Dipula Properties Limited Class B · JSE:DIB
Dipula Properties Limited Class B — Corporate Update (August 2020)
14 slides from Dipula Properties Limited Class B's corporate update, Aug 26, 2020
Slide 1: Pre-Close Business Update
Sustainable Property Returns PRE-CLOSE BUSINESS UPDATE FOR THE YEAR ENDING 31 AUGUST 2020
Slide 2: Disclaimer
DISCLAIMER Certain statements contained in this document constitute forward-looking information. Forward-looking information may relate to Dipula Income Fund Limited (“the Company”) future outlook and anticipated events or results and may include statements regarding the financial position, business
Slide 3: Agenda
AGENDA 01 TRADING ENVIRONMENT 02 B US I N E S S UPDATE 03 WA Y F O R W A R D SUSTAINABLE STABLE CONSISTENT RESOURCEFUL DIVERSIFIED DISCIPLINED PRE-CLOSE BUSINESS UPDATE FOR THE PERIOD ENDING 31 AUGUST 2020 03
Slide 4: Consistent
CONSISTENT TRADING ENVIRONMENT BUSINESS U P D A T E PRE-CLOSE BUSINESS UPDATE F O R T H EW P EARY FO IOD E NR D IW N GA3R 1 D AUGUST 2020
Slide 5: Trading Environment
TRADING ENVIRONMENT ▪ Coping with Covid19 ▪ Heightened risk aversion ▪ Slower pace of space absorption ▪ Slower collections ▪ Increased business failures ▪ Difficult capital allocation decisions ▪ Macro-economic and socio-political factors resulting in lower business confidence and slow decision mak
Slide 6: Stable
STABLE TRADING ENVIRONMENT PRE-CLOSE BUSINESS UPDATE BUSINESS U P D A T E F O R T H EW P EARY FO IOD E NR D IW N GA3R 1 D AUGUST 2020
Slide 7: Business Update
BUSINESS UPDATE Balance sheet Leasing ▪ Gearing 39% ▪ New leases concluded 25 736m² ▪ Refinanced facilities of R109 million on a short-term ▪ Vacating tenants 29 950m² basis and approximately R1 billion to be refinanced ▪ Total renewals 36 875m² over the next 12 months ▪ Current vacancy 7.7% (Feb 20
Slide 8: Retail (1 March 2020 - July 2020)
RETAIL (1 March 2020 - 31 July 2020) New Leases Renewals ▪ 14 680m² let (57 deals) ▪ 15 033m² renewed (50 deals) ▪ Average lease period 3 years ▪ Average lease period 4 years ▪ Rentals in line with budget but below asking rentals ▪ 1% positive reversion rate and 7% higher than budget by 4% ▪ Weighte
Slide 9: Office (1 March 2020 - July 2020)
OFFICE (1 March 2020 - 31 July 2020) New Leases Renewals ▪ 3 290m² let (6 deals) ▪ 14 279m² renewed (9 deals) ▪ Average lease period 3.7 years ▪ Average lease period 2 years ▪ Rentals below asking and budgeted rentals by 14% ▪ 9% positive reversion rate and 15% higher than budget ▪ Weighted average
Slide 10: Industrial (1 March 2020 - July 2020)
INDUSTRIAL (1 March 2020 - 31 July 2020) New Leases Renewals ▪ 7 766m² let (6 deals) ▪ 7 563m² renewed (5 deals) ▪ Average lease period 2.3 years ▪ Average lease period 2 years ▪ Rentals in line with asking and budgeted rentals ▪ 14% positive reversion rate and 33% higher than budget ▪ Weighted aver
Slide 11: Collections vs Gross Billings
COLLECTIONS VS GROSS BILLINGS Rental relief to 1 July 2020 R25.1 million (Discounts R21.5 million, deferrals R3.6 million) 140% 120% 115% 115% 101% 97% 97% 96% 96% 98% 100% 94% 92% 91% 88% 89% 87% 88% 86% 86% 86% 86% 84% 79% 80% 72% 69% 63% 60% 40% 20% 0% April May June July August 5 months Aggregat
Slide 12: Diversified
DIVERSIFIED TRADING ENVIRONMENT PRE-CLOSE BUSINESS UPDATE BUSINESS U P D A T E F O R T H EW P EARY FO IOD E NR D IW N GA3R 1 D AUGUST 2020
Slide 13: Way Forward
WAY FORWARD ▪ Not getting caught up in the negativity of the situation ▪ Focus on today, work on tomorrow and forget about what could’ve been ▪ Focus on maximising free cashflows and balance sheet preservation ▪ Our tenants survival is inextricably linked to ours ▪ We need to adapt, adjust and suppo
Slide 14: Thank You
THANK YOU CONSISTENT PRE-CLOSE BUSINESS UPDATE FOR THE PERIOD ENDING 31 AUGUST 2020