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Trading statement, update on trading conditions and payment of tranche 2 of 2019 final distribution
SA Corporate Real Estate Limited
(Incorporated in the Republic of South Africa)
(Registration number 2015/015578/06)
Share code: SAC ISIN: ZAE000203238
(Approved as a REIT by the JSE)
("SA Corporate" or “the Company”)
TRADING STATEMENT, UPDATE ON TRADING CONDITIONS AND PAYMENT OF TRANCHE 2 OF
2019 FINAL DISTRIBUTION
Trading Statement
In terms of paragraph 3.4(b)(vii) of the JSE Listings Requirements, property entities which have
adopted distribution per share as their financial results measurement for trading statement
purposes, are required to publish a trading statement as soon as they are satisfied that a
reasonable degree of certainty exists that the financial results to be reported upon next will
differ by at least 15% from the financial results of the previous corresponding period.
The Company anticipates that distributable income for the six months ended 30 June 2020 will
be between R335.2m and R283.7m, representing a decrease of between 35% to 45%, compared
to R515.8m for the prior comparative period ended 30 June 2019.
Shareholders are further advised that, in the interests of capital preservation and the prevailing
uncertainty resulting from the COVID-19 impact, SA Corporate will not be paying an interim
distribution for the six months ended 30 June 2020. As a result of this decision, distribution per
share for the six months ended 30 June 2020 will be nil (30 June 2019 : 20.38 cents per share).
Update on trading conditions
An update on trading conditions amidst COVID-19 was provided in our Pre-close Update
Presentation on 29 June 2020 which can be found at the link hereunder.
https://www.sacorporatefund.co.za/content/uploads/2020/06/SA%20Corporate_2020%20Inter
im%20Results%20Pre-Close%20Interim%20June%202020%20Final.pdf
The collections and rent relief schedule provided in this presentation has been updated and is as
tabulated below. It should be noted that this reflects collections in the month, i.e. before
allocating the collections to aged arrears, and of total contracted income before relief provided
to tenants. The aforementioned is to ensure that the reader can explicitly be informed of the
latest collection performance in a particular month and also how this relates to contracted
income prior to any rent relief.
Contribution Retail1 Industrial Commercial Storage Afhco Retail Residential Student SA Total Zambian
accommodation JV
Normal NPI contribution 37,4% 28,7% 1,3% 0,4% 2,5% 23,5% 0,7% 94,5% 5,5%
April 2020 Collections Retail1 Industrial Commercial Storage Afhco Retail Residential Student SA Total Zambian
accommodation JV
Collections in the month 55,6% 72,9% 74,1% 85,4% 28,7% 72,9% 76,8% 62,9% 30,7%
Relief to tenants (% of billings) 19,8% 0,0% 0,0% 0,0% 59,6% 3,4% 0,0% 13,0% 26,8%
Awaiting substantiation 0,0% 0,0% 0,0% 0,0% 0,0% 2,5% 0,0% 0,4% 0,0%
Write-offs 19,8% 0,0% 0,0% 0,0% 59,6% 0,9% 0,0% 12,6% 26,8%
Deferments 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%
Under negotiation/Arrears/Prior period collections 24,6% 27,1% 25,9% 14,6% 11,7% 23,7% 23,2% 24,1% 42,5%
Contractual billings 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0%
May 2020 Collections Retail1 Industrial Commercial Storage Afhco Retail Residential Student SA Total Zambian
accommodation JV
Collections in the month 66,1% 72,9% 57,4% 91,3% 27,2% 71,7% 54,2% 65,6% 55,5%
Relief to tenants (% of billings) 9,5% 8,9% 18,9% 0,0% 59,0% 3,8% 0,0% 11,7% 30,3%
Awaiting substantiation 0,0% 0,0% 0,0% 0,0% 3,5% 3,8% 0,0% 0,9% 0,0%
Write-offs 9,5% 0,0% 18,9% 0,0% 55,3% 0,0% 0,0% 8,5% 30,3%
Deferments 0,0% 8,9% 0,0% 0,0% 0,2% 0,0% 0,0% 2,3% 0,0%
Under negotiation/Arrears/Prior period collections 24,4% 18,2% 23,7% 8,7% 13,8% 24,5% 45,8% 22,7% 14,2%
Contractual billings 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0%
June 2020 Collections Retail1 Industrial Commercial Storage Afhco Retail Residential Student SA Total Zambian
accommodation JV
Collections in the month2 94,1% 119,5% 116,3% 100,0% 54,2% 81,5% 166,3% 97,9% 65,4%
Relief to tenants (% of billings) 6,7% 13,3% 8,2% 0,0% 31,1% 4,8% 0,0% 9,5% 31,7%
Awaiting substantiation 0,0% 0,0% 0,0% 0,0% 0,4% 4,8% 0,0% 1,0% 0,0%
Write-offs 6,7% 0,2% 8,2% 0,0% 30,6% 0,0% 0,0% 5,4% 31,7%
Deferments 0,0% 13,1% 0,0% 0,0% 0,1% 0,0% 0,0% 3,1% 0,0%
Under negotiation/Arrears/Prior period collections -0,8% -32,8% -24,5% 0,0% 14,7% 13,7% -66,3% -7,4% 2,9%
Contractual billings 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0%
July 2020 Collections Retail1 Industrial Commercial Storage Afhco Retail Residential Student SA Total Zambian
accommodation JV
Collections in the month 85,2% 94,0% 86,7% 104,4% 95,5% 87,0% 100,8% 89,1% 60,7%
Relief to tenants (% of billings) 8,3% 1,1% 0,0% 0,0% 20,2% 0,9% 0,0% 5,4% 18,2%
Awaiting substantiation 0,0% 0,0% 0,0% 0,0% 14,3% 0,9% 0,0% 1,2% 0,0%
Write-offs 8,3% 1,1% 0,0% 0,0% 5,9% 0,0% 0,0% 4,2% 18,2%
Deferments 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0% 0,0%
Under negotiation/Arrears/Prior period collections 6,5% 4,9% 13,3% -4,4% -15,7% 12,1% -0,8% 5,5% 21,1%
Contractual billings 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0% 100,0%
1 Retail excludes external ownership whereas in the Pre-close Update Presentation on 29 June 2020 the statistics disclosed included external ownership.
2 Statistics higher than those disclosed in the Pre-close Update Presentation on 29 June 2020 due to collections being to the end of the month rather than to 26
June 2020.
Release of results for the six months ended 30 June 2020
The Company intends releasing its results for the six months ended 30 June 2020 on
15 September 2020.
Payment of tranche 2 of 2019 final distribution
Shareholders are referred to the announcement released on SENS on 20 April 2020 which set
out the postponement of the payment of tranche 2 of the final distribution for the year ended
31 December 2019 (“Tranche 2”). In this regard, the Company will advise in respect of the
payment of Tranche 2 when it releases its results for the six months ended 30 June 2020.
The financial information in this announcement has not been reviewed or reported on by SA
Corporate's auditors.
Cape Town
28 August 2020
Sponsor
Nedbank Corporate and Investment Banking
Date: 28-08-2020 05:00:00
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