SENS announcement for JSE listed company: TPF
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TRANSCEND RESIDENTIAL PROPERTY FUND LIMITED – TPF : Provisional Summarised Audited Financial Statements for the year ended 31 December 2019


                            

TPF : Provisional Summarised Audited Financial Statements for the year ended 31 December 2019: https://senspdf.jse.co.za/documents/2020/jse/isse/tpfe/Prov2019.pdf
Provisional Summarised Audited Financial Statements for the year ended 31 December 2019

TRANSCEND RESIDENTIAL PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
Registration number 2016/277183/06
JSE share code: TPF ISIN: ZAE000227765
(Approved as a REIT by the JSE)
(‘Transcend’ or ‘the Company’)

PROVISIONAL SUMMARISED AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED
31 DECEMBER 2019

Highlights
Distribution per share (cents) 65.14 (0.7% growth on prior year distribution)
Total units 4 730
Investment property value R2.77 billion
Net asset value per share (Rands) R9.55
Increase in Net Operating Income 114%
Portfolio occupancy* 96%
Portfolio arrears 1%
Migration to Main Board of the JSE 12 February 2020
*excludes disposal properties (Acacia Place, Midrand Village and De Velde investment properties)

Key Financials
* Revenue up 108% to R335.89 million
* Operating profit up 144% to R205.33 million
* Headline earnings per share down 1% to 51.01cps
* Earnings per share down 77% to 62.68cps
* Earnings per share (continuing operations) down 80% to 52.18cps
* Dividend/distribution up 0.7% to 65.14cps
* Net asset value down 0.2% to R9.55 per share

Dividend
The Board has approved, and notice is hereby given of a final dividend of 34.89 cents per share for the
six months ended 31 December 2019 (2018: 34.58 cents per share). This brings the full year
distribution to 65.14 cents per share (2018: 64.68 cents per share) for the year ended
31 December 2019.

In accordance with Transcend’s status as a REIT, 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 (‘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.

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 exemption, contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act)
because it is a dividend distributed by a REIT. This dividend is, however, 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 their Central Securities Depository
Participant (‘CSDP’) or broker, as the case may be, in respect of uncertificated shares, or the
Company, in respect of certificated shares:

a) a declaration that the dividend is exempt from dividends tax; and

b) a written undertaking to inform the CSDP, broker or the Company, as the case may be, 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, as the case may be, to arrange for the
abovementioned documents to be submitted prior to payment of the dividend, if such documents
have not already been submitted.

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, (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). Assuming dividend withholding tax will be withheld at a rate
of 20%, the net dividend amount due to non-resident shareholders is 27.91290 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 forms to their CSDP or broker, as the case may be, 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 a
DTA; and

b) a written undertaking to inform their CSDP, broker or the Company, as the case may be,
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, as the case may be, to arrange
for the abovementioned documents to be submitted prior to payment of the dividend if such
documents have not already been submitted, if applicable.

The dividend is payable to Transcend shareholders in accordance with the timetable set out below:

Last day to trade cum dividend Tuesday, 3 March 2020
Shares trade ex dividend Wednesday, 4 March 2020
Record date Friday, 6 March 2020
Payment date Monday, 9 March 2020

Share certificates may not be dematerialised or materialised between Wednesday, 4 March 2020 and
Friday, 6 March 2020, both days inclusive.

In respect of dematerialised shareholders, the dividend will be transferred to the CSDP/broker
accounts on Monday, 9 March 2020. Certificated shareholders’ dividend payments will be deposited
on or about Monday, 9 March 2020.

Shares in issue at the date of declaration of this dividend: 130 894 793.

Transcend’s income tax reference number: 9015377253

Unqualified audit opinion
The Company’s auditors, KPMG Inc., issued an unqualified audit opinion for the year ended
31 December 2019, which includes the requisite disclosure on key audit matters pursuant to the
International Standards of Auditing. The full audit report and annual financial statements are included
on the Company’s website.

This short-form announcement is the responsibility of the directors of Transcend and is a summary
of the information in the detailed provisional results announcement released on SENS on
14 February 2020, and does not contain full or complete details. The full announcement is available
on the Company’s website at www.transcendproperty.co.za and at
https://senspdf.jse.co.za/documents/2020/jse/isse/tpfe/prov2019.pdf

Copies may be requested at the Company’s registered office and the office of the sponsor at no charge
during business hours. Any investment decision in relation to the Company’s shares should be based
on the full announcement.

By order of the Board

Solly Mboweni Myles Kritzinger
Chief Executive Officer Chief Financial Officer

Johannesburg
14 February 2020

Registered office: 54 Peter Place, Block C, Cardiff House, Peter Place Office Park, Bryanston, 2191

Transfer secretaries: Link Market Services South Africa Proprietary Limited, 13th Floor,
19 Ameshoff Street, Braamfontein, 2001, PO Box 4844, Johannesburg, 2000

Sponsor: Questco Corporate Advisory Proprietary Limited

Company secretary: CorpStat Governance Services Proprietary Limited

Directors:
Robert Reinhardt Emslie* (Chairperson); Solly Mboweni (Chief Executive Officer); Myles Kritzinger
(Chief Financial Officer); Vanessa Perfect (Chief Operating Officer); Faith Nondumiso Khanyile*;
Michael Simpson Aitken*; Anne Michelle Dickens*; Michael Louis Falcone**; Robert Nicolaas
Wesselo**; Geoffrey Michael Jennett**
* Independent non-executive director
** Non-executive director

Date: 14-02-2020 12:25:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (‘JSE’).
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.


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