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Abridged results for the year ended 31 March 2014 and
declaration of interim interest distribution and notice
of AGM
Safari Investments RSA Limited
Incorporated in the Republic of South Africa
(Registration number 2000/015002/06)
Approved as a REIT by the JSE Limited
(Share code: SAR | ISIN: ZAE000188280)
("Safari" or the "company" or the "group")
Abridged results for the year ended 31 March 2014 and
declaration of interim interest distribution and notice
of annual general meeting
At a glance
- Number of properties: 7
- Less than 1% vacancy rate
- R105p/m² monthly weighted average rental/m2
- 100% retail sector
- 90% national tenants
- R1,397 billion valuation of properties
- 124 925m² total GLA of current centres
- 10% weighted average rental escalation
- 154 568m² land available for future development
Income generating retail portfolio for the year ended 31 March 2014
Denlyn Atlyn Thabong The Victorian
Geographic Mamelodi, Atteridgeville, Sebokeng, Heidelberg,
Gauteng Gauteng Gauteng Gauteng
Trading since 2003 2006 2007 1997
Gross leasable
area 42 200m2 Existing Existing 15 400m2
39 680m2 27 645m2
and new and new
1 517m2 13 500m2
Gross annual
income R46 275 340 R32 907 679 R23 337 934 R14 149 048
Occupation levels 100% 100% 100% 100%
National tenants 91% 91% Existing 95%
83% after
construction:
90%
Number of shops 102 90 68 + 22 34
Annual trading 35 442,94/m2 29 399,60/m2 29 555,00/m2 40 817,54/m2
density/m2 per
annum for 2014
(R)**
**This excludes furniture and financial services. Annual national
average trading density: R25 672/m².
Report of the Chairman and Chief Executive Officer
With a successful 2014 financial year behind us, Safari has proven
its continued striving for excellence as a unique investment company.
Due to the success of the previous financial year(s), the 2015 financial
year started with the listing of Safari on the JSE.
Safari is proud of an industry-focused and dedicated board supported
by a management team with a wealth of property development, retail
marketing and management experience. The dedication of our team is
evident in the strong and healthy financial position of the company
and its retail operations that continue to deliver exceptional
results.
The executive committee meets monthly and is closely supported by the
development and procurement agent, Safari Developments Proprietary
Limited ("Safari Developments") and by the portfolio and financial
manager, Cosmos Management cc ("Cosmos Management"). Working closely
with them is Safari Retail Proprietary Limited ("Safari Retail") (a
subsidiary of Safari Developments), providing the marketing, CFO and
secretarial functions. These entities comprise financial and property
professionals dedicated to Safari and they manage the day-to-day
activities.
Safari Developments carefully selects and offers new development and
investment opportunities to Safari in order to grow and distinguish
the portfolio. New acquisitions are continuously researched and
sourced carefully, and if it can add value it is offered to the board
for inclusion in the portfolio. Current developments include the
establishment of a retail node on Maunde Street in Atteridgeville to
strengthen the Atlyn Centre, and a new phase for the Thabong Centre
in Sebokeng, which are both under construction. Construction of the
Swakopmund Waterfront in Namibia will commence soon, as all earth-
and waterworks are nearly complete. With these new additions the
portfolio is estimated to grow to R2 billion in the next financial
year and to R3 billion in the next three to four years.
Cosmos Management is responsible for the (complete) facilities
management of the portfolio and comprises functions like financial
bookkeeping and accounting as well as auditing, rent collection,
monthly financial reporting, centre management and tenant satisfaction.
The vacancy factor of less than 1% of the portfolio is evidence of their
commitment and efficiency.
Recent additions to the facilities include the establishment of an
Internet network and camera systems at the centres to inter alia, improve
security and the monitoring of activities. Cosmos Management continues to
analyse tenant operations and to recommend improvements to all our
facilities.
In co-operation, these key entities (Safari Developments and Cosmos
Management) together form a very lean and cost-effective structure of
administrative management and they continue to produce extraordinary
development and investment results for Safari.
The focus of the board remains to further grow shareholder value with
capital growth and attractive returns. This is achieved through a unique
property portfolio of quality assets in key locations and quality
tenancy across the portfolio. It remains evident to the retail market
that Safari offers high-class regional shopping destinations in desirable
growth nodes. Safari achieved an annual growth rate over the past five
years of approximately 20%. This reflects the successful strategy of
investing in high-growth areas.
Our operating fundamentals are:
- to maintain a high-integrity income stream;
- a pro-active letting strategy focused on national tenants;
- to utilise lease expiry to its maximum in lieu of current rent
averages in the portfolio; and
- to maintain a less than 1% vacancy factor in the portfolio.
The group continues to aim for the improvement of the quality of its
properties through selective redevelopment and upgrades of existing
properties. The strong financial position and access to finance
enables it to take advantage of new investment opportunities as they
arise. The strategic objective is to maximise returns on investments
to provide shareholders with above-average sustainable returns and
growing distributions. Safari will continue to aim at maximising
rental income streams, minimising operating expenditure without
compromising the quality of services, and optimising the funding mix.
Staying true to our investment proposition we can report the
following highlights for the 2014 financial year:
- increased rental income by 18%;
- increased portfolio value by 28%;
- maintained a less than 1% vacancy factor; and
- the portfolio increased in value from R1,27 billion prior to
listing to R1,4 billion.
The listing took place in April 20414 in the new (current) financial
year as new favourable tax legislation enabled Safari to apply for
REIT (Real Estate Investment Trust) status. REITs are tax-advantaged
investment structures that bring South African property companies in
line with international norms. The board was convinced that the timing
was right to conform and Safari was successfully listed as a REIT on
the JSE Limited on 7 April 2014, and raised R374 million capital by way
of a private placement. This enabled the group to settle its debt
completely. It also freed up the debt facility, which can be utilised
for funding of promising new developments. Since the listing date, the
share is performing well and we anticipate a stable performance period
ahead.
The institutional and individual shareholders have supported the
strategy and investment offering throughout the year. We look forward to
successfully delivering sustainable performance in the 2015 financial
year and to grow long-term value for the shareholders. The first REIT
distribution of 20 cents/share is due by mid-July 2014, with the second
distribution of 34 cents/share due in December 2014. Regarding the
December distribution, the board will consider offering investors the
option of a share issue for re-investment of their distributions, which
may stimulate share price and value.
We offer our appreciation to our fellow board members for their
guidance over the past year and also wish to thank our shareholders for
their continued support.
With the successful year behind, we remain committed to outstanding
management of the portfolio and to continue delivering exceptional
results.
MH Tsolo FJJ Marais
Chairman Chief executive officer
27 June 2014
Statement of financial position as at 31 March 2014
Notes 2014 2013
R R
Assets
Non-current assets
Investment property 1 1 347 869 135 1 054 912 557
Fair value of investment
property 1 379 152 614 1 073 756 015
Operating lease asset (31 283 479) (18 843 458)
Intangible assets 86 051 –
Operating lease asset 29 038 286 15 660 225
1 376 993 472 1 070 572 782
Current assets
Inventory 19 017 144 15 665 620
Current tax receivable 5 211 759 4 532 114
Operating lease asset 2 245 193 3 183 233
Trade and other receivables 3 991 090 4 257 763
Cash and cash equivalents 2 125 702 738 1 360 205
156 167 924 28 998 935
Total assets 1 533 161 396 1 099 571 717
Equity and liabilities
Equity
Equity attributable to
equity holders of parent
Stated capital 644 152 383 292 717 973
Equity portion of shareholders'
loans – 75 791 144
Retained income 362 823 335 240 581 812
1 006 975 718 609 090 929
Shares paid for and issuable 2 104 365 747 –
1 111 341 465 609 090 929
Liabilities
Non-current liabilities
Loans from shareholders 3 – 111 900 200
Interest bearing borrowings 4 – 306 668 234
Deferred tax 5 15 021 171 33 987 788
15 021 171 452 556 222
Current liabilities
Loans from shareholders 3 4 439 687 –
Interest bearing borrowings 4 381 070 518 30 903 796
Trade and other payables 11 246 934 7 020 770
Other financial liabilities 2 10 041 621 –
406 798 760 37 924 566
Total liabilities 421 819 931 490 480 788
Total equity and liabilities 1 533 161 396 1 099 571 717
Statement of Comprehensive Income for the year ended 31 March 2014
Notes 2014 2013
R R
Revenue 119 649 229 101 900 965
Property revenue 6 112 412 548 95 646 478
Operating lease 7 236 681 6 254 487
Other income 7 5 188 649 1 900 580
Operating expenses 8 (45 953 375) (53 062 579)
Profit before investment
revenue, fair value
adjustments and finance
costs 78 884 503 50 738 966
Investment revenue 153 463 158 772
Fair value adjustments 1 62 386 713 45 932 953
Gross fair value adjustments 69 623 393 52 187 440
Operating lease (7 236 681) (6 254 487)
Finance costs (28 045 988) (30 381 738)
Profit before taxation 113 378 691 66 448 953
Taxation 5 8 862 832 (19 283 052)
Profit for the year 122 241 523 47 165 901
Other comprehensive income – –
Total comprehensive income
for the year 122 241 523 47 165 901
Earnings and diluted earnings
per share (cents) 129 67
Explanatory notes to the statement of financial position and
statement of comprehensive income
1. Refer to the explanatory information disclosed under the net asset
value per share note for detail of the increased value.
2. 17 075 090 shares were paid for and issuable as at 31 March 2014
to the value of R105 844 674. An oversubscription of shares that will
not be issued on the listing to the value of R10 041 621 will be
repaid after year end. The amounts mentioned above are included in
cash and cash equivalents. The transaction costs of raising the
capital amounted to R1 478 927 and has been set off against the
amount received for the capital. These shares are to be issued on
listing which occurred on 7 April 2014. Refer to the notes to the
financial statements for detail of the listing of Safari.
3. Conversion of shareholders’ loans took place during the 2014
financial year. Refer to the notes to the financial statements.
4. The outstanding bond balance was settled shortly after year end.
Refer to the notes to the financial statements.
5. Taxation and deferred tax include the reversal of capital gains
tax, due to Safari’s REIT (Real Estate Investment Trust) status.
6. Property revenue include rental income from the Heidelberg
Shopping Centre, obtained during the 2014 financial year through a
business combination. Refer to the notes to the financial statements.
7. Other income include profit on the conversion of shareholders’
loans to the value of R2 273 743 and profit through the business
combination of R1 924 191. Refer to the notes to the financial
statements.
8. The decrease in the operating expenses is mainly due to the
completion of the revamping and extensions at the existing
properties, early in the 2014 financial year.
Statement of cash flows for the year ended 31 March 2014
2014 2013
R R
Cash flows from operating
activities
Cash generated from
operations 67 315 940 37 534 662
Interest income 153 472 49 292
Finance costs (25 991 844) (22 793 151)
Tax paid (10 783 431) (9 242 702)
Net cash from operating
activities 30 694 137 5 548 101
Cash flows from investing
activities
Additions of investment
property (103 359 644) (161 542 574)
Purchase of other intangible
assets (86 051) –
Business combinations 104 002 –
Net cash from investing
activities (103 341 693) (161 542 574)
Cash flows from financing
activities
Proceeds on share issue 133 482 601 21 246 427
Proceeds from interest bearing
borrowings 604 474 391 118 046 831
Repayment of interest bearing
borrowings (561 894 000) –
Movement in other financial
liabilities 10 041 621 –
Proceeds from shareholders’ loan 10 885 476 8 191 757
Net cash from financing activities 196 990 089 147 485 015
Total cash movement for the year 124 342 533 (8 509 458)
Cash at the beginning of the year 1 360 205 9 869 663
Total cash at end of the year 125 702 738 1 360 205
Statement of changes in equity for the year ended 31 March 2014
Share/stated Share Total
capital premium capital
R R R
Balance at
1 March 2012 691 872 270 779 674 271 471 546
Total comprehensive
income for the year – – –
Issue of shares 33 032 21 213 395 21 246 427
Equity portion of
shareholder loans – – –
Total contributions by
and distributions to
owners of company
recognised directly in
equity 33 032 21 213 395 21 246 427
Balance at
1 April 2013 724 904 291 993 069 292 717 973
Total comprehensive
income for the year – – –
Proceeds of shares
issued 43 893 30 330 077 30 373 970
Re-allocated to stated
capital 322 323 146 (322 323 146) –
Issue of shares:
Shareholders' loans
conversion 193 917 543 – 193 917 543
Issue of shares:
Business combination 128 400 014 – 128 400 014
Capital raising fee (1 257 117) – (1 257 117)
Issue of shares:
Listing on the JSE – – –
Total contributions by
and distributions to
owners of company
recognised directly
in equity 643 427 479 (291 993 069) 351 434 410
Balance at
31 March 2014 644 152 383 – 644 152 383
Equity portion Shares paid
of shareholder Retained for and Total
loans income issuable equity
R R R R
Balance at
1 March 2012 72 644 387 193 415 911 – 537 531 844
Total comprehensive
income for the year – 47 165 901 – 47 165 901
Issue of shares – – – 21 246 427
Equity portion of
shareholder loans 3 146 757 – – 3 146 757
Total contributions
by and distributions
to owners of company
recognised directly in
equity 3 146 757 – – 24 393 184
Balance at
1 April 2013 75 791 144 240 581 812 – 609 090 929
Total comprehensive
income for the year – 122 241 523 – 122 241 523
Proceeds of shares
issued – – – 30 373 970
Re-allocated to stated
capital – – – –
Issue of shares:
Shareholders' loans
conversion (75 791 144) – – 118 126 399
Issue of shares:
Business combination – – – 128 400 014
Capital raising fee – – (1 478 927) (2 736 044)
Issue of shares:
Listing on the JSE – – 105 844 674 105 844 674
Total contributions
by and distributions
to owners of company
recognised directly in
equity (75 791 144) – 104 365 747 380 009 013
Balance at
31 March 2014 – 362 823 335 104 365 747 1 111 341 465
Segmental report for the year ended 31 March 2014
Atlyn Mamelodi Thabong
R R R
Turnover (external) 37 337 982 52 896 014 29 104 496
Reportable segment
profit before investment
revenue, fair value
adjustments and finance
costs 25 895 479 42 188 915 15 324 907
Unallocated reportable
segment profit before
investment revenue, fair
value adjustments and
finance costs – – –
Profit before investment
revenue, fair value
adjustments and finance
costs – – –
Segment assets and
liabilities
Segment assets 410 622 741 511 713 129 266 005 155
Unallocated assets – – –
Total assets 410 622 741 511 713 129 266 005 155
Segment liabilities 1 410 127 2 240 712 1 994 201
Unallocated liabilities – – –
Total liabilities 1 410 127 2 240 712 1 994 201
Other segment items
Interest revenue (external) 7 783 13 609 11 219
Unallocated interest
revenue – – –
Investment revenue 7 783 13 609 11 219
Fair value adjustments 10 879 030 64 360 773 (11 956 779)
Interest expense 995 – 5 037
Unallocated interest
expense – – –
Finance costs 995 – 5 037
Heidelberg Namibia Group Total
R R R R
Turnover (external) 310 737 – – 119 649 230
Reportable segment
profit before
investment revenue,
fair value adjustments
and finance costs (309 054) (1 321 367) – 81 778 880
Unallocated reportable
segment profit before
investment revenue, fair
value adjustments and
finance costs – – (2 894 377) (2 894 377)
Profit before investment
revenue, fair value
adjustments and finance
costs – – – 78 884 503
Segment assets and
liabilities
Segment assets 135 297 917 76 047 926 – 399 686 868
Unallocated assets – – 132 757 384 132 757 384
Total assets 135 297 917 76 047 926 132 757 384 1 532 444 252
Segment liabilities 509 753 38 669 – 6 193 462
Unallocated liabilities – – 415 626 469 415 626 469
Total liabilities 509 753 38 669 415 626 469 421 819 931
Other segment items
Interest revenue
(external) 16 3 788 – 36 417
Unallocated interest
revenue – – 117 046 117 046
Investment revenue 16 3 788 117 046 153 463
Fair value adjustments 2 207 313 (3 103 624) – 62 386 713
Interest expense – – – 6 032
Unallocated interest
expense – – – 28 039 956
Finance costs – – – 28 045 988
Segmental report for the year ended 31 March 2013
Atlyn Mamelodi Thabong
R R R
Turnover (external) 33 135 485 48 722 352 20 043 128
Reportable segment
profit before investment
revenue, fair value
adjustments and
finance costs 11 967 505 35 214 164 7 721 407
Unallocated reportable
segment profit before
investment revenue, fair
value adjustments and
finance costs – – –
Profit before investment
revenue, fair value
adjustments and finance
costs – – –
Segment assets and
liabilities
Segment assets 353 546 760 431 995 372 237 989 200
Unallocated assets – – –
Total assets 353 546 760 431 995 372 237 989 200
Segment liabilities 1 929 920 2 396 440 1 564 982
Unallocated liabilities – – –
Total liabilities 1 929 920 2 396 440 1 564 982
Other segment items
Interest revenue
(external) 6 455 4 685 5 249
Unallocated interest
revenue – – –
Investment revenue 6 455 4 685 5 249
Fair value adjustments 22 689 399 (12 959 618) 33 053 605
Interest expense – – 6 586
Unallocated interest
expense – – –
Finance costs – – 6 586
Heidelberg Namibia Group Total
R R R R
Turnover (external) – – – 101 900 965
Reportable segment
profit before investment
revenue, fair value
adjustments and
finance costs – (423 678) – 54 479 398
Unallocated reportable
segment profit before
investment revenue, fair
value adjustments and
finance costs – – (3 740 431) (3 740 431)
Profit before investment
revenue, fair value
adjustments and finance
costs – – – 50 738 967
Segment assets and
liabilities
Segment assets – 70 020 284 – 1 093 551 616
Unallocated assets – – 6 020 100 6 020 100
Total assets – 70 020 284 6 020 100 1 099 571 716
Segment liabilities – – – 5 891 342
Unallocated liabilities – – 484 589 443 484 589 443
Total liabilities – – 484 589 443 490 480 785
Other segment items
Interest revenue (external) – – – 16 389
Unallocated interest
revenue – – 142 383 142 383
Investment revenue – – 142 383 158 772
Fair value adjustments – 3 149 567 – 45 932 953
Interest expense – – – 6 586
Unallocated interest
expense – – 30 375 152 30 375 152
Finance costs – – 30 375 152 30 381 738
Earnings per share for the year ended 31 March 2014
2014 2013
R R
Earnings used in the
calculation of basic
earnings per share 122 241 523 47 165 901
Ordinary shares in issue 120 864 827 72 490 371
Weighted average number
of ordinary shares 94 808 385 70 827 290
Headline earnings 28 532 084 15 137 937
Headline earnings per
share (cents) 30 21
Diluted headline earnings
per share (cents) 30 21
Basic and diluted earnings
per share (cents) 129 67
Headline earnings reconciliation
Basic earnings 122 241 523 47 165 901
Gains and losses from the
adjustment to the fair value
of non-current assets due
to REIT status (62 386 713) (45 932 953)
Tax effect of gains and
losses from the adjustment
to the fair value of
non-current assets due to
REIT status (29 398 534) –
Tax effect – 8 578 438
Change in deferred tax due
to change in tax rate – 5 326 551
Profit through business
combination (1 924 192) –
28 532 084 15 137 937
Net asset value per share for the year ended 31 March 2014
2014 2013
R R
Total assets 1 533 161 396 1 099 571 717
Total liabilities (421 819 931) (490 480 788)
1 111 341 465 609 090 929
Ordinary shares in issue 120 864 798 72 490 371
Net asset value per
share (cents) 920 840
Tangible net asset
value (cents) 920 840
The value of the group’s investment property increased by 28,4% from
2013. The increase includes the acquisition of the Heidelberg
property, construction costs capitalised of R103 359 644 and fair
value adjustments of R62 386 713. Most of the properties’ values are
determined by the “Discounted cash flow method” and are impacted by
Safari’s less than 1% vacancy profile, 90% national tenants
occupation, positive lease expiry profile, 10% average escalations
and length of lease agreements. The net asset value per share
increased by 9,4% to 920 cents for the year, from 840 cents in 2013.
Notes to the financial statements
Statement of compliance
The summarised consolidated financial information for Safari
Investments RSA and its subsidiary (“Safari” or “the group”) has been
prepared and presented in accordance with the framework concepts and
the measurement and recognition requirements of International
Financial Reporting Standards (IFRS), the SAICA Financial Reporting
Guides as issued by the Accounting Practices Committee, the
requirements of the Companies Act 71 of 2008 as amended, the Listings
Requirements of the JSE Limited and the requirements of IAS 34:
Interim Financial Reporting. The report has been prepared using
accounting policies that comply with IFRS which are consistent with
those applied in the financial statements of the year ended
31 March 2014.
Basis of preparation
The preparation of the group’s summarised financial results for the
12 months ended 31 March 2014 was the responsibility of the Financial
Director, DE van Straten CA(SA), executed by the financial manager,
MC Hattingh CA(SA).
Financial statements
The annual financial statements for the year have been audited by
Mazars Inc., and is available for inspection at the group’s registered
office or in electronic format on the website: www.safari-investments.com.
The abridged results are extracted from audited financial information but
is not itself audited. Information included under the headings
“Safari Investments at a glance” and “CEO and chairman’s report” has
not been audited or reviewed. Shareholders are advised that in order
to obtain a full understanding of the nature of the auditors’
engagement they should obtain a copy of the unqualified audit report with accompanying
annual financial statements from the group’s registered office. Full
details of the group’s business combination, additions to investment
property and the listing as a Real Estate Investment Trust (REIT) are
included in the group’s published Annual Report. The directors take
full responsibility for the preparation of the abridged results and
all financial information has been correctly extracted from the
underlying annual financial statements.
The annual consolidated financial statements were approved by the
board of directors on 25 June 2014 and published on 26 June 2014.
New standards and interpretations
The accounting policies of the group have been applied consistently
to the policies as presented in the consolidated financial
statements. The group has adopted the following standards and
interpretations that are effective for the current financial year;
IFRS 10, Consolidated Financial Statements; IAS 27, Separate
Financial Statements and IFRS 13, Fair Value Measurements.
Events during and subsequent to the reporting period
Subsequent event
On 26 June 2013, the board approved the process to be listed on the
JSE Limited as a Real Estate Investment Trust (REIT) on the main
board under the property section. Listing approval was obtained from
the JSE on 26 March 2014 and Safari listed successfully on 7 April
2014. The funds raised through the listing were utilised to settle
the outstanding bond after year-end.
Events during the financial period
The well-established Victorian Centre in Heidelberg, was acquired on
15 January 2014 for a net amount of R128,4 million. The centre added
15 400m² gross leasable area and the registration of the property was
finalised by 28 February 2014.
During the financial year shareholder loans decreased from R111 900
200 to the value of R4 439 687 at year end, due to the shareholder
loans’ conversion to stated capital, the detail of which is disclosed
in the annual consolidated financial statements. The balance at year
end has been repaid to the shareholders, 30 days after Safari listed
on the JSE.
The directors are not aware of any other material reportable events
which occur during and subsequent to the reporting period.
Declaration of interim interest distribution
Notice is hereby given that a gross interim distribution of 20 cents
per share has been declared and approved by the board, payable to
shareholders recorded in the register of the Company on Friday,
18 July 2014. The last day to trade cum distribution will be Friday,
11 July 2014, and trading will commence ex distribution on Monday,
14 July 2014.
In respect of dematerialised shareholders, the interim distribution
will be transferred to the Central Securities Depository
Participant (“CSDP”) accounts or brokers' accounts on Monday,
21 July 2014. Certificated shareholders distribution payments will
be posted on or about Monday, 21 July 2014.
No dematerialisation or rematerialisation of shares may take place
between Monday, 14 July 2014, and Friday, 18 July 2014, both days
inclusive.
In accordance with Safari's status as a REIT, shareholders are advised
that the interim distribution meets the requirements of a "qualifying
interim distribution" for the purposes of section 25BB of the Income
Tax Act, 58 of 1962 (“Income Tax Act”). Accordingly, qualifying
interim distributions received by local tax residents must be included
in the gross income of such shareholders (as a non-exempt dividend
in terms of section 10(1)(k)(aa) of the Income Tax Act), with the
effect that the qualifying interim distribution is taxable as income
in the hands of the shareholder.
These qualifying interim 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:
1. a declaration that the interim distribution is exempt from
dividends tax; and
2. 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 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 transfer
secretaries, as the case may be, to arrange for the abovementioned
documents to be submitted prior to payment of the interim distribution,
if such documents have not already been submitted.
Qualifying interim distributions received by non-resident shareholders
will not be taxable as income and instead will be treated as ordinary
dividends but which are exempt in terms of the usual dividend
exemptions per section 10(1)(k) of the Income Tax Act. It should be
noted that until 31 December 2013, qualifying interim distributions
received by non-residents from a REIT were not subject to dividend
withholding tax. From 1 January 2014, any qualifying interim
distribution received by a non-resident from a REIT will be subject
to dividend withholding tax at 15%, 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 15%, the
net amount due to non-resident shareholders will be 17 cents per share. A
reduced dividend withholding tax rate in terms of the applicable DTA may
only be relied on if the non-resident shareholder has provided the
following forms to their CSDP or broker, as the case may be, in respect
of the uncertificated shares, or the transfer secretaries, in respect of
certificated shares:
1. a declaration that the interim dividend is subject to a reduced rate
as a result of the application of a DTA; and
2. a written undertaking to inform their CSDP, broker or the transfer
secretaries, 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
transfer secretaries, as the case may be, to arrange for the
abovementioned documents to be submitted prior to payment of the interim
distribution, if such documents have not already been submitted, if
applicable.
Local tax resident shareholders as well as non-resident shareholders are
encouraged to consult their professional advisors should they be in any
doubt as to the appropriate action to take.
Safari shares in issue at the date of declaration of interim
distribution: 170,000,000
Safari income tax reference number: 9012/264/14/0
Corporate information
Safari Investments RSA Limited (Registration number 2000/015002/06)
(Share code: SAR | ISIN: ZAE000188280) (Safari or the group)
Auditors
Mazars Inc.
Partner: Shaun Vorster
Commercial banker ABSA Bank Limited Group secretary
Safari Retail Proprietary Limited
Corporate advisor
Fanus Kruger Consulting cc
Directors of Safari
MH Tsolo Independent non-executive chairman
FJJ Marais Chief executive officer
K Pashiou Executive director
PA Pienaar Executive director
DE van Straten Executive financial director
AE Wentzel Lead independent non-executive director
JP Snyman Independent non-executive director
SJ Kruger Non-executive director
M Minnaar Non-executive director
JC Verwayen Non-executive director
Independent valuer
Mills Fitchet (Tvl) cc
Legal adviser
Edward Nathan Sonnenbergs Inc. Sponsor
Sponsor
PSG Capital Proprietary Limited
Transfer secretaries
Computershare Investor Services Proprietary Limited
Annual general meeting
The 2014 annual general meeting will be held at 14:00 on Wednesday,
30 July 2014, at Irene Country Estate at 391 Nelmapius Drive, Irene,
Pretoria. The date on which shareholders must be recorded as such in
the share register to be eligible to vote at the annual general
meeting is Friday, 25 July 2014, with the last day to trade being
Friday, 18 July 2014.
To view the 2014 annual report visit :www.safari-investments.com
Date: 27/06/2014 08:59:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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Sharenet Sites 
