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Audited summary consolidated financial results for the year ended 31 December 2021 and dividend declaration
SA CORPORATE REAL ESTATE
AUDITED SUMMARY CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2021 AND CASH DIVIDEND DECLARATION
SA Corporate Real Estate Limited ("SA Corporate" or "the Company" or "the Group") (Incorporated in the Republic of South Africa)
(Registration number 2015/015578/06) Approved as a REIT by the JSE
Share code: SAC
ISIN code: ZAE000203238
Introduction
SA Corporate is a JSE-listed Real Estate Investment Trust ("REIT") which owns a diversified portfolio of quality industrial, retail, commercial and
residential buildings located primarily in the major metropolitan areas of South Africa with a secondary node in Zambia. The property portfolio consists of
165 properties, with 1 355 665m2 of gross lettable area, valued at R15.0 billion, a 50% joint venture ("JV") interest in three Zambian entities with properties valued at R1.1 billion,
a 90% JV interest in The Falls Lifestyle Estate with property valued at R177.3 million and listed investments valued at R162.9 million.
Overview
Distributable income up 6.4% R639.5 million or 25.43 cps (2020: R601.1 million or 23.90 cps)
Total net property income of R1.1 billion (2020: R1.1 billion)
Total like-for-like net property income increased by 9.9% to R1.1 billion (2020: R1.0 billion)
Disposal pipeline contracted and still to transfer & divestments transferred since 1 January 2021 of R1.8 billion (2021 contracted: R916.4 million) Transferred in 2021: R853.6 million; 2021YE
contracted not yet transferred: R964.8 million
Loan to value ("LTV") ratio of 37.4%* (2020: 38.6%*)
* Net debt LTV excluding derivatives, which if included would be 38.5% (2020: 41.2%)
Salient features
The salient features of the Group annual financial results for the year ended 31 December 2021, as compared to the year ended 31 December 2020, are set out below:
Revenue of R2 121.5 million (2020: R2 062.2 million )
Operating profit * of R617.5 million (2020 loss *: R537.1 million)
* Includes fair value loss on investment properties
Headline earnings per share of 48.44 cents (2020: 6.34 cents)
Basic earnings per share of 24.69 cents (2020 loss: 59.39 cents)
Net asset value per share of 400 cents (2020: 401 cents)
Annual distribution up 27.7%
22.89 cps# at 90% payout ratio (2020: 17.93 cps at 75% payout ratio)
# Includes distribution of 10.27 cps paid in respect of H1 2021
Distribution declaration and important dates
Notice is hereby given of the declaration of distribution - no. 13 in respect of the income distribution period 1 July 2021 to 31 December 2021. The distribution amounts to 12.61570 cps for the
six months (2020 12 months: 17.92841 cps).
The source of the distribution comprises net income from property rentals. Please refer to the statement of comprehensive income for further details. 2 514 732 095 SA Corporate shares are in
issue at the date of this distribution declaration and SA Corporate's income tax reference number is 9179743191
Last date to trade cum distribution Tuesday, 5 April 2022
Shares will trade ex-distribution Wednesday, 6 April 2022
Record date to participate in the distribution Friday, 8 April 2022
Payment of distribution Monday, 11 April 2022
Share certificates may not be dematerialised or rematerialised between Wednesday, 6 April 2022 and Friday, 8 April 2022, both days inclusive.
Tax implications
As SA Corporate has REIT status, shareholders are advised that the distribution 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 distributions on SA Corporate shares will be deemed to be dividends, for South African tax purposes, in terms of section 25BB of the Income Tax Act. The distributions received by or
accrued to South African tax residents must be included in the gross income of such shareholders and are not 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, with the effect that the distribution is taxable in the hands of the shareholder.
These distributions are, however, exempt from dividend withholding tax in the hands of South African tax resident shareholders, provided that the South African resident shareholders have provided the following
forms to their CSDP or broker, as the case may be, in respect of uncertificated shares, or the transfer secretaries, in respect of certificated shares:
(a) a declaration that the distribution is exempt from dividends tax; and
(b) a written undertaking to inform the CSDP, broker or the transfer secretaries, as the case may be, should the circumstances affecting the exemption change or the beneficial owner ceases to be the beneficial
owner, both in the form prescribed by the Commissioner for the South African Revenue Service.
SA Corporate shareholders are advised to contact the CSDP, broker or transfer secretaries, as the case may be, to arrange for the abovementioned documents to be submitted prior to payment of the distribution, if such documents have not already been submitted.
Notice to non-resident shareholders
Distributions 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.
Distributions received by a non-resident from a REIT are 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.
Assuming dividend withholding tax will be withheld at a rate of 20%, the net dividend amount due to non-resident shareholders is 10.09256 cents per SA Corporate 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 forms to the CSDP or broker, as the case may be, in respect of uncertificated shares, or the transfer secretaries, 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 the CSDP, broker or the transfer secretaries, as the case may be, should the circumstances affecting the reduced rate change or the beneficial owner ceases 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 the CSDP, broker or the transfer secretaries, as the case may be, to arrange for the above mentioned documents to be submitted prior to payment of the distribution if such documents have not already been submitted, if applicable.
Short-form notice
The contents of this short-form announcement are the responsibility of the Board of Directors of the Company. PricewaterhouseCoopers Inc. have issued an unmodified auditor's report on the Group annual financial statements for the year ended 31 December 2021. Shareholders are advised that this
short-form announcement represents a brief summary of the information contained in the full announcement, which, along with the key audit matters detailed in the auditor's opinion in the Group annual financial statements, are published on https://senspdf.jse.co.za/documents/2022/jse/isse/SACE/ye2021.pdf
and on SA Corporate's
website https://www.sacorporatefund.co.za. Any investment decisions by investors and/or shareholders should be based on a consideration of the full announcement as a whole and shareholders are encouraged to review the full announcement as directed above. Investors and/or shareholders may request copies of
the full announcement by contacting the registered office, details of which are set out below. The announcement is available for inspection at the registered office of the Company at no charge during business hours, by prior appointment due to COVID restrictions.
For a more comprehensive analysis of SA Corporate's results and outlook, please refer to https://www.sacorporatefund.co.za
Cape Town
17 March 2022
Sponsor: Nedbank Corporate and Investment Banking , a division of Nedbank Limited
DIRECTORATE AND STATUTORY INFORMATION
Registered office
South Wing, First Floor, Block A, The Forum, North Bank Lane, Century City, 7441
Tel 021 529 8410
Registered auditors
PricewaterhouseCoopers Inc.
5 Silo Square, V&A Waterfront, Cape Town, 8002
Transfer secretaries
Computershare Investor Services Proprietary Ltd
Rosebank Towers, 15 Biermann Avenue, Rosebank, 2196
Sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
135 Rivonia Road, Sandton, 2196
Directors
MA Moloto (Chairman)
OR Mosetlhi (Lead Independent Director)
TR Mackey (Chief Executive Officer)*
SY Moodley (Chief Financial Officer)*
RJ Biesman-Simons
N Ford-Hoon (Fok)
EM Hendricks
GJ Heron
SS Mafoyane
* Executive
Date: 17-03-2022 05:15:00
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