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Octodec Investments Reports Revenue Growth Amid Earnings Decline; Declares 60.00 Cents Dividend | Rateweb
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Octodec Investments Reports Revenue Growth Amid Earnings Decline; Declares 60.00 Cents Dividend

Octodec Investments Limited recently released its unaudited interim results for the six months ended 29 February 2024. This article delves into the key financial metrics, dividend declaration, tax implications, and the company’s outlook.

Financial Performance

Octodec’s financial performance for the period shows a 4.7% increase in revenue compared to the same period in the previous year, totaling R1,005,862,000. However, basic and diluted earnings per share (cents) experienced a significant decline of 72.5%, dropping from 135.3 to 37.2. The headline and diluted headline earnings per share also decreased by 14.5%, from 85.42 to 73.05. Despite a 6.4% decrease in distributable earnings per share, which fell from 88.10 to 82.47 cents, the company maintained its distribution per share at 60.0 cents.

Below is a table summarizing the financial results:

Financial Metric29 Feb 202428 Feb 2023% Change
Revenue (R’000)1,005,862961,099+4.7%
Basic and diluted EPS (cents)37.2135.3-72.5%
Headline EPS (cents)73.0585.42-14.5%
Distributable EPS (cents)82.4788.10-6.4%
Distribution per share (cents)60.060.0
Net Asset Value per share (Rand)24.1124.01-0.5%

Dividend Declaration

The board of Octodec declared a cash dividend of 60.00000 cents per share for the six months ended 29 February 2024. The dividend is payable out of the company’s distributable income, with the last day to trade cum dividend set for Tuesday, 4 June 2024.

Tax Implications

For South African resident shareholders, dividends received are taxable as income unless exempted under section 10(1)(k)(i)(aa) of the Income Tax Act. Non-resident shareholders are subject to dividends withholding tax at a rate of 20%, unless reduced under a Double Taxation Agreement (DTA).

Outlook and Strategy

Octodec acknowledges the challenging macroenvironment but remains cautiously optimistic. They anticipate improvements in retail shopping centers and industrial assets, driven by improved occupancy in residential buildings. Additionally, they are excited about value-accretive developments like HealthConnect and Yethu City on Sisulu.

Conclusion

Octodec’s interim results reflect both challenges and opportunities in the real estate sector. Despite economic headwinds, the company maintains its dividend payout and strategic focus on value-added measures and developments. Shareholders, particularly residents and non-residents, should consider the tax implications highlighted in the dividend declaration.