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Audited Consolidated Financial Statements for the year Ended 28 February 2025 and Cash Dividend Declaration
Collins Property Group Limited
(previously Tradehold Limited)
(Registration number: 1970/009054/06)
Incorporated in the Republic of South Africa
JSE Share code: CPP ISIN: ZAE000152658
(Approved as a REIT by the JSE)
("Collins" or "the Company")
AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF COLLINS PROPERTY GROUP FOR
THE YEAR ENDED 28 FEBRUARY 2025 AND CASH DIVIDEND DECLARATION
HIGHLIGHTS
• Distributable income per ordinary share ("DIPS") of 109 cents (29 February 2024: 94 cents) for
the 12 months ended 28 February 2025.
• Pay-out ratio of 92% (29 February 2024: 95%).
• Final dividend of 50 cents per ordinary share declared (29 February 2024: 50 cents).
• Vacancy rate of 1.8% (29 February 2024: 3.9%).
• Weighted average lease expiry ("WALE") of 3.9 years (29 February 2024: 4.2 years).
• Collection rate of 99.9% (29 February 2024: 98.3%).
• Loan-to-value ratio of 49.8% (29 February 2024: 50.8%) in terms of SA REIT Best Practice.
• All in cost-to-income ratio of 18% (29 February 2024: 18%).
FINANCIAL INDICATORS
Audited 28 February 29 February % Increase/
2025 2024 (decrease)
Revenue excluding straight-line rental income 1 247 886 1 229 671 1%
(R'000)
Basic earnings per share in issue (ZAR) 1.69 4.25 -60%
Headline earnings per share in issue (ZAR) 0.45 1.12 -60%
Net asset value per share (cents) 1 615 1 515 7%
Dividend per share (cents) for the year ended 100 90 11%
Profit from continuing operations before non- 572 976 1 207 636 -53%
controlling interest (R'000)
BUSINESS ENVIRONMENT
The financial year to February 2025 felt like a tale of two cities. The first half of the year activity was
subdued as business in general was waiting to see the outcome of the South African General Elections
in May 2024. There was very little commitment during this period, and this could be seen in our
vacancies at 3% halfway through the year. Post the elections and the formation of the Government of
National Unity ("GNU"), reduced load shedding and falling interest rates helped boost business
confidence which fed through to increased activity in the business.
The confidence and optimism felt going into the December break unfortunately did not carry through
into the first quarter of 2025 primarily due to geopolitical risks, the United States tariffs and resultant
trade frictions. The South African National Budget impasse has had a negative impact to the strength
of the GNU, introducing more pressure to the South African economy. Despite these challenges, Collins
Group's performance remains sold.
FINANCIAL PERFORMANCE
Profit from continuing operations before non-controlling interest was R573 million (29 February 2024:
R1 207 million). The previous year's profit was inflated, by R667 million, due to the write back of the
deferred tax liabilities due to the REIT conversion. Revenue only increased by 1% due to the sale of
non-core assets and finance costs decreased by R28 million due to lower interest rates
Basic and headline earnings per shares has decreased due to the prior years' inflated profit due to write
back of deferred tax liabilities. Futhermore, the current year includes a significant lease smoothing
adjustment due to the cession of several leases related to the buyout of a minority shareholder. Collins
Property Group acquired the remaining 30% of its subsidiary, Dimopoint (Pty) Ltd. The gain on this
transaction is disclosed in the Statement of Changes in Equity.
The Group reported a net profit attributable to shareholders of R510 million, compared to the
corresponding year's net profit of R1 139 million, refer to comment above regarding the deferred tax
write back.
The distributable income grew by 15.8 % from R311m in 2024 to R361m in 2025 as calculated in terms
of REIT Best Practice.
Total assets now amount to R12 198 million (29 February 2024: R12 332 million).
One of the key metrics in the balance sheet that requires comment is the reducing loan to value ("LTV")
ratio which has come down to 49.8% (29 February 2024: 50.8%) in terms of the REIT Best Practice
measurement criteria. This we believe is off conservative valuations as demonstrated by historically
selling properties at or above book values including lease cancellation fees. Investment Properties were
only written up by 1.7% in the current year well below the average inflation rate.
The other two metrics worth looking at are the net asset value ("NAV") per share which has increased
by 7% to R16.15 as of February 2025, and shareholders total return for the year comes out at
R2.02/share, representing a 12.5% return on its NAV or 18.5% on the year end closing share price.
OPERATIONAL PERFORMANCE
Industrial and Logistics
This sector, which represents 65% of the Group's gross asset value, has been the backbone of the
Group for many years which has stood us in good stead through the various property cycles. Currently
we have 54 properties in this sector spanning 1.2 million square metres. The teams have worked very
hard in improving the vacancy rate from 2.7% at February 2024 down to 0.9% at February 2025. This
has been made possible by continually enhancing the product offering and where possible providing
risk mitigating solutions where municipal services fail.
Retail
The 43 properties in this sector account for 28% of the Group's gross asset value. A unique feature of
this portfolio is that 87 000sqm or 40% of the GLA is what we term stand alone offerings, or properties
that have no line shop reliance to uplift the yield. Our reliance is only on the food anchor or, in the case
of Austria, the hardware operator to achieve our yield. Vacancies in this sector also decreased down to
4.7% at February 2025 from 8.1% at February 2024.
Office
Only making up 7% of the Group's gross asset value, we continue exploring opportunities to sell down
on these 14 assets. Post year end we have signed an agreement selling 6000sqm of offices in
Windhoek that have been vacant for 3 years. The vacancy rate in this sector has improved slightly to
18.4% at February 2025 from 21.7% at February 2024.
Operating results
As we sell assets for reinvestment as described above the top line revenue number does not grow. Our
all in cost to income ratio remained encouragingly low at 18%, this despite continued above inflationary
increases with regards to municipal services, demonstrating the value of our active approach of owner
managing the portfolio. One item that doesn't make its way into the distributable earnings statement but
is worthy of noting, due to its impact on NAV, is the R150m gain made on the 30% acquisition of a
minority interest in a subsidiary.
The distributable income grew by 15.8 % from R311m in 2024 to R361m in 2025, this has enabled the
board to increase its distribution from 90c to R1 per share and at the same time protecting the balance
sheet slightly in reducing the distribution ratio from 95% to 92 %.
ORDINARY SHARE CASH DIVIDEND
The Board of Directors of Collins has approved and notice is hereby given of a final dividend of 50 cents
per share for the year ended 28 February 2025. The dividend is payable to Collins shareholders in
accordance with the timetable set out below:
Last date to trade 'cum' dividend Tuesday, 3 June 2025
Shares trade ex dividend Wednesday, 4 June 2025
Record date Friday, 6 June 2025
Payment date Monday, 9 June 2025
Share certificates may not be dematerialised or rematerialised between Wednesday, 4 June 2025 and
Friday, 6 June 2025, both days inclusive.
In respect of dematerialised shareholders, the dividend will be transferred to the Central Securities
Depository Participant accounts/broker accounts on Monday, 9 June 2025.
Certificated shareholders' dividend payments will be paid on or about Monday, 9 June 2025.
Dividend tax treatment
In accordance with Collins' status as a REIT, shareholders are advised that the dividend of 50 cents per
share for the year 28 February 2025 ("the dividend") meets the requirements of a "qualifying distribution"
for the purposes of section 25BB of the Income Tax Act, 58 of 1962 ("Income Tax Act"). The dividend
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
it is a dividend distributed by a REIT. This dividend is, however, exempt from dividend withholding tax
in the hands of South African tax resident shareholders, provided that the South African resident
shareholders provide 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, as the case may be, should
the circumstances affecting the exemption change or the beneficial owner ceases 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 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 an ordinary dividend which is exempt from income tax in terms of the general dividend
exemption in section 10(1)(k)(i) of the Income Tax Act. 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 will be withheld at a rate of
20%, the net dividend amount due to non-resident shareholders is 40 cents per 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, 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 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 ceases 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.
Shares in issue at the date of declaration of this dividend: 334 097 767
Collins' income tax reference number: 9725/126/71/9.
OUTLOOK
With so much geopolitical uncertainty, the threat of trade wars, inflation and elevated interest rates we
are certainly facing head winds going into the future. Having said this we are optimistic that, with our
defensive portfolio, we are well placed to navigate these turbulent times. In times of uncertainty
opportunities do present themselves and we believe we are well positioned to exploit these both locally
and abroad.
SHORT-FORM ANNOUNCEMENT
The contents of this announcement is the responsibility of the board of directors of Collins. This
announcement is only a summary of the information contained in Collins' group audited annual financial
statements for the year ended 28 February 2025 ("2025 AFS") and does not include full or complete
details. Any investment decisions by investors and shareholders should be based on consideration of
the full 2025 AFS published on SENS on Friday, 16 May 2025.
Collins' summarised audited consolidated financial results for the year ended 28 February 2025, which
includes directors' commentary, has been published on the Company's website at:
https://collinsgroup.co.za/sens-announcements-2025/ .
Collins' 2025 AFS have been released on SENS and are available on the JSE website at:
https://senspdf.jse.co.za/documents/2025/jse/isse/ccpe/ye2025.pdf and on the Company website at:
https://collinsgroup.co.za/annual-report-2025/ .
The 2025 AFS have been audited by PWC South Africa, who expressed an unmodified opinion thereon.
Copies of the 2025 AFS may be requested via email to cppcosec@leacorporateservices.co.za or
query@collinsprop.co.za.
C H Wiese G C Lang
Chairman Director
16 May 2025
Sponsor: Questco Corporate Advisory (Pty) Ltd
Date: 16-05-2025 11:50:00
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