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Unaudited Interim Results Announcement for the Six Months ended 30 June 2022 & Declaration of Cash Dividend No2
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: UNAUDITED INTERIM RESULTS ANNOUNCEMENT FOR THE SIX
MONTHS ENDED 30 JUNE 2022 AND DECLARATION OF CASH DIVIDEND NUMBER 2
Salient Features
Extracted from the unaudited interim results for the six months ended 30 June 2022, being the second
period during which aReit Prop has earned revenue:
6 months ended 3 months ended
30 June 31 March
2022 2022
Unaudited Unaudited Percentage
R R Difference
Revenue 32 726 542 17 481 060 87.2%
Operating Profit 31 976 388 17 078 521 87.2%
Distributable Profit 20 347 635 10 705 249 90.1%
Less: dividend paid during the period (10 705 249) -
Net distributable profit available 9 642 385 10 705 249 (9.9%)
Percentage distribution 100% 100% -
Dividend distribution 9 642 385 10 705 249 (9.9%)
Cents Cents
Headline earnings per share 31.98 17.08 87.2%
Earnings per share 31.98 17.08 87.2%
Distribution declared 9.64 10.70 (9.9%)
Dividend paid – Dividend Number 1 10.70 - 100%
Net Asset Value Per Share 935.2 931.0 0.5%
Number of shares in issue 100 000 000 100 000 000 -
There is no comparative information for the prior period.
A second dividend of 9.64239 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/APOQ22022 .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 1 August 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 second dividend (Dividend Number 2) of 9.64239 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, 30 August
Shares commence trading ”ex” dividend Wednesday 31 August
Record date (date shareholders recorded in share register) Friday, 2 September
Payment date Monday, 5 September
Shareholders may not dematerialise or rematerialise their share certificates between Wednesday, 31
August 2022 and Friday, 2 September 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 7.71391 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. 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 property 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.
BY ORDER OF THE BOARD
1 August 2022
Sponsor
AcaciaCap Advisors Proprietary Limited
Date: 01-08-2022 05:00:00
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