Wrap Text
Interim results of the group for the six months ended 28 February 2021
OCTODEC INVESTMENTS LIMITED
Incorporated in the Republic of South Africa Registration number: 1956/002868/06
JSE share code: OCT
ISIN: ZAE000192258 (approved as a REIT by the JSE)
Interim results of the group
for the six months ended 28 February 2021
R0.75
Funds from Operations (SA REIT FFO) (Rand per share) (29 February 2020: R0.98)*
R23.6
Net asset value (NAV) per share (SA REIT NAV) (Rand per share) (31 August 2020: R24.8)
R184.3 million
Cash generated from operating activities before dividend payment (29 February 2020: R287.0 million)*
(8.5%)
Like-for-like rental growth before COVID-19 rental discounts (29 February 2020: 2.2%)*
44.2%
Loan to value (LTV) (SA REIT calculation) (31 August 2020: 42.5%)
8.6%
All-in annual weighted average cost of borrowings (SA REIT calculation) (31 August 2020: 8.7%)
* Pre-COVID-19 period
Introduction
Octodec Investments Limited (Octodec or the company), its subsidiaries and associated company (the group) is a real estate investment trust (REIT) listed
on the JSE Ltd (JSE). Octodec has a diversified portfolio of 274 residential, retail, office, industrial and specialised properties situated in the major
metropolitan areas of Tshwane and Johannesburg. The portfolio, including a joint venture, has a lettable area of 1 632 836m2 and is valued at R11.3 billion.
Octodec has contracted City Property Administration (Pty) Ltd (City Property) to perform its asset and property management functions.
Dividends
In light of the ongoing uncertainty related to COVID-19 and Octodec's strategic objectives to strengthen its balance sheet and ensure prudent financial
management in the challenging South African economic environment, the board considers it prudent to defer the decision on the
declaration of a dividend to shareholders until the publication of Octodec's annual results for the financial year ending 31 August 2021. In considering
the dividend, a number of factors will be taken into account including the group's profitability, solvency and available liquidity.
Review of results
28 February 29 February %
2021 2020 change
Revenue (R'000) 895 513 1 004 561 (10.9)
Basic and diluted earnings per share (cents) (73.1) 13.0 (664.2)
Headline and diluted headline earnings per share (cents) 115.0 92.1 24.9
Distribution per share (cents) - - -
NAV per share (Rands) 23.6 28.4 (16.9)
Prospects
While the lockdown restrictions have eased and a large section of the economy has resumed trading, the possibility of a third wave and further lockdown
restrictions as well as the long-term impact on an already weak economy remain a real risk. The cost of vacancies, rent reductions and rent relief are the
variables that may have the most influence on our financial performance in the second half of FY2021.
Retaining existing tenants, attracting new tenants and reducing vacancies as well as portfolio consolidation remain priorities. Octodec will continue to
strengthen its balance sheet, ensuring that it provides a foundation for future sustainable performance.
Due to uncertainty arising from COVID-19 and the continued impact on operating conditions, Octodec will not be providing SA REIT FFO guidance at this
point.
Short form announcement
This short form announcement is the responsibility of the directors. This short form announcement is only a summary of the information in the full
announcement and does not contain full or complete details.
Copies of the full announcement may be requested at the company's registered office (elizeg@octodec.co.za) or the office of the sponsor
(sponsor@javacapital.co.za), at no charge, during office hours, Monday to Friday. Any investment decisions made by shareholders and/or investors should be
based on a consideration of the full announcement, released on SENS on 21 April 2021, and available on the JSE website at
https://senspdf.jse.co.za/documents/2021/JSE/isse/OCT/HY2021.pdf. The full announcement is also available on the Octodec Investments Limited website at
https://www.octodec.co.za/investors-pres/interim-results-presentation-2021.
Sharon Wapnick Jeffrey Wapnick
Chairman Managing director
21 April 2021
Registered address
CPA House, 101 Du Toit Street, Tshwane, 0002
Tel: 012 319 8781, Fax: 012 319 8812, e-mail: info@octodec.co.za
Directors: S Wapnick (Chairman)1, JP Wapnick (managing director)2, AK Stein (financial director)2, DP Cohen3, GH Kemp4, NC Mabunda4, EMS Mojapelo4,
MZ Pollack1, PJ Strydom4, LP van Breda4
1 Non-executive director
2 Executive director
3 Lead independent director
4 Independent non-executive director
Group company secretary
Elize Greeff
CPA House, 101 Du Toit Street, Tshwane, 0002
Tel: 012 357 1564, e-mail: elizeg@octodec.co.za
Auditors
Deloitte & Touche
Contact person: Leon Taljaard
5 Magwa Crescent, Waterfall City 2090
Tel: 011 806 5000, e-mail: ltaljaard@deloitte.co.za
Transfer secretaries
Computershare Investor Services (Pty) Ltd
Contact person: Leon Naidoo
Rosebank Towers, 15 Biermann Avenue, Rosebank 2196 Private Bag X9000, Saxonwold 2132
Tel: 011 370 5000, e-mail: leon.naidoo@computershare.co.za
Investor relations
Instinctif Partners
Contact person: Louise Fortuin
The Firs, 302 3rd Floor, Cnr Cradock and Biermann Avenue, Rosebank 2196
Tel: 011 447 3030, e-mail: octodec@instinctif.com
Sponsor
Java Capital
Contact person: Jean Tyndale-Biscoe
6th Floor, 1 Park Lane, Wierda Valley, Sandton 2196
PO Box 522606, Saxonwold 2132
Tel: 011 722 3059, e-mail: sponsor@javacapital.co.za
Date of publication
21 April 2021
http://www.octodec.co.za
Date: 21-04-2021 07:18:00
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