Dipula

Investment Highlights

Retail bias to lower income groups

Improving fundamentals of the SA consumer market
Fundamentals of the consumer market continue to improve on the back of growth in GDP and private consumption expenditure

• Stable GDP growth outlook
• Household consumption expenditure supported by recovery in household net wealth, lower debt service costs, strong wage growth and low inflation
• Consumer confidence remains elevated and consumption growth remains relatively strong

Shift to growth driven by lower income households

• Overall consumption in South Africa forecast to increase by 32.8% in the next three years from R605.5bn to R805.7bn (CAGR of 9.9%)
• Growth in consumer spending set to shift from growth driven primarily by mid to upper income households to growth from lower income households
• Driven by accelerating number of households moving from below to above the poverty line
• Development attributed to specific government policy objectives to create low-skilled jobs, address the housing backlog and make credit more readily available
• Increase social grants will continue to drive lower income consumer spending
• Growth in spend per head greater in lower income brackets than in the higher income brackets

Dipula portfolio has an overall bias toward retail (52% by gross revenue)
Dipula’s retail portfolio (by GLA) includes:

• 48% – rural centres;
• 40% – CBD;
• 6% – township centres;
• 3% – commuter centres; and
• 3% – community centres,
• the vast majority of which are exposed to the high-growth lower income households