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Condensed consolidated financial results for the six months ended 31 December 2019 and cash dividend declaration
Growthpoint Properties Limited
Approved as a REIT by the JSE
(Incorporated in the Republic of South Africa)
Registration number 1987/004988/06
ISIN: ZAE000179420
JSE Share code: GRT
("Growthpoint” or "the Company")
CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 31
DECEMBER 2019 AND CASH DIVIDEND DECLARATION
Operational review and results:
The condensed unaudited financial results for the six months ended 31 December 2019, as
compared to the six months ended 31 December 2018 ("comparative period"), are set out
below:
• Revenue increased by 1.5% to R5.7bn compared to R5.6bn for the comparative
period;
• Operating profit decreased by 0.4% to R4.08bn compared to R4.10bn for the
comparative period;
• Headline earnings per share increased by 9.7% to 89.69 cents compared to 81.77
cents for the comparative period;
• Earnings per share decreased by 5.2% to 113.32 cents compared to 119.48 cents for
the comparative period;
• Net asset value per share decreased by 2.0% to 2 518 cents compared to 2 570
cents for the comparative period; and
• Dividend increased by 0.2% to 106.0 cents per share compared to 105.8 cents per
share for the comparative period.
This short form announcement is the responsibility of the Board and does not contain full or
complete details. Any investment decisions by investors and/or shareholders should be
based as a whole on consideration of the full unaudited condensed financial results for the
six months ended 31 December 2019 which may be downloaded from the Company’s website
https://growthpoint.co.za/Pages/Investor-Relations.aspx and
https://senspdf.jse.co.za/documents/2020/jse/isse/GRTE/Interim20.pdf
It may also be viewed, at no cost, at the registered office of the Company and the
Johannesburg office of its Sponsor, during ordinary business hours, for a period of 30
calendar days following the date of this announcement. Copies of the full announcement
may also be requested from the Company on request, by contacting the Head of Investor
Relations, Lauren Turner on 011 944 6346.
INTERIM DIVIDEND WITH THE ELECTION TO REINVEST THE CASH DIVIDEND IN RETURN
FOR GROWTHPOINT SHARES
Notice is hereby given of the declaration of the interim dividend number 68 of 106.0 cents
per share for the period ended 31 December 2019. Shareholders will be entitled to elect
to reinvest the net cash dividend, in return for Growthpoint shares (share alternative),
failing which, they will receive the net cash dividend in respect of all or part of their
shareholdings. The entitlement of shareholders to elect to participate in the share
reinvestment alternative is subject to the Board, either itself or through a Board sub-
committee appointed to set the pricing and terms of the share reinvestment alternative,
having the discretion to withdraw the entitlement to elect the share reinvestment
alternative should market conditions warrant such action. A withdrawal of the entitlement
to elect the share reinvestment alternative would be communicated to shareholders
before the publication of the finalisation announcement on Friday, 20 March 2020.
Other information:
• Issued shares at 31 December 2019: 3 022 496 382 ordinary shares of no par value.
• Income Tax Reference Number of Growthpoint: 9375/077/71/7.
Shareholders are advised that the dividend meets the requirements of a “qualifying
distribution” for the purposes of section 25BB of the Income Tax Act, No. 58 of 1962
(Income Tax Act). The dividends on the shares will be deemed to be taxable dividends for
South African tax purposes in terms of section 25BB of the Income Tax Act.
Tax implications for South African resident shareholders
Dividends received by or accrued to South African tax residents must be included in the
gross income of such shareholders and will not be exempt from income tax in terms of the
exclusion to the general dividend exemption contained in section 10(1)(k)(i)(aa) of the
Income Tax Act, because they are dividends distributed by a REIT. These dividends are
however exempt from dividend withholding tax (Dividend Tax) in the hands of South
African resident shareholders provided that the South African resident shareholders have
provided to the Central Securities Depository Participant (CSDP) or broker, as the case
may be, in respect of uncertificated shares, or the company, in respect of certificated
shares, a DTD(EX) (Dividend Tax: Declaration and undertaking to be made by the
beneficial owner of a share) form to prove their status as South African residents.
If resident shareholders have not submitted the abovementioned documentation to
confirm their status as South African residents, they are advised to contact their CSDP or
broker, as the case may be, to arrange for the documents to be submitted prior to the
payment of the dividend.
Tax implications for non-resident shareholders
Dividends received by non-resident shareholders from a REIT will not be taxable as income
and instead will be treated as ordinary dividends which are exempt from income tax in
terms of the general dividend exemption section 10(1)(k) of the Income Tax Act. Any
dividend received by a non-resident from a REIT is subject to Dividend Tax at 20%, unless
the rate is reduced in terms of any applicable agreement for the avoidance of double
taxation (DTA) between South Africa and the country of residence of the non-resident
shareholder. Assuming dividend tax will be withheld at a rate of 20%, the net amount due
to non-resident shareholders is 84.80 cents per share. A reduced dividend withholding tax
rate in terms of the applicable DTA may only be relied on if the non-resident shareholder
has provided the following forms to their CSDP or broker, as the case may be, in respect of
uncertificated shares, or the company, in respect of certificated shares:
• a declaration that the dividend is subject to a reduced rate as a result of the
application of the DTA; and
• a written undertaking to inform the CSDP broker or the company, as the case may
be, should the circumstances affecting the reduced rate change or the beneficial
owner cease to be the beneficial owner, both in the form prescribed by the
Commissioner of the South African Revenue Service.
If applicable, non-resident shareholders are advised to contact the CSDP, broker or the
company to arrange for the abovementioned documents to be submitted prior to payment
of the dividend if such documents have not already been submitted.
Salient dates and times 2020
Circular and form of election posted to shareholders Monday, 16 March
Last date for Growthpoint to withdraw the entitlement for Friday, 20 March
shareholders to elect to participate in the share
reinvestment alternative before the publication of the
announcement of the share alternative issue price
and finalisation information on SENS
Announcement of share reinvestment alternative issue price Tuesday, 24 March
and finalisation information published on SENS
Last day to trade (LDT) cum dividend Tuesday, 31 March
Shares to trade ex-dividend Wednesday, 1 April
Listing of maximum possible number of share alternative Friday, 3 April
shares commences on the JSE
Last day to elect to receive the share alternative (no late Friday, 3 April
forms of election will be accepted) at 12:00 (South African
time)
Record date Friday, 3 April
Announcement of results of cash dividend and share Monday, 6 April
reinvestment alternative published on SENS
Cheques posted to certificated shareholders and accounts Monday, 6 April
credited by CSDP or broker to dematerialised shareholders
electing the cash alternative on
Share certificates posted to certificated shareholders and Wednesday, 8 April
accounts credited by CSDP or broker to dematerialised
shareholders electing the share reinvestment alternative on
Adjustment to the maximum number of shares listed on or Thursday, 9 April
about
Notes:
1. Shareholders electing the share reinvestment alternative are alerted to the fact
that the new shares will be listed on LDT + 3 and that these new shares can only
be traded on LDT + 3, due to the fact that settlement of the shares will be
three days after record date, which differs from the conventional one day after
record date settlement process.
2. Shares may not be dematerialised or rematerialised between commencement of
trade on Wednesday, 1 April 2020 and the close of trade on Friday, 3 April 2020.
3. The above dates and times are subject to change. Any changes will be released
on SENS.
Sandton
11 March 2020
Sponsor: Investec Bank Limited
Date: 11-03-2020 08:00:00
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