21 May - 8 min read

Summarised audited consolidated financial statements, dividend declaration for the 12 months ended 28 February 2021

Summarised audited consolidated financial statements, dividend declaration for the 12 months ended 28 February 2021

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:

SUMMARISED AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND CASH 
DIVIDEND DECLARATION 
for the 12 months ended 28 February 2021 

AT A GLANCE 

REVENUE decreased to R111,8 million (down 12,1%)

FUNDS FROM OPERATIONS decreased to R39,9 million (down 10,7%)

FINAL DIVIDEND increased to 20,25 cents per share (up 28,7%)

NET ASSET VALUE PER SHARE decreased to R8,85 (down 1%)

LOAN-TO-VALUE deteriorated to 34,6% (down from 33,3%)

HEADLINE EARNINGS PER SHARE decreased to 23,6 cents (down 37,8%)

EARNINGS PER SHARE increased to 17,09 cents (up 40,5%)

NATURE OF BUSINESS

Newpark is a property holding and investment company that holds A-
grade commercial and industrial properties.

STRATEGY

Newpark’s investment strategy is to seek well-positioned prime 
properties which provide high-quality cash flows and have the 
potential for long-term capital growth.

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 mixed-use property known as 24 Central, which has 15 934 
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 and has 11 277 m2 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 2021 was R1,37 billion. 

COMMENTARY ON RESULTS AND OUTLOOK

The Company’s board of directors (“Board”) is pleased to present 
the Group’s results for the year under review. The solid underpin 
provided by a combination of assets that have sound property 
fundamentals and a high-quality tenant mix, has proven its worth 
amidst very difficult operating conditions. Growth over the past 
year has taken a backseat to management of the existing assets, 
with a particular focus on 24 Central. 

Newpark’s balance sheet continues to remain financially healthy 
with a satisfactory gearing level of 34,6% (2020: 33,3%). The 
COVID-19 market disruption has impacted investment property 
valuations resulting in a net R9 million decrease in fair value.

The group’s vacancies increased during the period to 13,5% 
(FY2020: 12,1%), negatively impacted by the effects of COVID-19 
restrictions on the retail component of 24 Central. Revenue for 
the financial year ended 28 February 2021 (“the financial year”) 
was R111,8 million (down 12,1%), and operating profit before fair 
value adjustments was R82,9 million (down 7,0%). After allowing 
for fair value adjustments and the net cost of finance, the total 
comprehensive profit for the financial year was R17,09 million (up 
40,5%), representing a profit of 17,089 cents per share (“cps”) 
(F2020: 12,16 cps). The total dividends for the financial year of 
39,88 cps (FY2020: 40,06 cps) represent a marginal year-on-year 
decrease of 0,4%.

This performance has been achieved against the backdrop of R10,7 
million in COVID-19 tenant relief granted during the year. This 
impacted directly on both the profitability of the group, funds 
from operations and ultimately, the dividend declared for the 
financial year. The majority of this relief was given in the 
mixed-use property. 

Other than the loss of certain tenants in the mixed-use segment, 
the tenant profile has remained largely the same. 

The majority of the tenants have leases that are renewable in 2025 
and 2026 such that more than 80% of the leases will mature after 
the impact of COVID-19 has likely dissipated.

Newpark will continue to focus on the management of its existing 
assets and will remain alert to any potential acquisitions that 
are in keeping with the stated strategy. Assuming that Newpark’s 
solid base is maintained, the group is well-positioned to 
capitalise on opportunities that are likely to present themselves 
in a suppressed real estate market. 

The board is mindful of the current weak economic environment and 
how this may impact our tenants, specifically  in the mixed-use 
(retail, office and storage) segment and the industrial segment. 
Notwithstanding this, and on the assumption that no further 
material relief is granted to tenants due to ongoing COVID-19 
restrictions, the group is budgeting for growth in funds from 
operations per share (“FFOPS”) for the year ending 28 February 
2022 of in excess of 15%, being at least 45,86 cents per share 
compared to the FFOPS for the year ended 28 February 2021 of 39,88 
cents per share. Newpark expects a corresponding increase in the 
dividend per share for the year ending 28 February 2022. 

The forecast is based on the assumption that no further 
deterioration in the macro-economic environment will prevail, no 
material tenant default will occur, operating cost increases will 
not exceed inflation and no changes will be made to the property 
portfolio. This forecast has not been audited or reviewed by the 
company’s auditors.

FUNDING

A refinance of Newpark’s facilities was carried out in February 
2021, aligning the funding to the underlying investment profile. 

Consistent with the board’s interest rate risk management policy, 
more than 80% of the interest rate risk has been hedged with 
interest rate swaps expiring between 2022 and 2024, with the 
balance of the interest rate risk being hedged through a zero-cost 
collar. 

CASH DIVIDEND DECLARATION

The board has approved and notice is hereby given of the final 
gross dividend of 20,25025 cents per share for the year ended 
28 February 2021.

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

                                                            2021

Last date to trade cum dividend                  Tuesday, 8 June
Shares trade ex dividend                       Wednesday, 9 June
Record date                                      Friday, 11 June
Payment date                                     Monday, 14 June

Share certificates may not be dematerialised or rematerialised 
between Wednesday, 9 June 2021 and Friday, 11 June 2021, both days 
inclusive. 

The dividend will be transferred to dematerialised shareholders’ 
CSDP accounts/broker accounts on Monday, 14 June 2021. 
Certificated shareholders’ dividend payments will be paid to 
certificated shareholders’ bank accounts on or about Monday, 
14 June 2021.

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 16,20020 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.

By order of the board 

21 May 2021

The above announcement is a summary of information in the full 
announcement and does not contain full or complete details and is 
the responsibility of the directors. Any investment decisions by 
investors and/or shareholders should be based on the full 
announcement which is available on 

https://senspdf.jse.co.za/documents/2021/jse/isse/NRLE/YEres21.pdf

and published on the company’s website on 

http://www.newpark.co.za/pdf/annual_reports/FY2021FYRA.pdf 

on 21 May 2021. The full announcement is also available at the 
company’s registered office (51 West Street, Houghton, Gauteng, 
2198) for inspection, at no charge, during office hours on any 
business day and at the offices of the designated advisor, Java 
Capital (6th Floor, 1 Park Lane, Wierda Valley, Sandton, 2196). 
Copies of the full announcement may be requested by email to 
info@newpark.co.za. 

The annual financial statements including the audit opinion of the 
external auditor, BDO South Africa Incorporated, which set out the 
key audit matters and the basis for its unmodified opinion, is 
available on the company’s website on 

http://www.newpark.co.za/pdf/annual_reports/FY2021AFS.pdf 

NEWPARK REIT LIMITED 

DIRECTORS: 

S Shaw-Taylor (Chairperson) **, SP Fifield (Chief Executive 
Officer), JAI Ferreira (Financial Director), BD van Wyk *, 
DT Hirschowitz *, KM Ellerine *, TS Sishuba **, HC Turner ** 

* Non-executive director    
** Independent non-executive director

Date: 21-05-2021 04:15:00
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.
Information on this Website is provided for general information purposes only and is not a substitute for professional advice. ASX Information (including company announcements and prices) is delayed by at least 20 minutes. JSE Information (including company announcements and prices) is delayed by at least 15 minutes. Reliance on the information you access on or from this Website is solely at your own risk. We make no representation or warranty in relation to the future performance of the companies that appear on this Website. Investment in securities involves risk and you should obtain independent professional legal, financial, investment or company advice before acting on any of the information you access on this Website. Using, browsing or otherwise accessing this Website is subject to our Terms and Conditions and our Privacy Policy.

© 2021 Listcorp. ABN 60 166 140 307

Never miss news from Newpark REIT Limited (JSE:NRL) when you join Listcorp.