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OCTODEC INVESTMENTS LIMITED - Interim results for the six months ended 28 February 2022

Release Date: 10/05/2022 07:05
Code(s): OCT     PDF:  
Wrap Text
Interim results for the six months ended 28 February 2022

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 for the six months ended 28 February 2022

Rental income
R944.4 million
(28 February 2021: R898.7 million)
Up +5.1%

Like-for-like rental growth
(28 February 2021: (8.5%))
Up >100%

Distributable income after tax (REIT funds from operations)
R211.8 million
(28 February 2021: R199.1 million)
Up +6.4%

Distributable income per share
79.6 cents
(28 February 2021: 74.8 cents)
Up +6.4%

Dividend per share
50.0 cents
(28 February 2021: nil)
Up >100%

Net asset value (NAV) per share
(31 August 2021: R23.20)
Down -0.4%

Cash generated from operating activities before dividend payment
R193.9 million
(28 February 2021: R184.3 million)
Up +5.2%

Loan to value (LTV)
(31 August 2021: 43.2%)
Down -5.1%

All-in annual weighted average cost of funding
(31 August 2021: 8.5%)
Down -20bps

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 ( or the office of the sponsor
(, 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 the Stock Exchange News Service (SENS) on 10 May 2022, which may be downloaded from

The full announcement is also available on the Octodec Investments Limited website at

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) with a diversified portfolio of 254 residential, retail, office, industrial and specialised properties situated in the major metropolitan 
areas of Tshwane and Johannesburg. The portfolio, including an equity-accounted joint venture, has a lettable area of 1 591 673m2 and is valued at 
R11.0 billion.

Dividends and review of results
The steps taken in the prior year to retain cash have strengthened Octodec's financial position and enabled it to make a distribution to its shareholders. 
The board has therefore declared an interim dividend of 50.0 cents per share for the six months ended 28 February 2022 (28 February 2021: nil).

                                                                  %     28 February     28 February
                                                             change            2022            2021
Revenue (R'000)                                                 4.9         939 699         895 513
Basic and diluted earnings per share (cents)                   >100            89.9           (73.1)
Headline and diluted headline earnings per share (cents)        4.7           120.4           115.0
Distributable earnings per share (cents)                        6.4            79.6            74.8
Distribution per share (cents)                                 >100            50.0               -
Net asset value per share (Rand)                               (2.1)           23.1            23.6

Octodec has experienced an increase in residential leasing activity with reduced vacancies in the residential portfolio during February and March 2022. 
We believe this will positively impact the group's results in the second half of the year. Although there has been a continued downward resetting of rentals
across the sectors, it is pleasing to see that, from an Octodec perspective, several renewals are being concluded at increased rentals. We continue to
experience demand from large retailers for space in the Johannesburg and Tshwane CBDs.

Octodec's office sector, predominantly occupied by parastatals and SMMEs, is stable, but we do not expect growth from this sector in the short-term due to
the current oversupply of office space. Above-inflation increases in administered property costs and the limited ability to pass these increased costs on to
tenants, remain a concern.

At the same time, the local macro environment remains a cause for concern and, with GDP expected to grow at under 2% for the foreseeable future, we do not
anticipate significant growth in rental income, while inflation is expected to increase, impacting costs and, ultimately, our net property income. 
Concerns around global inflation and rising interest rates continue to dominate economic forecasts, and the breakout of the war between Russia and Ukraine 
has created further uncertainty.

Given the current weak economic environment and an uncertain political climate, the board will, at this stage, not be providing any guidance on 
distributable income and dividends for the second half of FY2022.

Sharon Wapnick     Jeffrey Wapnick
Chairman           Managing director

6 May 2022

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)

Registered address
CPA House, 101 Du Toit Street, Tshwane 0002
Tel: 012 319 8781, e-mail:

Directors: S Wapnick (Chairman)(1), JP Wapnick (Managing Director)(2), A Vieira (financial director)(2), RWR Buchholz(4), DP Cohen(3), NC Mabunda(4), 
EMS Mojapelo(4), MZ Pollack(1), PJ Strydom(4), LP van Breda(4)

(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:

Java Capital
Contact person: Jean Tyndale-Biscoe
6th Floor, 1 Park Lane, Wierda Valley, Sandton 2196
PO Box 522606, Saxonwold 2132
Tel: 011 722 3061, e-mail:

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:

Investor relations
Instinctif Partners
Contact person: Bryan Silke
The Firs, 302 3rd Floor, Cnr Cradock and Biermann Road, Rosebank 2196
Tel: 011 447 3030, e-mail:

Ernst & Young Inc.
Contact person: Gail Moshoeshoe
102 Rivonia Road, Sandton
Private Bag X14, Sandton, 2146
Tel: 011 502 0601, e-mail:

Date of publication
10 May 2022

Date: 10-05-2022 07:05:00
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