VUKILE PROPERTY FUND LIMITED - Distribution update

Distribution update

VUKILE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE share code: VKE NSX share code: VKN
ISIN: ZAE000180865
Bond company code: VKEI
(Granted REIT status with the JSE)
(“Vukile” or “the company”)


DISTRIBUTION UPDATE


Shareholders are referred to:

-     Vukile’s reviewed preliminary results for the year ended 31 March 2020 (“FY2020”) released on SENS on
      30 June 2020;
-     the announcement released on SENS on 30 July 2020 wherein Vukile shareholders were informed that Vukile
      expected to declare a final dividend for FY2020 concurrently with the release of its audited annual financial
      statements for FY2020 (on 31 August 2020) but in any event by no later than 7 September 2020; and
-     the trading statement released on SENS on 14 August 2020 (the “trading statement”) wherein shareholders
      were informed that, in the absence of any amendments or rulings applicable to the REIT sector, Vukile intended
      to pay out a final dividend for FY2020 of 48.18672 cents per share (the “final dividend”) in order to meet the
      minimum distribution requirement imposed on REITs in terms of paragraph 13.47 of the JSE Listings
      Requirements (the “minimum distribution requirement”).

From a regulatory perspective a REIT is compelled to comply with the minimum distribution requirement unless:
   -  the REIT is unable to satisfy the solvency and liquidity test as set out in Section 4 as read with section 46 of
      the Companies Act, 2008 (the “solvency and liquidity test”); or
   -  the JSE secures a sector-wide ruling or effects an amendment to the applicable Listings Requirements,
      whereby REITs are exempted (in whole or in part) from having to meet the minimum distribution requirement
      without prejudicing their REIT status.

While Vukile comfortably satisfies the solvency and liquidity test to pay the final dividend, Vukile (as part of the
sector engagement process) has been engaging with the JSE on proposals to afford REITs generally certain temporary
exemptions in regard to the minimum distribution requirements. Engagements with the JSE have been constructive.

To avoid any prejudice to Vukile that may result if a sector-wide ruling were to be secured after Vukile’s previously
anticipated dividend declaration date of 31 August 2020, the JSE has allowed Vukile to defer the declaration of its
final dividend until no later than 29 September 2020.

Vukile will keep shareholders informed of any developments that may impact the quantum and timing of the final
dividend.

28 August 2020


JSE sponsor                                              NSX sponsor
Java Capital                                             IJG Securities (Pty) Ltd

Date: 28-08-2020 11:25:00
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