Indluplace Properties Limited Announces Clean-out Dividend Ahead of Scheme Implementation

• Indluplace Properties Limited announces the decision not to declare an interim dividend but will declare a clean-out dividend prior to the scheme’s implementation.
• Shareholders are advised to review the full announcement for comprehensive details and make investment decisions accordingly.
• Indluplace showcases positive performance with improved occupancies, exceeding growth targets, and positive financial results in the first half of the financial year ending March 2023.

Indluplace Properties Limited, a leading South African property investor specializing in affordable residential rentals, has recently disclosed its decision not to declare an interim dividend. Instead, the company will declare a clean-out dividend prior to the implementation of its scheme of arrangement. The announcement, released on May 5, 2023, was made in a circular distributed to Indluplace shareholders. Should the scheme of arrangement not proceed, the board of Indluplace will reassess the declaration of an interim dividend.

The company currently owns and manages a portfolio of 9,282 residential units and 15,494m² of associated retail space, with a total valuation of approximately R3.4 billion. These properties are predominantly located in Gauteng, and the company employs over 280 individuals across its various departments to effectively manage the extensive portfolio, providing housing for nearly 30,000 people.

The announcement also highlights Indluplace’s impressive performance in the first half of the financial year ending March 31, 2023. Notably, the company achieved significant improvements in residential portfolio occupancies, with rates rising from 89.7% in March 2022 to 94% in March 2023. Moreover, the student portfolio experienced a remarkable turnaround, witnessing occupancies soar from 43% in March 2022 to over 98% presently. Indluplace attributes these accomplishments to excellent collection numbers, minimal bad debt write-offs, and strong performances from all its departments.

As a result of these positive developments, Indluplace exceeded the growth target set by its board of directors. The company expects the favorable financial performance to continue and potentially improve slightly in the second half of the financial year, which traditionally demonstrates stronger results.

However, in accordance with the scheme implementation agreement between Indluplace and SA Corporate Real Estate Limited, the company will not declare an interim dividend. Instead, a clean-out dividend will be declared ahead of the scheme’s implementation. Shareholders were previously provided with details of this agreement through a joint firm intention announcement.

The financial results for the six months ending March 31, 2023, were also outlined in the announcement. While there was a decrease in earnings and various earnings per share metrics compared to the previous year, Indluplace experienced positive growth in revenue and operating profit.