INVESTOR PRESENTATION October 2012 DISCLAIMER This document has - - PowerPoint PPT Presentation

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INVESTOR PRESENTATION October 2012 DISCLAIMER This document has - - PowerPoint PPT Presentation

INVESTOR PRESENTATION October 2012 DISCLAIMER This document has been prepared and issued by and is the sole responsibility of the management of Dipula Income Fund Limited (th e Company or Dipula) and its subsidiaries. No information


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SLIDE 1

INVESTOR PRESENTATION

October 2012

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SLIDE 2

DISCLAIMER

This document has been prepared and issued by and is the sole responsibility of the management of Dipula Income Fund Limited (the “Company”

  • r “Dipula”) and its subsidiaries. No information made available in connection with this presentation may be passed on, copied, reproduced, in

whole or in part, or otherwise disseminated, directly or indirectly, to any other person. The contents of this presentation are to be kept confidential. Neither this document nor the fact of its distribution should be regarded as a recommendation regarding the securities of the Company or an investment therein. Investors and prospective investors in securities of the Company are required to make their own independent investigation and appraisal of the business and financial condition of the Company and the nature of the securities. This presentation and any materials distributed in connection with this presentation may include certain forward-looking statements, beliefs or

  • pinions, including statements with respect to the Company’s business, financial condition and results of operations. These statements, which

contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect”, “forecast” and words of similar meaning, reflect the Directors’ beliefs and expectations and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. No representation is made that any of these statements or forecasts will come to pass or that any forecast results will be achieved. There are a number

  • f factors that could cause actual results and developments to differ materially from those expressed or implied by these statements and forecasts.

Past performance of the Company cannot be relied on as a guide to future performance. Forward-looking statements speak only as at the date of this presentation and the Company expressly disclaims any obligations or undertaking to release any update of, or revisions to, any forward-looking statements in this presentation. No statement in this presentation is intended to be a profit forecast. As a result, you are cautioned not to place any undue reliance on such forward-looking statements. This document speaks as of the date hereof. No reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness, accuracy or fairness. This information is still in draft form and has not been legally verified. The financial information included herein is in draft form and unaudited. The Company, its advisers and each of their respective members, directors, officers and employees are under no obligation to update or keep current the information contained in this presentation, to correct any inaccuracies which may become apparent, or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law, and any opinions expressed in them are subject to change without notice. No representation or warranty, express or implied, is given by the Company, or any of its subsidiary undertakings or affiliates or directors, officers or any other person as to the fairness, accuracy or completeness of the information or opinions contained in this presentation and no liability whatsoever for any loss howsoever arising from any use

  • f this presentation or its contents otherwise arising in connection therewith is accepted by any such person in relation to such information.

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SLIDE 3

INDEX

Key investment highlights Management investment Share price performance Prospects Proposed offer Acquisitions summary Debt structure Property portfolio New property profiles

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SLIDE 4

KEY INVESTMENT HIGHLIGHTS

Listed on the JSE on 17 August 2011 with an initial portfolio of R2.1 billion

2012 distributions in line with forecasts

R1.38 billion of yield and portfolio enhancing post listing acquisitions

Excellent BEE credentials through black-owned asset manager and significant management shareholding

Geographically and sectorally diversified and defensive property portfolio with retail bias

Located in 9 provinces with majority of the portfolio located in the economic hub of Gauteng

Property management outsourced to Broll, JHI and McCormick

A and B units accommodate different risk and reward profiles

More growth opportunities presented by BEE status

Low asset management fees at 0.3%

Low average rentals with room for growth

Above inflation escalations

Some vacancy upside potential

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SLIDE 5

MANAGEMENT INVESTMENT

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Redefine Properties Limited disposed of 50 million Dipula B linked units to a trust controlled by Dipula management

Funded by significant equity contribution from management as well as third party debt

Increased management’s effective shareholding in Dipula to approximately 25%

Strongly aligns management’s interest with that of other Dipula unitholders

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SLIDE 6

SHARE PRICE PERFORMANCE

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  • 200

400 600 800 1 000 1 200 Cents DIPULA-A DIPULA-B

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SLIDE 7

PROSPECTS

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FY 2013 anticipated growth in distributions of between 7% and 9%*:

  • A unit secured preferential growth of 5%
  • B unit anticipated growth in distributions of between 9.7% and 14.3%

These forecasts do not include the impact of the acquisitions (other than Bochum and Blouberg Plaza and Nquthu Plaza), which acquisitions are anticipated to be income enhancing

Other opportunities include:

  • pipeline of developments with development partners
  • currently assessing various acquisitions in all three sectors
  • pportunity to become more cost efficient
  • revamp and upgrade opportunities to further improve the portfolio
  • sell underperforming assets

* - The information on which these projections have been based has not been reviewed or reported on by the company’s auditors

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SLIDE 8

PROPOSED OFFER

Issuer Dipula Income Fund Limited

Offer size Offer to raise between R450 million and R650 million

Offer structure Primary issue

Bookrunners Java Capital

Indicative timing Firm commitments by 16:00: Monday, 5 November 2012 Listing of new linked units: Monday, 12 November 2012

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SLIDE 9

ACQUISITIONS SUMMARY

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Post listing acquisitions Sector Location GLA (M2) Purchase price Status Acquisition yield Bochum and Blouberg Plaza Retail Bochum, Limpopo 12 529 117 207 584 Lodged 9.5% Nquthu Plaza Retail Nquthu, Kwa-Zulu Natal 14 972 136 701 303 Transferred 9.5% Plaza Shopping Centre Retail Phuthaditjhaba, Free State 25 720 179 500 000 Transfer expected 9.8% Randfontein Shopping Centre Retail Randfontein, Gauteng 5 935 46 200 000 Transfer expected 9.8% Bushbuckridge Shopping Centre Retail Bushbuckridge, Mpumalanga 16 203 104 180 000 Transfer expected 9.8% Absa Home Loans Office Pretoria, Gauteng 5 048 82 600 000 Transfer expected 10.0% SAPS VIP Office Pretoria, Gauteng 21 478 229 860 000 Transfer expected 10.0% SAPS IJS Office Pretoria, Gauteng 7 699 118 540 000 Transfer expected 10.0% Byron Place Office Pretoria, Gauteng 3 270 38 000 000 Transfer expected 10.0% Sterkolite building Industrial Rosslyn, Gauteng 12 782 78 000 000 Transfer expected 13.0% Orange Farm Retail Orange Farm, Gauteng 5 600 42 000 000 Transfer expected 9.25% Tower Mall Retail Jouberton, North West Province 15 283 152 713 025 Currently under development 9.85% Melki Portfolio Retail Kwa-Zulu Natal 6 900 57 000 000 Transfer expected 10.0% Total 153 419 1 382 501 912 10.0%*

* - Weighted average acquisition yield

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SLIDE 10

DEBT STRUCTURE

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Per 2011 Annual report – August 2011 (actual) Post implementation of the acquisitions (anticipated) Long-term borrowings (millions) R759.5m R1.2bn – R1.5bn Average interest rate 8.59% Approximately 8.5% Gearing 36% 36% to 42% Level of debt at fixed rates 80% 80% Length of fixes 4-5 years 3-5 years

Dipula will continue to conservatively manage interest rates and is currently investigating the debt capital market (bonds and commercial paper) for cheaper debt.

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SLIDE 11

PROPERTY PORTFOLIO

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Impact of the acquisitions on average property size and value

Per prospectus – August 2011 (actual) Acquisitions Post implementation

  • f the acquisitions

(anticipated)* Number of properties 175 14 189 Total GLA (m

2)

436 626 153 419 590 045 Total value R2.109 billion R1.383 billion R3.492 billion Average property size (m

2)

2 495 10 959 3 121 Average property value R12.049 million R98.750 million R18.391 million

* - pre disposals

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SLIDE 12

PROPERTY PORTFOLIO

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Impact of the acquisitions on geographic spread

Per prospectus – August 2011 (actual) Post implementation of the acquisitions (anticipated)

75% 5% 5% 5% 3% 2% 2% 2% 1% Gauteng Free State Kwa-Zulu Natal Mpumalanga Western Cape Eastern Cape Limpopo North West Northern Cape 66% 8% 7% 6% 2% 2% 4% 4% 1% Gauteng Free State Kwa-Zulu Natal Mpumalanga Western Cape Eastern Cape Limpopo North West Northern Cape

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SLIDE 13

PROPERTY PORTFOLIO

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Impact of the acquisitions on sectoral profile

Per prospectus – August 2011 (actual) Post implementation of the acquisitions (anticipated)

50% 27% 23% Retail Industrial Offices 55% 22% 23% Retail Industrial Offices

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SLIDE 14

NEW PROPERTY PROFILES

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Bochum and Blouberg Plaza

Region: Bochum, Limpopo Sector: Retail Anchors: Boxer and Cashbuild Cost: R 117 207 584 GLA (m2): 12 529 Vacancy %: 0% Weighted average rental per m2: R82.15 Weighted average lease escalation: 8% Cost per m2: R9 355 Weighted average remaining lease period: 3 years

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SLIDE 15

NEW PROPERTY PROFILES

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Nquthu Plaza

Region: Nquthu, Kwa-Zulu Natal Sector: Retail Anchors: Shoprite and Cashbuild Cost: R 136 701 303 GLA (m2): 14 972 Vacancy %: 1.9% Weighted average rental per m2: R77.73 Weighted average lease escalation: 7.5% Cost per m2: R9 130 Weighted average remaining lease period: 4.3 years

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SLIDE 16

NEW PROPERTY PROFILES

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The Plaza Shopping Centre

Region: Phuthaditjhaba, Free State Sector: Retail Anchors: Shoprite-Checkers, Pick n Pay and Bi-Bi Cash and Carry Value: R 179 500 000 GLA (m2): 25 720 Vacancy %: 1% Weighted average rental per m2: R74.35 Weighted average lease escalation: 8.1% Cost per m2: R6 979 Weighted average remaining lease period: 3.2 years

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SLIDE 17

NEW PROPERTY PROFILES

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Randfontein Shopping Centre

Region: Randfontein, Gauteng Sector: Retail Anchors: Shoprite-Checkers Value: R 46 200 000 GLA (m2): 5 935 Vacancy %: 8% Weighted average rental per m2: R79.00 Weighted average lease escalation: 7.4% Cost per m2: R7 784 Weighted average remaining lease period: 4 years

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SLIDE 18

NEW PROPERTY PROFILES

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Bushbuckridge Shopping Centre

Region: Bushbuckridge, Mpumalanga Sector: Retail Anchors: Shoprite-Checkers & Cashbuild Cost: R 104 180 000 GLA (m2): 16 203 Vacancy %: 0% Weighted average rental per m2: R62.80 Weighted average lease escalation: 8.8% Cost per m2: R6 430 Weighted average remaining lease period: 3.2 years

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SLIDE 19

NEW PROPERTY PROFILES

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ABSA Home Loans

Region: Arcadia, Pretoria Sector: Office Anchors: ABSA Cost: R 82 600 000 GLA (m2): 5 048 Vacancy %: 0% Weighted average rental per m2: R121.50 Weighted average lease escalation: 8.5% Cost per m2: R16 363 Weighted average remaining lease period: 5 years

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SLIDE 20

NEW PROPERTY PROFILES

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SAPS VIP

Region: Sunnyside, Pretoria Sector: Office Anchors: Department of Public Works Cost: R 229 860 000 GLA (m2): 21 478 Vacancy %: 0% Weighted average rental per m2: R91.00 Weighted average lease escalation: 9% Cost per m2: R10 702 Weighted average remaining lease period: 2.5 years

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SLIDE 21

NEW PROPERTY PROFILES

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SAPS IJS

Region: Erasmuskloof, Pretoria Sector: Office Anchors: Department of Public Works Cost: R 118 540 000 GLA (m2): 7 699 Vacancy %: 0% Weighted average rental per m2: R116.40 Weighted average lease escalation: 9% Cost per m2: R15 397 Weighted average remaining lease period: 2 years

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SLIDE 22

NEW PROPERTY PROFILES

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Byron Place

Region: Pretoria, Gauteng Sector: Office Anchors: DPW Cost: R 38 000 000 GLA (m2): 3 270 Vacancy %: 0% Weighted average rental per m2: R84.94 Weighted average lease escalation: 8.5% Cost per m2: R11 621 Weighted average remaining lease period: 7.4 years

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SLIDE 23

NEW PROPERTY PROFILES

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Sterkolite Building

Region: Rosslyn, Gauteng Sector: Specialised Anchors: DPW Cost: R 78 000 000 GLA (m2): 12 782 Vacancy %: 0% Weighted average rental per m2: R62.70 Weighted average lease escalation: 8% Cost per m2: R6 102 Weighted average remaining lease period: 8 years

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SLIDE 24

NEW PROPERTY PROFILES

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Orange Farm Phase 1

Region: Gauteng Sector: Retail Anchors: Cashbuild and Boxer Cost: R 42 000 000 GLA (m2): 5 600 Vacancy %: 0% Weighted average rental per m2: R62 Weighted average lease escalation: 7% (year 1 flat for Boxer and structured finance deal from Cashbuild, op costs esc @ 8%) Cost per m2: R7500 Weighted average remaining lease period: 12 years

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SLIDE 25

NEW PROPERTY PROFILES

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Tower Mall

Region: Jouberton, North West Province Sector: Retail Anchors: Shoprite and Cashbuild Cost: R 152 713 025 GLA (m2): 15 283 Vacancy %: 0% Weighted average rental per m2: R98.69 Weighted average lease escalation: 7% Cost per m2: R9 992 Weighted average remaining lease period: 5 years

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SLIDE 26

NEW PROPERTY PROFILES

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Melki Portfolio

Region: KZN Sector: Retail Anchors: Pick n Pay Cost: R57 000 000 GLA (m2): 6 900 Vacancy %: 0.5% Weighted average rental per m2: R83.96 Weighted average lease escalation: 6.7% Cost per m2: R8 261 Weighted average remaining lease period: 5.3 years