Finalisation announcement in respect of an election to receive either a cash dividend or a scrip dividend

STENPROP LIMITED
(Registered in Guernsey)
(Registration number 64865)
LSE share code: STP  JSE share code: STP
ISIN: GG00BFWMR296
("Stenprop" or the "Company")



FINALISATION ANNOUNCEMENT IN RESPECT OF AN ELECTION TO RECEIVE EITHER A CASH DIVIDEND OR A SCRIP DIVIDEND


8 January 2019

Stenprop shareholders are referred to the circular ("circular") and the announcement issued on Thursday, 20 December 2018 
in respect of an election to receive the interim dividend of 3.375 pence per share (the "dividend") for the six months ended 
30 September 2018, either as a cash dividend (the "cash dividend") or as a scrip dividend (the "scrip dividend"). Shareholders 
are now advised that the dividend will be paid as follows:

    -   0.60 pence (17.78%) will comprise a property income distribution ("PID"). The PID will be subject to a deduction
        of a 20% United Kingdom ("UK") withholding tax unless exemptions apply.
    -   2.775 pence (82.22%) will comprise a non-PID. The non-PID will be treated as an ordinary UK company dividend,
        with no UK withholding tax deducted.

(i) Shareholders receiving the dividend in cash:

South African ("SA") shareholders are advised that the exchange rate for the dividend will be 17.68 ZAR to 1.00 GBP (the
"exchange rate"), as obtained by the Company on Monday, 7 January 2019, resulting in a gross local dividend amount of 
59.67 ZAR cents per share. Accordingly, shareholders who do not elect to receive new ordinary shares pursuant to the scrip 
dividend will be paid a cash dividend per share as follows:

                                                                                       UK Shareholders              SA Shareholders
PID                                                                                        (GBP pence)                   (ZAR cents)

Gross amount of PID                                                                              0.60                       10.6080
Less 20% UK withholding tax*                                                                     0.12                        2.1216
Net PID dividend payable**                                                                       0.48                        8.4864
Less effective 5% SA dividends tax for SA Shareholders***                                         n/a                        0.5304
Net PID dividend payable***                                                                       n/a                        7.9560

* Certain categories of UK shareholders may apply for exemption, in which case the PID element will be paid gross of UK withholding tax.
** Net position after deducting UK withholding tax for both UK and SA Shareholders, but before SA shareholders have claimed back 5% from
HMRC under the double tax agreement between the United Kingdom and South Africa in respect of the UK withholding tax.
*** SA dividends tax applies to SA Shareholders who do not qualify for an exemption from SA dividends tax (SA tax resident companies and 
certain exempt institutions are, amongst others, exempt from SA dividends tax) at the rate of 20%, reduced by the UK withholding taxes suffered, 
which cannot be recovered from the UK (which is effectively 15%, after taking into account the 5% refund which may be obtained from the UK).

                                                                                       UK Shareholders              SA Shareholders
Non-PID*                                                                                   (GBP pence)                   (ZAR cents)
Non-PID element                                                                                 2.775                       49.0620
Less 20% SA dividends tax for SA Shareholders**                                                   n/a                        9.8124
Net Non-PID dividend payable                                                                    2.775                       39.2496
* Non-PID – taxed as a normal dividend for UK purposes, i.e. no UK withholding tax applicable.
** Certain categories of SA shareholders are exempt from SA dividends tax, e.g. SA resident companies.

(ii) Shareholders who elect to take shares:
The scrip dividend reference price for UK shareholders is 100.0282 pence ("scrip dividend reference price"), being the
average closing price of Stenprop shares traded on the London Stock Exchange ("LSE") over a period of five days as at
Friday, 4 January, less the dividend. The scrip dividend reference price for SA shareholders is 18.0013 ZAR, being the
scrip dividend reference price for UK shareholders, converted to Rand at the exchange rate.

The number of new ordinary shares to be allocated to shareholders electing to participate in the scrip dividend will be
calculated by dividing the net value of the dividend otherwise receivable by a shareholder by the scrip dividend reference
price and rounding down to the nearest whole number. As no fraction of a new share will be issued, any entitlement
which results in a fractional share will be rounded down to the nearest whole number, with a cash payment to be made
to the relevant shareholder in respect of the fraction ("cash payment").

By way of illustration, a shareholder who holds 1,000 shares, and who elects to receive new ordinary shares pursuant
to the scrip dividend, will receive a number of new ordinary shares calculated as follows:

                                                                                        UK Shareholders             SA Shareholders
In respect of the PID                                                                           (GBP £)                       (ZAR)

PID dividend net of UK withholding tax entitled to receive*
(As per (i) above x 1,000):                                                                       £4.80                 84.8640 ZAR
Scrip dividend reference price                                                                  £1.0003                 18.0013 ZAR
Calculated number of new shares to which shareholder is
entitled                                                                                         4.7986                      4.7143
Actual number of new shares received                                                                  4                           4
Gross Cash Balance (multiply fractional entitlement by scrip
dividend reference price)                                                                       £0.7988                 12.8583 ZAR
Less effective 5% SA dividends tax on the cash payment
payable (SA Shareholders)**                                                                         n/a                  0.6429 ZAR
Net cash payment***                                                                             £0.7988                 12.2154 ZAR
* A scrip dividend is not subject to SA dividends tax, therefore no SA dividends tax is deducted for SA Shareholders in this instance, only 
UK withholding tax. SA shareholders may claim back 5% from HMRC under the double tax agreement between the United Kingdom and South Africa
in respect of the UK withholding tax.
** SA dividends tax applies to SA Shareholders who do not qualify for an exemption from SA dividends tax (SA tax resident companies and certain
exempt institutions are, amongst others, exempt from SA dividends tax) at the rate of 20% reduced by the UK withholding taxes suffered which
cannot be recovered from the UK (which is effectively 15%, after taking into account the 5% refund which may be obtained from the UK).
*** The net cash payment due to SA shareholders has been determined after taking SA dividends tax and UK withholding tax into account in the
same manner as a cash PID dividend.

                                                                                         UK Shareholders               SA Shareholders
In respect of the non-PID element                                                                 (GBP £)                        (ZAR)

Gross amount of non-PID dividend entitled to receive
Gross Non-PID per (i) above x 1,000):                                                             £27.75                  490.6200 ZAR
Scrip dividend reference price                                                                   £1.0003                   18.0013 ZAR
Calculated number of new shares to which shareholder is
entitled                                                                                         27.7417                       27.2547
Actual number of new shares received                                                                  27                            27
Gross cash payment (multiply fractional entitlement by scrip
dividend reference price)                                                                        £0.7419                    4.5849 ZAR
Less 20% SA dividends tax on the cash payment payable (SA
shareholders)*                                                                                       n/a                    0.9170 ZAR
Net cash payment                                                                                 £0.7419                    3.6679 ZAR

* For SA shareholders who do not qualify for an exemption from SA dividends tax (SA tax resident companies and certain exempt institutions are,
amongst others, exempt from SA dividends tax), the cash payment will be subject to 20% SA dividends tax. The net cash payment due to SA
shareholders has been determined after taking SA dividends tax into account in the same manner as a cash non-PID dividend.

TIMETABLE

The salient dates and times announced on 20 December 2018 remain unchanged.

TAX IMPLICATIONS

The receipt of the cash dividend or electing to receive the scrip dividend may have tax implications for shareholders. Shareholders are referred to 
the general summary of certain limited aspects of the taxation treatment of distributions paid by the Company for SA resident shareholders and UK 
resident shareholders included in paragraph 6 of the circular. Shareholders are advised to obtain appropriate advice from their professional advisors 
regarding the tax consequences of the cash dividend and the scrip dividend.


For further information:

Stenprop Limited                                                                        44(0)20 3918 6600
Paul Arenson
Patsy Watson 
Julian Carey


Numis Securities Limited (Financial Adviser)                                            44(0)20 7260 1000
Hugh Jonathan
Vicki Paine


Tavistock (PR Adviser)                                                                  44(0)20 7920 3150
James Whitmore
James Verstringhe
Kirsty Allan


Java Capital Trustees and Sponsors Proprietary Limited                                  27(0)11 722 3050
(JSE Sponsor)


About Stenprop:

Stenprop is a Guernsey-registered UK REIT. The objective of the Company is to deliver sustainable growing income to its
investors. Stenprop's investment policy is to invest in a diversified portfolio of UK multi-let industrial (MLI) properties
with the strategic goal of becoming the leading MLI business in the UK. For further information, go to
www.stenprop.com.

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