Dipula results disappoint market

DIPULA Income Fund’s year results left the market unimpressed, with its “B” units falling more than 6%. But analysts believe the company still offers strong growth opportunities.

Their results were not spectacular but they were in line with expectations

DIPULA Income Fund’s year results left the market unimpressed, with the company’s “B” units falling more than 6%.

But analysts believe the listed property company, which yesterday reported muted combined “A” and “B” unit distribution growth of 7.05% for the year to August, still offers strong growth opportunities.

However, this distribution growth was short of the industry average of about 8.5% in the same reporting season.

Its first-half performance of the reporting period had been unimpressive, analysts said, but a reduction in portfolio vacancies lifted its performance in the following six months.

Anton de Goede of Coronation Fund Managers said that the market was waiting for Delta’s new acquisitions to boost its performance.

“Their results were not spectacular, but they were in line with expectations.

“So, while the market may have reacted negatively today, Dipula have made many acquisitions and brought down vacancies, which will lead to better results going forward,” Mr De Goede said.

The chief investment officer at Grindrod Asset Management, Ian Anderson, agreed that Dipula had opportunities to enhance its earnings in the next few months. “Unlike many of the other small- and mid-sized listed property companies, Dipula is trading at a premium to net asset value, making growth through yield-enhancing acquisitions possible,” he said.

CEO Izak Petersen said Dipula had beaten inflation with its distribution growth, which was always their goal.