Sectors Shares

GEMGROW PROPERTIES LIMITED - Dividend for the quarter ended 31 December 2017 - salient dates and tax treatment

Release Date: 14/02/2018 12:36
Code(s): GPA GPB
 
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Dividend for the quarter ended 31 December 2017 - salient dates and tax treatment

GEMGROW PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2007/032604/06)
JSE share code: GPA ISIN: ZAE0000223269
JSE share code: GPB ISIN: ZAE0000223277
(Granted REIT status with the JSE)
(“Gemgrow” or “the company”)


DIVIDEND FOR THE QUARTER ENDED 31 DECEMBER 2017 - SALIENT DATES AND TAX TREATMENT


The board of directors has approved and notice is hereby given of a cash dividend (dividend number 5) of
26,08791 cents per A ordinary share and 19,18000 cents per B ordinary share for the quarter ended
31 December 2017, in accordance with the salient dates set out below:

                                                                                                     2018
Last date to trade cum dividend:                                                         Tuesday, 6 March
Shares trade ex dividend:                                                              Wednesday, 7 March
Record date:                                                                              Friday, 9 March
Payment date:                                                                            Monday, 12 March

Share certificates may not be dematerialised or re-materialised between Wednesday, 7 March 2018 and
Friday, 9 March 2018, both days inclusive.

Payment of the dividend will be made to shareholders on Monday, 12 March 2018. In respect of
dematerialised shares, the dividend will be transferred to the Central Securities Depository Participant
(“CSDP”) or broker accounts on Monday, 12 March 2018. Certificated shareholders’ dividend payments will be
deposited on or about Monday, 12 March 2018.

TAX TREATMENT

In accordance with Gemgrow’s status as a REIT, shareholders are advised that the dividend 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 distribution on shares will be deemed to be a dividend, for South African tax
purposes, in terms of section 25BB of the Income Tax Act.

The dividend received by or accrued to South African tax residents must be included in the gross income
of such shareholders and will not be 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. This dividend is, however, exempt from dividends withholding tax in
the hands of South African tax resident shareholders, provided that the South African resident shareholders
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 dividend is exempt from dividends tax; and
b)   a written undertaking to inform the CSDP, broker or the company, 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, to arrange for the abovementioned documents to be
submitted prior to payment of the dividend, if such documents have not already been submitted.

Dividends received by non-resident shareholders will not be taxable as income and instead will be treated as
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. Assuming dividend withholding tax will be withheld at a rate of 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), the net dividend amount due to non-resident
shareholders is 20,87033 cents per A ordinary share and 15,34400 cents per B ordinary 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 their CSDP or broker, in respect of uncertificated shares, or the company, 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 their CSDP, broker or the company, 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, 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.

A ordinary shares in issue at the date of declaration of this dividend: 47 352 203
B ordinary shares in issue at the date of declaration of this dividend: 405 042 105
Gemgrow’s income tax reference number: 9068/723/17/1

14 February 2018


Sponsor
Java Capital
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