JSE Sens
OCTODEC INVESTMENTS LIMITED - Interim results of the group for the six months ended 28 February 2021
2021/04/21 07:18:00Download PDF Stock report
Interim results of the group for the six months ended 28 February 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) Interim results of the group for the six months ended 28 February 2021 R0.75 Funds from Operations (SA REIT FFO) (Rand per share) (29 February 2020: R0.98)* R23.6 Net asset value (NAV) per share (SA REIT NAV) (Rand per share) (31 August 2020: R24.8) R184.3 million Cash generated from operating activities before dividend payment (29 February 2020: R287.0 million)* (8.5%) Like-for-like rental growth before COVID-19 rental discounts (29 February 2020: 2.2%)* 44.2% Loan to value (LTV) (SA REIT calculation) (31 August 2020: 42.5%) 8.6% All-in annual weighted average cost of borrowings (SA REIT calculation) (31 August 2020: 8.7%) * Pre-COVID-19 period Introduction Octodec Investments Limited (Octodec or 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 274 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 1 632 836m2 and is valued at R11.3 billion. Octodec has contracted City Property Administration (Pty) Ltd (City Property) to perform its asset and property management functions. Dividends In light of the ongoing uncertainty related to COVID-19 and Octodec's strategic objectives to strengthen its balance sheet and ensure prudent financial management in the challenging South African economic environment, the board considers it prudent to defer the decision on the declaration of a dividend to shareholders until the publication of Octodec's annual results for the financial year ending 31 August 2021. In considering the dividend, a number of factors will be taken into account including the group's profitability, solvency and available liquidity. Review of results 28 February 29 February % 2021 2020 change Revenue (R'000) 895 513 1 004 561 (10.9) Basic and diluted earnings per share (cents) (73.1) 13.0 (664.2) Headline and diluted headline earnings per share (cents) 115.0 92.1 24.9 Distribution per share (cents) - - - NAV per share (Rands) 23.6 28.4 (16.9) Prospects While the lockdown restrictions have eased and a large section of the economy has resumed trading, the possibility of a third wave and further lockdown restrictions as well as the long-term impact on an already weak economy remain a real risk. The cost of vacancies, rent reductions and rent relief are the variables that may have the most influence on our financial performance in the second half of FY2021. Retaining existing tenants, attracting new tenants and reducing vacancies as well as portfolio consolidation remain priorities. Octodec will continue to strengthen its balance sheet, ensuring that it provides a foundation for future sustainable performance. Due to uncertainty arising from COVID-19 and the continued impact on operating conditions, Octodec will not be providing SA REIT FFO guidance at this point. Short form announcement 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 SENS on 21 April 2021, and available on the JSE website at https://senspdf.jse.co.za/documents/2021/JSE/isse/OCT/HY2021.pdf. The full announcement is also available on the Octodec Investments Limited website at https://www.octodec.co.za/investors-pres/interim-results-presentation-2021. Sharon Wapnick Jeffrey Wapnick Chairman Managing director 21 April 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, AK Stein (financial director)2, DP Cohen3, GH Kemp4, NC Mabunda4, EMS Mojapelo4, MZ Pollack1, PJ Strydom4, LP van Breda4 1 Non-executive director 2 Executive director 3 Lead independent director 4 Independent non-executive director Group company secretary Elize Greeff CPA House, 101 Du Toit Street, Tshwane, 0002 Tel: 012 357 1564, e-mail: elizeg@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 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: Louise Fortuin The Firs, 302 3rd Floor, Cnr Cradock and Biermann Avenue, Rosebank 2196 Tel: 011 447 3030, e-mail: octodec@instinctif.com 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 3059, e-mail: sponsor@javacapital.co.za Date of publication 21 April 2021 http://www.octodec.co.za Date: 21-04-2021 07:18:00 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.