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”)


    Summarised Consolidated Annual Financial Results For The Year Ended 31 March 2023 And
                              Declaration Of A Cash Dividend

Stor-Age achieved a 5.6% increase in dividend per share for the year ended 31 March 2023, in line with
its revised guidance of 5.0 - 6.0%.

HIGHLIGHTS

•     Final dividend of 58.09 cents
•     Rental income and net property operating income up 17.3% and 15.3% respectively
•     Same-store rental income up 9.8% SA; 8.9% UK
•     Portfolio occupancy up 21 200m² (SA 19 200m²; UK 2 000m²)
•     SA same-store closing occupancy finished at a record high of 92.2%
•     UK same store occupancy of 85.4%
•     Achieved rental rate growth of 7.6% SA and 8.0% UK
•     Third-party management fees up 146% to R36.0 million
•     Net investment property value up 12.2% to R10.4 billion
•     Loan-to-value ratio of 30.8% with over 83% of net debt subject to hedging
•     First two JV developments (Bath – UK; Morningside – SA) commenced trading shortly after year
      end.
•     Six developments scheduled for completion in FY24 (SA – 3; UK – 3)
•     Entered into a JV with Nuveen Real Estate post year end and acquired the four-property Easistore
      portfolio in the UK

GROUP SNAPSHOT

Stor-Age is the largest self storage property fund and most recognisable brand in SA. The portfolio
comprises 93 trading properties across SA (57) and the UK (36), providing storage to 49 000 customers.
The combined value of the portfolio, including properties managed in our JV partnerships, was R12.9
billion (SA – R5.6 billion; UK – £335 million) at year end with the maximum lettable area, including the
pipeline and ongoing developments, exceeding 620 000m². The group employs more than 480 staff
across SA and the UK. Stor-Age has been listed on the Johannesburg Stock Exchange since November
2015.

KEY FINANCIAL RESULTS

                                                          Year ended              Year ended      Change
                                                       31 March 2023           31 March 2022          %

    Property revenue (R’000)                                1 070 788                 910 682         17.6
    Distributable earnings (R’000)                            560 704                 517 789          8.3
    Headline earnings per share (cents)                        105.38                   109.35       (3.6)
    Earnings per share (cents)                                 152.67                   231.49      (34.0)
    Dividend per share (cents)                                 118.14                   111.90         5.6
    Net tangible asset value per share (cents)               1 483.02                 1 369.01         8.3
                                  DECLARATION OF A CASH DIVIDEND

Notice is hereby given of the declaration of the gross final dividend (number 15) of 58.09 cents per
share for the six months ended 31 March 2023 (“Cash Dividend”).

The salient dates and times in relation to the Cash Dividend are as follows:

    Salient dates and times                                                                             2023
    Last day to trade (“LDT”) cum-dividend                                                    Tuesday, 4 July
    Shares to trade ex-dividend                                                        Wednesday, 5 July
    Record date                                                                                 Friday, 7 July
    Payments to Certificated Shareholders and accounts credited by                        Monday, 10 July
    CSDP or broker of dematerialised Shareholders

Notes:

•    Shares may not be dematerialised or rematerialised between commencement of trade on Wednesday, 5 July
     2023 and the close of trade on Friday, 7 July 2023, both days inclusive.
•    The above dates and times are subject to change. Any changes will be released on SENS.


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 46.47200 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

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 summarised consolidated annual
financial results (“full announcement”), which may be downloaded from:
https://senspdf.jse.co.za/documents/2023/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.

These summarised consolidated annual financial results are extracted from the audited financial
statements, but are not themselves audited. The consolidated financial statements for the year ended
31 March 2023 were audited by BDO South Africa Incorporated, who expressed an unmodified opinion
thereon. The audited consolidated financial statements for the year ended 31 March 2023 and the
auditor’s report thereon is available for inspection at the company’s registered office and on the
company’s website at www.stor-age.co.za.

The directors take full responsibility for the preparation of these summarised consolidated annual
financial results and confirm that the financial information has been correctly extracted from the
consolidated financial statements.

The auditor’s report does not necessarily report on all of the information contained in these summarised
consolidated annual financial results. Shareholders are therefore advised that in order to obtain a full
understanding of the nature of the auditor’s engagement they should obtain a copy of the auditor’s
report together with the accompanying financial information from the company’s registered office or on
the company’s website.
OUTLOOK

Over the past three years, we have conducted our planning and prepared our financial forecasts amid
significant uncertainty. Looking ahead to FY24, it becomes even more challenging to predict the
economic landscape and the potential macroeconomic and geopolitical outcomes that may impact
customer demand and behaviour.

Our business is founded on the core principles of a clearly defined vision, disciplined execution of our
strategy, and deep sector specialisation. We have a high-quality property portfolio, a sophisticated
operating platform, and a defensive and resilient business model, which positions us strongly to
navigate challenges that arise. While a higher interest rate environment would inevitably have a
negative impact on earnings growth, we anticipate additional revenue growth from our third-party
management platform, offsetting some of this impact. We remain confident in our business model which
has proved its resilience through multiple economic crises.

The board expects a dividend per share of between 115 and 121 cents for FY24. This guidance is
based on the following assumptions:

Specific assumptions

•     Demand levels for self storage remain elevated
•     Occupancy and rental rate growth is in line with management’s forecast
•     Third-party management revenue streams increase in line with management’s forecast
•     The Storage King group of companies is classified as a UK REIT with effect from 1 July 2023
•     A 100% dividend payout ratio is maintained

Macroeconomic assumptions

•     There is no unforeseen and / or significant deterioration in the macroeconomic environment or other
      factors that are beyond our control
•     Loadshedding in SA does not remain above level 4 for extended periods of time
•     Interest rates increase by no more than 50bps in SA and 25bps in the UK in FY24

This guidance is provided in good faith, however there is no guarantee that management's expectations,
projections or assumptions will be achieved. This guidance has not been reviewed or reported on by
the company’s auditors.


By order of the Board
19 June 2023

GA Blackshaw (Chairman)•, GM Lucas (CEO)*, JAL Chapman#, KM de Kock#, SJ Horton*, SC
Lucas*+, P Mbikwana#, AC Menigo#, MPR Morojele#, A Varachhia#

    ● Non-executive
    # Independent non-executive
    * Executive
    + British citizen

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

____________________
 ¹ As at 31 March 2023
 SA – South Africa
 UK – United Kingdom
 GLA – gross lettable area
 m² – square metres
 JV – joint venture