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Results: Unaudited consolidated interim results and cash dividend declaration for the six months ended 31 March 2025
Fairvest Limited
(Incorporated in the Republic of South Africa)
Registration number 2007/032604/06
JSE share code: FTA ISIN: ZAE000304788
JSE share code: FTB ISIN: ZAE000304796
LEI: 378900E93AFC4D1CAD45
(Granted REIT status with the JSE)
("Fairvest" or the "Company" or the "Group")
RESULTS ANNOUNCEMENT: UNAUDITED CONSOLIDATED INTERIM RESULTS AND CASH DIVIDEND DECLARATION
FOR THE SIX MONTHS ENDED 31 MARCH 2025
Highlights
- Robust performance in a challenging environment with an 8.8% growth in distribution per B share
- Distribution of 69.66 cents per A share for the six months ended 31 March 2025
- Distribution of 23.10 cents per B share for the six months ended 31 March 2025
- Distribution per B share for the year expected to grow by between 8.0% and 10.0%
- Pay-out ratio of 100% maintained
- Like-for-like net property income increased by 5.1%
- Vacancies at 5.5%
- LTV reduced to 31.8%
Financial Indicators
%
Unaudited 31 March 2025 31 March 2024 Increase
Revenue (excl. straight-line rental income) (R'000) 1 067 665 998 432 6.9%
Basic earnings per A share in issue (cents) 73.46 67.71 8.5%
Basic earnings per B share in issue (cents) 25.76 20.07 28.4%
Headline earnings per A share in issue (cents) 72.92 68.13 7.0%
Headline earnings per B share in issue (cents) 25.22 20.49 23.1%
Net asset value per A share (cents) 1 817.85 1 555.17 16.9%
Net asset value per B share (cents) 479.15 469.99 1.9%
Dividend per A share (cents) for the six-month period 69.66 67.83 2.7%
Dividend per B share (cents) for the six-month period 23.10 21.24 8.8%
Nature of business
Fairvest is a diversified South African Real Estate Investment Trust ("REIT") focused on creating long-
term shareholder value.
Fairvest holds a portfolio of 127 retail, office and industrial properties valued at R12.5 billion (held
directly and through subsidiaries). The average value per property held as at 31 March 2025 was R98.1
million.
As at 31 March 2025, Fairvest held a 26.3% interest (September 2024: 5.0%) in Dipula Properties
Limited ("Dipula").
Declaration of dividend for the six months ended 31 March 2025
The Board has resolved to declare an interim dividend (dividend number 20) of 69.65710 cents per A
share, and 23.10182 cents per B share, being 100% of the distributable income for the period (September
2024: 100%). The dividend will be paid to shareholders in accordance with the timetable set out below:
2025
Last date to trade cum distribution Tuesday, 24 June
Shares trade ex-distribution Wednesday, 25 June
Record date Friday, 27 June
Payment date Monday, 30 June
Share certificates may not be dematerialised or rematerialised between Wednesday, 25 June 2025 and
Friday, 27 June 2025, both days inclusive. Payment of the dividend will be made to shareholders on
Monday, 30 June 2025. In respect of dematerialised shareholders, the dividend will be transferred to the
Central Securities Depositary Participant ("CSDP") accounts/broker accounts on Monday, 30 June
2025. Certificated shareholders' dividend payments will be deposited on or about Monday, 30 June 2025
to certificated shareholders' bank accounts.
In accordance with Fairvest's status as a REIT, shareholders are advised that the dividends meet 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 distributions on the shares will be deemed to be a dividend, for
South African tax purposes, in terms of section 25BB of the Income Tax Act.
The dividend 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 paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because
they are dividends distributed by a REIT. These dividends are, however, exempt from dividend
withholding tax in the hands of South African tax resident shareholders, provided that the South African
resident shareholders 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) a declaration that the dividend is exempt from dividends tax; and
b) a written undertaking to inform the CSDP, broker or the Company should the circumstances
affecting the exemption change or the beneficial owner cease to be the beneficial owner,
both in the form prescribed by the Commissioner for the South African Revenue Service. Shareholders
are advised to contact their 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.
Dividends received by non-resident shareholders 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 in
section 10(1)(k)(i) of the Income Tax Act. Dividends withholding tax is 20% and accordingly, any
dividends received by a non-resident from a REIT will be subject to dividend withholding 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 shareholders. Assuming dividend
withholding tax will be withheld at a rate of 20%, the net dividend amount due to non-resident
shareholders in respect of the final dividend per A share is 55.72568 cents per A share. The net dividend
amount due to non-resident shareholders in respect of the final dividend per B share is 18.48146 cents
per B share. A reduced dividend withholding 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 in respect of
uncertificated shares, or the Company, in respect of certificated shares:
a) a declaration that the dividends are subject to a reduced rate as a result of the application of a
DTA; and
b) a written undertaking to inform their CSDP, broker or the Company 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 for the South African Revenue Service. Non-resident
shareholders are advised to contact their 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, if applicable.
Shareholders are encouraged to consult their professional advisors should they be in any doubt as to the
appropriate action to take.
A-shares in issue at the date of declaration of the dividend: 62 718 658
B-shares in issue at the date of declaration of the dividend: 1 793 474 520
Fairvest's income tax reference number: 9068/723/17/1
Prospects
The portfolio continues to benefit from the disciplined execution of our strategic objectives — vacancies
remain consistently low, tenant quality has improved, and the portfolio remains operationally robust.
These solid fundamentals, combined with conservative balance sheet management, position the Group
for sustained growth.
Given the strong operational metrics and accretive transactions concluded, updated guidance is issued,
and we expect distributable earnings per B share to increase by between 8.0% and 10.0% for the 2025
financial year. In line with the Company's Memorandum of Incorporation, the distribution per A share
will increase by the lesser of 5% or the most recent Consumer Price Index.
The Board has resolved to maintain the current dividend payout ratio of 100% of distributable earnings.
This policy is reviewed bi-annually, and any amendments will be communicated to shareholders in
advance of implementation.
The forecast assumes no material deterioration in the prevailing macroeconomic environment, no major
tenant or corporate failures, and no occurrences of civil unrest. It further assumes that tenants remain
able to absorb increases in municipal and utility costs. Forecast rental income is based on contractual
lease terms and expected market-related renewals. It also assumes that Dipula achieves communicated
distributions and their payout ratio remains consistent with previous years.
This forecast is the responsibility of the Board and has not been reviewed or reported on by the Group's
external auditors.
Results announcement
The contents of this announcement are the responsibility of the board of directors of Fairvest. This
announcement is only a summary of the full announcement released on SENS which is available on the
JSE website at: https://senspdf.jse.co.za/documents/2025/jse/isse/FTAE/March2025.pdf and on the
Company website at https://fairvest.co.za/cmsAdmin/uploads/interim-results/interims-2025.pdf and
does not contain the complete or full announcement details. Any investment decision by investors and
shareholders should be based on consideration of the full announcement.
6 June 2025
Java Capital
Sponsor
Date: 06-06-2025 08:00:00
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