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Condensed reviewed preliminary consolidated results for the year ended 30 September 2019
INDLUPLACE PROPERTIES LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 2013/226082/06)
JSE share code: ILU ISIN: ZAE000201125
(Approved as a REIT by the JSE)
("Indluplace" or "the company")
REVIEWED PRELIMINARY CONDENSED CONSOLIDATED RESULTS FOR THE YEAR ENDED 30 SEPTEMBER 2019
30 SEPTEMBER 2019 30 SEPTEMBER 2018 DECREASE
R R %
Revenue 655 544 170 672 549 162 -2,5
Operating profit^ 362 353 901 403 573 943 -10,2
(Loss)/Earnings (55 632 520) 171 895 455 -132,4
(Loss)/Earnings per share (cents) (17,34) 54,12 -132,0
Headline and diluted headline earnings per share (cents) 37,37 100,81 -62,9
Net asset value per share (cents) 903,04 1 009,30 -10,5
Dividend for the year ended 78,25381 97,75238 -19,9
^ Rental income less property costs.
While dividends of 78.25381 cents per share for the 2019 financial year are in line with guidance,
Indluplace's earnings, headline earnings and diluted earnings and diluted headline earnings per share
have been negatively affected by the fair value adjustments in relation to Investment property of
-R175.4 million, fair value adjustment in relation to derivatives of -R13.4 million and the first
time adoption of IFRS 9 resulting in a fair value adjustment in relation to the loans to
the participants of the Indluplace Share Purchase and Option Scheme of -R118.2 million.
Nature of business
Indluplace was the first focused residential REIT listed on the main
board of the JSE. Since listing in June 2015, the company has grown its
portfolio to 9 917 residential units and 20 583 m2 of associated retail
space. Indluplace acquired 210 units in the last year and disposed of
9 non-core buildings comprising 86 residential units. The portfolio is
valued at about R4,18 billion.
Payment of dividend for the 6 months ended 30 September 2019
The board has declared a gross dividend of 40,76304 cents per share
(dividend number 14) for the six months ended 30 September 2019, in
accordance with the timetable set out below:
Last date to trade cum dividend Tuesday, 10 December 2019
Shares trade ex-dividend Wednesday, 11 December 2019
Record date Friday, 13 December 2019
Payment date Tuesday, 17 December 2019
Shares may not be dematerialised or rematerialised between
Wednesday, 11 December 2019 and Friday, 13 December 2019, both days
inclusive.
Payment of the dividend will be made to shareholders on Tuesday,
17 December 2019. In respect of dematerialised shares, the dividend
will be transferred to the Central Securities Depository Participant
(CSDP)/ broker accounts on Tuesday, 17 December 2019. Certificated
shareholders' dividend payment will be deposited on or about Tuesday,
17 December 2019.
Tax treatment of dividend
In accordance with Indluplace'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 distribution on 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 they are dividends distributed by a
REIT. This dividend is, however, exempt from dividends withholding tax
in the hands of South African tax resident shareholders, provided that
the South African resident shareholders furnished 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 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 ordinary dividends which are
exempt from income tax in terms of the general dividend exemption
in section 10(1)(k)(i) of the Income Tax Act. Any dividend received
by a non-resident from a REIT is subject to dividends 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 shareholders.
Assuming dividend withholding tax will be withheld at a rate of 20%,
the net dividend amount due to non-resident shareholders is 32,61043 cents
per share. A reduced dividend withholding rate in terms of the
applicable DTA, may only be relied on if the non-resident shareholders
have provided the following forms to their CSDP or broker, as the case
may be, in respect of uncertificated shareholders, or the company, in
respect of certificated shareholders:
a) a declaration that the dividend is subject to a reduced rate as a result
of the application of a DTA; and
b) 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 declaration of this dividend: 343 791 954
Indluplace's income tax reference number: 9390/649/177
Short-form announcement
This short-form announcement is the responsibility of the board
of directors of the company. This short-form announcement is a
summary of the full announcement released on SENS and published on
Indluplace's website (http://www.indluplace.co.za)
http://www.indluplace.co.za/downloads/2019/results/indluplaceaudited-annual-results-30-september-2019.pdf
on 13 November 2019 and on the JSE website at
https://senspdf.jse.co.za/documents/2019/JSE/isse/ILU/INDLU0919.pdf
and does not contain full or complete details. Any investment
decision by investors and/or shareholders should be based
on consideration of the full announcement.
The full announcement is available for inspection at the registered
offices of the company (3rd Floor, 1 Sturdee Avenue, Rosebank, 2196),
on the company's website, http://www.indluplace.co.za and the offices of
the sponsor, Java Capital (2nd Floor, 6A Sandown Valley Crescent,
Sandown, Sandton, 2196) at no charge during normal business hours
from Wednesday, 13 November 2019 to Wednesday, 20 November 2019.
A copy of the of the full announcement is available on request
from info@indluplaceproperties.co.za.
By order of the Board
13 November 2019
Directors
T Adler (Chairperson)*, Abrams*^, C de Wit (CEO),
T Kaplan (FD), G Harris (COO), S Noik*, A Rehman*^,
N Tetyana*^
*Non-executive, ^Independent.
All directors are South African
Registered office
3rd Floor, 1 Sturdee Avenue,
Rosebank, Johannesburg, 2196
PO Box 685, Melrose Arch, 2076
Transfer secretaries
Computershare Investor Services Proprietary Limited
Sponsor
Java Capital
Company secretary
CIS Company Secretaries Proprietary Limited
http://www.indluplace.co.za
Date: 13/11/2019 07:25:00
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