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NEWPARK REIT LIMITED - Short-form announcement: Condensed unaudited results for the 6 months ended 31 August 2019 and change to the board

09 October 2019 - 12:30 PM
NRL
Short-form announcement: Condensed unaudited results for the 6 months ended 31 August 2019 and change to the board

NEWPARK REIT LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2015/436550/06)
JSE share code: NRL ISIN: ZAE000212783
(Approved as a REIT by JSE)
("Newpark" or "the Company" or "the Group")


SHORT-FORM ANNOUNCEMENT: CONDENSED UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 
31 AUGUST 2019 AND CHANGE TO THE BOARD OF DIRECTORS


NATURE OF BUSINESS

Newpark is a property holding and investment Company that is currently invested in A-grade commercial
and industrial properties.

PROPERTY PORTFOLIO

Newpark's property portfolio consists of four properties. Two are located in the heart of Sandton, Gauteng,
namely the JSE Building which has 18,163 m2 of gross lettable area ("GLA") and an adjoining property
known as 24 Central, which has 15,118 m2 of GLA. A further property is situated in Linbro Business Park which
has 12,387 m2 of GLA and the fourth property is situated in Crown Mines which has 11,277 m 2 of GLA. The
combined valuations of these properties prepared by the registered property valuer are performed
annually at the Group's year-end. The latest valuation as at 28 February 2019 was R1.41 billion.

KEY FINANCIAL HIGHLIGHTS

                                                                Unaudited         Unaudited      Change
                                                                31 August         31 August          %
                                                                     2019              2018
Dividend per share (cents)                                          24.32             24.95      (2.5%)
Total assets (R000)                                             1 421 368         1 404 509        1.2%
Net asset value per share (cents)                                    9.25              9.19        0.7%
Gross revenue (R000)                                               61 024            66 974       (8.9%)
Net profit after taxation (R000)                                   18 476            41 098      (55.0%)
Earnings per share (cents)                                          18.48             41.10      (55.0%)
Headline earnings per share (cents)                                 18.48             41.10      (55.0%)


OUTLOOK

Newpark is on track to deliver growth of 6,0% to 8,0% in distributable income per share for FY2020 as
indicated in the audited financial results for the 12 months ended 28 February 2019. The forecast is based
on the budgeted vacancy profile at 24 Central and the assumption that no further adverse changes to
the macro-economic environment will prevail, no material tenant default will occur and operating cost
increases will remain in line with budget.

The board remains mindful of the current pressures experienced by tenants in the mixed-use building (24
Central), manifesting in higher than desired vacancies in the short-term. The focus on filling the vacancies
in the Group's mixed-use building (24 Central) has started to yield results with vacancies reducing by 5.1%
and rental income expected to increase during H2 FY2020 at market related rates.

Newpark will continue to focus on a disciplined approach to the acquisition of high-quality properties that
offer meaningful growth in both capital and income. The anticipated acquisition pipe-line referred to in
the previous results announcement did not materialise as anticipated. This forecast has not been audited
or reviewed by the Company's auditors.
CHANGE TO THE BOARD

Shareholders are advised that Mr. Marc Wainer has been appointed as a non-executive director to the
board of directors of Newpark ("board") with effect from 8 October 2019.

Until recently, Mr. Wainer was Executive Chairman of Redefine Properties Ltd. He has over 40 years'
experience in all aspects of real estate. His primary focus was on acquisitions and disposals, international
investments and investor relations, as well as playing a role in conceptual development at Redefine. Mr.
Wainer brings incredible depth of experience and industry knowledge to Newpark.

The board of directors welcomes Mr. Wainer and looks forward to his contribution to Newpark.

PAYMENT OF DIVIDEND

The board has declared a gross cash dividend of 24,32074 cents per share, for the six months ended 31 August 2019, 
out of the Company's distributable income.

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

                                                                                                 2019
Last date to trade cum dividend                                                   Tuesday, 29 October
Shares trade ex dividend                                                        Wednesday, 30 October
Record date                                                                        Friday, 1 November
Payment date                                                                       Monday, 4 November

Share certificates may not be dematerialised or rematerialised between Wednesday, 30 October 2019
and Friday, 1 November 2019, both days inclusive.

The dividend will be transferred to dematerialised shareholders' CSDP accounts/broker accounts on
Monday, 4 November 2019. Certificated shareholders' dividend payments will be paid to certificated
shareholders' bank accounts on or about Monday, 4 November 2019.

In accordance with Newpark'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 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
submitted 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. Any dividends received by a non-resident from a REIT will be
subject to dividend withholding tax at 20%, 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
shareholders. Assuming dividend withholding tax will be withheld at a rate of 20%, the net dividend amount
due to non-resident shareholders is 19.45659 cents per share. A reduced dividend withholding rate in terms
of the applicable DTA, may only be relied upon if the non-resident shareholder, has submitted 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.

Shares in issue at the date of declaration of dividend: 100,000,001.

Newpark's income tax reference number: 9114003149.

This short-form announcement is the responsibility of the directors of and the contents were approved by
the board on 8 October 2019. This short-form announcement is a summary of the full announcement
released on SENS on 9 October 2019 and does not include full or complete details. The short-form
announcement has not been audited or reviewed by the Company's external auditors.

The full announcement is available on the Company's website at: www.newpark.co.za/pdf/annual_reports/H1F2020_
NewparkREIT_final.pdf and can also be accessed using the following JSE link:
https://senspdf.jse.co.za/documents/2019/jse/isse/NRLE/2019FYRes.pdf.

The full announcement is available for inspection at the registered offices of the Company or its sponsor,
at no charge, during office hours from Tuesday, 8 October 2019 to Tuesday, 15 October 2019. Any
investment decision should be based on the full announcement available on the Company's website.


By order of the Board

9 October 2019

DIRECTORS
G D Harlow (Chairman) **, S P Fifield (Chief Executive Officer), J A I Ferreira (Financial Director), B D van
Wyk *, D T Hirschowitz*, K M Ellerine*, H C Turner **, D I Sevel ** S Shaw-Taylor**
* Non-executive director         ** Independent non-executive director

There were no changes to the board of directors during the period under review.

REGISTERED OFFICE                                     WEBSITE
51 West Street, Houghton, Gauteng, 2198               www.newpark.co.za
P O Box 3178, Houghton, Gauteng, 2041

COMPANY SECRETARY                                     TRANSFER SECRETARY
CIS Company Secretaries Proprietary Limited           Computershare Investor Services Proprietary Limited

DESIGNATED ADVISOR
Java Capital
6A Sandown Valley Crescent, Sandown
Sandton, 2196

Date: 09/10/2019 12:30:00
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