Dipula delivers healthy results and confirms R50 million solar PV roll-out plan

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  • South Africa’s JSE listed property fund, Dipula Income Fund, delivered a healthy set of results for the six months to 29 February 2024, reporting improved operational and financial metrics, as well as strategic gains in a period that marked the first phase of its new solar photovoltaic initiative roll-out.

Dipula is a prominent, diversified, South Africa-invested REIT that owns a R9.8 billion portfolio of 166 retail, office, industrial and residential rental assets countrywide. Convenience, rural and township retail centres produce 64% of its portfolio income, with 61% of its rental income generated in Gauteng.

Izak Petersen, CEO of Dipula, comments, “This is a good set of results in which Dipula delivered top-line growth, albeit at relatively modest levels — a solid achievement given the background of elevated inflation, interest rates at their peak, and double-digit electricity tariff increases.”

Dipula’s revenue grew by 9%, and its net property income increased by a credible 6%, highlighting efficient operations supported by rental growth. While rental income remained under  pressure, with some rentals still reverting to market due to the persistent tough conditions in the office sector, Dipula showed a 2% increase in rental income. The net income growth was supported by Dipula’s tight check on expenses, which increased modestly relative to inflation levels. Dipula’s net asset value increased by 2% to R6bn.

Dipula awarded a contract for 5.3kWp of solar projects at nine of its properties in the first phase of its solar roll-out. Dipula is investing R50m in this phase of its installation, which is anticipated to be completed before the end of August 2024.

“Before the end of this financial year, we expect to increase our solar power capacity more than fourfold, from the current 1.6kWp to 7kWp in total. Then, we plan on trebling this number in the next 24 to 36 months,”says Petersen.

Author: Bryan Groenendaal


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