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ORION REAL ESTATE LIMITED - Notice of second distribution to Shareholders

Release Date: 24/11/2016 10:33
Code(s): ORE     PDF:  
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Notice of second distribution to Shareholders

ORION REAL ESTATE LIMITED
Approved as a REIT by the JSE
(Incorporated in the Republic of South Africa)
(Registration number: 1997/021085/06)
Share Code: ORE ISIN: ZAE000201695
("Orion Real Estate" or “the Company”)



NOTICE OF SECOND DISTRIBUTION TO SHAREHOLDERS



Shareholders are advised that a distribution of 0.9 cents per share has been declared payable in cash
to shareholders in respect of the year ended 30 June 2016.

This is the second distribution to shareholders since the transition of the Company to a REIT.

The REIT structure is a tax regime that allows a REIT to deduct qualifying distributions paid to
investors, in determining its taxable income.

Qualifying distributions received by resident Orion shareholders 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 distribution is taxable as income in the hands of the Orion
shareholder. However, these qualifying distributions are exempt from dividends withholding tax,
provided that the South African resident shareholders have provided the following forms to their
CSDP or broker, in respect of uncertificated shares, or the Company, in respect of certificated shares:

-     a declaration that the dividends are exempt from dividends tax; and
-     a written undertaking to inform the CSDP, broker or the Company, 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 Company, 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.
-     Qualifying distributions received by non-resident Orion shareholders will not be taxable as
      income and instead will be treated as ordinary dividends 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 any
      qualifying distribution will be subject to dividends 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 a dividend withholding tax rate of 15%, the net dividend amount due to non-resident
shareholders is 0.765 cents per share. A reduced dividend withholding rate in terms of the applicable
DTA may only be relied upon if the non-resident shareholder has provided the following forms to
their CSDP or broker in respect of uncertificated shares, or the Company, in respect of certificated
shares:

-     a declaration that the dividend is subject to a reduced rate as a result of the application of a
      DTA; and
-     a written undertaking to inform their CSDP, broker or the Company, 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
      Company, as the case may be, to arrange for the above mentioned documents to be submitted
      prior to payment of the dividend if such documents have not already been submitted, if
      applicable.

Shareholders’ attention is drawn to the following salient dates:

Last day to trade cum dividend                                         Monday, 12 December 2016
Trading commences ex dividend                                          Tuesday, 13 December 2016
Record date for payment of the distribution                            Thursday, 15 December 2016
Date of payment of the distribution                                    Monday, 19 December 2016

Shares may not be rematerialised or dematerialised between Tuesday, 13 December and Thursday,
15 December 2016, both days inclusive.

Any changes to the salient dates will be announced on SENS.

Orion’s income tax reference number is 976 919 6719. Orion currently has 630 698 688 shares in
issue.



By order of the board
Johannesburg

24 November 2016

Sponsor
Arbor Capital Sponsors Proprietary Limited

Date: 24/11/2016 10:33:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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