| Mon 27 Nov 2006, 12:16 | | Vukile Sustains Strong Performance |
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VKE
VKE
Vukile Sustains Strong Performance, Increases Distribution
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
Share code: VKE & ISIN: ZAE000056370
VUKILE SUSTAINS STRONG PERFORMANCE, INCREASES DISTRIBUTION
Johannesburg, 27 November 2006 - Property loan stock Vukile today posted
another substantial increase in distributable income on the back of a
strong portfolio performance and savings in net finance costs.
Net profit available for distribution for the six months to September
amounted to R98.9 million against R87.2 million for the comparable period
in 2005, an increase of 13.4%. Subsidiary MICC contributed R26.7 million
to net profit before tax, debenture interest and fair value adjustment and
after adjusting for minority interests (2005: R25.8 million).
Net asset value per linked unit increased by 12.7% from R6.30 a year ago to
R7.10 and the board has approved an interim distribution of 35.75 cents per
linked unit, up 10% on the distribution for the comparable period last
year.
Vukile"s net rental income increased by R11 million or 9.4% and, while
MICC"s net rental income decreased by R10.8 million or 17%, this reduction
has been more than offset by the additional 24% of MICC"s income now
attributable to Vukile, and by lower finance costs.
The vacancy level in the combined portfolio, measured as a percentage of
gross rentals, was 4.1% at 30 September compared to 4.6% at 30 September
2005.
The directors have valued the Vukile property portfolio at R2.57 billion,
up 2.7% on their valuation at 31 March 2006. The MICC portfolio has been
valued at R919 million, a decrease of 20.0% compared to the value as at 31
March 2006 (reflecting the sales that have taken place). If sales and
acquisitions are excluded, the value of the Vukile portfolio increased by
3.3% and the value of the MICC portfolio increased by 1.4%.
Chief executive Gerhard van Zyl noted that the company"s two major
expansion and upgrade projects, Phoenix Plaza and Dobsonville Centre, were
on track for completion this month. The additional space at both complexes
has already been fully let and there is, despite a number of new
developments in the greater Soweto area, a waiting list from tenants for
Dobsonville Centre. The new joint-venture retail complex at King"s Road,
Pinetown, is also scheduled for completion this month.
Van Zyl said trading conditions remained buoyant and, as Vukile"s long term
debt is fully hedged, increases in interest rates will have very little
impact on its cost of debt and will therefore not have an adverse effect on
its portfolio. In addition, MICC"s debt has been re-structured and this
should reduce its debt costs by some R4 million per annum.
"There is still upward pressure on rentals, especially for commercial and
industrial properties, and although we do not expect to reduce vacancies
substantially from their low current levels, we also do not see them
rising," he said.
"Against this background, we anticipate that the distribution for the full
financial year to March 2007 should reflect the continued good trading
climate and show growth broadly in line with the growth at the interim
stage."
The company has also announced that a circular, giving notice of a general
meeting to be held early in 2007 to approve a proposed specific issue of
linked units for cash in the amount of approximately R200 million, as well
as certain amendments to the Debenture Trust Deed, will be posted to Vukile
linked unit- and debenture holders within the next two weeks.
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: 27/11/2006 12:16:03 PM Produced by the JSE SENS Department
