Wrap Text
Reviewed condensed annual results for the year ended 31 August 2023
OCTODEC INVESTMENTS LIMITED
Incorporated in the Republic of South Africa
Registration number: 1956/002868/06
JSE share code: OCT
JSE alpha code: OCTI
ISIN: ZAE000192258
(Approved as a REIT by the JSE)
Reviewed condensed annual results for the year ended 31 August 2023
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 238 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
1 528 961m2 and is valued at R11.2 billion.
Salient features
Distributable income after tax (REIT funds from operations R'million)
R455.8
(2022: R466.1)
Down
Distributable income per share (cents)
171.2
(2022: 175.1)
Down
Dividend per share (cents)
135.0
(2022: 130.0)
Up
Net asset value (NAV) per share
R24.24
(2022: R23.28)
Up
Loan to value (LTV)
37.7%
(2022: 39.2%)
Up
This short form announcement is the responsibility of the directors. This announcement is only a summary of the information in the reviewed
condensed annual results for the year ended 31 August 2023 (full announcement) and does not contain full or complete details. The condensed
consolidated financial statements were reviewed by Ernst & Young Inc. and their unmodified report is included on page 17 of the full announcement.
Any investment decisions made by shareholders and/or investors should be based on a consideration of the full announcement, released on the Stock
Exchange News Service (SENS) on 01 November 2023, which may be downloaded from: https://senspdf.jse.co.za/documents/2023/JSE/isse/OCT/FY2023.pdf
The full announcement is also available on the Octodec Investments Limited website at
https://octodec.co.za/wp-content/uploads/2023/10/Condensed-annual-results-FY2023.pdf
Results
Reviewed Audited
% 31 August 31 August
change 2023 2022
Revenue (R'000) 2.2 1 982 537 1 939 072
Basic and diluted profit per share (cents) 0.9 229.3 227.3
Headline and diluted headline earnings per share (cents) (37.0) 162.9 258.7
Distributable income per share (cents) (2.2) 171.2 175.1
Dividend per share (cents) 3.8 135.0 130.0
Net asset value per share (cents) 4.1 24.24 23.28
Dividends
The board of Octodec has declared a final cash dividend of 75.00000 cents per share for the year ended 31 August 2023, payable out of the
company's distributable income.
The salient dates relating to the final dividend are as follows:
2023
Last day to trade cum dividend Tuesday, 21 November
Shares trade ex dividend Wednesday, 22 November
Record date Friday, 24 November
Payment date Monday, 27 November
Share certificates may not be dematerialised or rematerialized between Wednesday, 22 November 2023 and Friday, 24 November 2023, both days
inclusive.
Tax implications for non-resident shareholders
Dividends received by non-resident shareholders from a REIT will not be taxable as income and will be exempt from income tax in terms of the
exemption in section 10(1)(k)(i) 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 agreements (DTA) between South Africa and
the country of residence of the non-resident shareholders. Assuming dividend tax will be withheld at a current rate of 20%, the net dividend
amount due to non-resident shareholders is 60.00000 cents per share.
A reduced dividend tax in terms of the applicable DTA may only be relied on if the non-resident shareholder has submitted the following forms
to his/her 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 the DTA; and
- A written undertaking to inform the CSDP, broker or the transfer secretaries, 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 Services (SARS).
If applicable, non-resident shareholders are advised to contact the 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.
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. They are not 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 made submissions to the 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 that the dividend is exempt from dividends tax
and 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 ceases to be the beneficial owner, both in the form prescribed by the Commissioner for the South African Revenue Services).
If resident shareholders have not submitted the above-mentioned documentation to confirm their status as a South African resident, they are
advised to contact their CSDP or broker, as the case may be, to arrange for the documents to be submitted prior to payment of the cash dividend.
Shareholders are encouraged to consult with their professional advisors should they be in any doubt as to the appropriate action to take.
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.
Prospects
Despite the difficult trading conditions we are experiencing, we anticipate that our distributable income will be maintained and that the
distribution may increase by between 3% and 5% for the six months ended 28 February 2024 compared to the same period for FY2023.
This forecast is based on the following key assumptions:
- Forecast property income is based on contractual rental escalations and market-related renewals;
- The timeous completion of HealthConnect and the prompt leasing thereof;
- Adequate allowance has been made for vacancies and rent reversions;
- No major corporate and tenant failures will occur;
- Interest rates will increase by no more than 25bps during the 6 months ending 28 February 2024; and
- No unforeseen events.
The information in the Group prospects section has not been reviewed nor reported on by the Group's auditors.
Sharon Wapnick Jeffrey Wapnick
Chairman Managing director
30 October 2023
OCTODEC INVESTMENTS LIMITED
Registered address
CPA House, 101 Du Toit Street, Tshwane 0002
Tel: 012 319 8781
e-mail: info@octodec.co.za
Directors: S Wapnick (Chairman)1, JP Wapnick (managing director)2, A Vieira (financial director)2, RWR Buchholz4, DP Cohen3, NC Mabunda4,
EMS Mojapelo4, MZ Pollack1, PJ Strydom4, LP van Breda4
1 Non-executive director
2 Executive director
3 Lead independent director
4 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: doristh@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: Gail Moshoeshoe CA(SA)
102 Rivonia Road, Sandton
Private Bag X14, Sandton 2146
Tel: 011 502 0601, e-mail: gail.moshoeshoe@za.ey.com
Date of publication
01 November 2023
http://www.octodec.co.za
Date: 01-11-2023 07:05:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
