Dipula NAV up 8.7% to R5.9bn

DiPula Income Fund, a diversified REIT investor, has reported significant improvements in their latest financial results for the year ending in August. The company, which collapsed its dual share structure in April, almost doubled its headline earnings to just under 75 cents per share, showcasing a strong performance. Group net asset value also grew 8%, reaching R5.9 billion. Isaac Peterson, CEO of DiPula Fund, highlighted the divisional performance, emphasizing the success in the retail sector where leases worth about a billion rand were concluded in the past 12 months. The retail segment, which contributes about 60% of the company's income, showed impressive growth with a 9.4% increase in property valuations. However, the office sector experienced challenges with a rise in vacancy rates from 20% to 30%, attributed to consolidation of space by tenants. Despite this, the company remains optimistic about the potential of co-working spaces and plans to convert some office spaces into alternative uses like residential and storage. On the industrial front, DiPula Fund saw a 3% increase in valuations, indicating a positive trend in that segment. In terms of managing the current power crisis in the country, the company is investing in backup power solutions and exploring alternative energy sources to support tenants and improve energy efficiency. With a focus on sustainability and ESG initiatives, DiPula Fund aims to become more environmentally friendly and reduce consumption of resources. Looking ahead, the company plans to reduce its exposure to the office sector, with a strategic focus on converting or selling office properties to increase investments in other asset classes. While the majority of the company's portfolio is concentrated in the Gauteng region, DiPula Fund remains open to growth opportunities in other regions within South Africa, particularly in the northern parts where population growth presents untapped potential. Though expansion beyond the borders is not currently on the agenda, the company is keeping an eye on opportunities that may arise in the future.