PROSPECTS DISCUSSION STRATEGY 2 STRATEGY Lower risk by growing - - PowerPoint PPT Presentation

RESULTS PRESENTATION PROSPECTS DISCUSSION

STRATEGY

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STRATEGY

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• 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.

RESULTS FY2015

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ACTUAL RESULTS COMPARED TO LISTING FORECAST

Actual Forecast Distribution (cents / share) 28,99 26,6 Revenue (R’m) 157,8 147,5 Vacancies

¹ Monash excluded

2,95% 2,3%¹

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Other highlights include:

• Settlement achieved with Monash SA
• Ironwood fully let before end September

PORTFOLIO OVERVIEW

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DWELLING ON RESIDENTIAL

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3 690 residential units of which 454 units (12%) let to students. 9 469m² retail GLA attached to residential buildings.

36% 2% 11% 2% 4% 6% 12% 27%

GEOGRAPHICAL SPREAD

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Currently mainly Gauteng with about 12% in Mpumalanga

Resi unit spread

UNIT CATEGORIES / BUILDING TYPES

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Mostly walk-up type complexes and buildings (77%) with about 23% of units in high rise buildings.

7% 19% 17% 51% 6%

Residential unit types

Rooms Bachelors One bed Two Bed Three bed

PROPECTS – 2016 AND BEYOND

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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.

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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.

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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…

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THANK YOU QUESTIONS?

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