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OASIS CRESCENT PROPERTY FUND - Condensed Consolidated Interim Results for the Six-Months Ended 30 September 2020 and Distribution Declaration

Release Date: 22/10/2020 17:45
Code(s): OAS     PDF:  
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Condensed Consolidated Interim Results for the Six-Months Ended 30 September 2020 and Distribution Declaration

OASIS CRESCENT PROPERTY FUND
A property fund created under the Oasis Crescent
Property Trust Scheme registered in terms of the
Collective Investment Schemes Control Act (Act 45 of
2002) having REIT status with the JSE
Share code: OAS
ISIN: ZAE000074332
(“Oasis”, “OCPF” or “the Fund”)


SHORT-FORM ANNOUNCEMENT: REVIEWED CONDENSED CONSOLIDATED INTERIM
RESULTS FOR THE SIX-MONTHS ENDED 30 SEPTEMBER 2020 AND DISTRIBUTION
DECLARATION


OASIS CRESCENT PROPERTY FUND PHILOSOPHY & STRATEGY

Due to its high-quality tenant base and strong balance sheet, the Oasis Crescent Property
Fund is well-positioned to protect its investors during this period of increased economic
uncertainty created by the COVID-19 pandemic. A key differentiator between the Fund and
the rest of the SA-listed REITs is that it is one of the few SA REITs, if not the only, that has
no debt.

1.   THE PERIOD IN BRIEF

Unitholder return of 11.8% per annum since inception compared to inflation of 5.6% per
annum.

Distribution including non-permissible income of 44.5 cents per unit relative to 52.6 cents in
the prior year corresponding period, with a decline of 6.2 cents per unit attributable to
COVID-19.

Top quartile performance with distribution per unit including non-permissible income
declining by 15% year-on-year relative to an average estimated decline of 62% in
distribution for SA-listed REITs.

Key differentiator is that the Fund has no debt and its tenant profile remains low-risk, as
87% of tenants are multi-national, national, or government-related.

Rental discounts granted of R2.7m make up 3% of annual rental and recoveries, and rental
deferrals offered were 1.5% of annual rental and recoveries, while lease extensions of
R10.8m were concluded.

New lease concluded with a national tenant during October 2020 that will reduce the
vacancy of the portfolio based on gross lettable area from 9.0% to 3.9%.

2. KEY FINANCIAL HIGHLIGHTS

Revenue decreased by 11.3% to R52.0 million, from R58.6 million in the prior
corresponding period.

Distributable income decreased by 13.6% to R28.5 million, from R33.0 million in the prior
corresponding period.

Distribution per share (“DPS”) decreased by 16.1% to 43.8 cents per unit, from 52.2 cents
per unit in the prior corresponding period.

Net asset value per unit (“NAVPU”) decreased by 2.6% to 2 186 cents per unit, from 2 245
cents per unit in the prior corresponding period.

Headline earnings per share (“HEPS”) decreased by 43.3% to 56.9 cents per unit, from
100.3 cents per unit in the prior corresponding period.

Earnings per share (“EPS”) decreased by 42.1% to 57.7 cents per unit, from 99.7 cents per
unit in the prior corresponding period.

3.   DECLARATION ANNOUNCEMENT IN RESPECT OF THE DISTRIBUTION FOR THE
     6 MONTHS ENDED 30 SEPTEMBER 2020

Notice is hereby given that a distribution of 4,380.19292 cents (in aggregate), after non-
permissible income, for every 100 (one hundred) units so held, has been approved and
declared to unitholders recorded in the register of OCPF at close of business on
Friday, 4 December 2020. Unitholders may elect to receive the distribution in cash or to
reinvest the distribution by the purchase of new units at a rate of 2.00403 units at 2,186
cents per unit (in aggregate), for every 100 (one hundred) units so held.

Trading in the electronic Strate environment does not permit fractions and fractional
entitlements in respect of units. Accordingly, should a unitholder’s entitlement to new units,
calculated in accordance with the ratio mentioned above, give rise to a fraction of a new
unit, such fraction will be rounded down to the nearest whole number, resulting in
allocations of whole units and a payment to the unitholder in respect of the remaining cash
amount due to that unitholder under the distribution.

The publication of this announcement and/or applicable documents and the right to reinvest
the distribution in jurisdictions other than South Africa may be restricted by law and a failure
to comply with any of these restrictions may constitute a violation of the securities laws of
any such jurisdictions. OCPF units have not been and will not be registered for the
purposes of the election under the securities laws of the United Kingdom, European
Economic Area or EEA, Canada, United States of America, Japan or Australia and
accordingly are not being offered, sold, taken up, re-sold or delivered directly or indirectly to
recipients with registered addresses in such jurisdictions.

In respect of the distribution, unitholders who will receive the distribution are hereby
informed that, for taxation purposes, OCPF is a REIT as defined in the Income Tax Act as
from 1 April 2013 and, accordingly, the tax implications of the distribution have changed as
from that date. The distribution will not be exempt from income tax in terms of section
10(1)(k) of the Income Tax Act.

For South African tax residents, the distribution will be exempt from dividends tax in terms
of section 64F(1) of the Income Tax Act, provided that you, as unitholder, provide the
transfer secretary or your nominee, custodian or CSDP with confirmation of your tax
residence status in the prescribed form. If you do not provide the required residence status,
they will have no choice but to withhold dividends tax at a rate of 20%.

For non-resident unitholders, for South African tax purposes, the distribution received by a
non-resident unitholder 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 tax residence of the unitholder.
Non-resident unitholders that believe that a reduced rate of tax applies in respect of their
applicable DTA should contact the transfer secretaries or their nominee, custodian or CSDP
for the prescribed form to record the reduced rate of tax.

Where dividends tax is withheld at 20%:
- the reinvestment ratio for non-resident unitholders will be 1.60322 units at 2,186 cents
   per unit, for every 100 (one hundred) units held on the record date; and
- should such unitholders elect to receive the distribution in cash, they will receive
   3,504.15433 cents per 100 units held on the record date.

Kindly contact the transfer secretaries, or your nominee, custodian or CSDP for a copy of
the prescribed declaration form.

The Income Tax Act sections applicable to the distributions made are as follows:

-        Property income distribution from a REIT – section 10(1)(k) and section 64F(1)

Both resident and non-resident unitholders are encouraged to consult their professional tax
advisors with regard to their individual tax liability in this regard.

A circular will be posted out to unitholders on Friday, 6 November 2020, in respect of the
unit and income distribution.

Units in issue at the date of declaration of the distribution: 65 203 334

Income tax reference number: 3354212148

The salient dates of the distribution declaration are:

                                                                                          2020
Release of results and declaration announcement on SENS of                Thursday, 22 October
distribution and right of election to purchase new units or receive a
cash payment

Circular and form of election posted to unitholders                         Friday, 6 November

Finalisation announcement on SENS in respect of distribution and            Friday, 6 November
right of election to purchase new units or receive a cash payment

Last day to trade in order to be eligible for the distribution             Tuesday, 1 December

Trading commences ex-entitlement to the distribution                     Wednesday, 2 December

Listing of maximum possible number of units that may be purchased           Friday, 4 December
at commencement of trade

Closing date for the election of cash distribution or to reinvest at        Friday, 4 December
12:00 pm on

Record date for the distribution                                            Friday, 4 December

Electronic payment and CSDP/broker accounts updated with cash               Monday, 7 December

Announcement of the results of the distribution on SENS                     Monday, 7 December

Unit certificates posted and CSDP/broker accounts updated with           Wednesday, 9 December
units
Adjustment of number of new units listed on or about                       Friday, 11 December

Notes:
1.    Unitholders reinvesting their distribution in new units are alerted to the fact that the
      new units will be listed 3 business days after the last day to trade and that these new
      units can only be traded 3 business days after the last day to trade, due to the fact that
      settlement of the units will be 3 business days after the record date, which differs from
      the conventional one business day after the record date settlement process.
2.    Units may not be dematerialised or rematerialised between Wednesday, 2 December
      2020 and Friday, 4 December 2020, both days inclusive.
3.    The above dates and times are subject to change. Any changes will be announced on
      SENS.
4.    All times quoted above are South African times.
5.    Dematerialised unitholders should provide their CSDP or broker with their election
      instructions by the cut-off time stipulated in terms of their custody agreement with such
      CSDP or broker.
6.    If no election is made, the distribution accrued to the unitholder will be used to
      purchase additional units.

4.   SHORT-FORM ANNOUNCEMENT

This short-form announcement is the responsibility of the directors of the Fund’s manager,
Oasis Crescent Property Fund Managers Limited. It contains only a summary of the
information in the full announcement (“Full Announcement”) and does not contain full or
complete details. The Full Announcement can be found at:

https://senspdf.jse.co.za/documents/2020/JSE/ISSE/OAS/1H21INT.pdf

Copies of the Full Announcement are also available for viewing on the Fund’s website at
http://www.oasis.co.za/default/content.aspx?initial=true&moveto=704. In addition, electronic
copies of the Full Announcement may be requested and obtained, at no charge, from the
Fund at Property@oasiscrescent.com and from the Fund’s designated advisor, PSG Capital.

Any investment decisions by investors and/or shareholders should be based on
consideration of the Full Announcement, as a whole.

These condensed consolidated interim results have been reviewed by the Fund’s auditors,
Nexia SAB&T, who expressed an unmodified review opinion thereon. The review opinion is
available, along with the condensed consolidated interim results, on the Fund’s website at
http://www.oasis.co.za/default/content.aspx?initial=true&moveto=704.


Cape Town
22 October 2020

Designated Advisor
PSG Capital

Date: 22-10-2020 05:45:00
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