Wrap Text
Unaudited condensed consolidated interim results for the six months ended 30 September 2022
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)
Unaudited condensed consolidated interim results for the six months ended 30 September 2022
HIGHLIGHTS
ROBUST OPERATING RESULTS AND DEFENSIVE FINANCIAL POSITION
SOUTH AFRICAN PORTFOLIO CONTINUES TO OUTPERFORM WITH POSITIVE TRADING METRICS AND OPERATIONAL RESULTS
- Like-for-like annualised NOI growth of 4%
- Vacancies reduced to 2.3%
- Rental reversion cycle turned positive to +1.6% from -2.4%
- Annualised trading densities increased by 7%
- Like-for-like retail valuations increase of 3%
CASTELLANA LEADS THE MARKET WITH ACTIVE ASSET MANAGEMENT AND IMPRESSIVE OPERATIONAL RESULTS
- Normalised NOI growth of 7.5%
- Vacancies maintained at 1.6%
- Positive reversions of +4.6%
- Rent collection rate at 99.03%
- Portfolio WALE of 12.1 years
- Footfall and sales growth trends outperform national benchmarks
BALANCE SHEET DEFENSIVELY POSITIONED IN A RISING INTEREST RATE CYCLE
- 87% of group interest-bearing debt hedged
- No debt maturities in Castellana until FY26
- Interest cover ratio (ICR) of 2.9 times and LTV maintained at 43%
- GCR upgraded Vukile's corporate long-term credit rating to AA(ZA)
- 88% of debt expiring in FY23 has already been repaid, refinanced or renegotiated
- Undrawn debt facilities increased to R3.6 billion
OPTIMAL CAPITAL ALLOCATION THROUGH ACTIVE ASSET ROTATION
- Sale of direct property assets of c.R280 million in South Africa
- Further sale of Fairvest shares, realising R46.6 million
- Acquisition of Pan Africa Shopping Centre for c.R421 million, expected to be concluded by Q4 FY23
- Agreement reached to acquire 50% undivided share in BT Ngebs City for R400 million
- Castellana acquired a further 4% in Lar Espa–a for c.Euro15.9 million, increasing total shareholding to 25.7%
INCREASE IN CASH DIVIDEND
- Interim dividend of 47.32 cents per share, up 16.8% on the corresponding prior period
- Total FFO of 80.8 cents per share
FINANCIAL PERFORMANCE
Gross property revenue increased from R1.7 billion for the period ended 30 September 2021 to R1.8 billion for the
period ended 30 September 2022. Operating profit before finance costs decreased marginally to R1 113 million
(30 September 2021: R1 185 million), mainly due to the settlement of cross-currency interest rate swaps and prior period
early termination of forward exchange contracts, while the profit for the period attributable to owners of the
parent amounted to R1 065 million (30 September 2021: R843 million), resulting in basic earnings per share increasing
to 108.65 cents per share (30 September 2021: 88.15 cents per share). Headline earnings reduced to 61.57 cents per share
(30 September 2021: 71.31 cents per share) as a result of the decrease in operating profit before finance costs, as well as
the impact of additional shares issued. In addition, pre-acquisition dividends received from Lar Espa–a of c.Euro6.6 million
was accounted for as a reduction of the carrying value of the investment as opposed to investment income.
The group's net asset value per share at 30 September 2022 was R19.10 per share, increasing by 6.6% from R17.92 per share at
31 March 2022, due to positive performance in net property income and favourable exposure to a weaker Rand.
The group's direct property investments amount to R32.7 billion at 30 September 2022 (31 March 2022: R30.8 billion), located
in South Africa and Spain.
Total indirect property holdings (listed property investments) increased to R1.9 billion at 30 September 2022
(31 March 2022: R1.8 billion), following additional shares purchased in Lar Espa–a Real Estate SOCIMI. This was offset by a
further reduction in Vukile's interest in Fairvest Limited.
A gross dividend amounting to 47.32125 cents per share has been declared for the six months ended 30 September 2022
(30 September 2021: 40.55865), an increase of 16.8%. A separate announcement in this regard, including details relating to
the taxation treatment of the dividend, will be released on SENS.
PROSPECTS FOR THE GROUP
Against a worsening global macro backdrop, Vukile continues to perform very well, both in South Africa and Spain,
demonstrating the strength and defensive nature of its assets. Our internal focus on driving operational efficiencies
and excellence is certainly bearing fruit, as evidenced by this strong set of results in both markets.
Underlying tenant demand remains strong and we expect competition for space to continue into the second half of the
current financial year. Of significant importance is the long debt expiry profile and high hedging percentage,
especially in Spain, which effectively eliminates refinance risk for the next four years.
Notwithstanding the strong strategic, operational and financial state of the company, we need to remain cautious, given
the challenging macro environment. However, we are pleased to keep guidance for the full year unchanged, at growth in
both FFO per share and dividends per share of 5 - 7% for the year ending 31 March 2023.
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(https://www.vukile.co.za/cmsAdmin/uploads/interim_results_2023.pdf) and on the JSE website at
https://senspdf.jse.co.za/documents/2022/jse/isse/vke/HY2023.pdf.
Copies of the full announcement may be requested by emailing Johann Neethling at Johann.Neethling@Vukile.co.za or the
company's sponsor, Java Capital at sponsor@javacapital.co.za from Tuesday, 29 November 2022 to Wednesday, 7 December 2022.
On behalf of the board
NG Payne LG Rapp
Chairman Chief executive officer
Houghton Estate
29 November 2022
Sponsor
Java Capital
CORPORATE INFORMATION
Executive directors: LG Rapp (chief executive), 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, B Ngonyama*,
AMSS Mokgabudi* *Independent
Registered office: 4th Floor, 11 Ninth Street, Houghton Estate, 2198
Company secretary: J Neethling
Transfer secretaries: JSE Investor Services (Pty) Ltd, Braamfontein, Johannesburg
Investor relations: Instinctif Partners, The Firs, 3rd Floor, Corner Craddock Avenue and Biermann Road,
Rosebank, Johannesburg, South Africa,
Tel: +27 11 447 3030
Media relations: Marketing Concepts, 8 Redhill Road, Morningside, Sandton, Johannesburg, South Africa,
Tel: +27 11 783 0700, Fax: +27 11 783 3702
www.vukile.co.za
Date: 29-11-2022 07:45:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
