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aReit PROP LIMITED - Voluntary Unaudited Quarterly Results for the 3 Months ended 31 March 2022 & Declaration of Maiden Cash Dividend No1

Release Date: 05/05/2022 09:17
Code(s): APO     PDF:  
Wrap Text
Voluntary Unaudited Quarterly Results for the 3 Months ended 31 March 2022 & Declaration of Maiden Cash Dividend No1

AREIT PROP LIMITED
Approved as a REIT
(Incorporated in the Republic of South Africa)
(Registration number 2021/837953/06)
(aReit Prop” or “the Company”)
ISIN Code: ZAE000306585 | JSE Code: APO


SHORT FORM ANNOUNCEMENT: VOLUNTARY UNAUDITED QUARTERLY RESULTS
ANNOUNCEMENT AND DECLARATION OF MAIDEN CASH DIVIDEND NUMBER 1


Salient Features
Extracted from the voluntary quarterly results for the three months ended 31 March 2022, being the
first period during which aReit Prop has earned revenue:

                                          3 months ended        6 months ended
                                                31 March           31 December
                                                    2022                  2021
                                               Unaudited               Audited           Difference
                                                       R                     R          Percentages
 Revenue                                      17 481 060                     -                 100%
 Net Profit/(Loss)                            17 078 521           (3 082 000)                 654%
 Distributable profit                         10 705 249                     -                 100%
                                                   Cents                Cents
 Headline earnings/(loss) per share                17.08                     -                 100%
 Earnings/(loss) per share                         17.08                     -                 100%
 Net Asset Value Per Share                         931.0                 913.9                 1.8%

A maiden dividend of 10.70525 cents per share has been declared as detailed further below.

Short-Form Announcement
The short-form announcement is the responsibility of the directors and is only a summary of
information in the full announcement which is available on the Company’s website at
www.areitprop.co.za/sens/. This announcement does not contain full or complete details and any
investment decisions by investors and/or shareholders should be based on consideration of the full
announcement published SENS available on:

https://senspdf.jse.co.za/documents/2022/JSE/ISSE/APOE/APOQ12022.pdf

Copies of the full announcement may also be requested at the Company’s registered office and at
the offices of the sponsor, at no charge, during office hours. Any investment decision should be
based on the full announcement released on SENS on 4 May 2022 and published on the Company's
website at www.areitprop.co.za as a whole, copies of which may be requested at the company's
registered office, and the offices of the sponsors, AcaciaCap Advisors, at no charge.

DIVIDEND DECLARATION
The Board is pleased to declare a maiden quarterly dividend (Dividend Number 1) of 10.70525 cents
per ordinary share, which amounts to 100% of distributable profit. The dividend is declared out of
distributable reserves of the Group. aReit Prop’s tax reference number is 9961778173. The number of
ordinary shares which will be eligible for the dividend at the declaration date is 100 000 000.

As the company has REIT status, 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),
as amended, (“Income Tax Act”). The dividend 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 salient dates for the dividend will be as follows:

                                                                                              2022
Last date to trade “cum" dividend                                                  Tuesday, 17 May
Shares commence trading ”ex” dividend                                             Wednesday 18 May
Record date (date shareholders recorded in share register)                          Friday, 20 May
Payment date                                                                        Monday, 23 May

Shareholders may not dematerialise or rematerialise their share certificates between Wednesday,
18 May 2022 and Friday, 20 May 2022, both dates inclusive.

TAX IMPLICATIONS

South African tax residents
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 exception, contained in paragraph (aa) of section 10(1)(k)(i) of the Income
Tax Act) because it is a dividend distributed by a REIT.

The dividend is exempt from dividend withholding tax in the hands of South African tax resident
Shareholders, provided that the South African resident Shareholders provide the following forms to
the CSDP or broker in respect of uncertificated shares, or to the company, in respect of certificated
shares:

a)     a declaration that the dividend is exempt from dividend 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.

Non-resident Shareholders
Dividends received by non-resident Shareholders will not be taxable as income and instead will be
treated as an ordinary dividend which is exempt from income tax in terms of the general dividend
exemption in section 10(1)(k)(i) of the Income Tax Act. Since 1 January 2014, any dividend 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 shareholder concerned. Assuming
dividend withholding tax will be withheld at a rate of 20%, the net dividend amount due to non-
resident Shareholders is 8.56420 cents per 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 form
to their CSDP or broker in respect of uncertificated shares, or the company, in respect of certificated
shares:

a)     a declaration that the dividend is subject to a reduced rate as a result of the application of
       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.

PROSPECTS
aReit Prop’s business strategy is to invest in yield-enhancing assets and areas that offer consistent,
long-term rental growth. The asset and property management function are carried out internally by
aReit Prop’s experienced management team with a view to extracting maximum value from each
property.
Whilst the current properties are leasehold properties and are ungeared, the Company does
envisage acquiring freehold properties and gearing same, at appropriate levels, within the
requirements for a REIT. There is no intention to gear the existing leasehold properties.

With a secure rental income, strong balance sheet and no gearing, aReit Prop has a solid base that
will provide the ability to invest in various real estate sectors both locally and internationally through
further leasehold and freehold property acquisitions, utilising both debt and equity associated with
such acquisitions. The group expects that it will be able to add significantly to its property portfolio
on a yield-enhancing basis for its investors over time.


Prepared by: AH Ismail CA (SA)
5 May 2022

Sponsor
AcaciaCap Advisors Proprietary Limited

Date: 05-05-2022 09:17:00
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