Vukile - Vukile reports strong interim results, anticipates further improvement
for full year
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE code: VKE & ISIN: ZAE000056370
VUKILE REPORTS STRONG INTERIM RESULTS, ANTICIPATES FURTHER IMPROVEMENT FOR FULL
YEAR
Johannesburg, 28 November 2005 - Property loan stock Vukile almost doubled its
net profit for the six months to September to R115 million, the company
reported today. Excluding a R33.9 million contribution from the 75%-owned MICC
- acquired since the 2004 interim results - the directly comparable increase
amounted to 8.2%.
Chief executive Gerhard van Zyl said the improvement was attributable to a
strong performance by Vukile"s underlying property portfolio and a decrease in
its overall vacancy rate, which was reduced as a percentage of gross rentals
from 4.1% on 30 September 2004 to 3.8% at the end of September this year.
An increased interim distribution of 32.5 cents per linked unit (up 8.3% on
2004: 30 cents) was approved by the board. The company noted that the net asset
value per linked unit had increased from R4.94 to R6.55 over the same period.
Van Zyl said the company"s recently announced R2 billion securitisation
programme would reduce its overall debt cost from 11.16% to 10% after all
upfront, ongoing and hedging expenses had been taken into account.
"Although the securitisation benefits on the first issue of R770 million will
only be felt for five months of the current financial year, they will
nevertheless have a positive impact on our second-half and full-year results,"
van Zyl said.
"The contribution from this programme, combined with a continued robust
performance by the property portfolio and the prospect of a further reduction in
vacancies, should enable us to increase the distribution for the full year by a
similar margin to the interim increase, barring unforeseen developments."
The Vukile board has also given the go-ahead to an R80 million expansion and
upgrading project for its Phoenix Plaza and Dobsonville properties. Van Zyl
said work on this project - which is expected to deliver an initial yield of
some 11% - will start in January 2006 and is scheduled for completion by
August 2006.
For further information call
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
Date: 28/11/2005 12:27:03 PM Produced by the JSE SENS Department
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