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Condensed Unaudited Interim Results for the six months ended 31 December 2020, Cash Dividend Declaration
Growthpoint Properties Limited
Approved as a REIT by the JSE
(Incorporated in the Republic of South Africa)
Registration number 1987/004988/06
ISIN: ZAE000179420
JSE Share code: GRT
("Growthpoint” or "the Company")
CONDENSED UNAUDITED INTERIM RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER
2020, CASH DIVIDEND DECLARATION AND UPDATED TRADING STATEMENT
Updated trading statement:
Shareholders and noteholders are referred to the announcement released by Growthpoint on
SENS on 5 March 2021, wherein the Company advised that it expected its distribution per share
(“DPS”) for the six months ended 31 December 2020 to decrease by at least 15% (lower by at
least 15.90 cents) when compared to the DPS for the six months ended 31 December 2019
(106.00 cents).
Shareholders and noteholders are now advised that the DPS for the six months ended 31
December 2020 amounted to 58.50 cents per share, resulting in a 44.8% decrease when
compared to the DPS for the six months ended 31 December 2019 (106.0 cents).
Shareholders and noteholders are also advised that the distributable income per share (“DIPS”)
for the six months ended 31 December 2020 amounted to 73.1 cents per share, resulting in a
31.0% decrease when compared to the DIPS for the six months ended 31 December 2019 (106.0
cents).
The decrease in DPS and DIPS is due to the 21.6% decrease in distributable income, the
successful equity raise and dividend reinvestment plan in November 2020 which resulted in 408
290 684 additional shares issued and the reduction in the pay-out ratio from 100% of
distributable income for the six months ended 31 December 2019 to 80% for the six months
ended 31 December 2020.
Operational review and results:
The condensed unaudited 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:
• Total revenue increased by 12.5% to R6.58bn compared to R5.85bn for the comparative
period;
• Operating profit increased by 8.5% to R4.43bn compared to R4.08bn for the
comparative period;
• Headline earnings per share increased by 5.1% to 73.84 cents compared to 70.27 cents
for the comparative period;
• Earnings per share decreased by 137.3% to -42.24 cents compared to 113.32 cents for
the comparative period;
• Net asset value per share decreased by 7.6% to 2 132 cents compared to 2 307 cents for
the period ended 30 June 2020.
The condensed unaudited results for the six months ended 31 December 2020 have not been
audited by the company's external auditor, Ernst & Young Inc.
This short form announcement is the responsibility of the Board of Directors and 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 condensed unaudited interim results for
the six months ended 31 December 2020 which may be downloaded from the Company’s
website. https://growthpoint.co.za/Pages/Investor-Relations.aspx and
https://senspdf.jse.co.za/documents/2021/jse/isse/GRTE/Interim21.pdf
It may also be viewed, at no cost, at the registered office of the Company and the
Johannesburg office of its Sponsor, during ordinary business hours, for a period of 30 calendar
days following the date of this announcement. Copies of the full announcement may also be
requested from the Company on request, by contacting the Head of Investor Relations, Lauren
Turner on 011 944 6346.
INTERIM DIVIDEND
Notice is hereby given of the declaration of the interim dividend number 70 of 58.50 cents per
share (80% of DIPS) for the period ended 31 December 2020.
Other information:
• Issued shares at 31 December 2020: 3 430 787 066 ordinary shares of no par value.
• Income Tax Reference Number of Growthpoint: 9375/077/71/7.
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 dividends on the shares will be deemed to be taxable dividends for South African
tax purposes in terms of section 25BB of the Income Tax Act.
Tax implications for South African resident shareholders
Dividends 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 section 10(1)(k)(i)(aa) of the Income Tax Act,
because they are dividends distributed by a REIT. These dividends are however exempt from
dividend withholding tax (Dividend Tax) in the hands of South African resident shareholders
provided that the South African resident shareholders have provided to the 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 DTD(EX) (Dividend Tax: Declaration
and undertaking to be made by the beneficial owner of a share) their form to prove their
status as South African residents.
If resident shareholders have not submitted the abovementioned documentation to confirm
their status as South African residents, they are advised to contact their CSDP or broker, as the
case may be, to arrange for the documents to be submitted prior to the payment of the
dividend.
Tax implications for non-resident shareholders
Dividends received by non-resident shareholders from a REIT 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 section 10(1)(k) of the Income Tax Act. Any dividend received
by a non-resident from a REIT is 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. Assuming dividend tax
will be withheld at a rate of 20%, the net amount due to non-resident shareholders is 46.80
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 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 the DTA; and
• a written undertaking to inform the 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 of
the South African Revenue Service.
If applicable, non-resident shareholders are advised to contact the CSDP, broker or the
company to arrange for the abovementioned documents to be submitted prior to payment of
the dividend if such documents have not already been submitted.
Salient dates and times
2021
Last day to trade (LDT) cum dividend Tuesday, 13 April
Shares to trade ex dividend Wednesday, 14 April
Record date Friday, 16 April
Payment date Monday, 19 April
Notes:
1. Shares may not be dematerialised or rematerialised between commencement of trade
on Wednesday, 14 April 2021 and the close of trade on Friday, 16 April 2021.
2. The above dates and times are subject to change. Any changes will be released on
SENS.
Sandton
10 March 2021
Sponsor: Investec Bank Limited
Date: 10-03-2021 07:05:00
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