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Condensed unaudited consolidated interim financial results for the six months ended 30 June 2021 and cash dividend
SA CORPORATE REAL ESTATE
CONDENSED UNAUDITED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2021 AND CASH DIVIDEND DECLARATION
(Incorporated in the Republic of South Africa) (Registration number 2015/015578/06) Approved as a REIT by the JSE Share code: SAC
ISIN code: ZAE000203238 ("SA Corporate" or the "Company" or the "Group")
Introduction
SA Corporate Real Estate Limited is a JSE-listed Real Estate Investment Trust ("REIT") and together with all its subsidiaries ("SA Corporate" or "the Group")
owns a diversified portfolio of quality industrial, retail, commercial and residential buildings located primarily in the major metropolitan areas of South Africa
with a secondary node in Zambia. As at 30 June 2021 the property portfolio consisted of 172 properties, with 1 386 723m2 of lettable area, valued at
R15.3 billion, a 50% joint venture ("JV") in three Zambian entities with properties valued at R789.4 million, an 80% JV in The Falls Lifestyle Estate valued at
R144.6 million and listed investments valued at R120.1 million.
Overview
Interim distributable income of R344.5 million or 13.70 cps (June 2020: R311.1 million or 12.37 cps)
Total net property income of R589.8 million (June 2020: R542.4 million)
Total like-for-like net property income of R545.4 million (June 2020: R500.7 million)
Contracted and executed disposals of R1 849.3 million (H1 2021 transferred: R545.7 million;
2021 contracted: R 1303.6 million; of which R210.7 million transferred post June 2021)
Traditional portfolio vacancies of 3.6% of GLA (June 2020: 5.0%)
LTV of 38.4%* (December 2020: 38.6%)
* Net debt LTV excluding derivatives, which if included would be 40.0% (December 2020: 41.2%)
Salient features
The salient features of the Group's condensed unaudited consolidated interim financial results for the six months ended 30 June 2021, as compared to the six
months ended 30 June 2020 are set out below:
Headline earnings per share of 23.82 cents (June 2020: -8.25 cents)
Earnings per share of 11.39 cents (June 2020: -43.79 cents)
Net asset value per share of 393 cents (December 2020: 401 cents)
Distribution declared of 10.27 cps based on a 75% payout ratio (June 2020: 0 cps)
Payment of distribution and important dates
Notice is hereby given of the declaration of distribution number 12 in respect of the income distribution period 1 January 2021 to 30 June 2021. The payment amounts
to 10.27368 cps (June 2020: 0 cps). The source of the distribution comprises net income from property rentals. Please refer to the statement of comprehensive income for
further details. 2 514 732 095 SA Corporate shares are in issue at the date of this distribution declaration and SA Corporate's income tax reference number is 9179743191.
Last date to trade cum distribution Tuesday, 19 October 2021
Shares will trade ex distribution Wednesday, 20 October 2021
Record date to participate in the distribution Friday, 22 October 2021
Payment of distribution Monday, 25 October 2021
Share certificates may not be dematerialised or rematerialised between Wednesday 20 October 2021 and Friday, 22 October 2021, both days inclusive.
Tax implications
As SA Corporate has REIT status, shareholders are advised that the distribution 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 distributions on SA Corporate shares will be deemed to be dividends, for South African tax purposes, in terms of section 25BB of the Income Tax Act.
The distributions received by or accrued to South African tax residents must be included in the gross income of such shareholders and are not 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, with the effect that the distribution is taxable in the hands of the shareholder.
These distributions are, however, exempt from dividend withholding tax in the hands of South African tax resident shareholders, provided that the South African resident shareholders have provided the following forms
to their CSDP or broker, as the case may be, in respect of uncertificated shares, or the transfer secretaries, in respect of certificated shares:
(a) a declaration that the distribution is exempt from dividends tax; and
(b) a written undertaking to inform the CSDP, broker or the transfer secretaries, as the case may be, should the circumstances affecting the exemption change or the beneficial owner ceases to be the beneficial owner, both
in the form prescribed by the Commissioner for the South African Revenue Service.
SA Corporate shareholders are advised to contact the CSDP, broker or transfer secretaries, as the case may be, to arrange for the above-mentioned documents to be submitted prior to payment of the distribution, if such documents have not already been submitted.
Notice to non-resident shareholders
Distributions 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.
Distributions received by a non-resident from a REIT are 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 shareholder.
Assuming dividend withholding tax will be withheld at a rate of 20%, the net dividend amount due to non-resident shareholders is 8.21894 cps. 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 the CSDP or broker, as the case may be, in respect of uncertificated shares, or the transfer secretaries, in respect of certificated shares:
(a) a declaration that the dividend is subject to a reduced rate as a result of the application of an DTA; and
(b) a written undertaking to inform the CSDP, broker or the transfer secretaries, as the case may be, should the circumstances affecting the reduced rate change or the beneficial owner ceases 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 the CSDP, broker or the transfer secretaries, as the case may be, to arrange for the above-mentioned documents to be submitted prior to payment of the distribution if such documents have not already been submitted, if applicable.
Short-form notice
The contents of this short-form announcement are the responsibility of the Board of Directors of the Company. Shareholders are advised that this short-form announcement represents a brief summary of the information contained in the full announcement, which is
published on https://senspdf.jse.co.za/documents/2021/jse/isse/SACE/ie2021.pdf and on SA Corporate's website. Any investment decisions by investors and/or shareholders should be based on a consideration of the full announcement as a whole and shareholders are encouraged to review
the full announcement as directed above. Investors and/or shareholders may request copies of the full announcement by contacting the registered office, details of which are set out below. The announcement is available for inspection at the registered office of the Company at
no charge during business hours by prior appointment due to COVID restrictions.
For a more comprehensive analysis of SA Corporate's results and outlook, please refer to https://www.sacorporatefund.co.za
Cape Town
16 September 2021
Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank Limited
DIRECTORATE AND STATUTORY INFORMATION
Registered office
South Wing, First Floor
Block A
The Forum
North Bank Lane
Century City
7441
Tel 021 529 8410
Registered auditors
PricewaterhouseCoopers Inc.
5 Silo Square
V&A Waterfront
Cape Town
8002
Transfer secretaries
Computershare Investor Services Proprietary Ltd
Rosebank Towers
15 Biermann Avenue
Rosebank
2196
Sponsor
Nedbank Corporate
and Investment Banking, a division of Nedbank Limited
135 Rivonia Road
Sandton
2196
Directors
MA Moloto (Chairman)
OR Mosetlhi (Lead independent director)
TR Mackey (Chief Executive Officer)*
AM Basson (Chief Financial Officer)*
RJ Biesman-Simons
N Ford-Hoon(Fok)
EM Hendricks
GJ Heron
S Mafoyane
* Executive
Date: 16-09-2021 05:15:00
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