58 slides from Dipula Properties Limited Class B's earnings presentation, November 2024
Slide 1: Annual Results for the year ended 31 August 2024
Annual Results for the year ended 31 August 2024
Slide 2: Business Update, Financial Update, Way Forward
01 BUSINESS 02 FINANCIAL 03 WAY UPDATE UPDATE FORWARD Montrose Place - Gauteng Annual Results for the year ended 31 August 2024
Slide 3: Key Corporate Information at 31 August 2024
KEY CORPORATE INFORMATION AT 31 AUGUST 2024 JSE sector Closing price Number of shares Real Estate Investment Date listed DIB R4.50 in issue and Services: Diversified REITs 17 August 2011 (2023: DIB R4.08) 912 001 700 NAV per share Market capitalisation Portfolio size Gearing Debt R6.98 R4.1 billion
Slide 4: FY2024 Strategic Priorities
FY2024 STRATEGIC PRIORITIES Objective Outcome Result LTV of between 35% - 40% and ICR of between 2.2 - 2.6 times LTV of 35.7% and ICR of 2.7 times Growth in portfolio valuations of between 0% and 3.5% Achieved growth of 4.8% year-on-year Achieved Keep portfolio vacancy below 10% Portfolio vacancy of
Slide 5: Business Update
01 BUSINESS IZAK PETERSEN UPDATE CEO Chilli Lane - Gauteng Annual Results for the year ended 31 August 2024
Slide 6: Business Update
BUSINESS UPDATE 165 Economic and market data 5-year growth trend properties GLA 879 010m² R10.2 bn Headline and core inflation in OECD countries (YoY % change) (i) R billion GLA (000 m²) Trading environment 12% 15 924 927 918 950 9% 886 879 900 Long-awaited drop in interest rates finally arrived 6
Slide 7: Business Update
BUSINESS UPDATE Performance Balance sheet Revenue R1.5bn +7% Portfolio value R10.2bn +4% (2023: R1.4 billion) (2023: R9.8bn) Distributable earnings R496m -4% Net Asset Value R6.4bn +5% (2023: R514 million) (2023: R6.1 bn) 157 new leases concluded * R214m 40 441m² Net debt increased R3.7bn +5% (2023:
Slide 8: Portfolio Leasing (Excluding Residential)
PORTFOLIO LEASING (EXCLUDING RESIDENTIAL) Lease expiry profile Lease activity GLA (000 m²) Rental (Rm) New leases 2024 2023 300 22 25 Number of leases 157 188 17 19 Value of leases (Rm) 214 288 16 20 200 15 Total GLA (m²) 40 441 50 344 207 9 173 Weighted average gross asking rental (R/m²) 110.93 113
Slide 9: Portfolio Valuation Comparison
PORTFOLIO VALUATION COMPARISON 2024 Total portfolio Average Average Average Like-for-like by value Exit Cap Rates Discount Rates value y-o-y Sector (%) (%) (%) R/m² (% Change) Retail 65 9.8 13.5 15 437 8.3 Office 16 10.2 14.2 12 717 (2.0) Industrial 15 10.7 14.3 3 472 (0.8) Residential 4 9.4 14.1 14
Slide 10: Retail Portfolio
RETAIL PORTFOLIO 83 GLA 419 324m² # R6.5bn # properties Overview Portfolio trends Valuation growth of 8% due to lower discount rates and growing rentals Portfolio vacancy decreased to 6.4% (2023: 7.5%) All tenant categories reported positive turnover growth Weighted average rentals per m²
Slide 11: Retail Portfolio
RETAIL PORTFOLIO Lease expiry profile Lease activity GLA (000 m²) Rental (Rm) New leases 2024 2023 100 15 18 Number of leases 127 149 13 80 12 15 Value of leases (Rm) 170 237 11 87 12 Total GLA (m²) 22 862 29 725 60 8 84 67 73 9 Weighted average gross asking rental (R/m²) 145.60 139.52 40 53 6 Weigh
Slide 12: Retail Portfolio
RETAIL PORTFOLIO Monthly trading densities and cost of occupation Y-o-Y Cost of GLA m² Trading density movement occupation Category % R/m² / month % % Food & Grocery 45 4 486 3 3 Fashion & Footwear 28 2 243 4 7 Restaurant & Fast Food 5 4 497 9 5 Health & Beauty 5 4 365 12 5 Liquor 2 8 056 8 2 Furnit
Slide 13: Retail Portfolio Revamps
RETAIL PORTFOLIO Revamps The Atrium Protea Point Shopping Centre Ziyabuya Shopping Centre Johannesburg CBD, Gauteng Johannesburg, Gauteng Kwadwesi, Eastern Cape Completion date: November 2024 Completion date: June 2025 Completion date: April 2025 Lease commencement: March – May 2025 Extension and fa
Slide 14: Office Portfolio
OFFICE PORTFOLIO 33 GLA 127 748m² # R1.6 bn # properties Overview Portfolio trends Valuations impacted by negative reversions Portfolio vacancy of 22.0% (2023: 15.0%) Office sector in better shape Weighted average rentals per m² by GLA R140.68 (2023: R156.51) Extremely limited sale activit
Slide 15: Office Portfolio
OFFICE PORTFOLIO Lease expiry profile Lease activity GLA (000 m²) Rental (Rm) New leases 2024 2023 50 5 Number of leases 16 27 4 4 40 4 Value of leases (Rm) 33 33 3 Total GLA (m²) 6 067 7 446 30 34 3 Weighted average gross asking rental (R/m²) 110.03 119.29 20 26 2 Weighted average gross rental achi
Slide 16: Industrial Portfolio
INDUSTRIAL PORTFOLIO 45 GLA 302 343m²# R1.3 bn# properties Overview Portfolio trends Industrial vacancies remain low in our portfolio and Portfolio vacancy of 2.8% (2023: 1.7%) industrywide Weighted average rentals per m² by GLA R43.40 (2023: R45.17) Industrial valuations reduced mainly due
Slide 17: Industrial Portfolio
INDUSTRIAL PORTFOLIO Lease expiry profile Lease activity GLA (000 m²) Rental (Rm) New leases 2024 2023 140 4 5 Number of leases 14 12 4 120 Value of leases (Rm) 11 18 4 100 3 Total GLA (m²) 11 512 13 173 80 127 3 Weighted average gross asking rental (R/m²) 42.54 51.36 2 60 2 Weighted average gross r
Slide 18: Residential Portfolio
RESIDENTIAL PORTFOLIO 4 GLA 28 828m² * R417 million properties Average rentals and unit size by asset NORWOOD PALM SPRINGS URBAN VILLAGE MIDRAND URBAN VILLAGE BRUMA Average Average Average Average Average Average Average Average Average Average Average Average Unit type rental rental unit size renta
Slide 19: Residential Portfolio
RESIDENTIAL PORTFOLIO Number of units and GLA per asset By unit type Unit size (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 Be
Slide 20: 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 Studio - - - 11% 2% 1 Bed - 8 1 3 12 1 Be
Slide 21: Business Update: ESG
BUSINESS UPDATE ESG R50 million investment in solar PV at 9 sites well progressed Water saving and storage initiatives in progress B-BBEE rating improved to level 4 Resources directed towards community CSI initiatives at centre level CSI initiatives focused on sports, education, drug aware
Slide 22: Financial Update
02 FINANCIAL UPDATE SUDESH MOODLEY CFO Urban Village Norwood - Gauteng Annual Results for the year ended 31 August 2024
Slide 23: Financial Highlights
FINANCIAL HIGHLIGHTS Revenue (excl. straight line) Net property income Distributable earnings Distributable earnings per share R1.5 billion R920 million R496 million 54.40 cents (Aug 2023: R1.4 billion) (Aug 2023: R901 million) (Aug 2023: R514 million) (Aug 2023: 56.96 cents) 3.7% 2.1% 3.5% 4.5% Inv
Slide 24: Distribution Statement
DISTRIBUTION STATEMENT 31 Aug 2024 31 Aug 2023 Variance R 000 R 000 Revenue 1 455 311 1 403 701 3.7% Rental income 1 110 320 1 111 308 (0.1%) Recoveries 344 991 292 393 18.0% Property expenses (576 045) (502 343) 14.7% Net property income 879 266 901 358 (2.5%) Administration and corporate costs (43
Slide 25: Distribution per Share (Cents)
DISTRIBUTION PER SHARE (CENTS) 60 -2.42 56,96 1,34 0,05 55 2,30 54,40 -1,64 -0,96 -0,57 -3,08 50 45 40 35 30 25 20 Aug 2023 Sold Gov Held Admin Net Non- Impact Aug 2024 properties reversions properties costs finance controlling of PY costs interest DRIP Net property income Distribution decrease = 4.
Slide 26: Sectoral Performance
SECTORAL PERFORMANCE Rental income & recoveries Property related expenses Net property income 4% 4% 5% 5% 3% 3% 14% 15% 9% 8% 17% 18% 17% 17% 15% 16% 14% 16% 67% 65% 69% 70% 66% 63% Aug 2024 Aug 2023 Aug 2024 Aug 2023 Aug 2024 Aug 2023 Retail Office Industrial Residential Annual Results for the year
Slide 27: Statement of Financial Position (Extracts)
STATEMENT OF FINANCIAL POSITION (EXTRACTS) 31 Aug 2024 31 Aug 2023 Variance R 000 R 000 Investment and held-for-sale properties * 10 189 029 9 772 651 4.3% Trade and other receivables 244 894 206 835 18.4% Loans receivable 5 881 6 122 (3.9%) Cash and cash equivalents 112 629 61 551 83.0% Derivative
Slide 28: Net Asset Value per Share (Cents)
NET ASSET VALUE PER SHARE (CENTS) 800 49 36 698 700 664 -1 -50 600 500 400 300 200 100 0 Aug Investment Share based Statutory Dividend Aug 2023 properties payments profits paid 2024 5% Increase in NAV per share Annual Results for the year ended 31 August 2024 28
Slide 29: Cash Flow
CASH FLOW ‒ Rm 31 AUGUST 2024 31 AUGUST 2023 62 Opening balance 64 830 Cash generated from operations 847 (353) Net finance cost (299) (484) Dividend paid (536) (14) Shares acquired in terms of share-based payment (16) 0 Dividend re-investment plan share exercise price 64 (150) Acquisitions and cape
Slide 30: Debt Facilities Maturity Profile
DEBT FACILITIES MATURITY PROFILE 50% Debt expiry Hedge expiry 40% 35,8% 37,2% 34,0% 30,2% 30,9% 32,0% 30% 20% 10% 0% FY2025 FY2026 FY2027 FY2028 FY2029 >FY2029 Debt All-in weighted average Weighted average Weighted average Debt syndication Debt repaid Liquidity hedged cost of debt debt expiry hedge
Slide 31: Way Forward
03 WAY FORWARD IZAK PETERSEN CEO Carnation Chilli PlaceLane - Gauteng - Gauteng Annual Results for the year ended 31 August 2024
Slide 32: Way Forward
WAY FORWARD Improving fundamentals for property driving better performance Strategic revamps preserve rentals and attract new tenancies Focus on reducing office vacancies Reduce dependence on Eskom and municipalities for utilities Roll out more solar PV, reduce water and electricity consumption Cont
Slide 33: Questions & Answers
04 QUESTIONS & ANSWERS 14 Kramer - Gauteng Annual Results for the year ended 31 August 2024
Slide 34: Annexures
05 ANNEXURES Corporate Park II - Limpopo Annual Results for the year ended 31 August 2024
Slide 35: 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 36: Geographic Snapshot
GEOGRAPHIC SNAPSHOT Limpopo Retail 83 10 3 Office 33 165 Gauteng 51 29 27 4 Industrial 45 North West Mpumalanga 6 1 3 1 2 Residential 4 KwaZulu-Natal Free State 5 6 3 2 Northern Cape 1 Eastern Cape 3 4 Western Cape 1 1 2 Annual Results for the year ended 31 August 2024 36
Slide 37: Total Portfolio ‒ Key Indicators
TOTAL PORTFOLIO ‒ KEY INDICATORS Sectoral split Portfolio Total GLA Average WALE by value property size income / GLA # 15% 65% Retail R9.8 bn 879 010m² 5 327m² 2.7 years / Office 2.7 years BY GROSS 17% 48% BY GLA INCOME 34% Industrial 2023: 885 612m² 2023: 2023: R9.4bn 2023: 5 209m² 2 years / 3 year
Slide 38: Retail Portfolio ‒ Key Indicators
RETAIL PORTFOLIO ‒ KEY INDICATORS* Average WALE by Portfolio value Total GLA property size income / GLA R6.5 bn 419 324m² 5 052m² 2.8 years / 3.0 years 2023: R6.1bn 2023: 425 313m² 2023: 4 945m² 2023: 3 years / 3 years Average Average value property value per m² by GLA Tenant retention Vacancy R79m
Slide 39: Office Portfolio ‒ Key Indicators
OFFICE PORTFOLIO ‒ KEY INDICATORS* Average WALE by Portfolio value Total GLA property size income / GLA R1.6 bn 127 748m² 3 871m² 2.5 years / 2.6 years 2023: R1.7bn 2023: 130 358m² 2023: 3 834m² 2023: 2 year / 2 years Average Average value Tenant retention Vacancy property value per m² by GLA R49m R
Slide 40: Industrial Portfolio ‒ Key Indicators
INDUSTRIAL PORTFOLIO ‒ KEY INDICATORS* Average WALE by Portfolio value Total GLA property size income / GLA R1.3 bn 302 343m² 6 719m² 2.3 years / 2.5 years 2023: R1.3bn 2023: 300 673m² 2023: 6 681m² 2023: 2 years / 2 years Average Average value Tenant retention Vacancy property value per m² by GLA R
Slide 41: Top Ten Properties by Value
TOP TEN PROPERTIES BY VALUE* Value Value Building name Region GLA m² Rm R/m² Gillwell Mall Eastern Cape 21 378 383 17 906 SAPS VIP Gauteng 21 478 353 16 426 Gezina Galleries Gauteng 16 956 348 20 506 Chilli Lane Gauteng 13 597 345 25 351 Seshego Circle Limpopo 15 619 341 21 813 Umzimkhulu Mall KwaZu
Slide 42: Top Ten Retail Properties
TOP TEN RETAIL PROPERTIES* Value Value Building name Region GLA m² Rm R/m² Gillwell Mall Eastern Cape 21 378 383 17 906 Gezina Galleries Gauteng 16 956 348 20 506 Chilli Lane Gauteng 13 597 345 25 351 Seshego Circle Limpopo 15 619 341 21 813 Umzimkhulu Mall KwaZulu-Natal 15 759 326 20 667 Nquthu Pla
Slide 43: 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 21 478 353 16 426 Avanti Office Park Western Cape 8 783 184 21 006 SAPS IJS Gauteng 7 874 124 15 761 Firestation Rosebank Gauteng 4 259 120 28 199 Carnation Place Gauteng 4 541 103 22 660 Valley View
Slide 44: 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 Limpopo 28 058 210 7 502 New Brighton Eastern Cape 24 515 184 7 497 Sterkolite Building Gauteng 12 782 87 6 775 Range Road Western Cape 12 287 78 6 356 Renaissance Park Gauteng 10 680 72 6 770 S
Slide 45: Residential Property
RESIDENTIAL PROPERTY Value Value Building name Region GLA m² Rm R/m² Urban Village Palm Springs Gauteng 18 796 249 13 242 Urban Village Bruma* Gauteng 5 288 87 16 452 Urban Village Midrand Gauteng 4 137 58 14 020 Urban Village Norwood* Gauteng 1 375 23 16 949 29 596 417 14 097 Percentage of total po
Slide 46: Geographic Profile – Total Portfolio
GEOGRAPHIC PROFILE – TOTAL PORTFOLIO* No of Average Value Value GLA m² Properties Rm Rm Gauteng 550 226 111 53 5 920 Limpopo 91 315 13 96 1 252 KwaZulu-Natal 117 217 11 99 1 089 Eastern Cape 133 248 7 129 906 North West 40 472 7 73 511 Western Cape 27 332 4 77 307 Mpumalanga 41 835 6 41 243 Free Sta
Slide 47: Geographic Profile – Retail
GEOGRAPHIC PROFILE – RETAIL* No of Average Value Value GLA m² Properties Rm Rm Gauteng 225 481 51 68 3 461 Limpopo 56 947 10 100 1 003 KwaZulu-Natal 49 902 5 191 954 Eastern Cape 42 811 3 198 594 North West 29 659 6 82 493 Mpumalanga 11 175 3 61 183 Free State 13 647 3 37 112 Western Cape 3 189 1 27
Slide 48: Geographic Profile – Office
GEOGRAPHIC PROFILE – OFFICE* No of Average Value Value GLA m² Properties Rm Rm Gauteng 112 772 29 48 1 389 Western Cape 8 783 1 185 185 Mpumalanga 3 916 1 33 33 Free State 3 875 2 14 28 Total 129 347 33 50 1 635 * Including NCI Annual Results for the year ended 31 August 2024 48
Slide 49: Geographic Profile – Industrial
GEOGRAPHIC PROFILE – INDUSTRIAL* No of Average Value Value GLA m² Properties Rm Rm Gauteng 182 376 27 24 653 Eastern Cape 90 437 4 78 312 Limpopo 34 368 3 83 249 KwaZulu-Natal 67 315 6 22 135 Western Cape 15 360 2 48 96 Mpumalanga 26 744 2 14 27 North West 10 813 1 18 17 Total 427 413 45 33 1 489 *
Slide 50: Geographic Profile – Residential
GEOGRAPHIC PROFILE – RESIDENTIAL* No of Average Value Value GLA m² Properties Rm Rm Gauteng 29 596 4 104 417 Total 29 596 4 104 417 * Including NCI Annual Results for the year ended 31 August 2024 50
Slide 51: Tenant Profile
TENANT PROFILE Tenant grading by Income Top 10 tenants by Income Shoprite Group 12% 17% Government and local authorities 9% A Pepkor Group 4% Pick n Pay 3% B Reclamation Holdings 3% 16% DSV 2% C Cashbuild 2% 67% Spar Group 2% Boxer Stores 2% ABSA Bank 1% 40% Tenant grading by GLA Top 10 tenants by G
Slide 52: Tenant Categories
TENANT CATEGORIES Supermarket & Wholesale % of GLA Fashion % of Gross Rental Banking & Financial Services Restaurants & Fast Food 1% <1% Building & Hardware 1%<1% 1% 2% Furniture & Appliances 1%1% 1% Speciality 3% 2% Health & Beauty 2% 2% 2% Services 2% 25% 2% 28% 2% Footwear 2% 2% Liquor 2% 2% Groc
Slide 53: Retail Portfolio by Type of Centre
RETAIL PORTFOLIO BY TYPE OF CENTRE Sector By Income By GLA 83% Retail centre 83% 74% 74% Mixed-use CBD 4% 8% Strip Retail 8% 9% 8% Stand-alone 3% 5% 1% 3% 9% 5% 4% Strip Retail CBD 1% 3% 3% 8% 1% 1% Other 1% 1% Total 100% 100% Annual Results for the year ended 31 August 2024 53
Slide 54: Office Portfolio Grading
OFFICE PORTFOLIO GRADING 83% Office Grading By Income By GLA 63% A-Grade 83% 63% B-Grade 17% 37% 37% Total 100% 100% 17% Annual Results for the year ended 31 August 2024 54
Slide 55: Industrial Portfolio by Type
INDUSTRIAL PORTFOLIO BY TYPE By Income By GLA 9% Light industrial 41% 60% 60% 8% Mini units 9% 8% 41% Warehousing & logistics 50% 32% 50% 32% Total 100% 100% Annual Results for the year ended 31 August 2024 55
Slide 56: Portfolio Space Exposure
PORTFOLIO SPACE EXPOSURE 79% By Income By GLA Mult-tenanted 79% 63% 63% Single-tenanted 21% 37% Total 100% 100% 37% 21% Annual Results for the year ended 31 August 2024 56
Slide 57: Sector Space Exposure
SECTOR SPACE EXPOSURE By Income Retail Office Industrial Residential Total Multi tenanted 96% 43% 42% 100% 79% Single tenanted 4% 57% 58% 0% 21% Total 100% 100% 100% 100% 100% By GLA Retail Office Industrial Residential Total Multi tenanted 91% 50% 31% 100% 63% Single tenanted 9% 50% 69% 0% 37% Tota
Slide 58: Disclaimer
DISCLAIMER Certain statements contained in this document constitute forward-looking information. Forward-looking information may relate to Dipula Income Fund Limited’s (“the Company”) future outlook and anticipated events or results and may include statements regarding the financial position, busine