| Mon 30 Jun 2008, 11:30 | | VKE - Vukile Property Fund Limited - Property fundamentals to stay strong |
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VKE
VKE
VKE - Vukile Property Fund Limited - Property fundamentals to stay strong
despite market conditions, says Vukile
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")
PROPERTY FUNDAMENTALS TO STAY STRONG DESPITE MARKET CONDITIONS, SAYS VUKILE
Johannesburg, 30 June 2008 - Despite adverse market conditions, property
fundamentals should remain fairly strong and unitholders can expect reasonable
growth in distributions for the year to March 2009 says property loan stock
company Vukile in its 2008 annual report published today.
Chairman Anton Botha says while tougher business conditions will no doubt have a
negative effect on the demand for space, these same conditions will also limit
the supply of space and should therefore continue to put upward pressure on
rentals.
Vukile posted robust results for the year to March 2008, increasing
distributions by more than 15% on the back of a strong property performance and
the contribution of additional properties acquired during the year as well as
expansions and upgrades to existing ones. During the year, the company also
experienced its lowest vacancy rate ever of 2.4%.
The report notes that the year was also marked by the successful dual-listing in
Namibia which helped to spread the risk of the company`s portfolio while
potentially increasing the liquidity of its linked units; the rise in the value
of its property portfolio to more than R4 billion and acquisitions and
developments which amounted to some R256 million. The company also achieved a
projected saving of R2.3 million a year through a tender exercise completed
during the course of the year and expects to generate additional income of R6
million a year from billboard and signage contracts.
Botha says the company had followed a cautious investment approach and did not
acquire any properties with unacceptably low yields when the market was in
upswing. Instead, a lot of emphasis was placed on growing its portfolio
organically by expanding or upgrading existing properties.
During the year, Vukile reduced its gearing ratio by 2% to 27.9% from 29.9% the
year before. It also has unutilised bank facilities of R400 million. Botha
says the company is therefore well positioned to take advantage of any
acquisition, redevelopment or expansion opportunities that meet Vukile`s risk /
reward criteria.
"These prudent and timely measures have equipped the company well to cope during
these trying times and the board is of the opinion that Vukile should be able to
deliver reasonable growth in distributions for the year to March 2009," he says.
For further information contact CEO Gerhard van Zyl on 011 288 1000
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
30 June 2008
Date: 30/06/2008 11:30:01 Produced by the JSE SENS Department.
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