Dipula Income Fund Limited. JSE: DIA

Dipula shares

Background of DIPULA A

  • Registered in South Africa, Dipula Income Fund is a property loan stock company listed under the Real Estate Investment Trust (REIT) sector of the Johannesburg Stock Exchange (JSE). The company primarily focuses on long-term investment in rental income-generating properties. Through its subsidiaries, Dipula looks to buy into retail, office and industrial properties.

  • The company was started with a portfolio of approximately R 300 million in 2006, which has grown to more than R 6.7 billion today. Dipula is one of a handful of substantially black-owned REITs, through a consortium that holds 25% of total issued linked units. Investors can purchase Dipula A units or B units. Those who buy A units receive a preferential 5% growth in dividends and B units receive the residual.

  • The fund has a total of 201 assets with an average value of R22 million per asset. The group’s top 20 assets comprise 48% of the portfolio, with the majority being single tenant properties. 61% of its properties are retail-oriented, with the fund most active in shopping centre acquisitions, mainly targeting lower-income shoppers in rural areas, townships and CBDs across the country.

  • JSE market cap has leapt from R144 million in 2011 to more than R4 billion today, with Dipula share price historically showing good gains.

DIPULA A Shares Growth Driver

  • Dipula has managed to record strong growth since listing on the JSE, with its portfolio growing by 155%, underpinned by an aggressive acquisition strategy. This is also supported by the improvement of existing assets through strategic developments and revamps. Over the 2015 financial year, Dipula managed to buy properties worth R2.2 billion and put up for sale 17 non-core properties with a value of R92 million. Shareholders enjoyed an increase in distributable earnings of 33%, whilst net asset value of Dipula shares increased by 14.5%.

  • Despite a difficult economic environment for the retail and industrial property sectors, Dipula managed to reduce vacancies, increase rental income from R461 million to R 568 million and increase profits from R238 million to R307 million.

  • The company has identified a R 2.25 billion potential development pipeline, and is looking to buy into the residential property market and possibly diversify into countries outside South Africa.

DIPULA A Investor Tip

  • Dipula shares have historically been a high-yielding purchase for investors, but Dipula share price plunged at the end of 2015 due to economic stability. Dipula has since adopted a more cautious acquisition stance and is focusing on revamping and extending existing properties in order to mitigate risk. That said, the company has still managed to make value-adding acquisitions and grows its dividends year-on-year. Diligent property and asset management have translated into largely positive performance from the company and better-than-expected distributions growth.

  • The live online stocks chart won’t instill huge confidence in investors looking to buy Dipula shares, but the company is well-positioned to flourish in the property sector as the South African economy improves. Investment analysts hint that Dipula shares could be a good buy.

DIPULA A Major Shareholders

Coronation Asset Management Holdings, Government Employees Pension Fund, Old Mutual Investment Solutions, Stanlib.

  • Sector

    Financials

  • Industry

    Real Estate

  • Sub industry

    REIT

How to buy DIPULA A Group Shares

  • DIPULA A : How to buy DIPULA A Group Shares Online

    We have made it simple to buy JSE listed firm shares online. The easiest way to buy DIPULA A Group shares or stocks is to; start by submitting the ‘BUY THIS SHARE’ form. Next, one of our experienced and certified stock brokers will personally get in contact with you to discuss your custom stock request. Finally, a stock advisor will confirm the amount of shares you are looking to invest in DIPULA A Group and assist you with the setup and management of your stock portfolio account.

  • Here are the steps you must follow to Buy / Purchase DIPULA A Group shares with utmost confidence:

    1. Start by Filling in the BUY THIS SHARE form.
    2. Insert your name, email, telephone number and monthly remuneration.
    3. Then, Indicate the amount you are looking to invest in DIPULA A Group.
    4. Click the “ INVEST NOW” button
    5. Once we have received your info, a dedicated stock advisor will personally call you back to discuss your personal share request.
    6. Lastly, your newly appointed personal stock advisor will handle all account setups and reporting as stipulated by the financial services board of South Africa (FSB)
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