| Fri 15 May 2026, 15:30 | | NEWPARK REIT LIMITED - Audited consolidated annual financial statements, cash dividend and outlook for the 12 months ended 28 February 2026 |
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Audited consolidated annual financial statements, cash dividend and outlook for the 12 months ended 28 February 2026
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')
AUDITED CONSOLIDATED ANNUAL FINANCIAL STATEMENTS, CASH DIVIDEND
AND OUTLOOK FOR THE 12 MONTHS ENDED 28 FEBRUARY 2026
AT A GLANCE
REVENUE decreased to R129,4 million (DOWN 2,6%)
FUNDS FROM OPERATIONS decreased to R50,1 million (DOWN 36,1%)
TOTAL DIVIDEND decreased to 50,07 cents per share (DOWN 36,1%)
NET ASSET VALUE PER SHARE increased to R6,04 (UP 7,09%)
LOAN-TO-VALUE RATIO improved to 37,7% (DOWN from 43,1%)
HEADLINE EARNINGS PER SHARE increased to 50,28 cents (UP 18,7%)
EARNINGS PER SHARE increased to 87,38 cents per share (UP >100%)
NATURE OF BUSINESS
Newpark was registered and incorporated as a public company on 7
December 2015. Newpark is a property holding and investment
company that through its subsidiaries is invested in high-quality
properties.
INVESTMENT STRATEGY
Newpark's investment strategy is to seek well-located prime
commercial, industrial and retail properties in South Africa,
which provide a high-quality, sustainable earnings base with the
potential for capital appreciation within the medium to long-term.
PROPERTY PORTFOLIO
Newpark's property portfolio consists of three properties. Two are
located in the heart of Sandton, Gauteng, namely the JSE Building
which has 18 533,0m2 of gross lettable area ('GLA') and an
adjoining mixed-use property known as 24 Central, which has
16 623,7m2 of GLA. A further property is situated in Linbro
Business Park, which has 13 713,0m2 of GLA. The 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 2026 was R1,03 billion.
COMMENTARY ON RESULTS
Newpark's loan-to-value (LTV) ratio decreased to 37,7% (F2025:
43,1%), primarily due to the reduction of debt following the
disposal of the Crown Mines property. The positive valuation
changes on the remaining properties resulted in a value increase
of R40,0 million (4,1%) relative to the value of the assets in the
previous year. Independent valuations for all properties were
performed by Broll Valuation and Advisory Services (Pty) Ltd, who
also valued the properties in the previous financial year.
Revenue for the financial year ended 28 February 2026 ("the
financial year") was R129,4 million (F2025: R132,8 million), down
2,6% from the prior year which was largely due to the reduced
revenue following the disposal of the Crown Mines property and the
revised rental which resulted from the JSE lease renewal in the
prior year.
Operating profit before fair value adjustments was R93,6 million
(F2025: R91,2 million), up 2,6% with the lower property and
administration costs off-setting the reduction in revenue. After
allowing for fair value adjustments and the net cost of finance,
the total comprehensive profit for the financial year was R87,4
million (F2025: R36,1 million), up 141,8%, representing earnings
of 87,38 cents per share ("cps") (F2025: 36,14 cps).
Funds from operations ("FFO") for the financial year was R50,1
million, down R28,3 million compared with the R78,4 million of the
previous year, due mainly to the reversion in the JSE rental.
The board declared a final cash dividend of 24,07 cps (F2025:
48,37 cps). The total dividend for the financial year is 50,07 cps
(F2025: 78,37 cps), representing 100,0% of FFO, and a decrease of
36,1% over the 78,37 cps declared in respect of the prior year
(F2025: 100,0% of FFO).
FUNDING
The group's borrowings reduced during the period as a result of
proceeds from the sale of the Crown Mines property being utilised
to settle the outstanding balance on the revolving credit facility
("RCF") and to reduce the term facilities.
As at 28 February 2026, the outstanding balance on bank borrowings
was R407,7 million (F2025: R475 million). The decreased borrowings
combined with the increase in property valuations resulted in a
decrease in the loan-to-value ("LTV") ratio to 37,7% (F2025:
43,1%) at year-end. The LTV ratio remains well below the lender's
requirement of 50,0% in terms of the group's restructured debt
agreements.
Decreasing interest rates have had a positive impact on Newpark's
funding costs with the all-in weighted average cost of funding
reducing to 8,69% (F2025: 9,29%). Newpark currently has two
interest rate swaps and an interest rate cap in place, with a
combined nominal value of R265 million and a weighted average
maturity of 1,1 years.
OUTLOOK
Newpark will maintain its focus on managing its existing assets,
with particular attention on the office space at 24 Central, where
office vacancies currently account for 6,1% of the overall 11,8%
portfolio vacancy by GLA.
The group's FFO for the ensuing financial year is expected to be
impacted by the reduction in rental income following the disposal
of Crown Mines, which will be partially offset by the use of the
proceeds to reduce gearing levels. In addition, whilst there is
positive leasing activity at 24 Central, the timing of the
commencement of new office leases and the extent of associated
costs create a level of uncertainty in the forecasted FFO for the
2027 financial year.
Global geopolitical conditions and the resultant increase in
volatility in interest rate markets create further uncertainty on
the outlook for the group in the short term, particularly as the
board considers a shareholder-led proposal which may result in an
impact on future FFO.
Having considered the uncertainty associated with these factors,
the board believes it is not currently appropriate to provide
guidance on FFO and dividends for the 2027 financial year.
The information in this outlook has not been audited, reviewed or
reported on by Newpark's auditor.
POST-BALANCE SHEET EVENT
The board of Newpark has received a shareholder-driven proposal
which is currently under consideration and shareholders are
referred to the cautionary SENS announcement released by the
company on 17 April 2026.
CASH DIVIDEND DECLARATION
The board has approved and notice is hereby given of the final
gross dividend of 24,0655 cents per share for the year ended 28
February 2026.
The dividend is payable to Newpark's shareholders in accordance
with the timetable set out below:
2026
Last date to trade cum dividend Tuesday, 2 June
Shares trade ex dividend Wednesday, 3 June
Record date Friday, 5 June
Payment date Monday, 8 June
Share certificates may not be dematerialised or rematerialised
between Wednesday, 3 June 2026 and Friday, 5 June 2026, both days
inclusive.
The dividend will be transferred to dematerialised shareholders'
CSDP accounts/broker accounts on Monday, 8 June 2026.
Certificated shareholders' dividend payments will be paid to
certificated shareholders' bank accounts on or about Monday, 8
June 2026.
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 ceases
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 19,2524 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.
The audited consolidated annual financial statements for the 12
months ended 28 February 2026 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, are
available on the company's website on
http://www.newpark.co.za/pdf/annual_reports/FY26AFS.pdf.
By order of the board
15 May 2026
This results announcement is the responsibility of the directors
and is only a summary of information in the audited consolidated
annual financial statements for the 12 months ended 28 February
2026 ("2026 AFS") released on SENS on 15 May 2026 and does not
contain full or complete details. Any investment decisions by
investors and/or shareholders should be based on the 2026 AFS
which is available on
https://senspdf.jse.co.za/documents/2026/jse/isse/NRLE/FY26AFS.pdf
and published on the company's website on
https://www.newpark.co.za/pdf/annual_reports/FY26AFS.pdf
on 15 May 2026.
DIRECTORS:
S Shaw-Taylor (Chairperson) **, AF Benatar (Chief Executive
Officer), AJ Wilson (Financial Director), DT Hirschowitz *,
KM Ellerine *, BD van Wyk *, RC Campbell **, TS Sishuba **
* Non-executive director
** Independent non-executive director
DATE OF PUBLICATION: 15 May 2026
SPONSOR: Java Capital
Date: 15-05-2026 03:30:00
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