Vukile Property Fund Limited - Vukile Maiden Resul
Vukile Property Fund Limited - Vukile Maiden Results Beat Prospectus Forecast
VUKILE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa) (Registration number
2002/027194/06)
JSE CODE: VKE
ISIN: ZAE000056370
For further information call
Gerhard van Zyl, CEO Vukile Property Fund Limited
on (011) 288 1002
VUKILE MAIDEN RESULTS BEAT PROSPECTUS FORECAST
Johannesburg, 13 June 2005 - Loan stock company Vukile Property Fund today
reported an attributable profit of R233 million for the year to March - its
first annual results since its listing in June 2004. The company declared a
final distribution of 31.5 cents per linked unit on 1 June 2005 for a total of
61.5 cents for the year. The prospectus forecast was 60.25 cents.
Gross property revenue for the period was R401 million, net profit after
taxation amounted to R247 million and headline earnings to R142 million. The
yield per linked unit was 12.3% on the issue price of 500 cents against a
forecast of 12.05%.
Chief executive Gerhard van Zyl said one of the highlights of Vukile`s first
year had been its acquisition of 74.347% of the issued linked units of listed
loan stock company MICC, through a paper swap. The transaction equated to the
acquisition by Vukile of a R740 million property portfolio and boosted the value
of its combined property holdings to more than R3 billion.
Van Zyl said Vukile still intended to acquire the MICC linked units it did not
already own and was considering ways of achieving this objective. In the
meantime, he and Vukile financial director Mike Potts have joined the MICC board
and Vukile had assumed responsibility for MICC`s management and administration
functions through a management contract between the two companies.
Van Zyl also noted that Vukile is investigating the possible securitisation of a
major portion of its long-term debt, a move that could achieve significant
interest savings.
`Another area of the business that is receiving management attention at present
is the enhancement of our properties in order to extract maximum value from
them. Given the high current level of property prices, we believe it is better,
in the short term, to redevelop, expand and upgrade existing properties than to
acquire new ones, particularly as our portfolio has the potential for
significant organic growth,` he said.
Looking ahead, van Zyl said the favourable trading conditions which had
characterised the property market over the past year were likely to continue for
the immediate future. Barring an unexpected downturn, Vukile was well
positioned to deliver real growth in distributions in the new financial year,
with planned conversions and expansions providing a solid foundation for an
increase in rentals.
Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.
dPA contact Kathy du Plessis Tel : +27 11 728 4701,
Fax: +27 11 728 2547, Mobile: 083 266 5847 or e-mail: vukile@dpapr.com
Date: 13/06/2005 12:16:02 PM
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