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EMIRA PROPERTY FUND LIMITED - Unaudited Condensed Consolidated Interim Financial Results for 31 December 2020 and dividend declaration

Release Date: 17/02/2021 10:42
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Unaudited Condensed Consolidated Interim Financial Results for 31 December 2020 and dividend declaration

EMIRA PROPERTY FUND LIMITED
Incorporated in the Republic of South Africa
(Registration number 2014/130842/06)
JSE share code: EMI ISIN: ZAE000203063
JSE Interest Rate Issuer Code: EMII
(Approved as a REIT by the JSE)
(“Emira” or the “Company”)

UNAUDITED CONDENSED CONSOLIDATED INTERIM FINANCIAL RESULTS FOR THE SIX
MONTHS ENDED 31 DECEMBER 2020 AND DIVIDEND DECLARATION

Nature of business

Emira is a diversified Real Estate Investment Trust (“REIT”), with a property portfolio of predominantly
South African assets, and a growing component of offshore assets in the USA. In line with its strategic
objectives, Emira’s property portfolio spans multiple sectors, namely office, retail, industrial and
residential. The Company is focused on growing the quality and value of its portfolio of property
investments, in order to sustain and enhance its distribution growth to shareholders.

Distributable earnings and dividend declared

Distributable earnings for the six months ended 31 December 2020 has decreased from the prior
corresponding period by 13,9% to R333,7m. After taking into account the adjustments relating to the
effects of COVID-19, which reflect the cash backed position, the Board of Directors of Emira (the
“Board”) has approved the declaration of an interim dividend of 52,00 cents per share for the six months
to 31 December 2020 (December 2019: 74,10 cents). This is after the deferral of 5,09 cents of the
available cash backed dividend per share to the second half of the year which the Board believes is
prudent given the uncertainty on the future operational performance.

As anticipated, global economies continue to be constrained by the impact of COVID-19 and the related
lockdowns. The diversified nature of Emira’s investments on a sectoral and geographical basis,
including its offshore exposure and its co-investment methodology, has proved defensive seeing some
sectors and regions being hit harder than others.

Emira remains focused on maintaining the strength of its balance sheet and occupancy levels, and
collecting rentals, to ensure that it comes through these trying times in the best possible position.

Tenant retention is Emira’s key focus area, more so than ever before. Working together to understand
tenants’ needs and delivering space that is appropriate, of good quality and well-priced will help keep
vacancies at low levels without compromising on future growth.

Financial summary:

The unaudited condensed consolidated interim financial results for the six months ended 31 December
2020, as compared to the six months ended 31 December 2019 (“comparative period”), are set out
below:

•     Revenue decreased by 3.6% to R741 million compared to R771 million for the comparative
      period;
•     Headline earnings per share decreased by 6.1% to 80.12 cents compared to 85.34 cents for the
      comparative period;
•     Earnings per share decreased by 100.6% to (0.46) cents compared to 77.77 cents for the
      comparative period;
•     Net asset value per share decreased by 19.7% to 1 475.3 cents compared to 1 838.0 cents for
      the comparative period;
•     Distributable earnings decreased by 13.9% to 334 million compared to 387 million for the
      comparative period; and
•     Dividend decreased by 29.8% to 52.00 cents per share compared to 74.10 cents per share for
      the comparative period.

Dividend declaration

The Board has approved, and notice is hereby given that an interim gross dividend of 52,00 cents per
share has been declared, payable to the registered shareholders of Emira on Monday, 15 March 2021.
In making its decision on whether to pay out a dividend and the quantum thereof, the Board has
assessed the Company’s solvency and liquidity position, taking into account the Company’s current
position together with forecasts.

The issued share capital at the declaration date is 522 667 247 listed ordinary shares. The source of
the dividend comprises net income from property rentals, income earned from the Company’s equity-
accounted investments, interest earned on loans receivable and interest earned on cash on deposit.

Last day to trade cum dividend                             Tuesday, 9 March 2021
Shares trade ex-dividend                                   Wednesday, 10 March 2021
Record date                                                Friday, 12 March 2021
Payment date                                               Monday, 15 March 2021

Share certificates may not be dematerialised or rematerialised between Wednesday, 10 March 2021
and Friday, 12 March 2021, both days inclusive.

In accordance with Emira’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”). Accordingly, qualifying distributions received by local tax residents must
be included in the gross income of such shareholders (as a non-exempt dividend in terms of section
10(1)(k)(aa) of the Income Tax Act), with the effect that the qualifying distribution is taxable as income
in the hands of the shareholder. These qualifying distributions are, however, exempt from dividend
withholding tax in the hands of South African tax resident shareholders, provided that the South African
resident shareholders have provided the following forms to their Central Securities Depository
Participant (“CSDP”) or broker, as the case may be, in respect of uncertificated shares, or the transfer
secretaries, in respect of certificated shares:

    a) declaration that the dividend is exempt from dividends tax; and
    b) a written undertaking to inform the CSDP, broker or the transfer secretaries, 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 transfer
       secretaries, 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.

Qualifying dividends received by non-resident shareholders will not be taxable as income and instead
will be treated as ordinary dividends but which are exempt in terms of the usual dividend exemptions
per section 10(1)(k) 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 amount due to non-resident shareholders will be 41,60 cents per share. A reduced dividend
withholding tax 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 the
uncertificated shares, or the transfer secretaries, in respect of certificated shares:

    a) 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 transfer secretaries, 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 transfer secretaries, 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.

Local tax resident shareholders as well as non-resident shareholders are encouraged to consult their
professional advisors should they be in any doubt as to the appropriate action to take.

The Company’s tax reference number is 9995/739/15/9.


This short form announcement is the responsibility of the Board, is only a summary of the information
in the full announcement which was released on SENS on 17 February 2021, and therefore does not
contain full or complete details. Any investment decisions by investors and/or shareholders should be
based as a whole on consideration of the unaudited condensed consolidated interim financial results
for the six months ended 31 December 2020 which may be downloaded from:
https://senspdf.jse.co.za/documents/2021/jse/issb/EMII/Interims20.pdf
or may or may be requested via email from sponsor@questco.co.za. The full announcement is also
available on the Company’s website at: https://emira.co.za/financial-reporting/

Registered office: 1st Floor, Block A, Knightsbridge, 33 Sloane Street, Bryanston, 2191


Bryanston
17 February 2021

Sponsor
Questco Corporate Advisory Proprietary Limited
First Floor, Yellowwood House, Ballywoods Office Park, 33 Ballyclare Drive, Bryanston.

Debt Sponsor
Rand Merchant Bank (a division of FirstRand Bank Limited)

Date: 17-02-2021 10:42:00
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