Dipula

Investment Highlights

High Yield Income Fund

High initial yield

• 9.25% forward yield on A units
• 10.73% forward yield on B units

Above average growth in distributions

• Dependable, sustainable growth through focus on income quality and tight cost management
• Inflation beating rental escalations from existing portfolio (>8%)
• Low average rentals with scope for positive reversions
• Exposure to high-growth segments of the economy
• Opportunities for yield-enhancing acquisitions

Acquisitive growth strategy

• Take advantage of consolidation in sector to acquire smaller properties from larger funds
• Acquire 'undermanaged' properties
• Leverage off BEE status as black-managed fund to acquire government and parastatal tenanted properties
• Only consider income-enhancing acquisitions
• No speculative development activity (will improve existing properties if yield enhancing)

Gearing policy

• Maintain appropriate gearing levels (approximately 36% LTV on listing)
• Fix the majority of debt (currently 66.67% fixed for between 2 and 4 years)
• Current all in rate of approximately 8.8%