Dipula Fund achieves forecast distributions

Dipula Income Fund, which was formed in 2011 out of a merger between two majority black-owned property funds - Mergence Africa Property Fund and Dipula Property Fund - has achieved its forecast distributions for the six months ended February despite the challenging economic climate.

The distribution per A-linked unit was 39.685 cents and the distribution per B-linked unit was 27.741 cents.

As a result of the merger and the acquisition of the Asakhe and Redefine portfolios in August 2011, the results cannot be compared to those of the previous year.

Looking ahead, Dipula said that the global economic environment remained challenging as did the South African economy with a forecast growth rate of around 2.5% for the year ahead.

"Tenants, and consequently rentals achieved by landlords, will continue to be under pressure. This is mainly as a result of fuel price increases, electricity costs and municipal rates increases above inflation, and secondary cost pressures throughout the economy that result from these factors. This is further exacerbated by imported inflation due to sustained Rand weakness, the fund said.

Despite these factors, it added, the forecast for the year ending 31 August 2012 as presented in the Prospectus dated 28 July 2011, was expected to be achieved.

"It is anticipated that the portfolio will continue to deliver growth in 2013 and beyond."