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AUDITED SUMMARY CONSOLIDATED
FINANCIAL RESULTS
FOR THE YEAR ENDED 31 DECEMBER 2023
AND CASH DIVIDEND DECLARATION
SA Corporate Real Estate Limited (SA Corporate or the Company) (Incorporated in the Republic of South Africa)
(Registration number 2015/015578/06) Approved as a REIT by the JSE Share code: SAC
ISIN code: ZAE000203238
Introduction
SA Corporate is a JSE-listed Real Estate Investment Trust (REIT) and together with all its subsidiaries (the Group) owns a focused portfolio of
quality industrial, retail and residential buildings located primarily in the major metropolitan areas of South Africa with a secondary node in
Zambia. As at 31 December 2023, the property portfolio consisted of 267 properties, with 1 709 651 m2 of gross lettable area (GLA), valued
at R17.7 billion, as well as a 50% joint venture interest in three Zambian entities, including a minority shareholding in Zambia’s only listed
property company, valued at R1.8 billion.
Overview Salient features
4 Distributable income The salient features of the Group annual
financial results for the year ended
5.5% vs six months to 31 December 2022 (H2 2022) 31 December 2023, as compared to the
4.0% vs twelve months to 31 December 2022 (FY 2022) year ended 31 December 2022, are set
R647.8 million or 25.76 cps (2022: R674.8 million or 26.83 cps) out below:
4 Total net property income (NPI) of R1.3 billion (2022: R1.2 billion) Revenue of R2 480.5 million
(2022: R2 042.5 million)
4 Total like-for-like NPI increased by 4.6% to R1.01 billion
(2022: R0.96 billion) Operating profit of R1 776.1 million
4 Disposal pipeline contracted and still to transfer and divestments (2022: R1 037.9 million)
transferred since January 2023 of R1.4 billion
Headline earnings per share of
(Transferred to 31 December 2023: R1 013.8 million; Contracted not yet transferred:
R192.2 million, of which R13.2 million has transferred after 31 December 2023, and under
22.98 cents
offer: R225.3 million) (2022 restated: 30.96 cents)
4 Traditional portfolio vacancies of 2.0% of GLA Basic earnings per share of 48.54 cents
(2022: 2.3%) (2022 restated: 32.91 cents)
4 Afhco residential portfolio vacancies of 4.2% of total units Net asset value per share of 439 cents
(2022: 2.9%) (2022: 410 cents)
4 Indluplace residential portfolio vacancies of 4.5%
Distribution declared of 23.18 cps at
(at 30 September 2022, Indluplace’s last year-end reported, 8.5%)
90% payout ratio
4 Total residential portfolio vacancies of 4.4% (2022: 24.15 cps at 90% payout ratio)
Distribution declaration and important dates Notice to non-resident shareholders
Notice is hereby given of the declaration of distribution number 17 in respect of the Distributions received by non-resident shareholders will not be taxable as income and
income distribution period 1 July 2023 to 31 December 2023. The distribution amounts instead will be treated as ordinary dividends which are exempt from income tax in terms
to 11.79481 cps (December 2022: 11.17938 cps). The source of the distribution comprises of the general dividend exemption in section 10(1)(k)(i) of the Income Tax Act. Distributions
net income from property rentals. Please refer to the Consolidated Statement of received by a non-resident from a REIT are subject to dividend withholding tax at 20%,
Comprehensive Income for further details. 2 514 732 095 of the Company’s shares are in unless the rate is reduced in terms of any applicable agreement for the avoidance of double
issue at the date of this distribution declaration and the Company’s income tax reference taxation (DTA) between South Africa and the country of residence of the shareholder.
number is 9179743191.
Assuming dividend withholding tax will be withheld at a rate of 20%, the net dividend
amount due to non-resident shareholders is 9.43585 cents per SA Corporate share. A
Last date to trade cum distribution Tuesday, 16 April 2024 reduced dividend withholding rate, in terms of the applicable DTA, may only be relied on
if the non-resident shareholder has provided the following forms to the CSDP or broker, as
Shares will trade ex-distribution Wednesday, 17 April 2024 the case may be, in respect of uncertificated shares, or the transfer secretaries, in respect
of certificated shares:
Record date to participate in the distribution Friday, 19 April 2024 (a) a declaration that the dividend is subject to a reduced rate as a result of the
application of a DTA; and
Payment of distribution Monday, 22 April 2024
(b) a written undertaking to inform the CSDP, broker or the transfer secretaries, as the
Share certificates may not be dematerialised or rematerialised between Wednesday, 17 April case may be, should the circumstances affecting the reduced rate change or the
2024 and Friday, 19 April 2024, both days inclusive. beneficial owner ceases to be the beneficial owner, both in the form prescribed by
the Commissioner for the South African Revenue Service.
Tax implications Non-resident shareholders are advised to contact the CSDP, broker or the transfer
In accordance with the Company’s REIT status, shareholders are advised that the secretaries, as the case may be, to arrange for the above-mentioned documents to be
distribution meets the requirements of a “qualifying distribution” for the purposes of submitted prior to payment of the distribution if such documents have not already been
section 25BB of the Income Tax Act, No 58 of 1962 (Income Tax Act). The distributions on submitted, if applicable.
the Company’s shares will be deemed to be dividends, for South African tax purposes, in
terms of section 25BB of the Income Tax Act. The distributions received by or accrued to Short-form announcement
South African tax residents must be included in the gross income of such shareholders The Company’s auditors, PricewaterhouseCoopers Inc. have issued an unqualified
and are not exempt from income tax (in terms of the exclusion to the general dividend audit opinion on the Group audited annual financial statements for the year ended
exemption, contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) 31 December 2023. The contents of this short-form announcement are the responsibility
because they are dividends distributed by a REIT, with the effect that the distribution is of the board of directors of the Company. Shareholders are advised that this short-form
taxable in the hands of the shareholder. announcement represents a brief summary of the information contained in the Group
annual financial statements for the year ended 31 December 2023, which is available
These distributions are, however, exempt from dividend withholding tax in the hands on https://senspdf.jse.co.za/documents/2024/jse/isse/SACE/ye2023.pdf, and on SA
of South African tax resident shareholders, provided that the South African resident Corporate’s website https://www.sacorporatefund.co.za. Any investment decisions by
shareholders have provided the following forms to their Central Securities Depository investors and/or shareholders should be based on a consideration of the full announcement
Participants (CSDP) or broker, as the case may be, in respect of uncertificated shares, or as a whole and shareholders are encouraged to review the full announcement as directed
the transfer secretaries, in respect of certificated shares: above. Furthermore, investors are advised that the audited summary consolidated
financial statements, which have been audited by PwC who issued an [unqualified]
(a) a declaration that the distribution is exempt from dividends tax; and opinion thereon, are available at https://www.sacorporatefund.co.za. Investors and/or
(b) a written undertaking to inform the CSDP, broker or the transfer secretaries, as shareholders may request copies of the full announcement by contacting the registered
the case may be, should the circumstances affecting the exemption change or the office, details of which are set out below.
beneficial owner ceases to be the beneficial owner, both in the form prescribed by the For a more comprehensive analysis of SA Corporate’s results and outlook, please refer
Commissioner for the South African Revenue Service. to https://www.sacorporatefund.co.za/
Johannesburg
The Company’s shareholders are advised to contact the CSDP, broker or transfer secretaries,
as the case may be, to arrange for the above-mentioned documents to be submitted prior 27 March 2024
to payment of the distribution, if such documents have not already been submitted. Sponsor: Nedbank Corporate and Investment Banking, a division of Nedbank Limited
DIRECTORATE AND STATUTORY INFORMATION
Registered office Registered auditors Transfer secretaries Sponsor Directors N Ford-Hoon(Fok)
GreenPark Corner PricewaterhouseCoopers Inc. Computershare Investor Nedbank Corporate MA Moloto (Chairman) EM Hendricks
16th Floor 5 Silo Square Services (Pty) Ltd and Investment OR Mosetlhi (Lead GJ Heron
Corner Lower Road V&A Waterfront Rosebank Towers Banking, a division of Independent Director) SS Mafoyane
and West Road South Cape Town 15 Biermann Avenue Nedbank Limited TR Mackey NNN Radebe
Morningside 8002 Rosebank 135 Rivonia Road (Chief Executive Officer)* (Chief Operating Officer)*
2196 2196 Sandton SY Moodley (appointed 1 February 2023)
Tel 010 020 2530 2196 (Chief Financial Officer)* GZN Khumalo
(appointed 1 February 2023)
* Executive
