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Unaudited consolidated interim financial statements for the six months ended 31 August 2025, cash dividend
NEWPARK REIT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2015/436550/06)
JSE share code: NRL ISIN: ZAE000212783
(Approved as a REIT by JSE)
("Newpark" or "the Company" or "the Group")
UNAUDITED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 31 AUGUST 2025, CASH DIVIDEND
NATURE OF BUSINESS
Newpark is a property holding and investment company that is currently invested in A-grade commercial and industrial
properties.
PROPERTY PORTFOLIO
Newpark's property portfolio consists of four properties. Two are located in the heart of Sandton, Gauteng, namely the JSE
Building which has 18,533 m2 of gross lettable area ("GLA") and an adjoining mixed-use property known as 24 Central, which
has 16,526 m2 of GLA. The third property is situated in Linbro Business Park which has 13,713 m2 of GLA and the fourth
property in Crown Mines which has 11,277 m2 of GLA. The combined valuation of these properties, undertaken by the
Company's board of directors ("Board" or "Directors") as at 31 August 2025 was R1,051 billion.
KEY FINANCIAL HIGHLIGHTS
Unaudited Unaudited Change
31 August 31 August %
2025 2024
("H1 FY2025") ("H1 FY2025")
Funds from operations per share ("FFOPS") (cents) (1) 26,80 35,50 (24,5)
Dividend per share (cents) 26,00 30,00 (13,3)
Total assets (R000) 1 101 695 1 112 532 (1,0)
Net asset value per share (Rand) (1) 5,62 5,84 (3,8)
Loan to value ratio (%) (1) 44,5% 41,7%
Gross revenue (R000) 63 811 68 803 (7,3)
Operating profit before fair value adjustments 44 540 45 996 (3,2)
Earnings/(loss) per share (cents) 21,84 8,33 162,2
Headline earnings / (loss) per share (cents) 21,84 21,72 (0,6)
1 Financial measure determined in accordance with the SA REIT Best Practice guidelines.
COMMENTARY ON RESULTS
The Board is pleased to present the Group's interim results for the period under review.
The Directors valuations of Newpark's property portfolio at 31 August 2025 have remained in line with the independent
valuations at 28 February 2025, which took into account the negative reversion of the JSE's rentals to market related levels
effective from 1 April 2025.
Revenue for the six months ended 31 August 2025 was R63,8 million, a decrease of 7,3% compared to the same period in
H1 FY2025, and operating profit before fair value adjustments was R44,5 million (down 3,2%). The decrease in revenue and
operating profit was predominantly as a result of the reversion in the JSE rental in accordance with the terms of their new
lease.
After allowing for fair value adjustments and the net cost of finance, the total comprehensive profit for the period was
R21,8 million (H1 FY2025: R8,3 million), representing a profit per share of 21,842 cents per share ("cps") (H1 FY2025: 8,328
cps).
FFOPS for the period were 26,804 cps which represents a 24,5% decrease from the same period in H1 FY2025. The decrease is
predominantly attributed to the reversion in rental at the JSE, partially off-set by escalations in rentals and increased earnings
at the other properties.
Newpark's balance sheet continues to remain financially sound with a slight increase in loan-to-value level ("LTV") to 44,5%
(FY2025: 43,1%). The Group's weighted average cost of funding, following interest rate cuts and after implementing additional
hedges, is 8,884% as at 31 August 2025 (H1 FY2025: 9.300%). The weighted average maturity of the debt facilities is 2,5 years
and the percentage of hedges in place against the Group's drawn debt exposure at 31 August 2025 is 53,5%.
The net asset value per share (after taking into account the interim dividend) is R5,62 (FY2025: R5,64).
An interim dividend of 26,00 cents per share (H1 FY2025: 30,00 cents per share) was declared on 9 October 2025.
INTERIM DIVIDEND PER SHARE
After considering the interim decrease in FFOPS and the outlook for the remainder of the year, Newpark has declared an
interim dividend of 26,00 cents per share, being a decrease of 13,3% compared to the dividend per share of 30,00 cents per
share for the six months ended 31 August 2024.
SUBSEQUENT EVENT
As announced on SENS on 9 September 2025, an agreement for the sale of the Crown Mines property was concluded in
September 2025 at a net consideration of R99,4 million. The sale of the property, which is no longer considered core to the
strategy of the Company, will not have a material impact on FFOPS and net asset value per share in the current financial year.
Proceeds from the sale will be utilised to reduce borrowings, with the impact of reduced rental income being partially off-set
by lower funding costs.
OUTLOOK
The weighted average lease expiry for the portfolio is currently 4,9 years, providing high quality, predictable cash flows in the
medium term. The refinancing completed at the end of the 2025 financial year allows for greater funding flexibility at a reduced
margin with adequate headroom on debt covenants.
The rate of leasing vacant office space at 24 Central has been slower than initially projected. However the reduction in rentals
resulting from increased vacancies has been partially mitigated by additional advertising revenues and contractual leasing
income of excess parking space.
Per the previous guidance announced on SENS on 15 May 2025, FFOPS for the year-ending 28 February 2026 had been
budgeted to be between 39,00 and 46,00. After taking into account the impact of the sale of the Crown Mines property at an
assumed transfer date of 30 November 2025, improved revenue at 24 Central and reduced property operating costs, the
forecast FFOPS for the year ending 28 February 2026 has been revised to between 41,50 and 48,50 cents per share with total
dividends per share expected to be in line with the FFOPS.
The forecast is based on the assumption that there is no material change to the macro-economic environment, no material
tenant default will occur, operating cost increases will not exceed inflation and no changes will be made to the property
portfolio aside from the Crown Mines disposal. This updated forecast has not been audited or reviewed by the Company's
auditors.
PAYMENT OF INTERIM DIVIDEND
The Board has approved, and notice is hereby given of the interim gross dividend of 26,0000 cents per share for the six months
ended 31 August 2025.
The dividend is payable to Newpark's shareholders in accordance with the timetable set out below:
2025
Last date to trade cum dividend: Tuesday, 28 October
Shares trade ex dividend: Wednesday, 29 October
Record date: Friday, 31 October
Payment date: Monday, 3 November
Share certificates may not be dematerialised or rematerialised between Wednesday, 29 October 2025 and Friday,
31 October 2025, both days inclusive.
The dividend will be transferred to dematerialised shareholders' CSDP accounts/broker accounts on Monday,
3 November 2025. Certificated shareholders' dividend payments will be paid to certificated shareholders' bank accounts on or
about Monday, 3 November 2025.
In accordance with Newpark'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
dividend 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 it is a dividend distributed by a REIT. This dividend is, however, exempt
from dividend withholding tax in the hands of South African tax resident shareholders, provided that the South African resident
shareholders submitted the following forms to their 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) a declaration that the dividend is exempt from dividends tax; and
b) a 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 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. 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 is 20,8000 cents per share. A reduced dividend withholding rate in terms of the
applicable DTA, may only be relied upon if the non-resident shareholder, has submitted 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 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, 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 dividend: 100,000,001
Newpark's income tax reference number: 9506934174.
This results announcement is the responsibility of the Directors and is only a summary of information in the unaudited
consolidated interim financial statements for the six months ended 31 August 2025 ("2025 interim results") which has been
published on SENS. Any investment decisions by investors and/or shareholders should be based on the 2025 interim results
which is available on the Company's website at: http://www.newpark.co.za/pdf/sens/2025HY.pdf and can also be accessed
using the following JSE link: https://senspdf.jse.co.za/documents/2025/jse/isse/NRLE/2025HY.pdf. This results announcement
has not been audited or reviewed by the Company's external auditors.
By order of the Board
9 October 2025
DIRECTORS
A F Benatar (Chief Executive Officer), A J Wilson (Financial Director), B D van Wyk *, D T Hirschowitz*,
KM Ellerine*, R C Campbell **, S Shaw-Taylor**, T S Sishuba**
* Non-executive director ** Independent non-executive director
REGISTERED OFFICE WEBSITE
51 West Street, Houghton, Gauteng, 2198 www.newpark.co.za
P O Box 3178, Houghton, Gauteng, 2041
COMPANY SECRETARY TRANSFER SECRETARY
Bronwyn Baker Computershare Investor Services Proprietary Limited
DESIGNATED ADVISOR
Java Capital
6th Floor, 1 Park Lane, Wierda Valley,
Sandton, 2196
DATE OF PUBLICATION
10 October 2025
Date: 10-10-2025 10:00:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
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