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Summarised audited financial statements for the year ended 29 February 2020 and declaration of final dividend
EXEMPLAR REITAIL LIMITED
(Incorporated in the Republic of South Africa)
Registration number : 2018/022591/06
JSE share code : EXP
ISIN : ZAE000257549
LEI : 3789000558287E37F130
Approved as a REIT by the JSE ("Exemplar")
SHORT-FORM ANNOUNCEMENT:
SUMMARISED AUDITED CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2020 AND DECLARATION OF FINAL DIVIDEND
NATURE OF BUSINESS
Exemplar is a listed Real Estate Investment Trust ("REIT") whose core focus is the provision and management
of retail services to previously under-serviced regions across five provinces of South Africa. There are currently
22 retail assets in the portfolio with a combined GLA of 349 759m2.
DISTRIBUTABLE EARNINGS
Exemplar has achieved a distribution of 92,27 cents per share for the year ended 29 February 2020 against a
forecast of 91,27 cents as reflected in the prospectus issued in May 2018. This represents an increase of 11.9%
on an annualised basis when compared to the prior year. In the circumstances, dominated by unfavourable
macro-economic conditions, this is remarkable, and speaks volumes about the defensive nature of the portfolio
as well as the competence of Exemplar's in-house property management team. At all times we distribute only
sustainable earnings which in our business model closely approximates cash generated from operations.
KEY FINANCIAL INFORMATION
Audited Audited
for the for the
12 months 9 months
ended ended
29 February 28 February Annualised
2020 2019 change %
Revenue (R'000) 727 690 517 431 5.5%
Operating profit (R'000) 446 713 330 559 1.4%
Operating profit before operating lease equalisation (R'000) 463 630 317 367 9.6%
Basic and diluted earnings per share (cents) 112.21 144.03 -41.6%
Headline earnings per share (cents) 81.64 86.42 -29.1%
Net asset value per share (Rand) 11.08 10.83 2.3%
Total dividend per share (cents) 92.27 61.84 11.9%
Final dividend per share (cents) 48.50 42.74
Interim dividend per share (cents) 43.77 19.10
Dividend per share has increased by 11.9% despite operating profit having only grown by 1.4%. This disparity is
mainly as a result of operating profit including an adjustment to the operating lease asset which is a non-cash flow
adjustment required in terms of IFRS. For purposes of calculating distributable earnings, which complies with
the requirements of the SA REIT Best Practice Recommendations, this adjustment to operating profit is ignored.
On this basis operating profit has grown by 9.6% on an annualised basis.
DECLARATION OF DIVIDEND FOR THE SIX MONTHS ENDED 29 FEBRUARY 2020
The board of directors of Exemplar (" the Board ") has approved a final dividend of 48.49859 cents per share
for the six months ended 29 February 2020 which is in addition to the interim dividend paid of 43.77 cents per
share for the six months ended 31 August 2019. It will be paid to shareholders in accordance with the timetable
set out below:
Last date to trade cum dividend Tuesday, 9 June 2020
Shares trade ex dividend Wednesday, 10 June 2020
Record date Friday, 12 June 2020
Payment date Monday, 15 June 2020
Share certificates may not be dematerialised or rematerialised between Wednesday, 10 June 2020 and Friday,
12 June 2020, both days inclusive. The dividend will be transferred to dematerialised shareholders' CSDP/broker
accounts on Monday, 15 June 2020. Certificated shareholders' dividend payments will be paid to certificated
shareholders' bank accounts on or about Monday, 15 June 2020.
In accordance with Exemplar'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
38.79887 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 declaration date of the dividend: 325 027 765
Exemplar income tax reference number: 9727063175
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the Board. It is a summary of the full announcement
released on SENS on 26 May 2020 and does not contain all the details of the full announcement.
The full announcement can be accessed using the following JSE link:
https://senspdf.jse.co.za/documents/2020/jse/isse/EXPE/2020AFS.pdf as well as via Exemplar's website
(http://www.exemplarreit.co.za). A copy of the full announcement may be requested from info@exemplarreit.co.za
or the sponsor, Java Capital at sponsor@javacapital.co.za. Any investment decisions made by investors and/or
shareholders should be based on consideration of the full announcement.
This short-form announcement has not been audited or reviewed by Exemplar's external auditors.
The consolidated annual financial statements have been audited by BDO South Africa Inc, who expressed
an unmodified audit opinion thereon. The auditor's opinion also includes communication of key audit
matters. The opinion is available, along with the annual financial statements, on Exemplar's website
at http://www.exemplarreit.co.za/wp-content/uploads/EXP-FY2020-Results-Announcement.pdf.
For and on behalf of the Board
26 May 2020
Executive directors
Jason McCormick (CEO)
DA Church (CFO)
John McCormick
Non-executive directors
FM Berkeley (Chair)
PJ Katzenellenbogen (Lead independent director)
GVC Azzopardi
EP Maponya
Company Secretary
A Booysen
Registered Office
Sokatumi Estate, Cnr Lyttelton Road and Leyden Avenue, Clubview, Centurion, 0157,
PO Box 12169, Clubview, 0014
Transfer Secretaries
Computershare Investor Services Proprietary Limited, Rosebank Towers, 15 Biermann
Avenue, Rosebank, Johannesburg, 2196, PO Box 61051, Marshalltown, 2107
Auditor
BDO South Africa Inc
Sponsor
Java Capital
Date: 26-05-2020 10:09:00
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