| Mon 23 May 2011, 12:16 | | VKE - Vukile Property Fund - Increases Annual Distribution By 9% |
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VKE
VKE
VKE - Vukile Property Fund - Increases Annual Distribution By 9%
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
ISIN: ZAE000056370
JSE Share code: VKE
NSX Share code: VKN
("Vukile", "group" or "the company")
VUKILE INCREASES ANNUAL DISTRIBUTION BY 9%
Johannesburg, 23 May 2011 - Property Loan Stock company Vukile today reported
a 26.2% increase in net profit available for distribution for the full year to
31 March 2011 to R408.1 million and announced a second half distribution of
67.1 cents per linked unit, making the total for the year 117.65 cents per
linked unit, an increase of 9% over the previous year.
Chief executive Gerhard van Zyl attributed the company`s strong performance to
the quality of its underlying properties, the growth of its portfolio and the
additional revenue from the asset management business acquired last year as
well as a firm control on costs and vacancy levels. If acquisitions and
disposals are excluded, on a like-for-like basis, group net property revenue
increased by 9.5% from the 2010 financial year.
Vacancy levels as a percentage of gross rentals were well contained at 5.1%,
which is up from 4.1% at the previous year-end, but down from 5.3% at 30
September 2010. The recurring costs to property revenue ratio, excluding
electricity rates and taxes, decreased from 16.5% to 15.3% year on year.
The asset management business performed well during the year, earning asset
management fees of R33.6 million which was R3.1 million higher than the income
forecast in the circular to shareholders dated 26 November 2009. Likewise,
sales commission of R29.3 million was R5.3 million higher than forecast in the
circular. This was due to higher than expected disposals in the Sanlam
portfolio.
The cost of acquisitions, developments and tenant installations for the year
amounted to R622.9 million which includes the acquisition of nine properties
from Sanlam Life for R541 million. New leases and renewals of 204
795mSquared, with a contract value of R945.5 million, were concluded during
the year.
Van Zyl said that there were some indications that the South African economy
had turned the corner and that market conditions should improve, albeit
slowly. "This is evidenced by the fact that manufacturing activity has
increased and inventory levels in the economy are rising," he said.
"The property sector lags the broader economy by between 12 and 18 months.
This means that trading conditions in the property sector will remain
difficult but we should see a stabilisation of vacancy levels, arrear rentals
and bad debts. It is anticipated that conditions will slowly start to improve
over the next 6 to 12 months, but it will in all probability be a gradual
process."
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: One Capital
NSX Sponsor: IJG Securities (Pty) Limited
Date: 23/05/2011 12:16:01 Produced by the JSE SENS Department.
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