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SHORT-FORM
ANNOUNCEMENT
Indluplace Properties Limited
(Incorporated in the Republic of South Africa)
(Registration number 2013/226082/06) JSE share code: ILU ISIN: ZAE000201125
(Approved as a REIT by the JSE)
(“Indluplace” or “the company”)
Unaudited results
for the six months ended 31 March 2022
INCREASE /DECREASE 31 MARCH 2022 31 MARCH 2021
%
Revenue (Rand) (4,0%) 282 583 086 294 217 811
Operating profit^ (Rand) (7,8%) 111 915 823 121 434 554
Earnings (Rand) (19,5%) 72 244 280 89 764 581
Earnings per share (cents) (18,2%) 23,00 28,11
Diluted earnings per share (cents) (18,2%) 22,80 27,86
Headline earnings per share (cents) (18,2%) 23,00 28,11
Diluted headline earnings per share (cents) (18,2%) 22,80 27,86
Net asset value per share (cents) (10,8%) 698,51 782,88
Dividend for the period ended (cents) >100,0% 13,16350 -
^ Rental income less property costs
Nature of business
Indluplace is a proudly South African property investor, owning a portfolio primarily be, to arrange for the abovementioned documents to be submitted
focused on the affordable end of the rental residential market. The company was listed on prior to payment of the dividend, if such documents have not
the Main Board of the JSE in June 2015 and currently owns a portfolio of 9 220 residential already been submitted.
units and 15 549m2 of associated retail space. The portfolio is valued at approximately
Dividends received by non–resident shareholders will not
R3,5 billion, with properties situated primarily in Gauteng.
be taxable as income and instead will be treated as ordinary
As at 31 March 2022, Indluplace successfully completed the internalisation of its property dividends which are exempt from income tax in terms of the
management function which was previously outsourced to various property management general dividend exemption in section 10(1)(k)(i) of the Income
companies. The Group now directly employs in excess of 280 people providing all the Tax Act. Any dividend received by a non–resident from a REIT is
services required to efficiently manage a large portfolio which is home to over 25 000 subject to a dividend withholding tax of 20%, unless the rate is
people. The staff complement includes those located at various buildings in the portfolio reduced in terms of any applicable agreement for the avoidance of
as well as head office staff, ensuring that tenants are provided with a superior service, that double taxation (“DTA”) between South Africa and the country of
buildings are clean and well maintained and that properties deliver results which enable residence of the shareholders. Assuming dividend withholding tax
the company to pay to investors dividends that are sustainable. will be withheld at a rate of 20%, the net dividend amount due to
non–resident shareholders is 10,53080 cents per share. A reduced
Overview dividend withholding rate in terms of the applicable DTA, may
The residential letting environment remains very competitive. We have seen substantial only be relied on if the non–resident shareholders have provided
improvement in letting activity from January 2022; a welcome sign following the difficult the following forms to their CSDP or broker, as the case may be, in
end to 2021. We ended the first six months with the best occupancy rate since July 2020 respect of uncertificated shareholders, or the company, in respect
and anticipate further improvements in the second half of the financial year. The of certificated shareholders:
disappointing performance of our student portfolio and the high cost of council charges, a) a declaration that the dividend is subject to a reduced rate as a
are however negatively impacting our overall numbers. result of the application of a DTA; and
b) a written undertaking to inform their CSDP, broker or the
Payment of dividend for the 6 months ended 31 March 2022
company, as the case may be, should the circumstances
The Board has declared a gross cash dividend of 13,16350 cents per share (dividend affecting the reduced rate change or the beneficial owner cease
number 17) for the six months ended 31 March 2022, in accordance with the following to be the beneficial owner,
timetable: both in the form prescribed by the Commissioner for the South
Last date to trade cum dividend Monday, 13 June 2022 African Revenue Service. Non–resident shareholders are advised to
contact their CSDP, broker or the company, as the case may be, to
Shares trade ex-dividend Tuesday, 14 June 2022
arrange for the abovementioned documents to be submitted prior
Record date Friday, 17 June 2022 to payment of the dividend if such documents have not already
Payment date Monday, 20 June 2022 been submitted, if applicable.
Shares may not be dematerialised or rematerialised between Tuesday, 14 June 2022 and Shares in issue at the date of declaration of this dividend:
Friday, 17 June 2022, both days inclusive. 336 523 275
Payment of the dividend will be made to shareholders on Monday, 20 June 2022. In Indluplace’s income tax reference number: 9390/649/177
respect of dematerialised shares, the dividend will be transferred to the Central Securities
Depository Participant (CSDP)/ broker accounts on Monday, 20 June 2022. Certificated Short-form announcement
shareholders’ dividend payment will be deposited on or about Monday, 20 June 2022. This short-form announcement is the responsibility of the board
of directors of the company. This short-form announcement
Tax treatment of dividend is a summary of the full announcement released on SENS and
In accordance with Indluplace’s status as a REIT, shareholders are advised that the published on Indluplace’s website (www.indluplace.co.za) at
dividend meets the requirements of a “qualifying distribution” for the purposes of section https://www.indluplace.co.za/downloads/2022/results/indluplace-interim-results-2022.pdf
25BB of the Income Tax Act, No. 58 of 1962 (“Income Tax Act”). The distribution on shares
will be deemed to be a dividend, for South African tax purposes, in terms of section 25BB on 18 May 2022 and on the JSE website at
of the Income Tax Act.
https://senspdf.jse.co.za/documents/2022/jse/isse/ilu/indlu0322.pdf
The dividend received by or accrued to South African tax residents must be included in
and does not contain full or complete details. Any investment
the gross income of such shareholders and will not be exempt from income tax (in terms
decision by investors and/or shareholders should be based on
of the exclusion to the general dividend exemption, contained in paragraph (aa) of
consideration of the full announcement.
section 10(1)(k)(i) of the Income Tax Act) because they are dividends distributed by a
REIT. This dividend is, however, exempt from dividends withholding tax in the hands The full announcement is available for inspection at the registered
of South African tax resident shareholders, provided that the South African resident offices of the company, on the company’s website,
shareholders furnished the following forms to their CSDP or broker, as the case may be, in www.indluplace.co.za and the offices of the sponsor, Java Capital
respect of uncertificated shares, or the company, in respect of certificated shares: (6th Floor, 1 Park Lane, Wierda Valley, Sandton, 2196 (entrance at
39 Wierda Road West)) at no charge during normal business hours
a) a
declaration that the dividend is exempt from dividends tax; and
from Wednesday, 18 May 2022 to Thursday, 26 May 2022. A copy
b) a written undertaking to inform the CSDP, broker or the company, as the case may of the full announcement is available on request from
be, should the circumstances affecting the exemption change or the beneficial owner info@indluplaceproperties.co.za
cease to be the beneficial owner,
By order of the Board
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, as the case may 18 May 2022
Directors S Noik (Chairman)*^, C Abrams*^, C de Wit (CEO), T Kaplan (CFO), G Harris (COO), A Rehman*^, N Tetyana*^, D. Wilder*.
* Non–executive, ^ Independent. All directors are South African.
Registered office 2nd Floor, 158 Jan Smuts, 9 Walters Street, Rosebank, Johannesburg, 2196. PO Box 685, Melrose Arch, 2076.
Transfer secretaries Computershare Investor Services Proprietary Limited Sponsor Java Capital Company secretary CIS Company Secretaries Proprietary Limited
Website www.indluplaceproperties.co.za
