| Mon 26 Nov 2007, 12:16 | | VKE - Vukile Property Fund - Vukile Sustains Stron |
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VKE
VKE
VKE - Vukile Property Fund - Vukile Sustains Strong Growth Rate
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE Share code: VKE & ISIN: ZAE000056370
NSX Share code: VKN
("Vukile" or "the company")
VUKILE SUSTAINS STRONG GROWTH RATE
Johannesburg, 26 November 2007 - Property loan stock company Vukile boosted
net profit available for distribution by 25.8% to R124.4 million in the six
months to September 2007 on the back of a 9.2% increase in rental income on
the core portfolio and a reduction of finance costs by 19%. The board has
approved an interim distribution of 40.25 cents per linked unit, up 12.6% on
the distribution at the halfway mark in 2006.
At the same time, the value of the company`s property portfolio topped the R4
billion mark, reaching R4.35 billion at end-September 2007, reflecting the
continued strong growth in property values in addition to its acquisition and
development programme. Net asset value per linked unit was 892 cents on 30
September (2006: 710 cents), a discount of 25.7% to its linked unit price on
that date.
Chief executive Gerhard van Zyl noted that the company had continued to
improve its portfolio`s overall vacancy profile, which decreased from 2.9% to
2.5% in the six months from its March year-end to the end of September 2007.
Approximately one third of the leases in its portfolio will expire in the next
12 months, providing opportunities to take advantage of rising rentals,
particularly in the office and industrial sectors.
As virtually all of Vukile`s debt is hedged or fixed, recent and possible
further interest rate increases will have very little impact on its cost of
debt.
With regards to the recent cautionary announcements issued by the company, Van
Zyl said that an announcement in this regard will be made in due course.
"With favourable trading conditions in the commercial property market
generally expected to continue, and our sustained emphasis on enhancing the
quality and returns of our portfolio, we are confident that Vukile is on track
to meet its budget to deliver distribution growth for the year to March 2008
in line with the growth of the previous year," van Zyl said.
For further information call Gerhard van Zyl, CEO Vukile Property Fund Limited
on +27 11 288 1002
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.
dPA contact Helen McKane Tel : +27 11 728 4701, Fax: +27 11 728 2547,
Mobile: 082 330 2034 or e-mail: vukile@dpapr.com
www.vukileprops.co.za
Date: 26/11/2007 12:16:00 Produced by the JSE SENS Department.
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