VUKILE PROPERTY FUND LIMITED - Vukile Ups Full Year Distribution While Growing Portfolio By 26%

Vukile Ups Full Year Distribution While Growing Portfolio By 26%

VUKILE PROPERTY FUND LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2002/027194/06)
JSE Share code: VKE NSX Share code: VKN
ISIN: ZAE000056370
Granted REIT status with the JSE
 ("Vukile" or “the company”)



VUKILE UPS FULL YEAR DISTRIBUTION WHILE GROWING PORTFOLIO BY 26%



Johannesburg, 27 June 2013 – Vukile overcame a lacklustre operating environment to increase its full year distribution
by 5.4% to 131.59 cents per linked unit while at the same time enlarging the size of the portfolio by 26% to R7.7 billion in
the 2013 financial year.


In its annual report, published today, chairman Anton Botha said the company made great strides towards its strategic
objectives of growing the size of the property fund, increasing its retail exposure and improving the overall quality of the
portfolio.


“In delivering on these objectives, Vukile posted some significant markers including the transfer of the R1.5 billion Sanlam
portfolio acquisition; the finalisation of the acquisition of a 50% stake in the East Rand Mall, the transfer of which took
place in April 2013; the agreement with Encha Properties to acquire four government-tenanted properties for R1.04 billion
plus a put and call option over Encha’s Pretoria Momentum Building; and Vukile’s continued success in accessing both
the equity and debt markets to fund its rapid expansion through a series of well over-subscribed issues,” Botha said.


“Net profit available for distribution came to R556.4 million for the year ended 31 March 2013, an increase of 26.7% on
2012’s R439.1 million. The growth in actual distribution includes non-recurring income of 11 cents per linked unit which
arose from sales commission earned on the R1.5 billion portfolio bought from Sanlam in the period under review.
Excluding this impact, the core business delivered a very healthy growth of 8.1% on the previous year,” said chief
executive Laurence Rapp in the same report.


Rapp said Vukile will in future declare any non-recurring income, such as the sales commission of around R64 million
from East Rand Mall, as a special distribution distinct from its core or normalised distribution. “Since acquiring the asset
management business from Sanlam in 2010, the stable earnings pattern has been impacted by the inclusion of
unpredictable and lumpy sales commission whenever assets are sold from the Sanlam portfolio.               This impacts the
certainty with which the investor community can predict Vukile’s distribution but also tends to mask the true operating
performance, as was the case last year,” he said.


Looking ahead, Botha said Vukile is gearing its human capital, structures and systems to the demands of a rapidly
expanding portfolio but that it will remain committed to the preservation of the characteristic qualities that have defined
Vukile since its listing. “Building on the solid foundation laid over the past years, I am confident that the company has the
strategies, the resources and the management expertise to sustain this momentum in the year ahead and beyond.”


“The board is therefore of the opinion that Vukile should again be able to deliver sustainable growth in its distributions in
the year ahead,” Botha said.


For further information contact:
Laurence Rapp, CEO Vukile Property Fund Limited, on 083 266 3011


Corporate adviser and JSE sponsor:

NSX sponsor: IJG Securities (Pty) Ltd



Issued by du Plessis Associates on behalf of Vukile Property Fund Limited.
dPA contact Helen McKane Tel: +27 (0)11 728 4701, Mobile: +27 (0)82 330 2034 or e-mail: vukile@dpapr.com
website: www.vukile.co.za

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