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Clean out dividend declaration
HOSPITALITY PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2005/014211/06)
JSE share code: HPB ISIN: ZAE000214656
(Approved as a REIT by the JSE)
(“Hospitality” or “the company”)
CLEAN OUT DIVIDEND DECLARATION
Shareholders are referred to the various announcements relating to, inter alia, the transaction in terms of which Hospitality will
acquire a portfolio of hotels from Tsogo Sun Holdings Limited and the declaration of a clean-out dividend, the last of which was
published on SENS on 18 May 2017.
The board of directors has approved and notice is hereby given of a gross dividend payment number 24 of 14.74397 cents per
share for the two months ended 31 May 2017.
The number of shares in issue at the date of the dividend declaration is 330 509 919 ordinary shares (for the purposes of the
dividend declaration, 2 377 256 ordinary shares have been excluded from the dividend payment due to dissenting shareholder
rights having been exercised).
In accordance with Hospitality’s 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”).
Local tax residents
Qualifying 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 distribution is taxable
as income in the hands of the shareholder. These qualifying distributions are, however, exempt from dividend withholding tax in
the hands of South African tax resident shareholders, provided that the South African resident shareholders provided the following
forms to their Central Securities Depository Participant (“CSDP”) or broker, as the case may be, in respect of uncertificated
shares, or the company, 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 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 abovementioned documents to be submitted prior to payment
of the distribution, if such documents have not already been submitted.
Non- resident
Qualifying 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.
On 22 February 2017, the dividends withholding tax rate was increased from 15% to 20% and any distribution 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.
Assuming dividend withholding tax is withheld at a rate of 20%, the net amount due to non-resident shareholders will be 11.79518
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 uncertificated shares, or
the company, in respect of certificated shares:
a. a declaration that the distribution is subject to a reduced rate as a result of the application of a DTA; and
b. 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 abovementioned documents to be submitted
prior to payment of the distribution if such documents have not already been submitted, if applicable. Shareholders are requested
to seek professional advice on the appropriate action to take.
The distribution is payable in accordance with the timetable below:
Last date to trade cum dividend Tuesday, 4 July 2017
Shares will trade ex dividend Wednesday, 5 July 2017
Record date Friday, 7 July 2017
Payment date Monday, 10 July 2017
Shareholders may not dematerialise or rematerialise their shares between Wednesday, 5 July 2017 and Friday, 7 July 2017, both
days inclusive.
Payments of the distribution will be made to shareholders on Monday, 10 July 2017. In respect of dematerialised shares, the
dividend will be transferred to the CSDP accounts/broker accounts on Monday, 10 July 2017. Certificated shareholders’ dividend
will be deposited on or about Monday, 10 July 2017.
Income tax reference number: 9770/799/1/47
9 June 2017
Sponsor
Java Capital
Date: 09/06/2017 01:10:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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