Dipula Properties Limited Class B · JSE:DIB
Dipula Properties Limited Class B — Dipula Income Fund — H1 2013 Earnings Presentation
50 slides from Dipula Properties Limited Class B's earnings presentation, Feb 28, 2013
Slide 1: Interim Results Presentation
INTERIM RESULTS PRESENTATION 28 FEBRUARY 2013 Izak Petersen Chief Executive Officer Brigitte De Bruyn Financial Director
Slide 2: Agenda
AGENDA • Overview Izak Petersen • Property Portfolio Izak Petersen • Acquisitions Izak Petersen • Developments Izak Petersen • Interim Results Brigitte De Bruyn • In Conclusion Izak Petersen Interim Results [28 February 2013] 2
Slide 3: Overview
OVERVIEW 01 Interim Results [28 February 2013] 3
Slide 4: Dipula at a Glance
OVERVIEW DIPULA AT A GLANCE (28 MAY 2013) Company name Dipula Income Fund Limited Share codes DIA and DIB Nature of business Property Loan Stock Company JSE Sector Financial Services – Real Estate 17 August 2011 Listing date (in operation since 2005) R2.9 billion Property portfolio size (R4.3 billio
Slide 5: Overview continued: Highlights
OVERVIEW continued HIGHLIGHTS • Acquired a portfolio of R737 million • Successfully raised R650 million of new equity to fund acquisitions and widened unit holder base • Appointed two new asset managers • Reduced vacancies from 10.4% to 9.8%, even with some tenants vacating • Sold 16 non-core assets
Slide 6: Unit Price Since Listing vs. Sector
OVERVIEW continued UNIT PRICE SINCE LISTING VS. SECTOR DIA : + 34.03% DIB : + 94.10% JSE Real Estate Investment Services : + 58.12% 120 100 80 Returns in % 60 40 20 0 -20 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Feb 13 May 13 Source : Bloomberg Interim Results [28 February 2013] 6
Slide 7: Unit Price Appreciation Since Listing
OVERVIEW continued UNIT PRICE APPRECIATION SINCE LISTING DIA DIB 1 400 1 200 Share price (cents) 1 000 800 600 400 200 0 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Feb 13 May 13 Source : Bloomberg Interim Results [28 February 2013] 7
Slide 8: Daily Average Volume Traded
OVERVIEW continued 15 DAY DAILY AVERAGE VOLUME TRADED DIA Average Daily Volume (15D) : 79 258 DIB Average Daily Volume (15D) : 188 000 9 Daily volume (millions) 6 3 0 Aug 11 Nov 11 Feb 12 May 12 Aug 12 Nov 12 Feb 13 May 13 Source : Bloomberg Interim Results [28 February 2013] 8
Slide 9: Liquidity
OVERVIEW continued LIQUIDITY Shares in issue : 105 532 393/143 524 183 DIA DIB 16% 12% 8% 4% 0% 11 July 2011 to 1 Sept 2011 to 1 March 2012 to 1 Sept 2012 1 Mar 2013 31 August 2011 29 Feb 2012 31 August 2012 to 28 Feb 2013 to date Source : Bloomberg and Mergence Africa Capital Interim Results [28 Fe
Slide 10: Property Portfolio
PROPERTY PORTFOLIO 02 Interim Results [28 February 2013] 10
Slide 11: Geographic Spread
PROPERTY PORTFOLIO GEOGRAPHIC SPREAD Interim Results [28 February 2013] 11
Slide 12: Geographic Spread
PROPERTY PORTFOLIO continued GEOGRAPHIC SPREAD By rentable area By gross rental income Eastern Cape 5.7% Free State 7.2% Gauteng 5.5% Kwa Zulu Natal 5.8% 2.6% 1.6% Limpopo 2.9% 0.4% 1.6% Mpumalanga 4.8% 0.3% North West 2.3% 1.8% 2.4% Northern Cape 73.0% 4.6% 73.5% Western Cape 4.0% Interim Results [
Slide 13: Sectoral Spread
PROPERTY PORTFOLIO continued SECTORAL SPREAD By rentable area By gross rental income 26% 36% Retail 50% Industrial 52% Offices 24% 12% Interim Results [28 February 2013] 13
Slide 14: Lease Expiry Profile by Rentable Area
PROPERTY PORTFOLIO continued LEASE EXPIRY PROFILE BY RENTABLE AREA 100 000 80 000 60 000 40 000 20 000 0 Vacancy Monthly and Aug 2013 Aug 2014 Aug 2015 Aug 2016 Aug 2017 Beyond 2017 expired Retail Industrial Offices Total Interim Results [28 February 2013] 14
Slide 15: Lease Expiry Profile by Gross Rental Income
PROPERTY PORTFOLIO continued LEASE EXPIRY PROFILE BY GROSS RENTAL INCOME 8 000 000 6 000 000 4 000 000 2 000 000 0 Monthly and Aug 2013 Aug 2014 Aug 2015 Aug 2016 Aug 2017 Beyond 2017 expired Retail Industrial Offices Total Interim Results [28 February 2013] 15
Slide 16: Vacancy Profile by Rentable Area
PROPERTY PORTFOLIO continued VACANCY PROFILE BY RENTABLE AREA 28 February 2013 31 August 2012 8% 10% 12% Retail 15% Industrial Offices 13% 7% • 31 August 2012 : Overall vacancy 10.4% • 27 May 2013: Overall vacancy 9.8% Interim Results [28 February 2013] 16
Slide 17: Lease Profile as at February 2013
PROPERTY PORTFOLIO continued LEASE PROFILE AS AT 28 FEBRUARY 2013 New deals Retail Industrial Offices Total Number of leases 26 8 9 43 Value of leases (R) 12 956 655 14 425 839 2 438 197 29 820 690 Weighted average gross rental (R m²) 65.70 35.98 67.94 48.10 Total GLA let (m²) 5 080 9 061 1 027 15 1
Slide 18: Major Leases Concluded
PROPERTY PORTFOLIO continued MAJOR LEASES CONCLUDED Building Tenant GLA Carrier Metraclark Catervent 7 115 Arbeid Street Velocity Furniture 5 478 5th Street Corner Wynberg Light Kinetics (Pty) Ltd 2 100 139 Sixth Street Various 1 530 6 Old Pretoria Road Cranelink Zoomlion 1 518 139 Sixth Street Stee
Slide 19: Refurbishments, Extensions and Redevelopments
PROPERTY PORTFOLIO continued REFURBISHMENTS, EXTENSIONS AND REDEVELOPMENTS GLA Refurbishment/ Extension/ Value Property Sector Location (m2) Redevelopment (R) Kopanong Retail Tembisa, Gauteng 4 024 Refurbishment/ Extension R5 million Score Ivory Park Retail Ivory Park, Gauteng 1 504 Refurbishment/ E
Slide 20: Acquisitions
ACQUISITIONS 03 Interim Results [28 February 2013] 20
Slide 21: Acquisitions
ACQUISITIONS GLA Announced Transferred Awaiting transfer Developments Post listing acquisitions Sector Location (m2) (R) (R) (R) (R) Yield Bochum and Blouberg Plaza Retail Limpopo 12 529 117 207 584 117 207 584 9.5% Nquthu Plaza Retail KZN 14 972 136 701 303 136 701 303 9.5% SAPS VIP Office Gauteng
Slide 22: Impact of Acquisitions
ACQUISITIONS continued IMPACT OF ACQUISITIONS Per prospectus – Post implementation August 2011 of the acquisitions (actual) Acquisitions Disposals (anticipated) Number of properties 175 24 16 183 2 Total GLA (m ) 436 626 231 836 25 389 643 073 Total value (R’000) 2 109 000 2 290 000 42 750 4 356 000
Slide 23: Gezina Galleries
ACQUISITIONS continued GEZINA GALLERIES Region: Pretoria North Sector: Retail Anchors: Shoprite Value: R159 330 000 GLA (m²): 17 053 Vacancy %: 0% Weighted average rental per m²: R86.13 Weighted average lease escalation: 7.4% Capital value per m²: R9 343 Interim Results [28 February 2013] 23
Slide 24: Ziyabuya
ACQUISITIONS continued ZIYABUYA Region: Port Elizabeth Sector: Retail Anchors: Shoprite Value: R116 000 000 GLA (m²): 14 584 Vacancy %: 0% Weighted average rental per m²: R70.00 Weighted average lease escalation: 7.5% Capital value per m²: R7 954 Interim Results [28 February 2013] 24
Slide 25: Blackheath Pavilion
ACQUISITIONS continued BLACKHEATH PAVILION Region: Gauteng Sector: Retail Anchors: Sportsmans Warehouse Value: R70 500 000 GLA (m²): 6 269 Vacancy %: 2% Weighted average rental per m²: R96.60 Weighted average lease escalation: 8% Capital value per m²: R11 246 Interim Results [28 February 2013] 25
Slide 26: Shoprite Pretoria North
ACQUISITIONS continued SHOPRITE PRETORIA NORTH Region: Pretoria North Sector: Retail Anchors: Shoprite Value: R76 640 000 GLA (m²): 6 477 Vacancy %: 0% Weighted average rental per m²: R76.73 Weighted average lease escalation: 7% Capital value per m²: R11 833 Interim Results [28 February 2013] 26
Slide 27: Woodmead Super Value
ACQUISITIONS continued WOODMEAD SUPER VALUE Region: Gauteng Sector: Retail Anchors: Sportsmans Warehouse Value: R104 660 000 GLA (m²): 7 175 Vacancy %: 0% Weighted average rental per m²: R148.90 Weighted average lease escalation: 9% Capital value per m²: R14 587 Interim Results [28 February 2013] 27
Slide 28: Woodmead Square
ACQUISITIONS continued WOODMEAD SQUARE Region: Gauteng Sector: Retail Anchors: Baby City Value: R31 900 000 GLA (m²): 2 945 Vacancy %: 0% Weighted average rental per m²: R116.36 Weighted average lease escalation: 8% Capital value per m²: R10 832 Interim Results [28 February 2013] 28
Slide 29: Developments
DEVELOPMENTS 04 Interim Results [28 February 2013] 29
Slide 30: Orange Farm Phase
DEVELOPMENTS ORANGE FARM PHASE 2 Interim Results [28 February 2013] 30
Slide 31: Orange Farm Phase
DEVELOPMENTS continued ORANGE FARM PHASE 2 NORTH ELEVATION SOUTH ELEVATION Interim Results [28 February 2013] 31
Slide 32: Orange Farm Phase - Centre Value Drivers
DEVELOPMENTS continued ORANGE FARM PHASE 2 - CENTRE VALUE DRIVERS • Located in Orange Farm, Gauteng • Mall size is 27 000m² growing to 35 000m² • Identified as a presidential project • Community to own 10% of the property • Expected to open in October 2014 • Population size is 400 000 with 110 000 h
Slide 33: Tembisa Mega Mart
DEVELOPMENTS continued TEMBISA MEGA MART Interim Results [28 February 2013] 33
Slide 34: Tembisa Mega Mart - Centre Value Drivers
DEVELOPMENTS continued TEMBISA MEGA MART- CENTRE VALUE DRIVERS • Located in Tembisa, Gauteng • Mall size is approximately 14 000m² • Total warrented retail in the area is 90 000m² • Major tenants are Pick n Pay, Pick n Pay Liquor, Tile Africa, Nedbank • Expected to open in April 2014 Interim Results
Slide 35: Tower Mall
DEVELOPMENTS continued TOWER MALL Interim Results [28 February 2013] 35
Slide 36: Tower Mall - Centre Value Drivers
DEVELOPMENTS continued TOWER MALL - CENTRE VALUE DRIVERS • Located in Jouberton, Klerksdorp • Anchored by Shoprite • Major tenant: Shoprite, Clicks, Cashbuild, Standard Bank, FNB, Lewis, Old Mutual Bank, Pep, Mr Price, Jet, etc. • Expected to open at the end of September 2013 • Number of people with
Slide 37: Tsakane Corner Shopping Centre
DEVELOPMENTS continued TSAKANE CORNER SHOPPING CENTRE Interim Results [28 February 2013] 37
Slide 38: Tsakane Corner Shopping Centre - Centre Value Drivers
DEVELOPMENTS continued TSAKANE CORNER SHOPPING CENTRE - CENTRE VALUE DRIVERS • Located in Tsakane, Gauteng • The population size is estimated at 186 500 with an estimated 46 800 households • Tsakane township continues to grow at an average growth rate of 5% per annum • Mall size is 5 941m² • Anchore
Slide 39: Interim Results
INTERIM RESULTS 05 Interim Results [28 February 2013] 39
Slide 40: Salient Financial Features
INTERIM RESULTS SALIENT FINANCIAL FEATURES • Rental income ▲ 11.8% • Net Property Income ▲ 18.5% • Distributable Earning ▲ 44.1% • Distribution growth per A unit ▲ 5.0% • Distribution growth per B unit ▲ 7.4% • Assets ▲ 36.2% • Gearing remained stable at approximately 30% • A-linked units 41,669 cen
Slide 41: Income Statement Extracts
INTERIM RESULTS continued INCOME STATEMENT EXTRACTS 28 Feb 2013 (R’000) 28 Feb 2012 (R’000) Change (%) Property portfolio rental income 153 649 137 417 11.8 Property expenses (27 218) (30 755) 11.5 Net property income 126 431 106 662 18.5 Administration and corporate costs (6 590) (4 964) 32.7 Net i
Slide 42: Statement of Financial Position Extracts
INTERIM RESULTS continued STATEMENT OF FINANCIAL POSITION EXTRACTS 28 Feb 2013 (R’000) 28 Feb 2012 (R’000) Change (%) Non-current assets 2 935 127 2 155 581 36.2 Current assets 242 517 98 277 Non-current assets held for sale 28 850 1 400 Total assets 3 206 494 2 255 258 42.1 Non-current Interest bea
Slide 43: Debt Structure at February 2013
INTERIM RESULTS continued DEBT STRUCTURE AT 28 FEBRUARY 2013 Facility details Facilities in place 1 507 700 Facilities utilised 949 200 Weighted average cost of borrowing 8.47% Gearing 30.1% Current level of debt at fixed rates 77% Length of fixes 2-4 years Interim Results [28 February 2013] 43
Slide 44: Cash Flows
INTERIM RESULTS continued CASH FLOWS FOR THE YEAR ENDED 28 FEBRUARY 2013 28 Feb 2013 (R’000) Opening balance 162 153 Generated by operating activities 11 460 Investments (466 764) Funding raised 519 464 Closing cash 226 313 Interim Results [28 February 2013] 44
Slide 45: Performance
INTERIM RESULTS continued PERFORMANCE Retail (R’000) Industrial (R’000) Offices (R’000) Total (R’000) Total revenue from property portfolio 86 811 21 063 45 775 153 649 Property expenses (18 691) (5 070) (3 457) (27 218) Net property income 68 120 15 993 42 318 126 431 Investment property 1 489 964
Slide 46: In Conclusion
IN CONCLUSION 06 Interim Results [28 February 2013] 46
Slide 47: Economic Outlook
IN CONCLUSION ECONOMIC OUTLOOK • No immediate economic recovery in sight • GDP expected to grow by 2.4% to 3.0% in 2013 • High wage demands on the cards • Electricity supply side concerns continue • Inefficient municipalities are a concern • Rand weakness could have a negative impact as foreigners s
Slide 48: Prospects and Way Forward
IN CONCLUSION continued PROSPECTS AND WAY FORWARD • Certain transfers took longer than anticipated which impacted growth but will be positive going forward • Tenant retention and letting of vacancies • High wage settlements may provide support • Electricity efficiency and cost containment • Selectiv
Slide 49: Prospects and Way Forward
IN CONCLUSION continued PROSPECTS AND WAY FORWARD • Liquidity and tradability still a priority • Grow portfolio to R10 billion in the next 4 to 6 years (Average of R50 million) • Management expects growth of 6.5% to 7.5% Interim Results [28 February 2013] 49
Slide 50: Thank You
THANK YOU 07 Interim Results [28 February 2013] 50