Dipula Income Fund FY distribution up 7.2% to 160.837c

By Fifi Peters

Dipula Income Fund on Wednesday reported full year distribution growth of 7.2%‚ exceeding initial forecasts‚ as the value of its property portfolio grew and rental income rose.

The BEE real estate investment trust (Reit) increased its distribution per linked unit to 160.837c in twelve months to August‚ up 7.2% from the year-earlier period.

Management had guided for distribution growth of 6%-7% in the interim period.

The group acquired properties worth R987m during the year‚ while disposing of units totaling R103m‚ deemed non-core assets.

Rental income increased to about R461m from about R374m in August 2013 as vacancies dropped.

The property group said it was positive about future growth prospects despite subdued domestic growth and risks of further increases in interest rates‚ which raises rental payments.

“On the assumption that trading conditions and the macroeconomic environment (remain) stable and no major tenant and corporate defaults‚ management anticipates combined distribution growth of between 7% and 8% for 2015‚” the company said in a statement.

Dipula owns a diversified portfolio of retail office and industrial properties valued at around R5.4bn.

The properties are located across all nine provinces in the country‚ with the majority in Gauteng.

At 1.13pm‚ the stock was flat at R8.99 on the JSE.

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