Dipula Properties Limited Class B · JSE:DIB
Dipula Properties Limited Class B — Dipula Income Fund — FY2013 Earnings Presentation
39 slides from Dipula Properties Limited Class B's earnings presentation, Aug 31, 2013
Slide 1: Year End Results 31 August 2013
YEAR END RESULTS 31 August 2013 An improving and expanding portfolio with inflation beating income growth Izak Petersen Chief Executive Officer Brigitte De Bruyn Financial Director
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Slide 3: Agenda
agenda Overview Izak Petersen Property Portfolio Izak Petersen Financial Results Brigitte De Bruyn Investor Profile and Share Performance Izak Petersen Prospects Izak Petersen Annexures 1-4 Year End Results 31 August 2013 | 1
Slide 4: Overview: Profile and Strategic Intent
build 1 OVERVIEW PROFILE • A REIT that has been listed since 2011 • 176 properties valued at R3.75bn with a total GLA of 550 656m² • A geographically and sectorally well diversified portfolio • 74% of portfolio by rentable area is located in Gauteng • Portfolio weighted towards retail at 54% by rent
Slide 5: Overview: Investment Proposition and Highlights for 2013
build OVERVIEW INVESTMENT PROPOSITION • Stable management team • Distribution growth history • Rapidly improving portfolio • Diversified portfolio • Size presents opportunity for rapid growth • Relative to sector, units are trading at forward yields that indicate potential capital appreciation • Low
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Slide 7: Property Portfolio
growth PROPERTY PORTFOLIO build
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Slide 9: Geographic Spread and Sector Split
growth 2 PROPERTY PORTFOLIO EXCELLENT GEOGRAPHIC SPREAD by Rentable area by Rental Income 0%0%2%2% 4%4%4%4% 2%2% 0%0% 4%4% 3%3% 2%2% 3%3% 2%2% 4%4% Eastern Eastern Cape Cape Eastern Eastern Cape Cap 5%5% 6%6% Free Free State State Free Free State State 5%5% 8%8% Gauteng Gauteng Gauteng Gauteng Kwa K
Slide 10: Portfolio Increase Through Acquisitions and Capital Growth
growth PROPERTY PORTFOLIO PORTFOLIO INCREASE THROUGH ACQUISITIONS AND CAPITAL GROWTH Sector Value of Portfolio 2013 Acquisitions 2013 Sales Value at Change in Portfolio 31 August 2012 Cost 31 August 2013 Value % Industrial 364 739 000 78 000 000 -11 320 000 449 625 000 23.3% Office 631 224 000 469 0
Slide 11: A Growing Improving Portfolio; Refurbishments and Redevelopments
growth PROPERTY PORTFOLIO A GROWING IMPROVING PORTFOLIO Per prospectus - August Acquisitions Disposals Post implementation of 2011 (actual) the aquisitions (anticipated) Number of properties 175 23 17 181 Total GLA (m2) 436 629 244 463 25 908 655 184 Total value (R’000) 2 109 000 2 204 177 59 146 4
Slide 12: Tenant Quality and Above-Inflation Escalations
growth PROPERTY PORTFOLIO GOOD QUALITY INCOME WITH A & B GRADE TENANTS OCCUPYING 85% OF TOTAL GLA Tenant Profile Industrial Office Retail Total GLA % of Total GLA % of Total by GLA Tenants A Grade 49 868 89 148 181 581 320 597 66% 34,70% B Grade 52 793 15 092 22 586 90 470 19% 20,70% C Grade 14 007
Slide 13: Reducing Vacancies and Retention Rate
growth PROPERTY PORTFOLIO REDUCING VACANCIES UNDER CONTROL 31 August 2013 7% 31 August 2012 7% 7% 9% 9% 15% 15% Retail Retail Retail 15% 15% 15% Industrial Industrial Industrial Offices Offices Offices 8% 8% 8% 11% 11% • 31 August 2013 : Overall vacancy 9.1% • 31 August 2012 : Overall vacancy 10.4%
Slide 14: Lease Expiry Profile
growth PROPERTY PORTFOLIO LEASE EXPIRY PROFILE BY RENTABLE AREA 160 000 140 000 120 000 100 000 80 000 Retail 60 000 Industrial 40 000 Offices 20 000 Total - 17 1- d 5 6 7 cy 4 le -1 -1 -1 20 3 -1 an al ug ug ug ug g- nd hb c -A -A -A -A Va Au eyo ot 31 31 31 31 M B LEASE EXPIRY PROFILE BY GROSS REN
Slide 15: Other Key Salient Portfolio Facts
growth PROPERTY PORTFOLIO OTHER KEY SALIENT PORTFOLIO FACTS • 76% of acquisitions (R1.7bn) since listing successfully transferred or in the process of transferring • Top 20 Properties are 48% of the portfolio by value, 32% of lettable space and 37% by rental income - Top 20 retail properties are 61%
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Slide 17: Financial Results
values FINANCIAL RESULTS income
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Slide 19: Income Statement Extracts
values 3 FINANCIALPROPERTY RESULTS PORTFOLIO INCOME STATEMENT EXTRACTS 31 Aug 2013 31 Aug 2012 Change (%) (R’000) (R’000) Property portfolio rental income 338 301 300 731 12.5 Property expenses (70 136) (58 080) 20.8 Net property income 268 165 242 651 10.5 Other Income 13 276 - - Administration and
Slide 20: Sectoral Performance
values FINANCIALPROPERTY RESULTS PORTFOLIO SECTORAL PERFORMANCE Retail (R’000) Industrial (R’000) Offices (R’000) Total (R’000) Total revenue from 182 963 45 893 109 445 338 301 property portfolio Property expenses -34 567 -10 888 -24 681 -70 136 Net property income 148 396 35 005 84 764 268 165 Inv
Slide 21: Statement of Financial Position Extracts
values PROPERTY FINANCIAL RESULTS PORTFOLIO STATEMENT OF FINANCIAL POSITION EXTRACTS 31 Aug 2013 31 Aug 2012 Change (%) (R’000) (R’000) Non-current assets 3 779 817 2 441 968 54.8 Current assets 88 071 188 665 Non-current assets held for sale 30 250 54 987 Total assets 3 898 138 2 685 620 45.1 Non-c
Slide 22: Debt Profile
values FINANCIALPROPERTY RESULTS PORTFOLIO DEBT PROFILE Facility Details Facilities in place 1 838 100 Facilities utilised 1 479 100 Weighted average cost of borrowing 7.96% Gearing 37.9% Current level of debt at fixed rates 74% Length of fixes 2-5 years DEBT EXPIRY PROFILE 40% 35% 31-Aug-13 30% 25%
Slide 23: Cash Flows for the Year Ended 31 August 2013
values PROPERTY FINANCIAL RESULTS PORTFOLIO CASH FLOWS FOR THE YEAR ENDED 31 AUGUST 2013 31 Aug 2013 (R’000) Opening balance 162 153 Generated by operating activities 272 812 Net interest paid -63 625 Distributions paid -179 354 Tax paid -28 -1 143 180 Investments Funding raised 1 005 310 Closing ca
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Slide 25: Investor Profile and Share Performance
expansion INVESTOR PROFILE AND SHARE PERFORMANCE develop
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Slide 27: A and B Unit Holder Profile
expansion 4 INVESTOR PROFILE PROPERTY AND SHAREPORTFOLIO PERFORMANCE A UNIT HOLDER PROFILE B UNIT HOLDER PROFILE Major - Beneficial Shareholders Major - Beneficial Shareholders Beneficial Shareholder Position % of ISC Beneficial Shareholder Position % of ISC 30/08/2013 30/08/2013 30/08/2013 30/08/20
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Slide 29: Prospects
future PROSPECTS build
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Slide 31: Key Goals for 2014 and Outlook
future 5 PROSPECTS PROPERTY PORTFOLIO KEY GOALS FOR 2014 • Continue with our acquisitive growth strategy • Get a credit rating and launch DCM programme • Maintain a solid Balance Sheet • Launch energy saving initiatives • Implement innovative tenant retention strategies • Investigate non GLA income
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Slide 33: Annexures
expansion ANNEXURES develop
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Slide 35: 76% of All Acquisitions Transferred/Transferring
annexures 6 PROPERTY ANNEXURE 1 PORTFOLIO 76% OF ALL ACQUISITIONS TRANSFERRED/TRANSFERRING Post listing Sector Location GLA(m2) Announced (R) Transferred/ Awaiting Develop- Yield Acquisitions Transferring (R) transfer(R) ments(R) Bochum and Retail Limpopo 12 529 117 207 584 117 207 584 9,5% Blouberg
Slide 36: Top Properties by Value
annexures PROPERTY ANNEXURE 2 PORTFOLIO TOP 20 PROPERTIES BY VALUE ARE 48% OF TOTAL PORTFOLIO Building Name Region Property Type GLA Value as at 31 Major Tenants No Tenants Aug 2013 SAPS VIP Gauteng Office 21 478 248 000 000 Dept Public Works 1 Shoprite Gezina Galleries Gauteng Retail 16 669 159 330
Slide 37: Top Tenants
annexures PROPERTY ANNEXURE 3 PORTFOLIO TOP 10 TENANTS ARE 43% OF RENTAL INCOME Tenant GLA Tenant Rental Income Department of Public Works 55 668 Department of Public Works Total 5 106 654 Shoprite Checkers 26 785 Absa Bank 1 770 560 Pick n Pay Retailers 19 371 Shoprite Checkers 1 661 965 Absa Bank
Slide 38: Top Vacancies
annexures PROPERTY ANNEXURE 4 PORTFOLIO TOP 10 VACANCIES Building Name Region Property Type GLA VACANCY (M²) 360 Pretoria Avenue Gauteng Office 4 185 4 185 Finance House Gauteng Office 7 631 4 038 Range Road Blackheath Western Cape Industrial 10 979 3 479 Perm Kempton Park Gauteng Office 3 528 2 771
Slide 39: Sustainable Property Returns
SUSTAINABLE PROPERTY RETURNS Dipula Income Fund Contacts Izak Petersen Chief Executive Officer Phone +27 11 325 2112 izak@dipula.co.za