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Unaudited interim results for the six months ended 29 February 2024
OCTODEC INVESTMENTS LIMITED
"Octodec" or the "company"
Incorporated in the Republic of South Africa
Registration number: 1956/002868/06
JSE share code: OCT
JSE alpha code: OCTI
ISIN: ZAE000192258
LEI: 3789I36JI0BKTUSZ8813
(Approved as a REIT by the JSE)
Unaudited interim results for
the six months ended
29 February 2024
Octodec Investments Limited (Octodec or the company), its subsidiaries and associated company (the group) is a real estate investment trust (REIT) listed
on the JSE Ltd (JSE) and A2X, with a diversified portfolio of 237 residential, retail, office and industrial properties situated in the major metropolitan
areas of Tshwane and Johannesburg. The portfolio, including an equity-accounted joint venture, has a lettable area of 1 525 486m2 and is valued at
R11.2 billion.
Salient features
Distributable income after tax (R'million)
R219.5
(HY2023: R234.5)
Distributable income per share (cents)
82.47
(HY2023: 88.10)
Dividend per share (cents)
60.0
(HY2023: 60.0)
Net asset value (NAV) per share
R24.11
(FY2023: R24.24)
Loan to value (LTV)
38.5%
(FY2023: 37.7%)
This short form announcement is the responsibility of the directors. This announcement is only a summary of the information contained in the unaudited
condensed consolidated interim results for the six months ended 29 February 2024 (full announcement) and does not contain full or complete details.
Any investment decisions made by shareholders and/or investors should be based on the information contained in the full announcement, released on the
Stock Exchange News Service (SENS) on 14 May 2024, which may be downloaded from the JSE cloudlink at:
https://senspdf.jse.co.za/documents/2024/JSE/isse/OCT/HY2024.pdf
The full announcement is also available on the Octodec Investments Limited website at https://octodec.co.za/financial_results/interim-results-booklet-hy2024/
Results
% 29 February 28 February
change 2024 2023
Revenue (R'000) 4.7 1 005 862 961 099
Basic and diluted earnings per share (cents) (72.5) 37.2 135.3
Headline and diluted headline earnings per share (cents) (14.5) 73.05 85.42
Distributable earnings per share (cents) (6.4) 82.47 88.10
Distribution per share (cents) - 60.0 60.0
Net asset value per share (Rand) (0.5) 24.11 24.01
Dividends
The board of Octodec has declared a cash dividend of 60.00000 cents per share for the six months ended 29 February 2024, payable out of the company's
distributable income.
The salient dates relating to the interim dividend are as follows:
2024
Last day to trade cum dividend Tuesday, 4 June
Shares trade ex dividend Wednesday, 5 June
Record date Friday, 7 June
Payment date Monday, 10 June
Share certificates may not be dematerialised or rematerialised between Wednesday, 5 June 2024 and Friday, 7 June 2024, both days inclusive.
In accordance with Octodec's status as a REIT, shareholders are advised that the above dividend meets the requirements of a "qualifying distribution" for
the purposes of section 25BB of the Income Tax Act, No. 58 of 1962 (the Income Tax Act).
Tax implications for South African resident shareholders
Dividends received by South African resident shareholders must be included in the gross income of such shareholders (as a non-exempt dividend in terms of
section 10(1)(k)(i)(aa) of the Income Tax Act), with the effect that the dividends are taxable as income in the hands of the Octodec shareholder. These
dividends are, however, exempt from dividends withholding tax, 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 distribution is exempt from dividends tax; and
- 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 ceases 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 above-mentioned documents to be submitted prior to payment of the dividend, if such documents
have not already been submitted.
Tax implications for non-resident shareholders
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 contained in section 10(1)(k)(i)(aa) of the Income Tax Act. It should be noted that dividends received by non-
residents are subject to dividends withholding tax at a rate of 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 dividends withholding tax will be withheld at a rate of
20%, the net distribution amount due to non-resident shareholders is 48.00000 cents per share. A reduced dividend withholding rate in terms of the
applicable DTA may only be relied upon if the non-resident holder has provided the following forms to their 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 subject to a reduced rate as a result of the application of a DTA; and
- 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 ceases to be the beneficial owner;
both in the form prescribed by the Commissioner for the South African Revenue Service. Non-resident holders are advised to contact their CSDP, broker or the
transfer secretaries, 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.
The number of shares in issue at the date of this declaration is 266 197 535 and Octodec's tax reference number is 9925/033/71/5.
Outlook
The period under review is reflective of the challenging macroenvironment impacted by record unemployment and low economic growth, all of which negatively
impacted Octodec.
As such, we have adopted a cautious approach against the backdrop of the forthcoming general elections. Although we anticipate a movement in the interest
rate cycle in the medium-term, this is unlikely to have a bearing on our performance in the second half of the year.
Our retail shopping centres and industrial assets are expected to improve despite the challenging economic climate.
The improved occupancy at our residential buildings should continue to impact positively on our residential sector performance.
We are excited at the prospects of our two value-accretive developments being HealthConnect (completed) and Yethu City on Sisulu (under construction) and
will evaluate further prudent conversion opportunities on their respective merits.
We continue to implement the value-added measures introduced at some of our properties, as well as ensuring backup power and water to our tenants during
outages. We are focusing on the redevelopment and repurposing of other properties to improve our occupancy and grow our rental income and ultimately our
distributable income.
While expectations were that interest rates would decrease at the beginning of 2024, it is now anticipated that interest rates will remain higher for
longer, and this will have a negative impact on Octodec.
As a result, the board will, at this stage, not be providing any guidance on distributable income and dividends for the second half of FY2024.
The information in this outlook section has not been reviewed nor reported on by the group's auditors.
Sharon Wapnick Jeffrey Wapnick
Chairman Managing director
10 May 2024
Registered address
CPA House, 101 Du Toit Street, Tshwane 0002
Tel: 012 319 8781
e-mail: info@octodec.co.za
Directors: S Wapnick (Chairman)*, JP Wapnick (managing director)#, A Vieira (financial director)#, RWR Buchholz**, DP Cohen^, NC Mabunda**, EMS Mojapelo**,
MZ Pollack*, PJ Strydom**, LP van Breda**
* Non-executive director
# Executive director
^ Lead independent director
** Independent non-executive director
Group company secretary
Elize Greeff
CPA House, 101 Du Toit Street, Tshwane 0002
Tel: 012 357 1564, e-mail: elizeg@octodec.co.za
Equity sponsor
Java Capital
Contact person: Shivani Bhikha
6th Floor, 1 Park Lane, Wierda Valley, Sandton 2196
PO Box 522606, Saxonwold 2132
Tel: 011 722 3050, e-mail: sponsor@javacapital.co.za
Debt sponsor
Nedbank Corporate and Investment Banking, a division of Nedbank Limited
Contact person: Doris Thiele
3rd Floor, Block F, 135 Rivonia Campus,135 Rivonia Road
Sandown, Sandton 2196
Tel: 010 234 8646, e-mail: debtsponsor@nedbank.co.za
Transfer secretaries
Computershare Investor Services (Pty) Ltd
Contact person: Leon Naidoo
Rosebank Towers, 15 Biermann Avenue, Rosebank 2196
Private Bag X9000, Saxonwold 2132
Tel: 011 370 5000, e-mail: leon.naidoo@computershare.co.za
Investor relations
Instinctif Partners
Contact person: Bryan Silke
2nd Floor, Oxford Park, 8 Parks Boulevard, Dunkeld, Johannesburg
Tel: 011 447 3030, e-mail: investorrelations@octodec.co.za
Auditors
Ernst & Young Inc.
Contact person: Cornelius Els CA(SA)
102 Rivonia Road, Sandton
Private Bag X14, Sandton 2146
Tel: 011 502 0601, e-mail: Cornelius.Els@za.ey.com
Date of publication
14 May 2024
http://www.octodec.co.za
Date: 14-05-2024 07:05:00
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