Wrap Text
Unaudited consolidated interim results for the six months ended 30 September 2023
VUKILE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE share code: VKE
ISIN: ZAE000056370
Debt company code: VKEI
NSX share code: VKN
(Granted REIT status with the JSE)
(Vukile or the group or the company)
SHORT-FORM ANNOUNCEMENT: UNAUDITED CONSOLIDATED INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2023
EXCEPTIONAL GROUP RESULTS DERIVED FROM STRONG OPERATIONAL PERFORMANCE AND CLEAR STRATEGIC FOCUS
South African portfolio continues delivering strong operating result
- Like-for-like annualised retail NOI growth of 5.1%
- Vacancies maintained at 2.0%
- Rental reversions +2.4%, up from -2.4%
- Annualised trading densities increased by 3.5%
- Like-for-like retail valuations increased by 3.9%
Castellana metrics still setting the benchmark in the Spanish market
- Normalised NOI growth of 13%
- Negligible vacancies at 1%
- Positive reversions of +8.3% (including indexation +11.6%)
- 95% of retail space let to international/national tenants
Balance sheet strength supported by robust credit metrics
- No debt maturities in Castellana until FY26
- All FY24 debt maturities have been repaid, refinanced or renegotiated
- Interest cover ratio (ICR) of 2.9 times and LTV of 42.9%
- Strong liquidity with cash and undrawn debt facilities of R3.1 billion
- Corporate long-term credit rating of AA(ZA) reaffirmed with a stable outlook
10.0% increase in cash dividend and increase in guidance for FY24
- Interim dividend of 52.1 cents per share (R540 million in aggregate),
up 10.0% on the prior period
- FFO of 85.0 cents per share, up 5.2% on the prior period
- Guidance for full year FY24 increased to growth in FFO per share of 4% to 6%,
and growth in dividend per share of 8% to 10%
FINANCIAL PERFORMANCE
Unaudited Unaudited
interim results interim results
30 September 30 September %
2023 2022 change
Gross property revenue (Rm) 2 017 1 762 14.5
Operating profit before finance
costs (Rm) 1 216 1 113 9.3
Profit for the year attributable
to owners (Rm) 1 174 1 065 10.2
Basic earnings per share (cents) 113.43 108.65 4.4
Headline earnings per share (cents) 83.00 61.57 34.8
Net asset value (R per share) 21.16 19.10 10.8
Direct property investments (Rm) 36 026 32 677 10.2
Indirect property holdings (Rm) 2 683 1 948 37.7
Gross dividend (cents per share) 52.07420 47.32125 10.0
A separate announcement regarding the dividend, including details relating to the taxation treatment of
the dividend, will be released on SENS.
PROSPECTS FOR THE GROUP
Over the past six months, Vukile has managed to sustain strong operational results and solid trading metrics
in both the South African and Spanish portfolios, despite a very challenging macro-economic environment. This
is testament to the dominant and defensive composition of the overall portfolio and our clear and focused
strategy.
In addition to a strong operational performance, the results were further enhanced by the Rand hedge nature
of Vukile's earnings.
Delivered impressive growth in FFO and dividends over the past six months, with FFO and dividends per share
increasing in the interim period by 5.2% and 10.0% respectively.
The business is well positioned from an operational, financial and strategic perspective, which will provide
impetus for further growth once the global economic position improves.
Off the back of ongoing and sustained strong operating performances, we are pleased to report an increase
in our guidance for FY24. We expect to deliver growth in FFO per share of between 4% to 6% (previously 3% to 5%)
and growth in dividend per share of between 8% to 10% (previously 7% to 9%) for the year ending 31 March 2024.
The increased guidance will equate to a full year dividend per share of between 121.4 and 123.6 cents
(FY23: 112.4 cents), to be paid with an interim and a final dividend.
The forecast assumes no material adverse change in trading conditions, contractual escalations and
market-related renewals. The forecast also assumes no material further change in interest rates and
exchange rates.
The forecast has not been reviewed or audited by the company's external auditors.
ABOUT THIS ANNOUNCEMENT
This short-form announcement is the responsibility of the directors of the company. The announcement is only
a summary of the full announcement and does not contain full or complete details. Any investment decision by
investors and/or shareholders should be based on consideration of the full announcement.
The full announcement is available on the company's website at https://www.vukile.co.za/financial-results/ and
on the JSE's website at https://senspdf.jse.co.za/documents/2023/jse/isse/vke/HY2024.pdf.
Copies of the full announcement may be requested, and obtained at no charge, by emailing Johann Neethling at
Johann.Neethling@Vukile.co.za or the company's sponsor, Java Capital at sponsor@javacapital.co.za from
Wednesday, 29 November 2023 to Thursday, 7 December 2023.
On behalf of the board
NG Payne LG Rapp
Chairman Chief Executive Officer
Houghton Estate
29 November 2023
CORPORATE INFORMATION
Executive directors: LG Rapp (Chief Executive Officer), LR Cohen (Chief Financial Officer),
IU Mothibeli (Managing Director: South Africa)
Non-executive directors: NG Payne (Chairman)*, SF Booysen*, RD Mokate*, H Ntene*, GS Moseneke,
AMSS Mokgabudi*, BM Kodisang, JR Formby*, JH Zehner*
* Independent
Registered office: 4th Floor, 11 Ninth Street, Houghton Estate, 2198
Company secretary: J Neethling
JSE sponsor: Java Capital
NSX sponsor: IJG Group, Windhoek, Namibia
Transfer secretaries: JSE Investor Services (Pty) Ltd, 5th Floor, One Exchange Square, Gwen Lane,
Sandown, Johannesburg
Investor relations: Marijke Coetzee: Director - Marketing and Communications, 4th Floor, 11 Ninth Street,
Houghton Estate, 2198. Tel: +27 11 288 0000, investorenquiries@vukile.co.za
Media and public relations: Marijke Coetzee and Anne Lovell, Tel: +27 11 288 0000, +27 83 651 7777, anne@dmix.co.za
www.vukile.co.za
Date: 29-11-2023 07:45:00
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