Dipula, the listed property company that owns 179 investment properties valued at R4 billion, has a R3bn pipeline of potential acquisitions.
Izak Petersen, Dipula’s chief executive, said yesterday the fund was continuing its strategy of portfolio growth to increase the quality, size and value of its assets while intensifying its focus on leasing, improved property management and diversifying its funding sources.
Petersen said Dipula increased the value of its property portfolio to R4bn in the six months to February by taking transfer of acquisitions worth a total of R267 million and had announced new acquisitions worth R366m.
“All our new assets are performing in line or better than expected. They have high-quality tenants and are larger on average,” he said.
Petersen said that in the less than three years since listing in 2011, Dipula had more than doubled the value of its portfolio with quality assets, growing it by R2.6bn while also disposing of 21 non-core property assets.
Average property value had increased from R12m to R23m, reflecting solid progress towards Dipula’s target of R50m. Its average property size had grown from about 2 500m2 to more than 3 225m2.
Dipula would continue to acquire properties that enhanced the overall quality of the portfolio and had good growth prospects and it implement its strategy of disposing of non-performing properties that constituted a drag on the portfolio.
“Two properties totalling R21.5m at an aggregate yield of 5 percent were transferred during the period under review. Further properties have been earmarked for sale. The intention is to reduce Dipula’s exposure to certain nodes,” he said.
Dipula yesterday reported a 6.5 percent growth in total distributions for the six months to February compared with the previous corresponding period. The distribution to A-linked unitholders grew by 5 percent to 43.752c a unit from 41.669c.
The distribution to B-linked unitholders increased by 8.5 percent to 32.338c a unit from 29.804c.
A-linked units are entitled to 5 percent preferred income growth while B-linked units receive the remainder of the income growth.
Dipula’s diversified 577 000m2 property portfolio of retail, industrial and office properties countrywide is 71 percent concentrated in Gauteng and weighted towards retail, which comprises 55 percent of the portfolio.
Dipula B-linked units lost 3.75 percent to R7.70 in thin trade yesterday.