| Mon 24 Nov 2008, 12:16 | | VKE - Vukile Property Fund Limited - Vukile Sustains Distribution Growth In |
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VKE
VKE
VKE - Vukile Property Fund Limited - Vukile Sustains Distribution Growth In
Tightening Market
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 SUSTAINS DISTRIBUTION GROWTH IN TIGHTENING MARKET
Johannesburg, 24 November 2008 - Property loan stock company Vukile today
reported a 9.6% increase in distribution to R130.3 million or 44.10 cents per
linked unit for the six months to September.
Chief executive, Gerhard van Zyl, said that it is gratifying to note that,
during this tough period, the company managed to contain the vacancy levels in
the portfolio to 2.9% of gross rentals compared to 2.8% of gross rentals at the
end of March 2008. In addition, new leases and renewals with a value of R251
million were concluded during the review period.
The company today also noted that expansion projects to the value of R47.3
million had been completed timeously and within budget during the past six
months while major upgrade or capital protection projects totalling R44 million
were under way.
Looking ahead, Van Zyl said the current turmoil in world markets would
inevitably have a negative impact on the South African property market.
"Although there are signs that inflation has reached a turning point and that
interest rates may start coming down in the first half of next year, there will
be a slow-down in economic growth which will in time have a negative effect on
rentals," he said.
"The outlook is not all bad, however. Vacancy levels are still very low and
there is only a limited amount of new stock coming on to the market. This
should ensure that there will be a continuing demand for space, which in turn
will support rental levels."
Today`s announcement said the board was still confident that the company would
meet its 2008 annual report forecast by posting reasonable growth in
distributions for the full year to March 2009.
These unaudited interim results have not been reviewed or reported on by
Vukile`s auditors.
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, Mobile: 082 330 2034 or
e-mail: vukile@dpapr.com
www.vukileprops.co.za
Date: 24/11/2008 12:16:01 Produced by the JSE SENS Department.
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