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HERIOT REIT LIMITED - Short-form announcement: reviewed provisional financial statements for the year ended 30 June 2019

Release Date: 19/09/2019 12:04
Code(s): HET     PDF:  
Wrap Text
Short-form announcement: reviewed provisional  financial statements for the year ended 30 June 2019

HERIOT REIT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2017/167697/06)
(Approved as a REIT by the JSE)
JSE share code: HET ISIN: ZAE000246740
("Heriot" or "the company")

SHORT-FORM ANNOUNCEMENT: REVIEWED PROVISONAL CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2019

NATURE OF BUSINESS

Heriot, a property holding and investment company listed in the "Diversified REITs" sector on the Alternative
Exchange of the JSE Limited ("JSE"), is invested in industrial, retail, office, residential and specialised properties
valued at R4,59 billion and situated in areas with high growth potential. The Group's primary objective is to
develop or acquire yield-enhancing assets within South Africa to create a stable and diverse portfolio of assets for
the purposes of generating secure and escalating net rental income.

KEY FINANCIAL HIGHLIGHTS

                                                           Reviewed for the      Audited for the 13        Change
                                                                year ended             months ended             %
                                                              30 June 2019             30 June 2018
 Dividend per share (cents)                                          80.87                    79.27          2.0*
 Total assets (R000)                                             4,758,371                4,740,478           0.4
 Net asset value per share (cents)                                1,157.01                 1,158.78         (0.2)
 Gross revenue (R000)                                              473,159                  444,828           6.3
 Net profit after taxation (R000)                                  213,923                  509,940        (58.0)
 Earnings per shares (cents)                                         81.91                   197.51        (58.5)
 Headline earnings per shares (cents)                                73.41                    71.29           3.1

*The growth in dividend is distorted by the fact that the dividends for 2018 comprised of distribution from the
distributable profits for a 13 month period. Distributable earnings for the year ended 30 June 2019 have increased
by 10,4% compared to the distributable earnings for the twelve months ended 31 May 2018.

PAYMENT OF FINAL DIVIDEND

The board of directors of Heriot ("board") has declared a final gross cash dividend of 41,37156 cents per share,
for the six months ended 30 June 2019, out of the company's distributable income.

The dividend is payable to Heriot shareholders in accordance with the timetable set out below:

                                                                                                             2019
 Last date to trade cum dividend                                                               Tuesday, 8 October
 Shares trade ex dividend                                                                    Wednesday, 9 October
 Record date                                                                                   Friday, 11 October
 Payment date                                                                                  Monday, 14 October

Share certificates may not be dematerialised or rematerialised between Wednesday, 9 October 2019 and Friday,
11 October 2019, both days inclusive. The dividend will be transferred to dematerialised shareholders'
CSDP/broker accounts on Monday, 14 October 2019. Certificated shareholders' dividend payments will be posted
or paid to certificated shareholders' bank accounts on or about, Monday 14 October 2019.

In accordance with Heriot'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 dividend on the 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 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 such shareholders provide 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 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 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 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 33,09725 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)    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 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 dividend if such documents have not already
been submitted, if applicable.

Shares in issue at the date of the dividend: 255,395,858 (excluding 900,000 treasury shares)

Heriot's income tax reference number: 9541295185

Where the transfer secretaries do not have the banking details of any certificated shareholders, the cash dividend
will be held in trust by the transfer secretaries pending receipt of the relevant certificated shareholder's banking
details where after the cash dividend will be paid via electronic transfer into the personal bank accounts of
certificated shareholders.

This short-form announcement is the responsibility of the directors of and the contents were approved by the
board on 18 September 2019. This short-form announcement is a summary of the full announcement released on
SENS on 19 September 2019 and does not include full or complete details. The short-form announcement has
not been audited or reviewed by the company's external auditors.

The full announcement is available on the company's website at:
http://www.heriotreit.com/results-announcements.php.

The full announcement can also be accessed using the following JSE link:
https://senspdf.jse.co.za/documents/2019/jse/isse/HETE/HeriotFY19.pdf

The full announcement is available for inspection at the registered offices of the company or its sponsor, at no
charge, during office hours from Thursday, 19 September 2019 to Friday, 27 September 2019. Any investment
decision should be based on the full announcement available on the company's website.


By order of the Board

19 September 2019

COMPANY SECRETARY
CIS Company Secretaries Proprietary Limited (G Prestwich)

REGISTERED OFFICE
Suite 1, Ground Floor, 3 Melrose Boulevard, Melrose Arch, Johannesburg, 2196
PO Box 652737, Benmore, 2010

DIRECTORS
SB Herring (Chairperson)*, RL Herring (CEO), JA Finn (CFO), SJ Blieden*†, T Cohen*†, R Lockhart-Ross*†
N Ngale*†
*Non-executive †Independent

TRANSFER SECRETARIES
Computershare Investor Services Proprietary Limited

DESIGNATED ADVISOR
Java Capital

Date: 19/09/2019 12:04:00
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