https://www.engineeringnews.co.za

Dipula distributable earnings up 33%, sees potential in Polokwane

27th May 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

Font size: - +

JSE-listed Dipula Income Fund reported that its distributable earnings grew 33.2% in the six months ended February 28, translating into a combined growth of 6.8% in distributions for both A- and B-linked units.

The distribution attributable to the A-linked units was 45.940c a unit, while B-linked units rose to 35.346c a unit. This equated to a 9.3% increase on the prior year.

Further, the real estate investment trust (Reit) achieved significant growth in assets, with its portfolio now at R5.7-billion, comprising 176 properties with a gross lettable area of 615 526 m2. Its portfolio was set to grow by a further R1-billion by the end of the year, as it was executing its pending pipeline of acquisitions and developments.

The 100% black-owned management Reit’s revenue also increase 24.6% year-on-year to R300.37-million.

Speaking on their results on Wednesday, CEO Izak Petersen attributed the solid performance to Dipula’s strategic growth with portfolio-enhancing assets and continued management interventions improving its leasing performance.

Dipula’s gearing was 35.5% at its half-year, with 72% of its debt fixed for an average length of three years and at an average blended rate of 8.6%. During the reporting period, the company also concluded R742-million in strategic acquisitions and took transfer of R534-million properties.

“Our portfolio is migrating more and more towards retail [and industrial properties]. We are not [really] looking to acquire offices. Of all the acquisitions over the past two years or so, about 1 000 m2  were offices, yet to transfer.”

Among the acquisitions Dipula concluded were the 15 735 m2 Umzimkhulu Mall, in KwaZulu-Natal, which held 88% national tenants; the 28 125 m2 Corporate Park Industrial, in Polokwane; the 6 940 m2 Wadeville industrial park and the 1 157 m2 Hyde Close office building, in Hyde Park.

“These [acquired] properties all fit the criteria of good quality, defensive assets with excellent tenants that are unlikely to default in tough trading conditions,” Petersen said.

Seventy-two per cent of Dipula’s portfolio of lettable area was in Gauteng, with Petersen noting that Polokwane, in Limpopo, was notorious for being volatile, but that it was “very strong town, with lots of people”.

“Even with the municipality going under administration, we still saw growth coming from the town. There are lots of mines there and it is the biggest regional city in the area. We are happy to increase our exposure there,” he added.

He added that the Reit had started to assess investment in other asset classes, but would not divulge more. Petersen did, however, advise that the company would most likely invest in South African property in the short-term rather than in offshore investments.

While no properties were disposed of during the period under review, the Reit did enter into agreements for the disposal of properties worth R27-million after the reporting period. Of the R74.8-million held for sale in the financial year ended August 2014 , R43.9-million had been transferred out by February 28.

Notwithstanding South Africa’s slow economic growth, Petersen said Dipula was on track to deliver forecast distribution growth of between 6.5% and 7.5% this year.

Edited by Tracy Hancock
Creamer Media Contributing Editor

Comments

Array

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
WearCheck
WearCheck

Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Photo of Martin Creamer
On-The-Air (15/03/2024)
15th March 2024 By: Martin Creamer

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.135 0.183s - 150pq - 2rq
Subscribe Now