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 made available in connection with this presentation may be passed on, copie d, 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 opinions, including statements with respect to the Company’s business, financial condition and results of operations. These s tatements, which contain the words “anticipate”, “believe”, “intend”, “estimate”, “expect”, “forecast” and words of similar meaning, reflect t he 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 of 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 of this presentation or its contents otherwise arising in connection therewith is accepted by any such person in relation to such information. 2

INDEX Key investment highlights Management investment Share price performance Prospects Proposed offer Acquisitions summary Debt structure Property portfolio New property profiles 3

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 │ 4

MANAGEMENT INVESTMENT 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 │ 5

SHARE PRICE PERFORMANCE 1 200 1 000 800 600 Cents DIPULA-A DIPULA-B 400 200 - 6

PROSPECTS 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  opportunity 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 7

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 8

ACQUISITIONS SUMMARY Post listing acquisitions Sector Location GLA (M 2 ) Purchase price Status Acquisition yield Bochum and Blouberg Plaza Retail Bochum, Limpopo 12 529 117 207 584 Lodged 9.5% Retail Nquthu, Kwa-Zulu Natal 14 972 136 701 303 Transferred 9.5% Nquthu Plaza Retail Phuthaditjhaba, Free State 25 720 179 500 000 Transfer expected 9.8% Plaza Shopping Centre 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% Office Pretoria, Gauteng 21 478 229 860 000 Transfer expected 10.0% SAPS VIP 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% Retail Orange Farm, Gauteng 5 600 42 000 000 Transfer expected 9.25% Orange Farm Retail Jouberton, North West Province 15 283 152 713 025 Currently under development 9.85% Tower Mall 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 9

DEBT STRUCTURE Per 2011 Annual report – Post implementation of the August 2011 acquisitions (actual) (anticipated) R1.2bn – R1.5bn Long-term borrowings (millions) R759.5m 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. 10

PROPERTY PORTFOLIO Impact of the acquisitions on average property size and value Per prospectus – Post implementation August 2011 Acquisitions of the acquisitions (actual) (anticipated)* Number of properties 14 189 175 2 ) Total GLA (m 153 419 590 045 436 626 Total value R1.383 billion R3.492 billion R2.109 billion 2 ) Average property size (m 2 495 10 959 3 121 Average property value R98.750 million R18.391 million R12.049 million * - pre disposals 11

PROPERTY PORTFOLIO Impact of the acquisitions on geographic spread Per prospectus – August 2011 Post implementation of the acquisitions (actual) (anticipated) 2% 2% 1% Gauteng 3% 2% 1% 4% Gauteng 2% 4% 5% 2% Free State Free State 5% 6% Kwa-Zulu Natal Kwa-Zulu Natal 5% 7% Mpumalanga Mpumalanga Western Cape Western Cape Eastern Cape Eastern Cape 8% 66% Limpopo Limpopo 75% North West North West Northern Cape Northern Cape 12

PROPERTY PORTFOLIO Impact of the acquisitions on sectoral profile Per prospectus – August 2011 Post implementation of the acquisitions (actual) (anticipated) 23% 23% Retail Retail 50% Industrial Industrial 55% Offices Offices 22% 27% 13