Dipula Properties Limited Class B · JSE:DIB
Dipula Properties Limited Class B — FY2015 Earnings Presentation
24 slides from Dipula Properties Limited Class B's earnings presentation, Aug 31, 2015
Slide 1: Annual Results
ANNUAL RESULTS For the year ended 31 August 2015 2015 1 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 Eyethu Orange Farm Mall - Gauteng AGENDA 01 OVERVIEW 02 PORTFOLIO 03 FINANCIAL REVIEW 04 LOOKING AHEAD 2 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 1
Slide 2: Dipula at a Glance
01 OVERVIEW IZAK PETERSEN (CEO) 3 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 Eyethu Orange Farm Mall - Gauteng DIPULA AT A GLANCE Real Estate Investment and Services: JSE Sector Diversified REITS Date listed 17 August 2011 Closing price (31 Aug 2015) DIA R11.72 | DIB R11.15 Market capitalisation (
Slide 3: Our Portfolio at 31 August 2015
OUR PORTFOLIO AT 31 AUGUST 2015 Above-inflation Average Average value portfolio average 177 properties Total GLA property size per m² rental by GLA escalation 3 970m² R5.6bn 702 653m² by GLA 7.9% R31.4m R7 914 Geographic split by GLA Sectoral split by GLA 7% 8% Eastern Cape 3% 3% 3% 2% Free State 17
Slide 4: Highlights
HIGHLIGHTS Portfolio New Average size Strategic >700 000m² acquisition of asset revamps valued at 135 000m² acquired concluded concluded R5.6bn R1.2bn R86m R59m Current portfolio including new acquisitions subject to transfer >800 000m² valued at Acquisitions 57% growth R6.6bn R2.2bn year on year 7
Slide 5: Highlights - Wealth Creation ROI
HIGHLIGHTS 55% of GLA 2014: 55% Retail Portfolio 62% of revenue 2014: 51% 17% of GLA 2014: 23% Office Portfolio 23% of Revenue 2014: 40% 28% of GLA 2014: 22% Industrial Portfolio 15% of Revenue 2014: 9% 9 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 HIGHLIGHTS - WEALTH CREATION Actual ROI Guidance d
Slide 6: Delivering on Our Strategy
01 OVERVIEW IZAK PETERSEN (CEO) 11 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 HIGHLIGHTS GROWTH STRATEGY Game Groblersdal - Limpopo DELIVERING ON OUR STRATEGY Size indicators Number of properties R bn GLA m² 8 190 800 000 Market Capitalisation GLA Portfolio value 700 000 6 600 000 180 181 181 500
Slide 7: Feedback on 2015 Goals
FEEDBACK ON 2015 GOALS Investment Goals Progress FY 2015 Achieved, all acquisitions from prior year Take transfer of all acquisitions transferred Undertake strategic revamps Work in progress on strategic revamps = R59m Complete Gillwell Development Opening on 12 November 2015 Acquired a portfolio of
Slide 8: Feedback on 2015 Goals: Balance Sheet; Strategy in Progress
FEEDBACK ON 2015 GOALS Balance Sheet Goals Progress FY 2015 Enter DCM market R2 bn DMTN programme registered with JSE Improve liquidity and tradability DIB now in index Capital conversion Completed 20 July 2015 Dividend re-investment programme Launched for DIB’s 15 ANNUAL RESULTS PRESENTATION – 31 A
Slide 9: Key Earnings Drivers
KEY EARNINGS DRIVERS Tenant quality Cost structure Profile by GLA Efficient cost : income ratio 9% A Grade 19% Unlocking value B Grade FY16 onwards 72% C Grade | Value-adding redevelopments and extensions | Income opportunity in vacancies Acquisitions | Cost efficiencies | Disposal of non-core asset
Slide 10: Lease Activity - Sep 2014 to Aug 2015
LEASE ACTIVITY - 1 Sep 2014 to 31 Aug 2015 New leases Retail Office Industrial Total Number of leases 96 57 9 162 Value of leases 87 033 369 40 939 725 7 719 105 135 692 199 Weighted Avg Gross Rental (R/m²) 61,88 61,77 37,00 59,67 Total GLA Let (m²) 28 598 17 393 4 408 50 399 Weighted Average Escala
Slide 11: Lease Activity (Continued)
LEASE ACTIVITY (CONTINUED) New leases Number of new leases: 162 Total new GLA Let: 50 399m² › Tenant retention rate 82% (74%)* 35% Retail 34% › Retail 72% (80%)* Office 57% › Offices 95% (66%)* 59% 6% Industrial 9% › Industrial 83% (64%)* * 31 August 2014 Renewals Number of leases renewed: 190 Total
Slide 12: Vacancies and Lease Expiry Profile
VACANCIES % 21 2015 19.0 18 2014 15.0 15.0 15 2013 12 11.0 2012 9.6 10.0 9.0 9.0 9.0 2011 9 8.2 8.3 8.0 8.0 7.9 7.4 7.4 7.6 7.0 7.0 6 5.0 3 0 Retail Office Industrial Overall Office vacancies down › Aggressive leasing › Tenants and broker incentives › Space improvements 23 ANNUAL RESULTS PRESENTATIO
Slide 13: Moolman Acquisition
02 PORTFOLIO IZAK PETERSEN (CEO) 25 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 LEASING ACQUISITIONS DEVELOPMENTS REVAMPS DISPOSALS Sheshego Circle Polokwane - Limpopo MOOLMAN ACQUISITION Fin Forum, Tshwane Game Groblersdal Effective date 1 August 2015 Total deal size (80% of) R858m Total GLA acqui
Slide 14: Gillwell Completion and Transfer
02 PORTFOLIO IZAK PETERSEN (CEO) 27 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 LEASING ACQUISITIONS DEVELOPMENTS REVAMPS DISPOSALS Gillwell Mall, East London – Eastern Cape GILLWELL COMPLETION AND TRANSFER Total GLA 22 000m² Cost R320m Progress at 31 Aug 2015 75% Date of opening 12 November 2015 G
Slide 15: Redevelopments and Revamps
02 PORTFOLIO IZAK PETERSEN (CEO) 29 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 LEASING ACQUISITIONS DEVELOPMENTS REVAMPS DISPOSALS Pimville Square Shopping Centre, Soweto - Gauteng REDEVELOPMENTS AND REVAMPS Total GLA 12 000m² Cost of revamp R64m Progress at 31 Aug 2015 60% Date of completion Dec
Slide 16: Disposals
02 PORTFOLIO IZAK PETERSEN (CEO) 31 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 LEASING ACQUISITIONS DEVELOPMENTS REVAMPS DISPOSALS Agency 1, Sunninghill - Gauteng DISPOSALS Retail Region GLA m² Nedbank Germiston Gauteng 1 046 Citizens Vereeniging Gauteng 1 332 Score Tsakane Gauteng 1 050 Good Year
Slide 17: Financial Highlights
03 FINANCIAL REVIEW RIDWAAN ASMAL (CFO) 33 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 Eyethu Orange Farm Mall - Gauteng FINANCIAL HIGHLIGHTS › Revenue 26% › Distributable Earnings 33% › Total assets 33% › Total liabilities (excl. Debentures) 19% 34 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 17
Slide 18: Distribution Growth; Statement of Comprehensive Income
DISTRIBUTION GROWTH cps DIA DIB Total 200 180 172.18 160.83 160 149.98 140.19 140 120 100 87.50 91.88 79.37 83.34 80.30 80 73.33 66.64 60.82 60 40 20 2.77 2.06 4.83 0 Aug 2011 Aug 2012 Aug 2013 Aug 2014 Aug 2015 35 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 STATEMENT OF COMPREHENSIVE INCOME (EXTRA
Slide 19: Sectoral Performance; Statement of Financial Position
SECTORAL PERFORMANCE Revenue Property expenses Net property income 13% 11% 13% 22% 26% 28% 61% 59% 67% Retail Offices Industrial 37 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 STATEMENT OF FINANCIAL POSITION (EXTRACTS) 31 Aug 2015 31 Aug 2014 Variance (R’000) (R’000) (%) Non-current assets 5 562 46
Slide 20: Cash Flow; Debt Facilities Profile
CASH FLOW (Rm) 31 Aug 2015 31 Aug 2014 32.0 Opening balance 54.1 461.0 Cash generated from operations 354.2 -141.8 Net finance cost -108.9 -265.3 Distribution paid -230.1 -1 251.8 Acquisitions and capex -378.4 92.8 Disposals 28.9 692.7 Equity raised 189.2 444.7 Debt funding raised 120.3 63.0 Closing
Slide 21: Looking Ahead: Swap Curves
04 LOOKING AHEAD IZAK PETERSEN (CEO) 41 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 Gillwell Mall, East London – Eastern Cape LOOKING AHEAD Swap curves South African Rand Swaps Curve US Dollar Swaps Curve South Africa US & Europe Euro Swaps Curve 9.00 2.50 8.00 2.00 7.00 6.00 1.50 5.00 1.00 4.00 3.
Slide 22: Looking Ahead: Economic Forecasts and Priorities
LOOKING AHEAD Economic forecasts (year-on-year %) Real GDP CPI 2014 2015 2016 2014 2015 2016 Latin America 1,30 -0,50 0,70 8,1 11,1 12,7 Eastern Europe 1,90 0,10 2,00 5,7 8,8 5,8 Africa 4,30 3,30 4,50 6,9 7,1 7,5 Asia Pacific 4,80 4,70 5,00 2,8 1,5 2,3 G8 1,60 1,70 2,10 1,8 0,8 1,8 South Africa 1,50
Slide 23: Questions & Answers
05 QUESTIONS & ANSWERS 45 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 College House, Gauteng 06 ANNEXURES 46 ANNUAL RESULTS PRESENTATION – 31 AUGUST 2015 Meadowpoint Shopping Centre, Dobsonville, Soweto - Gauteng 23
Slide 24: Top Properties by Value
TOP 10 PROPERTIES BY VALUE Value as at % Aug 2015 Value 31 Aug 2015 total Cumulative GLA m² per m² Building_Name Region Rm portfolio % SAPS VIP Gauteng 21 478 278 12 943 5,0 5,0 Umzimkhulu Mall KwaZulu-Natal 16 061 196 12 206 3,5 8,5 Gezina Galleries Gauteng 16 670 169 10 114 3,0 11,5 Nquthu Plaza K