INTERIM RESULTS FOR THE SIX MONTHS ENDED 29 FEBRUARY 2020 - PowerPoint PPT Presentation

S u s t a i n a b l e P r o p e r t y R e t u r n s INTERIM RESULTS FOR THE SIX MONTHS ENDED 29 FEBRUARY 2020

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 strategy, budgets, projected costs, capital expenditures, financial results, taxes, plans and objectives of or involving the Company. Statements regarding future, performance, achievements, prospects or opportunities for the Company or the real estate industry are forward-looking statements. The Company has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs, including that the South African economy will remain stable over the next 12 months, that inflation will remain relatively low, that interest rates will remain stable, that tax laws remain unchanged, that conditions within the real estate market, including competition for acquisitions, will be consistent with the current climate, that the South African capital markets will provide the Company with access to equity and/or debt at reasonable rate when required. Although the forward-looking statements contained in this document are based upon assumptions that management of the Company beliefs are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company’s control, that may cause the Company’s or the industry’s actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in this document. The Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. These forward-looking statements are made as of 18 May 2020 and Dipula Income Fund Limited assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. 02 I N T E R I M R E S U L T S FOR T HE SIX MONT HS ENDED 29 FEBRUA R Y 2020

AGENDA 01 02 03 BUSINESS FINANCIAL WAY R E V I E W R E V I E W F O R W A R D 03 I N T E R I M R E S U L T S FOR T HE SIX MONT HS ENDED 29 FEBRUA R Y 2020

KEY CORPORATE INFORMATION JSE sector Real Estate Investment and Services: Diversified REITS Date listed 17 August 2011 Closing price (29 Feb 2020) DIA R8.85 | DIB R2.05 NAV per share Market capitalisation Portfolio size Gearing Debt R10.18 R2.9 billion R8.9 billion 40% R3.6 billion Interest rate Weighted average Asset & property Equity capital structure Credit rating hedge level interest rate management BBB (ZA) long term A & B shares 79% 9.24% In-house A3 (ZA) short term (different risk appetites) 04 I N T E R I M R E S U L T S FOR T HE SIX MONT HS ENDED 29 FEBRUA R Y 2020

GEOGRAPHIC SPREAD BY SECTOR TOTAL OF 190 PROPERTIES Gauteng Limpopo Retail 103 North West Office 34 63 29 33 15 3 18 Mpumalanga Industrial 53 7 1 125 8 7 Northern Cape 3 2 2 6 KwaZulu-Natal 12 1 1 5 7 Western Cape Free State 9 4 Eastern Cape 1 1 2 3 2 1 05 I N T E R I M R E S U L T S 5 4 FOR T HE SIX MONT HS ENDED 29 FEBRUA R Y 2020

01 BUSINESS REVIEW IZAK PETERSEN CEO FY 2020 P R O G R E S S P O R T F O L I O LI QUIDITY & V A L U A T I O N C O V I D - 1 9

FY 2020 PROGRESS Objective: Growth in dividends Improvement of Maintain gearing Solidify management SAPY inclusion per share share liquidity at FY2019 levels Progress: ▪ Work in progress ▪ Additional staff ▪ Work in progress Distributable ▪ Negatively impacted employed ▪ Setbacks due to Gearing improved earnings substantially by SA negative ▪ Improved asset prevailing market to 40% in line with objectives economic growth conditions management systems and COVID-19 07 I N T E R I M R E S U L T S FOR T HE SIX MONT HS ENDED 29 FEBRUA R Y 2020

01 BUSINESS REVIEW IZAK PETERSEN CEO FY 2020 P R O G R E S S P O R T F O L I O LI QUIDITY & V A L U A T I O N C O V I D - 1 9

TOTAL PORTFOLIO ‒ KEY INDICATORS Portfolio Total GLA Average WALE by SECTORAL SPLIT BY GROSS INCOME value property size GLA / income R8.5 bn * 916 593m² 4 824m² 3.5 / 2.9 Retail 65% 66% years Feb Feb 20% Office 2020 2019 20% 2019: 2019: R8.3bn 2019: 928 580m² 2019: 4 666m² 3.8 years by GLA Industrial 15% Average Average value Weighted average 14% escalation by GLA / property value per m² by GLA income GEOGRAPHIC SPLIT BY GROSS INCOME R45m R9 311 7.4% / 7.4% 2019: R42m 2019: R8 946 2019: 7.4% / 7.5% Feb Feb 2020 2019 Weighted average Tenant retention Vacancy gross rental by GLA (R/m²) / income 80% 5.8% R95.14 / Gauteng 64% Western Cape 3% Gauteng 64% Western Cape 3% R137.69 Limpopo 10% Mpumalanga 2% Limpopo 10% Mpumalanga 2% 28% Eastern Cape 9% Free State 1% Eastern Cape 8% Free State 2% KwaZulu-Natal 8% Northern Cape <1% KwaZulu-Natal 8% Northern Cape <1% 2019: R131.38 / 2019: 82% 2019: 8% North West 3% North West 3% R90.90 09 I N T E R I M R E S U L T S * Excluding NCI and land FOR T HE SIX MONT HS ENDED 29 FEBRUA R Y 2020

TOTAL PORTFOLIO ‒ LEASING LEASE EXPIRY PROFILE LEASE ACTIVITY (1 SEP 2019 – 29 Feb 2020) NEW LEASES GLA (000 m²) Rental (Rm) 400 30 Number of leases 78 25 Value of leases R94m Total GLA (m²) 20 822 349 Weighted average gross rental (R/m²) 93.49 18 300 20 17 Weighted average escalation 7.4% WALE 3.3 years 10 11 200 10 RENEWALS 167 148 Number of leases 112 100 0 Value of leases R276m 103 89 Total GLA (m²) 58 529 52 Weighted average expiry gross rental (R/m²) 88.18 Weighted average renewal gross rental (R/m²) 87.42 - -10 Vacant 2020 2021 2022 2023 After 2023 Weighted average escalation 6.5% Average renewal rate decrease -0.9% GLA (000 m²) Average monthly gross rental (Rm) WALE 2.8 years 010 I N T E R I M R E S U L T S FOR T HE SIX MONT HS ENDED 29 FEBRUA R Y 2020

RETAIL PORTFOLIO ‒ KEY INDICATORS Average WALE by Portfolio value* Total GLA property size GLA / income R5.5 bn 448 946m² 4 359m² 3.0 / 2.9 years 2019: 2019: R5.4bn 2019: 462 048m² 2019: 4 163m² 3.4 years by GLA Weighted average Weighted average Average Average value gross rentals gross rental property value per m² by GLA by income (R/m²) by GLA (R/m²) R53m R12 154 154.35 130.28 2019: 145.31 2019: 123.77 2019: R48m 2019: R11 621 Weighted average Weighted average Vacancy Tenant retention escalations escalation by income by GLA 74% 7.6% 7.4% 7.2% 2019: 7.5% 2019: 7.3% 2019: 8.0% 2019: 84% 11 I N T E R I M R E S U L T S * Excluding NCI and land FOR T HE SIX MONT HS ENDED 29 FEBRUA R Y 2020

RETAIL PORTFOLIO ‒ LEASING LEASE EXPIRY PROFILE LEASE ACTIVITY (1 SEP 2019 – 29 FEB 2020) GLA (000 m²) Rental (Rm) NEW LEASES 18 200 20 11 Number of leases 66 10 7 6 150 10 Value of leases R80m 16 594 Total GLA (m²) 132 100 0 Weighted average gross rental (R/m²) 92.74 89 77 Weighted average escalation 7.3% 50 -10 60 50 WALE 3.5 years 34 - -20 Vacant 2020 2021 2022 2023 After 2023 RENEWALS GLA (000 m²) Average monthly gross rental (Rm) Number of leases 90 Value of leases R168m Total GLA (m²) 24 617 Weighted average expiry gross rental (R/m²) 126.92 Weighted average renewal gross rental (R/m²) 129.68 Weighted average escalation 6.8% Average renewal rate increase 2.2% WALE 3.2 years 12 I N T E R I M R E S U L T S FOR T HE SIX MONT HS ENDED 29 FEBRUA R Y 2020

OFFICE PORTFOLIO ‒ KEY INDICATORS Average WALE by GLA / Portfolio value* Total GLA property size income 2.0 / 2.1 R1.8 bn 129 245m² 3 801m² years 2019: 2019: R1.7bn 2019: 131 010m² 2019: 3 743m² 2.0 years by GLA Average value Average Tenant retention Vacancy per m² by GLA property value 7.2% R54m R14 102 92% 2019: R49m 2019: R13 110 2019: 89% 2019: 7.9% Weighted average Weighted average Weighted average Weighted average escalations escalation gross rentals gross rental by income by GLA by income (R/m²) by GLA (R/m²) 7.4% 7.4% 147.44 134.40 2019: 7.3% 2019: 140.37 2019: 7.4% 2019: 126.75 13 I N T E R I M R E S U L T S * Excluding NCI and land FOR T HE SIX MONT HS ENDED 29 FEBRUA R Y 2020