Octodec Investments Limited (JSE:OCT) News - Provisional annual results for the year ended 31 August 2021

OCTODEC INVESTMENTS LIMITED
Incorporated in the Republic of South Africa 
Registration number: 1956/002868/06
JSE share code: OCT 
ISIN: ZAE000192258 (Approved as a REIT by the JSE)
("Octodec" or the "company")

PROVISIONAL ANNUAL RESULTS FOR THE YEAR ENDED 31 AUGUST 2021

                                                                             
                                                                             31 August 2021    31 August 2020
Rent received on contractual basis (R'000)                                       R1 838 666        R1 886 052
Distributable income before tax (R'000)                                            R401 146          R420 431
Net asset value per share (SA REIT calculation)                                      R23.20            R24.80
Loan to value (LTV) (SA REIT calculation)                                             43.2%             42.5%
All-in annual weighted average cost of borrowings (SA REIT calculation)                8.5%              8.7%

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. The condensed consolidated provisional 
financial statements were reviewed by Deloitte & Touche and their unmodified report is available for inspection at the company's 
registered address.

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 2 November 2021, 
which may be downloaded from

https://senspdf.jse.co.za/documents/2021/JSE/isse/OCT/FY2021.pdf 

The full announcement is also available on the Octodec Investments Limited website at

https://www.octodec.co.za/investors-financial/reviewed-provisional-annual-results-for-the-year-ended-31-august-2021

Octodec Investments Limited (Octodec, the company), its subsidiaries and associated company (the group) is a real estate investment trust (REIT) 
listed on the JSE Ltd (JSE). Octodec has a diversified portfolio of 267 residential, retail, office, industrial and specialised properties 
situated in the major metropolitan areas of Tshwane and Johannesburg. The portfolio, including a joint venture, has a lettable area of 1 621 564m2 
and is valued at R11.2 billion.

Dividends

Given the uncertainty and risks of the continuing impact of COVID-19 and the underperforming local economy, the board of Octodec has 
resolved to declare a dividend of 50 cents per share for the year ended 31 August 2021 (31 August 2020: 100 cents). The decision to reduce 
the dividend is in line with Octodec's decision to pay out the minimum distribution requirement of 75% of taxable income in order to retain 
its REIT status, having regard to the available assessed losses in the group. The reduced dividend is aligned with the group's strategic 
objectives to reduce debt, to strengthen the balance sheet and conserve cash whilst retaining the REIT status. Shareholders are referred 
to the separate SENS announcement in this regard.

                                                               %       Reviewed        Audited
                                                          change      31 August      31 August
                                                                           2021           2020
Revenue (R'000)                                             (2.5)     1 834 313      1 880 496
Basic and diluted loss per share (cents)                   (80.4)         (65.7)        (335.0)
Headline and diluted headline earnings per share (cents)   196.2          177.7           60.0
Distributable income per share (cents)                     (14.1)         134.6          156.8
Dividend per share (cents)                                 (50.0)          50.0          100.0
Net asset value per share (cents)                           (6.5)          23.2           24.8

Prospects

Octodec expects the constrained environment to continue as a result of the longer-term impact of COVID-19 on the South African economy, 
further exacerbated by the negative GDP growth outlook and an uncertain political environment.

While we remain cautious on the outlook, the Board believes that Octodec is well-positioned to navigate the market challenges into the 
recovery phase. We have already seen green shoots across the various sectors, and remain optimistic that the group's diversified portfolio, 
large, granular tenant base, sound operating fundamentals and prudent capital management practices, backed by an experienced management team
with a proven track record of delivering returns through various cycles, will stand the business in good stead.

Due to the current weak local environment and the uncertainty arising from the continuing impact of COVID-19 on our business, the Board will, 
at this stage, not be providing guidance on distributable income and dividends for FY2022.

Sharon Wapnick         	Jeffrey Wapnick
Chairman             	Managing director

29 October 2021

Registered address
CPA House, 101 Du Toit Street, Tshwane 0002
Tel: 012 319 8781, fax: 012 319 8812 
e-mail: info@octodec.co.za

Directors: S Wapnick (Chairman) 1, JP Wapnick (managing director) 2, A Vieira (financial director) 2*, RWR Buchholz 4*, DP Cohen 3, GH Kemp 4, 
NC Mabunda 4, EMS Mojapelo 4, MZ Pollack 1, PJ Strydom 4, LP van Breda 4

1 Non-executive director
2 Executive director
3 Lead independent director
4 Independent non-executive director
* A Vieira was appointed on 1 September 2021 following the resignation of AK Stein on 31 August 2021 and RWR Buchholz was appointed on 1 October 2021

Group company secretary
Elize Greeff
CPA House, 101 Du Toit Street, Tshwane 0002
Tel: 012 357 1564, e-mail: elizeg@octodec.co.za

Sponsor
Java Capital
Contact person: Jean Tyndale-Biscoe
6th Floor, 1 Park Lane, Wierda Valley, Sandton 2196
PO Box 522606, Saxonwold, 2132
Tel: 011 722 3061, e-mail: sponsor@javacapital.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
The Firs, 302 3rd Floor, Cnr Cradock and Biermann Road, Rosebank 2196
Tel: 011 447 3030, e-mail: investorrelations@octodec.co.za

Auditors
Deloitte & Touche
Contact person: Leon Taljaard
5 Magwa Crescent, Waterfall City, 2090
Tel: 011 806 5000, e-mail: ltaljaard@deloitte.co.za

Date of publication 

2 November 2021

http://www.octodec.co.za

Date: 02-11-2021 07:05:00
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