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EXEMPLAR REITAIL LIMITED - Audited summarised consolidated financial statements for year ended 28 February 2021, final dividend declaration

Release Date: 25/05/2021 10:05
Code(s): EXP     PDF:  
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Audited summarised consolidated financial statements for year ended 28 February 2021, final dividend declaration

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" or "the Company")

SHORT FORM ANNOUNCEMENT:
AUDITED SUMMARISED CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2021 
AND DECLARATION OF FINAL DIVIDEND

- Total cash dividend for the six months ended 28 February 2021 of 49,07 cps against 48,50 cps 
  for the corresponding period
- Loan to value ratio 38.5% Corporate interest cover ratio of 3.57 times
- Collections since September 2020 of 99.9% of billings

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 23 retail assets in the portfolio
with a combined GLA of 382 322m2.

DISTRIBUTABLE EARNINGS
Revenue and operating profit have grown by 8.45% and 7.48% respectively even
though the Company provided COVID-19 rental assistance to tenants in the amount
of R32,2  million. Exemplar has declared a dividend of 49,06666 cents for the six
months ended 28 February 2021, an increase of 1.18% on the corresponding period,
which together with the interim dividend of 35,96489 cents per share equates to a total
dividend for FY2021 of 85,03 cents per share. The COVID-19 rental assistance shaved
9,77 cents per share off both earnings and dividend per share.

KEY FINANCIAL INFORMATION

                                              Audited        Audited
                                              for the        for the
                                            12 months      12 months
                                                ended          ended
                                          28 February    29 February
                                                 2021           2020      Change %
Revenue (R'000)                               789 206        727 690         8.45%
Operating profit (R'000)                      480 129        446 713         7.48%
Operating profit before operating lease
equalisation (R'000)                          473 728        463 630         2.18%
Basic and diluted earnings per
share (cents)                                   70.83         112.21       -36.88%
Headline earnings per share (cents)             79.92          81.64        -2.11%
Net asset value per share (Rand)                10.79          11.03        -2.18%
Total dividend per share (cents)                85.03          92.27        -7.85%
Final dividend per share (cents)                49.07          48.50         1.18%
Interim dividend per share (cents)              35.96          43.77       -17.84%

In addition to the rental assistance provided to tenants, Exemplar's earnings were also
impacted negatively by increased credit loss provisions as some tenants experienced
difficulty in meeting their obligations as a result of the lockdown regulations. By year
end however billings and collections had substantially returned to normal and for the
six months ended 28 February 2021 we collected 99.9% of billings.

DECLARATION OF DIVIDEND FOR THE SIX MONTHS ENDED 28 FEBRUARY 2021
The board of directors of Exemplar ("the board") has approved a final dividend of
49.06666 cents per share for the six months ended 28 February 2021 which is in
addition to the interim dividend paid of 35.96489 cents per share for the six months
ended 31 August 2020. It will be paid to shareholders in accordance with the timetable
set out below:

Last date to trade cum dividend                                   Tuesday, 8 June 2021
Shares trade ex dividend                                        Wednesday, 9 June 2021
Record date                                                       Friday, 11 June 2021
Payment date                                                      Monday, 14 June 2021

Share certificates may not be dematerialised or rematerialised between Wednesday,
9 June 2021 and Friday, 11 June 2021, both days inclusive. The dividend will be transferred
to dematerialised shareholders' CSDP/broker accounts on Monday, 14 June 2021.
Certificated shareholders' dividend payments will be paid to certificated shareholders'
bank accounts on or about Monday, 14 June 2021.

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 39.25333 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 above mentioned 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: 332 290 686

Exemplar income tax reference number: 9727063175

SHORT FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the Board of Directors. It is
a summary of the full announcement released on SENS on 25 May 2021 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/2021/jse/isse/expe/2021AFS.pdf as well as via
Exemplar's website (http://www.exemplarreit.co.za). Any investment decisions made by
investors and/or shareholders should be based on consideration of the full announcement.
The full announcement is available for inspection at the registered office of the company
(Sokatumi Estate, Corner Lyttelton Road and Leyden Avenue, Clubview, Centurion, 0157)
and the office of the sponsor, Java Capital (6th Floor, 1 Park Lane, Wierda Valley, Sandton,
2196) at no charge during normal business hours from Wednesday, 26 May 2021 to
Wednesday, 2 June 2021.

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 the key audit matter, being the valuation of investment
property. The opinion is available, along with the annual financial statements, on Exemplar's
website.

For and on behalf of the board

25 May 2021

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,
Private Bag X9000, Saxonwold, 2132

Auditor 
BDO South Africa Inc

Sponsor 
Java Capital

Date: 25-05-2021 10:05:00
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