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SAFARI INVESTMENTS (RSA) LIMITED - Condensed Consolidated Unaudited Interim Financial Results and Interim Dividend Distribution Declaration for the Six

Release Date: 19/11/2021 12:00
Code(s): SAR     PDF:  
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Condensed Consolidated Unaudited Interim Financial Results and Interim Dividend Distribution Declaration for the Six

Approved as a REIT by the JSE Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2000/015002/06)
Share code: SAR ISIN: ZAE000188280
(“Safari” or “the company”)



     Financial results for the six months ended 30 September 2021 reflect a defensive and
     operationally strong portfolio. Though impacted by the global COVID-19 pandemic and
     the civil unrest experienced in South Africa during July 2021, tenant retention and
     improved trade across the portfolio’s retail assets resulted in an improved 6 months
     compared to the prior interim reporting period. Occupancy remained very strong with a
     vacancy factor of only 1,97% at 30 September 2021 (2020: 3,04%) and a positive
     reversion rate of 1,9% on renewals and tenant replacements.

     The only property significantly impacted by the unrest was Thabong Shopping Centre in
     Sebokeng with property damages recoverable under Sasria. An insurance claim
     amounting to approximately R52 million, including a claim for loss of rental income due to
     business interruption, was submitted but at reporting date not yet concluded. Interim
     payments have been received subsequent to 30 September 2021 and the company
     expects the remaining negative financial impact in the current period to be cleared before
     the 2022 financial year end.

     Property revenue for the reporting period increased by 19,05% compared to the previous
     corresponding period with distributable income increasing by 31,3% over the same
     period. Net operating income increased by 22,7% when compared with the prior six-month
     period with notably higher operating expenses also reported in the current period, largely
     attributable to the civil unrest and its related insurance claim not yet concluded at reporting

     Headline earnings increased to R70,4 million in comparison to R14,7 million in the
     corresponding prior period. Whilst COVID-19 had a more significant impact on the
     earnings of the previous comparable period, the recovery of earnings per share from 5.70
     cents to 27.31 cents over the period under review, now in line with pre-COVID-19 levels,
     is mainly as a consequence of the R9,8 million fair value profit on hedging instruments
     compared to a fair value loss of R32,5 million on hedging instruments in the previous
     corresponding period.

     New projects include the refurbishment and reconfiguration of The Victorian Shopping
     Centre that is underway with the opening date of phase 2 planned for early 2022. Council
     approval and construction of the filling station at Mnandi Shopping Centre is anticipated
     to be completed end November 2022 while a phase 2 expansion of approximately
     3,750m² of retail was approved for Nkomo Village. The board also approved a small
     expansion of Thabong Shopping Centre in order to strengthen the tenant mix with a
     Shoprite and Shoprite Liquor.

     With secured loan facilities totaling R1,4 billion of which 94.7% is utilized as at 30
     September 2021, interest-bearing debt represents 39% of the total value of property
     assets and the weighted combined SA REIT cost of debt is 7,54% while 49% of debt is

     The SA REIT metrics, aligned with the second addition of the SA REIT Association’s Best
     Practice Recommendations, are included in an annexure to the interim results for the six
     months under review.


     The board has resolved to declare an interim gross dividend of 25 cents (2020:17 cents)
     per share from income reserves in respect of the six months ended 30 September 2021.
     The dividend amount, net of South African dividend tax of 20%, is 20 cents (2020:13.6
     cents) per share for those shareholders who are not exempt from dividend tax. The
     number of ordinary shares in issue at the declaration date is 310 826 016, including
     53 million Safari shares held by Southern Palace effectively seen as treasury shares. The
     income tax number of the company is 9012/264/14/0.

     The salient dates of the dividend declaration are:

      Declaration date                                            Friday, 19 November 2021
      Last day to trade cum dividend                             Monday, 6 December 2021
      Trading ex-dividend commences                            Wednesday, 8 December 2021
      Record date                                                 Friday, 10 December 2021
      Date of payment                                           Monday, 13 December 2021

     Shares may not be dematerialised or rematerialised between Wednesday, 8 December
     2021 and Friday, 10 December 2021, both days inclusive.


     This short-form announcement is the responsibility of the directors of the company. It
     contains only a summary of the information in the full announcement and does not contain
     full or complete details. The full announcement can be found at:

     Copies of the full announcement are also available for viewing on the company’s website
     at or may be requested in person,
     at the company’s registered office or the office of the sponsor, at no charge, during office

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

     These interim results have neither been reviewed nor audited by the company’s auditor.

19 November 2021

PSG Capital

Date: 19-11-2021 12:00:00
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