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EQUITES PROPERTY FUND LIMITED - Announcement of dividend reinvestment price and confirmation of finalisation information

Release Date: 22/10/2019 10:30
Code(s): EQU     PDF:  
 
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Announcement of dividend reinvestment price and confirmation of finalisation information

EQUITES PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2013/080877/06)
JSE share code: EQU ISIN: ZAE000188843
(Approved as a REIT by the JSE)
(“Equites” or “the company”)


ANNOUNCEMENT OF DIVIDEND REINVESTMENT PRICE AND CONFIRMATION OF FINALISATION INFORMATION


Further to the declaration of a cash dividend of 74.43284 cents per share (the “cash dividend”) with an election to
reinvest the cash dividend in return for new Equites shares (the “new shares”) (the “dividend reinvestment
alternative”), announced on SENS on Thursday, 10 October 2019 (the “declaration announcement”), the price per
share, as determined on Tuesday, 22 October 2019 (the “finalisation date”), applicable to Equites shareholders
electing the dividend reinvestment alternative and recorded in the register on Friday, 1 November 2019 (i.e. the
“record date”), is R20.50 per share (the “reinvestment price”). The reinvestment price represents a 2.68541%
discount to the five-day volume weighted average traded price (less the cash dividend) and a 4.14155% discount to the
closing spot price (less the cash dividend) of Equites shares on the JSE prior to the finalisation date.

The ratio in respect of the dividend reinvestment alternative is 3.63087 shares for every 100 shares held on the record
date by South African resident shareholders exempt from dividend tax and 2.90470 shares for every 100 shares held
on the record date by non-resident shareholders subject to dividend tax at 20%.

Where a shareholder’s entitlement to the shares in relation to the dividend reinvestment alternative, calculated with
reference to the above share ratio, gives rise to an entitlement to a fraction of a new share, such fraction will be
rounded down to the nearest whole number with the cash balance of the dividend being retained by the shareholder.

Dividend withholding tax (“dividend tax”) implications

Dividend tax implications for South African resident shareholders

Dividends received from a Real Estate Investment Trust (“REIT”) are exempt from dividend tax in the hands of South
African resident shareholders provided that the shareholders have provided the requisite declaration as to residence as
detailed in paragraph 5 of the circular to Equites shareholders dated and posted on Friday, 11 October 2019
(the “circular”). South African resident shareholders, who have submitted the requisite documentation and are exempt
from dividend tax, will accordingly receive a net dividend of 74.43284 cents per share.

Dividend tax implications for non-resident shareholders

Dividends received from a REIT by a non-resident shareholder will be subject to dividend 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 non-resident shareholder. A reduced dividend withholding rate in terms of the
applicable DTA may only be relied upon if the non-resident shareholder has provided the requisite documentation as
detailed in paragraph 5 of the circular. Non-resident shareholders who have submitted the requisite documentation and
assuming that a dividend tax rate of 20% is applicable, will accordingly receive a net dividend of 59.54627 cents per
share.

Due to the fact that the cash dividend or dividend reinvestment alternative may have tax implications for resident and
non-resident shareholders, shareholders are encouraged to consult their professional advisors should they be in any
doubt as to the appropriate action to take.

Illustrative example on the application of rounding and the impact of dividend tax

The application of the rounding principle of rounding down to the nearest whole number and the impact of dividend
tax on shareholders has been illustrated by way of the example below:

                                                                                    South African         Non-resident
                                                                                         resident         shareholders
                                                                                     shareholders           subject to
                                                                                      exempt from      dividend tax at
                                                                                     dividend tax                  20%
Dividend per share (cents)                                                               74.43284             74.43284
Dividend tax per share (cents)                                                                  -           (14.88657)
Total net dividend per share (cents)                                                     74.43284             59.54627
Number of shares held                                                                         100                  100
Reinvestment price (R)                                                                     R20.50               R20.50
Total amount available for reinvestment (R)                                              74.43284             59.54627
Number of shares issued in terms of dividend reinvestment alternative                     3.63087              2.90470
Total amount payable for shares acquired in terms of the dividend                           61.50                41.00
reinvestment alternative (R)
Balance of distribution paid to shareholder (R)                                          12.93284             18.54627

Trading of Equites shares

Shareholders are advised that, as per the published timetable, the last date to trade is Tuesday, 29 October 2019 and
the shares will trade ex-dividend on Wednesday, 30 October 2019.

As published in the declaration announcement, shareholders electing the dividend reinvestment alternative are once
again alerted to the fact that the new shares will be listed on LDT + 3 and that these new shares can only be traded on
LDT + 3 being Friday, 1 November 2019 due to the fact that settlement of the new shares will be three days after the
record date, being Wednesday, 6 November 2019, which differs from the conventional one day after record date
settlement process.

Shareholders are reminded that the last day to elect to receive the dividend reinvestment alternative is 12:00 (South
African time) on Friday, 1 November 2019. No action is required if you wish to receive the cash dividend.

The salient dates, timetable and all other information relating to the cash dividend (including the tax implications)
and dividend reinvestment alternative disclosed in the declaration announcement remain unchanged.

22 October 2019


Corporate advisor and sponsor
Java Capital

Date: 22/10/2019 10:30:00
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