RESULTS PRESENTATION PROSPECTS DISCUSSION
STRATEGY 2
STRATEGY • Lower risk by growing the portfolio, investing in a variety of residential categories and cater for various income groups. • Acquisitions to be yield enhancing. • Grow the portfolio to R3b by end September 2016. • Increase footprint nationally in areas where sustainable demand exists. • Outsource property management to experienced local property managers. • Minimum transaction value of R15m. • Maintain low gearing levels. • Grow distributions faster than market. 3
RESULTS FY2015 4
ACTUAL RESULTS COMPARED TO LISTING FORECAST Actual Forecast Distribution (cents / share) 28,99 26,6 Revenue ( R’m ) 157,8 147,5 Vacancies 2,95% 2,3%¹ ¹ Monash excluded Other highlights include: • Settlement achieved with Monash SA • Ironwood fully let before end September 5
PORTFOLIO OVERVIEW 6
DWELLING ON RESIDENTIAL 3 690 residential units of which 454 units (12%) let to students. 9 469m² retail GLA attached to residential buildings. 7
GEOGRAPHICAL SPREAD Currently mainly Gauteng with about 12% in Mpumalanga Resi unit spread 36% 27% 12% 11% 6% 4% 2% 2% 8
UNIT CATEGORIES / BUILDING TYPES Mostly walk-up type complexes and buildings (77%) with about 23% of units in high rise buildings. Residential unit types 6% 7% Rooms 19% Bachelors One bed Two Bed 51% 17% Three bed 9
PROPECTS – 2016 AND BEYOND 10
FINANCIAL YEAR 2016 • Distribution forecast increased 10,5% to 92,55 cents / share. • Raised R470m in book build in October 2015, increasing free float by 100% since listing. • Concluded deals (effective date 1 November 2015) 1. Residential portfolio acquired from Connaught Properties worth R420m. 2. Residential portfolio acquired from Prime Residential worth R68,5m. 3. Increases total number of residential units to over 5 000 units. 11
PROSPECTS • Demand for appropriately priced, well located and well managed rental units still far outstrips supply. • Potential acquisitions in Gauteng, KwaZulu-Natal and Western Cape primarily in the major cosmopolitan areas. • Currently finalizing acquisition of portfolios worth approximately R960m. • Portfolio currently ungeared – potential to fund new acquisitions with debt. 12
PROSPECTS / RECAP • Indluplace the only REIT totally focused on the residential sector. • Indluplace owns and will grow a diverse portfolio across locations, building types and income levels thereby further reducing risk. • Sector is low risk due to huge demand with many small tenants, thereby reducing risk of large lease expiries – compare office, retail and industrial sectors. • Indluplace, being relatively small, acquisitions will have material positive impact. • Indluplace should be trading below SAPY if above is taken into consideration… 13
THANK YOU QUESTIONS? 14
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