Supplementary information relating to growth in combined dividend per share guidance
DIPULA INCOME FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/013963/06)
JSE share code: DIA ISIN: ZAE000203378
JSE share code: DIB ISIN: ZAE000203394
(Approved as a REIT by the JSE)
("Dipula" or the "company")
SUPPLEMENTARY INFORMATION RELATING TO GROWTH IN COMBINED DIVIDEND PER
As set out in Dipula's reviewed provisional condensed consolidated financial results for the year ended
31 August 2018 ("FY 2018") ("FY 2018 results"), the company is guiding flat growth in combined dividend
per share for the year ending 31 August 2019 ("FY 2019") and 7% for the year ending 31 August 2020
("FY 2020"). In support of this guidance, shareholders are advised as follows:
R million Notes FY 2018 FY 2019 FY 2020
Recurring items 435.8 541.1 579.9
Base distributable earnings 1 403.6 401.8 423.0
Acquisitions and disposals (net of finance cost) 2 32.2 94.8 101.4
Additional income from letting and value-added
initiatives 3 44.5 55.4
Non-recurring items 68.4 - -
Rental guarantee 4 29.6 - -
Other income 5 38.8 - -
Distributable earnings 504.2 541.1 579.9
A shares in issue at year end 6 264 641 319 264 641 319 264 641 319
B shares in issue at year end 6 264 641 319 264 641 319 264 641 319
Dividend per combined share (cents) 205.48 204.47 219.14
Dividend per A share (cents) 7 105.81 111.10 116.65
Dividend per B share (cents) 99.68 93.37 102.49
(1) Key inputs into base distributable earnings are primarily:
a. Weighted average contractual rental escalations of 7.6% and letting of vacant space; and
b. Expected reversions on renewals mainly related to the office portfolio.
(2) Comprises primarily the R1.25 billion property portfolio acquired from Setso Holdco Proprietary
Limited and Rec Group Property Trust, as announced on SENS on 23 March 2018 ("Setso
acquisition"), which only formed part of the Dipula portfolio for two months of FY 2018 as well as
other acquisitions and disposals as disclosed in the FY 2018 results. Disposal proceeds are assumed to
be utilised to repay debt and fund redevelopments.
(3) Letting and value-add initiatives include amongst others:
a. Savings as a result of the internalisation of the property management function;
b. Incremental revenue as a result of refurbishments and redevelopments of Meadowpoint, Range
Road, Midrand and Bruma;
c. Major new lettings not in base distributable earnings including Steve Biko Corner, Orange
Farm Town Square, New Brighton and Renaissance Park; and
d. Non-GLA income and cost savings from new installations of solar and cell towers.
(4) Comprises the rental guarantee of R29.6 million negotiated as part of the Setso acquisition which was
utilised during FY 2018.
(5) Other non-recurring items including option premiums of R22 million, pre-emptive right cancellation
fees relating to a disposal of R7 million, development fees of R5 million and other miscellaneous
(6) 46 174 975 Dipula A shares and 46 174 865 Dipula B shares were issued during the course of FY 2018.
(7) Assumes annual growth in the Dipula A share dividend of 5% for both FY 2019 and FY 2020.
The above information supplements the 2018 results so as to provide further insight into the guidance provided
by Dipula's board of directors. The prospects of the company (including assumptions) as set out in the 2018
results remain unchanged. The above information has not been reviewed or reported on by the group's
independent external auditors.
28 November 2018
Date: 28/11/2018 10:45:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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