| Mon 21 Nov 2011, 8:35 | | VKN - Vukile Property Fund Limited - Vukile grows interim distribution by 7.5% |
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VKE
VKE
VKN - Vukile Property Fund Limited - Vukile grows interim distribution by 7.5%
and plans to grow fund more aggressively
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 GROWS INTERIM DISTRIBUTION BY 7.5% AND PLANS TO GROW FUND MORE
AGGRESSIVELY
Johannesburg, 21 November - Property loan stock company Vukile today reported a
7.5% increase in its interim distribution to 54.31 cents per linked unit and
said it plans to grow the fund more aggressively.
Net rental income, excluding straight-line rental accruals, increased by 8% over
the comparable period while net profit, before debenture interest, increased by
25% from R209 million to R260.9 million. In addition, the overall cost of
funding for the company was reduced from 9.77% at 31 March 2011 to 9.38%,
following a refinancing of an expiring debt facility of R450 million.
Vukile`s retail component performed well during the review period with strong
demand from expanding retailers. Interest for space in the industrial market,
particularly for small to medium sized units is increasing but demand for larger
units remains subdued. The vacancy profile (% of gross rentals) increased from
5.1% at 31 March 2011 to 6.9% at 30 September but this was largely due to a
major upgrade taking place at Randburg Square. Excluding the impact of this
renovation, the vacancy profile increased to 5.9%.
Chief executive Laurence Rapp said trading conditions are expected to remain
soft in the office and industrial sectors, but given a stable retail
environment, he was positive about Vukile`s prospects and expected further
growth in the full year distributions.
He said Vukile`s strong performance, sustained over the seven years since its
listing, had laid the foundation for Vukile`s next growth phase, which is to
expand the portfolio significantly. "Having reviewed our longer-term strategy,
we intend to grow the fund more aggressively than has previously been the case.
We remain committed to being a diversified fund but with a stronger emphasis on
the retail sector."
"To this end, we are exploring acquisitions of retail centres as well as joint
venture development opportunities in the retail environment that would
complement our existing portfolio make-up. We also continue to believe in the
strength and growth of retail in the emerging market and, based on the
performance of our current retail assets, we will focus our expansion on this
market segment. This, however, won`t preclude us from acquiring assets serving
higher income groups should the right opportunities present themselves."
He said the acquisition of a portfolio of 20 properties from Sanlam, which was
announced last week, was the first step in Vukile`s growth strategy and would
add some R1.5 billion, or 25%, to the value of its portfolio. "We will acquire
some retail assets in the portfolio, notably Durban Workshop, but the office
assets being acquired will enhance the overall quality of our office portfolio
as well." Vukile has been managing this portfolio on behalf of Sanlam for some
time and, therefore, has an in-depth understanding of the properties being
acquired, making this a low risk and seamless acquisition.
For further information contact Laurence Rapp, CEO Vukile Property Fund Limited,
on 083 266 3011
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
Sponsor:
One Capital
Date: 21/11/2011 08:35:00 Produced by the JSE SENS Department.
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