| Mon 23 Nov 2009, 12:17 | | VKE - Vukile Property Fund - Vukile Sustains Growth in Tough Market |
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VKE
VKE
VKE - Vukile Property Fund - Vukile Sustains Growth in Tough Market
VUKILE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE code: VKE & NSX code: VKN
ISIN: ZAE000056370
("Vukile")
VUKILE SUSTAINS GROWTH IN TOUGH MARKET
Johannesburg, 23 November 2009 - Property loan stock company Vukile
grew its distribution to its linked unit holders for the six months
ended 30 September 2009 by 6.6% despite higher vacancies, increasing
bad debt and pressure on rentals.
Net rental income, exclusive of straight-line rental accruals,
increased by 9.8% to R357.4 million compared to the same period in
2008. If some repair and refurbishment projects had not been deferred,
however, the increase would have been 6.4%, which the company said was
in line with expectations, considering the difficult trading climate.
The distribution for the six months was increased by 6.6% to R138.9
million, or 47.0 cents per linked unit.
During the period, the company concluded new leases and renewals with a
total area of more than 76 000 m2 and a contract value of R185 million.
Vacancies as a percentage of gross rentals rose from 3.2% to 4.5%.
Vukile says one of the highlights of the year so far has been the
conclusion of conditional agreements to acquire 13 properties from
Sanlam at a cost of R780 million, which will be funded almost equally
by debt and the issue of new linked units. Its existing property
portfolio is valued at R4.55 billion.
Another highlight for the company is the finalisation of the
transaction in terms of which it will acquire the property asset
management business of Sanlam Properties relating to the property asset
management of Sanlam`s property portfolio. This transaction will be
put to shareholders to vote upon early in December 2009. The company
has already, from 1 October 2009, assumed control of the property asset
management of its own property portfolio which was previously handled
by Sanlam Properties.
Chief executive Gerhard van Zyl said while there were some indications
that the economy had turned the corner and was starting to improve, it
would take some time for this improvement to impact positively on the
property sector, which traditionally lags the general economy.
"We therefore expect trading conditions to remain difficult for the
rest of this financial year, but we also believe that we will be able
to achieve reasonable growth in distributions," he said.
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
JSE sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Ltd
NSX sponsor: IJG Securities (Pty) Ltd
Date: 23/11/2009 12:17:01 Produced by the JSE SENS Department.
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