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Condensed unaudited consolidated interim results for the six months ended 30 September 2021 and Dividend Declaration
Stor-Age Property REIT Limited
Registration number: 2015/168454/06
Approved as a REIT by the JSE
Share code: SSS ISIN: ZAE000208963
(“Stor-Age” or “the group” or “the company”)
CONDENSED UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED
30 SEPTEMBER 2021, DECLARATION OF A CASH DIVIDEND AND POSTING OF CIRCULAR
Stor-Age has delivered an excellent set of results with an 8.85% increase in dividend per share for the
six months to September 2021 (“the period”) compared to the prior year.
HIGHLIGHTS
- Dividend up 8.85% to 56.60 cents
- Rental income and net property operating income up 13.1% and 20.1% respectively(1)
- Like-for-like rental income up 11.6% SA; 23.8% UK
- Like-for-like net property operating income up 16.8% SA; 34.7% UK
- Portfolio occupancy up 18 000m² on a like-for-like basis (SA 7 600m²; UK 10 400m²)(2)
- Total occupancy – SA 86.8%; UK 94.1%
- Net investment property value up 9.3% to R7.953 billion(3)
- Loan-to-value ratio of 25.0%(4)
- Completed restructuring of GBP debt facilities including seven-year £21 million sustainability-linked
loan from Aviva Investors
- Acquired three trading self storage properties – Blackpool in the UK for £3.6 million and two
properties in SA for R108 million aggregated
- Developments at Sunningdale and Tyger Valley completed in May 2021 and first phase of Cresta
in October 2021
- Moorfield JV – completed acquisition of a site in Hounslow (UK) to develop a new store – two further
opportunities to be completed shortly
- Announced development JV with Nedbank to develop new properties in SA
- SA development pipeline of ten properties (c.R850 million and 59 200m² GLA)
GROUP SNAPSHOT
Stor-Age is the largest self storage property fund and most recognisable industry brand in South Africa.
The portfolio comprises 76 self storage properties(5) across both SA (54) and the UK (22). The SA
portfolio is valued at R4.8 billion and the UK portfolio – under the brand Storage King – at R3.2 billion.
In the UK a further seven properties trade under the licence of the Storage King brand and generate
licence and management fee revenue for the group (totalling 29 properties trading under the Storage
King brand).
____________________
Like-for-like – refers to properties trading for the full six months in both reporting periods
SA – South Africa
m² – square metre
UK – United Kingdom
JV – joint venture
Footnotes:
(1) Rental income refers to self storage rental income excluding rental guarantee and rental underpin
(2) Excludes impact of looting at Waterfall
(3) Net of leasehold obligations
(4) Loan-to-value ratio is defined as net debt as a percentage of gross investment property of R8.251 billion less lease obligations
relating to leasehold investment property of R293.3 million
(5) Includes 50% share of Sunningdale, Cresta (commenced trading in October 2021) and Silver Park Self Storage (acquired
November 2021)
KEY FINANCIAL RESULTS
Unaudited Unaudited
6 months ended 6 months ended Change
30 September 2021 30 September 2020 %
Property revenue (R’000) 431 164 390 869 10.3
Distributable earnings (R’000) 245 011 220 290 11.2
Headline earnings per share (cents) 54.38 44.66 21.8
Earnings per share (cents) 91.68 149.18 (38.5)
Dividend per share (cents) 56.60 52.00 8.9
Net tangible asset value per share (cents) 1 309.72 1 210.12 8.2
DECLARATION OF A CASH DIVIDEND WITH THE OPTION TO RE-INVEST THE CASH DIVIDEND
IN RETURN FOR STOR-AGE SHARES
Notice is hereby given of the declaration of the gross interim dividend (number 12) of 56.60 cents per
share for the six months ended 30 September 2021 (“Cash Dividend”).
Shareholders of Stor-Age (“Shareholders”) will be entitled, in respect of all or part of their shareholdings,
to elect to re-invest the Cash Dividend in return for Stor-Age shares (“Share Alternative”). Those
Shareholders who do not elect the Share Alternative will receive the Cash Dividend. A circular providing
further information in respect of the Cash Dividend and Share Alternative (“the Circular”) will be posted
to Shareholders on Tuesday, 16 November 2021.
The salient dates and times in relation to the Cash Dividend and Share Alternative are as follows:
Salient dates and times 2021
Record date for Shareholders to be registered in the company’s
Securities Register in order to be entitled to receive the Circular Friday, 5 November
Circular and form of election posted to Shareholders and announced
on SENS Tuesday, 16 November
Last date for Stor-Age to withdraw the entitlement for Shareholders
to elect to participate in the Share Alternative before the publication
of the announcement of the Share Alternative issue price and
finalisation information on SENS Friday, 19 November
Announcement of Share Alternative issue price and information
published on SENS (“Finalisation Announcement”) Tuesday, 23 November
Last day to trade (“LDT”) cum-dividend or Share Alternative Tuesday, 30 November
Shares to trade ex-dividend or Share Alternative Wednesday, 1 December
Listing of maximum possible number of Share Alternative Shares
commences on the JSE Friday, 3 December
Last day to elect to receive the Share Alternative (no late forms of
election will be accepted) at 12:00 (South African time)
Friday, 3 December
Record date Friday, 3 December
Announcement of results of Cash Dividend and Share Alternative Monday, 6 December
published on SENS
Cheques posted to Certificated Shareholders and accounts credited
by CSDP or brokers of Dematerialised Shareholders electing the
Monday, 6 December
Cash Dividend on
Share certificates posted to Certificated Shareholders and accounts
credited by CSDP or brokers of Dematerialised Shareholders
electing the Share Alternative on
Wednesday, 8 December
Adjustment to the maximum number of Shares listed on or about Friday, 10 December
Notes:
- Shareholders electing the Share Alternative are alerted to the fact that the new Shares will be listed on
LDT + 3 and that these new Shares can only be traded on LDT + 3, due to the fact that settlement of the
Shares will be three days after Record Date, which differs from the conventional one day after Record
Date settlement process.
- Shares may not be dematerialised or rematerialised between commencement of trade on Wednesday, 1
December 2021 and the close of trade on Friday, 3 December 2021.
TAX IMPLICATIONS
As the company has REIT status, 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),
as amended, (“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.
South African tax residents
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 exception, contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because
it is a dividend distributed by a REIT.
The dividend is exempt from dividend withholding tax in the hands of South African tax resident
Shareholders, provided that the South African resident Shareholders provide the following forms to the
CSDP or broker in respect of uncertificated shares, or to the company, in respect of certificated shares:
a) a declaration that the dividend is exempt from dividend tax; and
b) a written undertaking to inform the CSDP, broker or the company, 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 to arrange for the
abovementioned documents to be submitted prior to payment of the dividend, if such documents have
not already been submitted.
Non-resident Shareholders
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. It should be noted that up to 31 December 2013
dividends received by non-residents from a REIT were not subject to dividend withholding tax. Since 1
January 2014, any dividend 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 concerned. Assuming dividend withholding tax will be withheld at a rate of 20%, the net
dividend amount due to non-resident Shareholders is 45.28000 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 form to their CSDP or broker in respect of uncertificated shares, or the
company, in respect of certificated shares:
a) a declaration that the dividend is subject to a reduced rate as a result of the application of DTA; and
b) a written undertaking to inform their CSDP, broker or the company, 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 to arrange for the
abovementioned documents to be submitted prior to payment of the dividend, if such documents have
not already been submitted.
The company’s tax reference number is: 9027205245
The distribution of the Circular and/or any accompanying documents and the right to elect the Share
Alternative in jurisdictions other than the Republic of 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 such
jurisdictions. The Shares have not been and will not be registered for the purposes of the Share
Alternative under the securities laws of the United Kingdom, European Economic Area, 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.
The board of directors (“the Board”) in its discretion may withdraw the Share Alternative should market
conditions warrant such actions and such withdrawal will be communicated to Shareholders via SENS.
This short-form announcement is the responsibility of the Board and does not include full or complete
details. Any investment decision should be based as a whole on the preliminary summarised
consolidated annual financial results (“full announcement”), which may be downloaded from:
https://senspdf.jse.co.za/documents/2021/jse/isse/SSSE/Finals.pdf
The full announcement is available for inspection at the registered offices of the company at no charge,
during office hours for a period of 30 calendar days following the date of this announcement. The full
announcement is also available on the company’s website at: https://investor-relations.stor-
age.co.za/sens
The short-form announcement has not been audited or reviewed by the company’s external auditors.
By order of the Board
16 November 2021
GA Blackshaw (Chairman)•, GM Lucas (CEO)*, JAL Chapman#, KM de Kock#, SJ Horton*, SC
Lucas*+, P Mbikwana#, MPR Morojele#, A Varachhia#
• Non-executive
# Independent non-executive
* Executive
Company secretary
HH-O Steyn
Registered office and business address
216 Main Road, Claremont, 7708
Transfer secretaries
Computershare Investor Services Proprietary Limited
2nd Floor, Rosebank Towers
15 Biermann Avenue, Rosebank 2196
Sponsor
Investec Bank Limited
100 Grayston Drive
Sandown, Sandton 2196
Date: 16-11-2021 07:05:00
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