SNAPSHOT Retail 83 Limpopo 10 3 Office 34 166 Industrial 45 Gauteng 51 27 30 4 Residential 4 North West Mpumalanga 6 1 3 1 2 Free State KwaZulu-Natal 3 2 5 6 Northern Cape 1 Eastern Cape 3 4 Western Cape 1 1 2 Interim Results for the six months ended 29 February 2024 32
Slide 33: Total Portfolio - Key Indicators
TOTAL PORTFOLIO ‒ KEY INDICATORS Sectoral split Portfolio Total GLA Average WALE value property size by GLA # 3% 4% Retail 15% R9.4 bn * 879 007m² 5 295m² 2.7 years Office 34% 48% BY GROSS BY GLA 17% INCOME Industrial Feb 2023: 64% Feb 2023: R9.2bn 915 243m² Feb 2023: 5 113m² Feb 2023: 2.3 years Res
Slide 34: Retail Portfolio - Key Indicators
RETAIL PORTFOLIO ‒ KEY INDICATORS Average WALE Portfolio value Total GLA property size by GLA R6.0 bn* 419 164m² 5 050m² 3.0 years Feb 2023: R6.0bn Feb 2023: 444 295m² Feb 2023: 4 628m² Feb 2023: 2.5 years Average Average value property value per m² by GLA Tenant retention Vacancy R73m R14 412 87% 5
Slide 35: Office Portfolio - Key Indicators
OFFICE PORTFOLIO ‒ KEY INDICATORS Average WALE Portfolio value* Total GLA property size by GLA R1.7 bn 129 487m² 3 808m² 3.0 years Feb 2023: R1.7bn Feb 2023: 130 348m² Feb 2023: 3 834m² Feb 2023: 1.5 years Average Average value Tenant retention Vacancy property value per m² by GLA R49m R12 892 94% 2
Slide 36: Industrial Portfolio - Key Indicators
INDUSTRIAL PORTFOLIO ‒ KEY INDICATORS Average WALE Portfolio value* Total GLA property size by GLA R1.3 bn 300 761m² 6 684m² 2.2 years Feb 2023: R1.2bn Feb 2023: 311 076m² Feb 2023: 6 913m² Feb 2023: 3.3 years Average Average value Tenant retention Vacancy property value per m² by GLA R28m R4 195 86
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 21 478 382 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 38: 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 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 21 478 382 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 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 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 41: 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