| Thu 25 Jun 2009, 11:46 | | VKE - Vukile Puts Strategies in Place to Combat Slowdown |
|
VKE
VKE
VKE - Vukile Puts Strategies in Place to Combat Slowdown
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 PUTS STRATEGIES IN PLACE TO COMBAT SLOWDOWN
Johannesburg, 25 June 2009 - Vukile Property Fund says it is focusing on tenant
retention, cost and credit control, energy savings and the enhancement of its
property portfolio to help offset the effects of a depressed market.
In its annual report published today, chairman Anton Botha and chief executive
Gerhard van Zyl say that although there are some indications that the worst of
the downturn had already been seen, the property cycle lags the general economic
cycle by between 12 and 18 months and the company was anticipating trading
conditions to get worse before they get better. "Bad debts are expected to
increase, vacancies will go up and there will be resistance to higher rentals.
In addition, it is expected that there will be an increase in time taken to let
space," they say.
However, they say that despite this negative outlook, property fundamentals are
still fairly strong. In this regard, it is expected that vacancy levels will not
increase substantially. This is due to the lack of supply of new property
developments given the high cost of funding and building materials, delays in
zoning processes and the unavailability of electricity to new users.
Vukile produced a creditable set of results for the year ended 31 March 2009,
increasing its distribution to unitholders by 10.9% to 97.90 cents per linked
unit and increasing its net profit available for distribution by 9.5% to R289.9
million. Headline earnings amounted to R294 million, an improvement of 9% over
last year. The company managed to contain vacancy levels at 3.2% of gross
rentals and improved the group`s recurring cost to gross revenue ratio to 32.3%
from 34.1% the previous year.
During the year, the company spent R92 million on expansions, revamps and tenant
installations including the successful completion of expansions at Oshakati
Shopping Centre, Nelspruit Truworths and Hellman International on time and
within budget.
For further information contact Gerhard van Zyl, CEO Vukile Property Fund
Limited, on 011 288 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: 25/06/2009 11:46:03 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
