Indluplace Properties Limited (JSE:ILU)

Carel de Wit
Market Cap (AUD): 1.03B
Sector: Financials
Last Trade (AUD): 3.07 +0 (+0%)
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1. About

Indluplace Properties Limited (JSE:ILU) is a REIT focused on the rental residential sector of the South African property market. The company seeks to pay growing dividends to shareholders from its diverse and growing portfolio.

The residential sector, and specifically rental residential is under-represented in the South African listed property sector. In developed economies the residential sector is much more represented in the listed property sectors with comparatively large funds (REITS) acknowledged for their defensive nature. Indluplace was the first rental residential REIT to list in South Africa.

There is currently a shortage of well-priced, well managed rental housing in South Africa as evidenced by the relatively low vacancy rates in this market across various rental levels and income groups. There is also good demand for well located, affordable student accommodation.

Indluplace listed in June 2015 and is the largest REIT focused on residential properties. Since listing it has increased the value of its properties to over R4b and currently owns more than 140 residential properties spread mainly across Gauteng, but with representation in Mpumalanga, Kwazulu Natal and the Free State. Indluplace intends to continue with this growth by focusing on acquiring properties and portfolios that provide income on day of acquisition.

The company's investments in rental residential properties will focus on providing value for money housing, where a proven demand exists, generally in larger urban centres close to work opportunities and transport infrastructure. Other residential forms such as student housing or higher income housing will be evaluated on a case by case basis. Indluplace offers an exit for developers or owners of residential stock or portfolios, and utilises specialist outsourced property managers for the appropriate portfolios.

2. Business model

3. Strategy

4. Markets

5. Competition

6. History

7. Team

8. Financials

9. Risk