DIPULA INCOME FUND LIMITED - Supplementary information relating to growth in combined dividend per share guidance

Release Date: 28/11/2018 10:45
Code(s): DIA DIB
Wrap Text
Supplementary information relating to growth in combined dividend per share guidance

(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")


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

Java Capital

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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