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Announcement of Distribution Re-investment price and confirmation of finalisation information
ANNUITY PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration Number 2011/145994/06)
Share code: ANP ISIN: ZAE000165643
(“Annuity” or “the Company”)
ANNOUNCEMENT OF DISTRIBUTION RE-INVESTMENT PRICE AND CONFIRMATION OF FINALISATION INFORMATION
A. INTRODUCTION
Further to the announcement of the declaration of the cash distribution and distribution re-investment alternative
included in Annuity’s interim results (the “Results Announcement”) released on the Securities Exchange News
Service (“SENS”) on Thursday, 14 November 2013 and in the press on Friday, 15 November 2013, the price
applicable to Annuity linked unitholders electing the distribution re-investment alternative and recorded in the
register on Friday, 13 December 2013 (the “Record Date”), is R5.09 (the “Re-investment Price”).
The Re-investment Price is equivalent to the 5-day volume weighted average price (ex the distribution for the half
year ended 30 September 2013 of 22.14 cents), as at the close of business on Thursday, 28 November 2013.
The Re-investment Price equates to a cum price of R5.30, which is equivalent to the 5-day volume weighted
average cum price as well as the closing price of R5.30 on Thursday, 28 November 2013.
Included in the Re-investment Price is an antecedent divestiture of 9.84 cents per linked unit for the period from 1
October 2013 to 17 December 2013 in respect of the 2014 final distribution period from 1 October 2013 to 31
March 2014.
B. DIVIDENDS WITHHOLDING TAX (“DIVIDENDS TAX”)
Linked unitholders are referred to the announcement released on SENS on Monday, 25 November 2013
regarding the tax implications of the interest and dividend distribution declared in the Results Announcement. As a
result of Annuity’s classification as a REIT, the distribution meets the requirements of a “qualifying distribution” as
envisaged in section 25BB of the Income Tax Act No 58 of 1962, as amended (the “Income Tax Act”) (a
“qualifying distribution”). Accordingly, the gross distribution of 22.14 cents (comprising an interest portion of
22.09572 cents and a dividend portion of 0.04428 cents) is a qualifying distribution with the result that:
- the distribution received by resident Annuity linked unitholders must be included in the income of such linked
unitholders (as it is not exempt in terms of proviso (aa) of section 10(1)(k) of the Income Tax Act), with the
effect that the distribution is taxable as income in the hands of such resident Annuity linked unitholder. The
distribution is, however, exempt from Dividends Tax;
- the distribution received by non-resident Annuity linked unitholders will not be taxable as income and will be
treated as ordinary dividends, but which are exempt in terms of section 10(1)(k) of the Income Tax Act.
Furthermore, in terms of section 64F(2) of the Income Tax Act, qualifying distributions will also be exempt
from Dividends Tax up until 31 December 2013. With effect from 1 January 2014 any qualifying distribution
will be subject to Dividends Tax.
Pursuant to the above, the impact on the resident as well as non-resident linked unitholders has been illustrated
by way of the example below:
Resident and non-resident
linked unitholders
Debenture element per linked unit (cents) 22.09572
Equity element per linked unit (cents) 0.04428
Total forecast distribution per linked unit, being the qualifying
22.14000
distribution (cents)
Re-investment Price (R) 5.09
New linked units issued per 100 units* 4.34971
*Fractions will be rounded to the nearest whole number where the fraction is greater than or equal to 0.5 and
rounded down to the nearest whole number where the fraction is less than 0.5.
Due to the fact that the cash distribution or distribution re-investment alternative may have tax implications for
resident as well as non-resident linked unitholders, linked unitholders are encouraged to consult their professional
advisors should they be in any doubt as to the appropriate action to take.
Other information:
- The ordinary issued share capital of Annuity is 232 382 553 linked units of no par value each before any
election to re-invest the cash distribution
- Income Tax Reference Number of Annuity: 9050/047/19/1
C. TRADING OF ANNUITY LINKED UNITS
As published in the Results Announcement, linked unitholders electing the linked unit alternative are once again
alerted to the fact that the new linked units will be listed on the last day to trade (“LDT”) + 2 and that these new
linked units can only be traded on LDT + 2, being Wednesday, 18 December 2013, due to the fact that settlement
of the linked units will be two days after the Record Date which differs from the conventional one day after the
Record Date settlement process.
Linked unitholders are reminded that the last day to elect to receive the distribution re-investment alternative is
12:00 (South African time) on Friday, 13 December 2013.
The salient dates, timetable and all other information relating to the cash distribution and distribution re-investment
alternative disclosed in the Results Announcement remain unchanged.
Illovo
29 November 2013
Lead Investment Bank and Transaction Sponsor to Annuity
Investec Bank Limited
Joint Investment Bank to Annuity
Sasfin Capital (A division of Sasfin Bank Limited)
Sponsor to Annuity
Rand Merchant Bank (A division of FirstRand Bank Limited)
Date: 29/11/2013 10:48:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
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