Voluntary Investor Update
INDLUPLACE PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2013/226082/06)
JSE share code: ILU ISIN: ZAE000201125
(Approved as a REIT by the JSE)
("Indluplace" or "the Company")
VOLUNTARY INVESTOR UPDATE
In the Company's unaudited results for the six months ended 31 March 2018, published on SENS on
9 May 2018, investors were advised that despite a tough first period, the Company remained on track to
deliver dividends for the full year in line with the lower end of guidance of approximately 4%, provided in
the results for the year ended 30 September 2017.
As at 31 March 2018, indications were that the high vacancy rates experienced in the first six months were
reducing and the letting market was improving. While occupancy rates are currently substantially better
than the first six months of the 2018 financial year, due to various interventions such as specials in respect
of rental and reduced deposit requirements, the situation has not improved to the extent anticipated and
vacancies remain higher than for the same period last year. This has also negatively impacted on
Indluplace's ability to escalate rentals as expected.
In addition to the general higher vacancies in the portfolio and tough economic conditions, a specific issue
has arisen in respect of Highveld View, a 450 unit complex in Emalahleni. Previously these units have
largely been let to contractors working on the construction of Eskom's Kusile Power Station under bulk
contracts, which have been renewed regularly over the last four years. However, in recent months, there
have been substantial early terminations and non-renewals of these contracts with vacancies increasing
dramatically. These early terminations and non-renewals of the contracts, and the subsequent oversupply of
units in the region together with downward pressure on rentals, has caused income from Highveld View to
reduce significantly over the last quarter.
Given these headwinds, Indluplace now expects dividend growth for the year ending 30 September 2018 to
be flat, meaning that the dividend for the six-month period ending 30 September 2018 is expected to be
approximately 49.19 cents per share.
This updated guidance has not been reviewed or reported on by the Company's auditors and should be read
together with Indluplace's results for the year ended 30 September 2017, published on SENS on
8 November 2017, and particularly the prospects section of those results.
22 August 2018
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