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2022 Interim results
for the six months ended 28 February 2022
Rental income Net asset value (NAV) per share
R944.4 million R23.10
(28 February 2021: R898.7 million) +5.1% -0.4%
(31 August 2021: R23.20)
Like-for-like rental growth
1.2% Cash generated from operating activities before dividend
(28 February 2021: (8.5%)) >100% payment
R193.9 million +5.2%
Distributable income after tax (REIT funds from operations)
(28 February 2021: R184.3 million)
R211.8 million
(28 February 2021: R199.1 million) +6.4%
Loan to value (LTV)
Distributable income per share 41.0%
79.6 cents (31 August 2021: 43.2%) -5.1%
(28 February 2021: 74.8 cents) +6.4%
Dividend per share All-in annual weighted average cost of funding
50.0 cents 8.3%
>100% (31 August 2021: 8.5%) -20bps
(28 February 2021: nil)
This short form announcement is the responsibility of the directors. This short form announcement is only a summary of the information in the full announcement and does not
contain full or complete details.
Copies of the full announcement may be requested at the company’s registered office (elizeg@octodec.co.za) or the office of the sponsor (sponsor@javacapital.co.za),
at no charge, during office hours, Monday to Friday. 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 10 May 2022, which may be downloaded from
https://senspdf.jse.co.za/documents/2022/JSE/isse/OCT/HY2022.pdf
The full announcement is also available on the Octodec Investments Limited website at
https://octodec.co.za/wp-content/uploads/2022/05/Interim-Results-HY2022.pdf
Octodec Investments Limited (Octodec or the company), its subsidiaries and associated Octodec’s office sector, predominantly occupied by
company (the group) is a real estate investment trust (REIT) listed on the JSE Ltd (JSE) with a parastatals and SMMEs, is stable, but we do not
diversified portfolio of 254 residential, retail, office, industrial and specialised properties situated expect growth from this sector in the short-term due
in the major metropolitan areas of Tshwane and Johannesburg. The portfolio, including an equity- to the current oversupply of office space. Above-
accounted joint venture, has a lettable area of 1 591 673m² and is valued at R11.0 billion. inflation increases in administered property costs
and the limited ability to pass these increased costs
Dividends and review of results on to tenants, remain a concern.
The steps taken in the prior year to retain cash have strengthened Octodec’s financial position and
enabled it to make a distribution to its shareholders. The board has therefore declared an interim At the same time, the local macro environment
dividend of 50.0 cents per share for the six months ended 28 February 2022 (28 February 2021: nil). remains a cause for concern and, with GDP
expected to grow at under 2% for the foreseeable
% 28 February 28 February future, we do not anticipate significant growth in
change 2022 2021 rental income, while inflation is expected to increase,
Revenue (R’000) 4.9 939 699 895 513 impacting costs and, ultimately, our net property
Basic and diluted earnings per share (cents) >100 89.9 (73.1) income. Concerns around global inflation and
rising interest rates continue to dominate economic
Headline and diluted headline earnings per share (cents) 4.7 120.4 115.0
forecasts, and the breakout of the war between
Distributable earnings per share (cents) 6.4 79.6 74.8
Russia and Ukraine has created further uncertainty.
Distribution per share (cents) >100 50.0 –
Given the current weak economic environment
Net asset value per share (Rand) (2.1) 23.1 23.6
and an uncertain political climate, the board will,
Prospects at this stage, not be providing any guidance on
Octodec has experienced an increase in residential leasing activity with reduced vacancies distributable income and dividends for the second
in the residential portfolio during February and March 2022. We believe this will positively half of FY2022.
impact the group’s results in the second half of the year. Although there has been a continued
downward resetting of rentals across the sectors, it is pleasing to see that, from an Octodec Sharon Wapnick Jeffrey Wapnick
perspective, several renewals are being concluded at increased rentals. We continue to Chairman Managing director
experience demand from large retailers for space in the Johannesburg and Tshwane CBDs. 6 May 2022
OCTODEC INVESTMENTS LIMITED Group company secretary Investor relations
Incorporated in the Republic of South Africa Elize Greeff Instinctif Partners
Registration number: 1956/002868/06 CPA House, 101 Du Toit Street, Tshwane 0002 Contact person: Bryan Silke
JSE share code: OCT Tel: 012 357 1564, e-mail: elizeg@octodec.co.za The Firs, 302 3rd Floor, Cnr Cradock and Biermann Road,
ISIN: ZAE000192258 (Approved as a REIT by the JSE) Rosebank 2196
Sponsor
Registered address Tel: 011 447 3030, e-mail: investorrelations@octodec.co.za
Java Capital
CPA House, 101 Du Toit Street, Tshwane 0002 Auditors
Tel: 012 319 8781, e-mail: info@octodec.co.za Contact person: Jean Tyndale-Biscoe
Ernst & Young Inc.
6th Floor, 1 Park Lane, Wierda Valley, Sandton 2196
Directors: S Wapnick (Chairman)1, JP Wapnick (Managing Contact person: Gail Moshoeshoe
Director)2, A Vieira (financial director)2, RWR Buchholz4, PO Box 522606, Saxonwold 2132
102 Rivonia Road, Sandton
DP Cohen3, NC Mabunda4, EMS Mojapelo4, MZ Pollack1, Tel: 011 722 3061, e-mail: sponsor@javacapital.co.za
Private Bag X14, Sandton, 2146
PJ Strydom4, LP van Breda4 Transfer secretaries Tel: 011 502 0601, e-mail: gail.moshoeshoe@za.ey.com
1
Non-executive director Computershare Investor Services (Pty) Ltd
2
Executive director Date of publication
Contact person: Leon Naidoo 10 May 2022
3
Lead independent director
4
Independent non-executive director Rosebank Towers, 15 Biermann Avenue, Rosebank 2196 www.octodec.co.za
Private Bag X9000, Saxonwold 2132
Tel: 011 370 5000, e-mail: leon.naidoo@computershare.co.za
GREYMATTERFINCH # 15800
