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Summarised audited consolidated annual results for the year ended 30 September 2022
INDLUPLACE PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2013/226082/06)
JSE share code: ILU ISIN: ZAE000201125
(Approved as a REIT by the JSE)
("Indluplace" or "the company")
Short-form announcement
Summarised audited consolidated results 2022
INCREASE /(DECREASE) 30 SEPTEMBER 2022 30 SEPTEMBER 2021
Revenue (R) (2,9%) 583 692 659 600 880 519
Operating profit^ (R) (0,6%) 234 453 196 235 798 644
Earnings (R) 110,3% 11 175 074 (108 179 804)
Earnings per share (cents) 110,4% 3,56 (34,35)
Diluted earnings per share (cents) 110,2% 3,52 (34,35)
Headline earnings per share (cents) (6,7%) 47,85 51,26
Diluted headline earnings per share (cents) (6,8%) 47,37 50,80
SA REIT Net asset value (cents) (6,5%) 637,04 681,42
Dividend for the period ended (cents) 13,6% 31,95734 28,13096
^ Rental income less property and administration costs
Nature of business
Indluplace is a proud South African property investor, owning a portfolio primarily focused on the affordable end of the residential rental market.
The company was listed on the Main Board of the JSE in June 2015 and currently owns a portfolio of 9 249 residential units and 15 549m(2) of associated
retail space. The portfolio is valued at approximately R3,4 billion, with properties situated mainly in Gauteng. The Group employs in excess of
280 people providing all the services required to efficiently manage a large portfolio which is home to almost 30 000 people. These include building
based staff as well as all head office departments to ensure tenants are given superior service, buildings are clean and well maintained and
properties deliver financial results to enable the company to pay increasing dividends to investors.
Overview
Indluplace achieved most of its strategic objectives that the Board set for the 2022 financial year. Sustainable value has been created in
the property management business with the internalised property management capability operational for a full financial year.
The student portfolio in Vanderbijlpark was subject to various negative factors as the universities transitioned away from head leases.
Unfortunately the student portfolio's letting performance disappointed, but we have introduced various management improvements
and are confident of a much improved 2023.
The benefits of standardised systems and procedures, more direct influence on the team's performance and a very experienced and motivated management
team, have already made a positive impact on performance. While stable collection rates and occupancy numbers indicate that our units are defensive
in nature and are in demand by quality tenants, the performance of the portfolio is largely dependent on our tenant base tenant base growing and an
improved economic environment.
Payment of dividend
for the year ended 30 September 2022
The board has declared a gross dividend of 18,79384 cents per share (dividend number 18) for the six months ended 30 September 2022. Together with
the dividend declared for the six months ended 31 March 2022 of 13,16350 per share, the total dividend for the full year ended 30 September 2022
amounts to 31,95734 cents per share. The dividend declared for the six months ended 30 September 2022 will be paid in accordance with the timetable
set out below:
Last date to trade cum dividend Monday, 12 December 2022
Shares trade ex-dividend Tuesday, 13 December 2022
Record date Thursday, 15 December 2022
Payment date Monday, 19 December 2022
Shares may not be dematerialised or rematerialised between Tuesday, 13 December 2022 and Thursday, 15 December 2022, both days inclusive.
Payment of the dividend will be made to shareholders on Monday, 19 December 2022. In respect of dematerialised shares, the dividend will be
transferred to the Central Securities Depository Participant (CSDP) / broker accounts on Monday, 19 December 2022. Certificated shareholders'
dividend payment will be deposited on or about Monday, 19 December 2022.
Tax treatment of dividend
In accordance with Indluplace's status as a REIT, 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 distribution on 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. This dividend is, however, exempt from dividends withholding tax in the hands of South African
tax resident shareholders, provided that the South African resident shareholders furnished 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 exempt from dividends tax; and
b) written undertaking to inform the CSDP, broker or the company, as the case may be, 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, as the case may be, 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. Any dividend received by a non-resident
from a REIT is 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 is 15,03507 cents per share. A reduced dividend withholding rate in terms
of the applicable DTA, may only be relied on if the non-resident shareholders have provided the following forms to their CSDP or broker,
as the case may be, in respect of uncertificated shareholders, or the company, in respect of certificated shareholders:
a) declaration that the dividend is subject to a reduced rate as a result of the application of a DTA; and
b) written undertaking to inform their 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 for the South African Revenue Service. Non-resident shareholders are advised to contact their
CSDP, broker or the company, as the case may be, 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.
Shares in issue at the date of declaration of this dividend: 336 523 275
Indluplace's income tax reference number: 9390/649/177
Short-form announcement
This short-form announcement is the responsibility of the board of directors of the company. This short-form announcement is a summary of the full
announcement released on SENS and published on Indluplace's website (http://www.indluplace.co.za) at
https://www.indluplace.co.za/downloads/2022/results/indluplace-annual-results-2022.pdf
on 23 November 2022 and on the JSE website at https://senspdf.jse.co.za/documents/2022/jse/isse/ilu/indlu0922.pdf
and does not contain full or complete details. Any investment decision by investors and/or shareholders should be based on consideration of the
full announcement.
The audit report on the financial statements in respect of which an unqualified opinion was expressed, notes the valuation of investment properties
as a key audit matter.
A copy of the audit opinion, together with the underlying audited financial statements are available for inspection at the company's registered office,
and available on the company's website at https://www.indluplace.co.za/downloads/2022/results/indluplace-afs-2022.pdf
The full announcement is available for inspection at the registered offices of the company, on the company's website, http://www.indluplace.co.za and
the offices of the sponsor, Java Capital (6th Floor, 1 Park Lane, Wierda Valley, Sandton, 2196 (entrance at 39 Wierda Road West)) at no charge
during normal business hours from Wednesday, 23 November 2022 to Thursday, 1 December 2022. A copy of the full announcement is available on
request from info@indluplaceproperties.co.za
By order of the Board
23 November 2022
Directors C Abrams*^, C de Wit (CEO), T Kaplan (FD), G Harris (COO), S Noik (Chairman)*^, A Rehman*^, N Tetyana*^, D.M. Wilder*
* Non-executive, ^ Independent. All directors are South African.
Registered office 2nd Floor, 158 Jan Smuts, 9 Walters Street, Rosebank, Johannesburg, 2196. PO Box 685, Melrose Arch, 2076.
Transfer secretaries Computershare Investor Services Proprietary Limited Sponsor Java Capital
Company secretary CIS Company Secretaries Proprietary Limited
Website http://www.indluplace.co.za
Date: 23-11-2022 08:30:00
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