| Mon 22 Nov 2010, 12:16 | | VKE - Vukile Property Fund Limited - Vukile grows distribution to linked |
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VKE
VKE
VKE - Vukile Property Fund Limited - Vukile grows distribution to linked
unitholders by 7.5% in challenging 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", "the group" or "the company")
VUKILE GROWS DISTRIBUTION TO LINKED UNITHOLDERS BY 7.5% IN CHALLENGING MARKET
Johannesburg, 22 November 2010 - Property loan stock company Vukile grew its
distribution to its linked unitholders for the six months ended 30 September by
7.5% in a tough trading environment.
The group`s net rental income, excluding straight line rental accruals,
increased by 9.25% over the corresponding period while net profit available for
distribution increased by 13.2% from 49.27 cents per linked unit to 55.77 cents
per linked unit.
This higher than normal increase was due to a timing difference, as sales
commission from the asset management business is not earned equally over the 12
month period. If this and other timing differences are taken into account, the
increase in net profit over the comparable period reduced to 8.1%, which the
company said was in line with expectations, given the tough trading conditions
and increasing vacancies.
A highlight of the year was the acquisition of nine properties for R537.8
million, taking Vukile`s combined property portfolio to 82 properties with a
gross lettable area of 1 010 152mSquared. Vukile also has the option to acquire
certain properties valued at approximately R500 million from Sanlam Life which
has to be exercised before 31 December 2010. Another highlight was the
refinancing of R462 million securitization debt which generated a reduction of
0.5% on the cost of the debt.
During the six month period under review, new leases and renewals to the
contract value of R756 million were concluded. The vacancy profile (% of gross
rentals) increased from 4.1% at 31 March to 5.3% at 30 September 2010. Bad debt
write offs were in line with expectations for the six month period and the
provision for doubtful debt at 30 September 2010 was R7.4 million (R10.2
million) at 31 March 2010.
Looking ahead, the company said that a recovery in the property market would
take longer than originally expected and that trading conditions would remain
tough with little growth in rentals. "However, given the inherent quality of
the Vukile portfolio and its astute management by our management team and
service providers, we are of the opinion that the company will again be able to
deliver reasonable growth in distribution for the year ending 31 March 2011,"
said Gerhard van Zyl, chief executive. This information has not been reviewed
and reported on by Vukile`s auditors.
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
website: www.vukileprops.co.za
JSE Sponsor: Barnard Jacobs Mellet Corporate Finance (Pty) Limited
NSX Sponsor: IJG Securities (Pty) Limited
Date: 22/11/2010 12:16:01 Produced by the JSE SENS Department.
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