STOR-AGE PROPERTY REIT LIMITED - Condensed Unaudited Consolidated Interim Results for the six months ended 30 September 2020 and Cash Dividend

            
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,
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