SSS Condensed Unaudited Consolidated Interim Results for the six months ended 30 September 2020 and Cash Dividend Stor-Age Property REIT Limited Registration number: 2015/168454/06 Approved as a REIT by the JSE Share code: SSS ISIN: ZAE000208963 (?Stor-Age? or ?the group? or ?the company?) CONDENSED UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2020, DECLARATION OF A CASH DIVIDEND AND POSTING OF CIRCULAR Stor-Age delivered a strong performance for the six months ended September 2020, despite the disruption of the Covid-19 lockdowns, demonstrating the ongoing resilience of its operating model. HIGHLIGHTS ? Interim dividend 52.00 cents (2019: 54.89 cents) ? Rental income and net property operating income up 21.3% and 13.3% respectively ? Like-for-like rental income up 6.1% SA; 2.8% UK ? Portfolio occupancy up 26 100m? (SA 11 500m?; UK 14 600m?) ? Total occupancy of 86.0% (SA ? 86.2%; UK ? 85.0%) ? Like-for-like occupancy growth of 10 300m? (SA ? 8 800 m?; UK ? 1 500m?) ? Investment property value up 18.1% to R7.3 billion ? Loan-to-value ratio of 26.7% ? Collected 96% and 98% of rental due in SA and the UK respectively ? Raised R250 million in May 2020 in oversubscribed bookbuild and conserved R55 million of cash from Dividend Reinvestment Plan in July 2020 ? Cash position at 30 September 2020 of R414 million (including cash held in long-term debt facilities) ? Finalised development JV with Moorfield, a UK-based private equity real estate group, to co- develop new high-profile properties in London and the South East ? First-time inclusion in FTSE EPRA Nareit Emerging Index (September 2020) GROUP SNAPSHOT Stor-Age is the leading and largest self storage property fund and brand in South Africa. The portfolio comprises 71 self storage properties across both SA (50) and the UK (21). The SA portfolio is valued at R4.5 billion and the UK portfolio ? under the brand Storage King ? at R2.8 billion. In the UK a further seven properties trade under the licence of the Storage King brand and generate licence and management fee revenue for the group. In total this represents 28 properties trading under the Storage King brand. ____________________ SA ? South Africa m? ? square metres UK ? United Kingdom GLA ? gross lettable area Investment property reflected net of leasehold obligations KEY FINANCIAL RESULTS Unaudited Unaudited 6 months ended 6 months ended Change 30 September 2020 30 September 2019 % Property revenue (R?000) 390 869 330 856 18.1 Distributable earnings (R?000) 220 290 214 348 2.8 Headline earnings per share (cents) 44.66 43.50 2.7 Earnings per share (cents) 149.18 61.52 142.5 Dividend per share (cents) 52.00 54.89 (5.3) Net tangible asset value per share (cents) 1 210.12 1 143.82 5.8 DECLARATION OF A CASH DIVIDEND WITH THE OPTION TO RE-INVEST THE CASH DIVIDEND IN RETURN FOR STOR-AGE SHARES Notice is hereby given of the declaration of the gross interim dividend (number 10) of 52.00 cents per share for the six months ended 30 September 2020 (?Cash Dividend?). Shareholders of Stor-Age (?Shareholders?) will be entitled, in respect of all or part of their shareholdings, to elect to re-invest the Cash Dividend in return for Stor-Age shares (?Share Alternative?). Those Shareholders who do not elect the Share Alternative will receive the Cash Dividend. A circular providing further information in respect of the Cash Dividend and Share Alternative (?the Circular?) will be posted to Shareholders on Tuesday, 17 November 2020. The salient dates and times in relation to the Cash Dividend and Share Alternative are as follows: Salient dates and times 2020 Record date for Shareholders to be registered in the company?s Securities Register in order to be entitled to receive the Circular Friday, 6 November Circular and form of election posted to Shareholders and announced on SENS Tuesday, 17 November Last date for Stor-Age to withdraw the entitlement for Shareholders to elect to participate in the Share Alternative before the publication of the announcement of the Share Alternative issue price and finalisation information on SENS Friday, 20 November Announcement of Share Alternative issue price and information published on SENS (?Finalisation Announcement?) Tuesday, 24 November Last day to trade (?LDT?) cum-dividend or Share Alternative Tuesday, 1 December Shares to trade ex-dividend or Share Alternative Wednesday, 2 December Listing of maximum possible number of Share Alternative Shares commences on the JSE Friday, 4 December Last day to elect to receive the Share Alternative (no late forms of election will be accepted) at 12:00 (South African time) Friday, 4 December Record date Friday, 4 December Announcement of results of Cash Dividend and Share Alternative published on SENS Monday, 7 December Cheques posted to Certificated Shareholders and accounts credited by CSDP or brokers of Dematerialised Shareholders electing the Cash Dividend on Monday, 7 December Share certificates posted to Certificated Shareholders and accounts credited by CSDP or brokers of Dematerialised Shareholders electing the Share Alternative on Wednesday, 9 December Adjustment to the maximum number of Shares listed on or about Friday, 11 December Notes: ? Shareholders electing the Share Alternative are alerted to the fact that the new Shares will be listed on LDT + 3 and that these new Shares can only be traded on LDT + 3, due to the fact that settlement of the Shares will be three days after Record Date, which differs from the conventional one day after Record Date settlement process. ? Shares may not be dematerialised or rematerialised between commencement of trade on Wednesday, 2 December 2020 and the close of trade on Friday, 4 December 2020. ? All times are South African times. The above dates and times are subject to change and any change will be advised on SENS and in the press. TAX IMPLICATIONS As the company has REIT status, 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), as amended, (?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. South African tax residents 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 exception, contained in paragraph (aa) of section 10(1)(k)(i) of the Income Tax Act) because it is a dividend distributed by a REIT. The dividend is 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 the CSDP or broker in respect of uncertificated shares, or to the company, in respect of certificated shares: a) a declaration that the dividend is exempt from dividend tax; and b) a written undertaking to inform the CSDP, broker or the company, 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 to arrange for the abovementioned documents to be submitted prior to payment of the dividend, if such documents have not already been submitted. Non-resident Shareholders 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. It should be noted that up to 31 December 2013 dividends received by non-residents from a REIT were not subject to dividend withholding tax. Since 1 January 2014, any dividend 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 shareholder concerned. Assuming dividend withholding tax will be withheld at a rate of 20%, the net dividend amount due to non-resident Shareholders is 41.60 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 form to their CSDP or broker 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 DTA; and b) a written undertaking to inform their CSDP, broker or the company, 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 to arrange for the abovementioned documents to be submitted prior to payment of the dividend, if such documents have not already been submitted. The company?s tax reference number is: 9027205245 The distribution of the Circular and/or any accompanying documents and the right to elect the Share Alternative in jurisdictions other than the Republic of South Africa may be restricted by law and a failure to comply with any of these restrictions may constitute a violation of the securities laws of such jurisdictions. The Shares have not been and will not be registered for the purposes of the Share Alternative under the securities laws of the United Kingdom, European Economic Area, Canada, United States of America, Japan or Australia, and accordingly are not being offered, sold, taken-up, re-sold or delivered directly or indirectly to recipients with registered addresses in such jurisdictions. The board of directors (?the Board?) in its discretion may withdraw the Share Alternative should market conditions warrant such actions and such withdrawal will be communicated to Shareholders via SENS. This short-form announcement is the responsibility of the Board and does not include full or complete details. Any investment decision should be based as a whole on the condensed unaudited summarised consolidated interim results (?full announcement?), which may be downloaded from: https://investor- relations.stor-age.co.za/sens. The full announcement is available for inspection at the registered offices of the company at no charge, during office hours for a period of 30 calendar days following the date of this announcement. The full announcement is also available on the company?s website at: https://investor-relations.stor- age.co.za/sens or or https://senspdf.jse.co.za/documents/2020/jse/isse/SSSE/Interims.pdf. By order of the Board 17 November 2020 Directors GA Blackshaw (Chairman)?, GM Lucas (CEO)*, JAL Chapman#, KM de Kock#, SJ Horton*, SC Lucas*+, P Mbikwana#, MS Moloko#, MPR Morojele#^ ? Non-executive # Independent non-executive * Executive + British citizen ^ MPR Morojele was appointed as an independent non-executive director and a member of the audit and risk committee on 1 September 2020 Company secretary HH-O Steyn Registered office and business address 216 Main Road, Claremont, 7708 Transfer secretaries Computershare Investor Services Proprietary Limited 2nd Floor, Rosebank Towers 15 Biermann Avenue, Rosebank 2196 Sponsor Investec Bank Limited 100 Grayston Drive Sandown, Sandton 2196 Date: 17-11-2020 07:05:00 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.
17 Nov 2020