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www.vukile.co.za
FINANCIAL PERFORMANCE AUDITED SUMMARISED
CONSOLIDATED RESULTS
Gross property revenue increased by 3.1% from R3.5 billion for the year
ended 31 March 2022 to R3.6 billion for the year ended 31 March 2023.
Operating profit before finance costs increased by 6.1% to R2 389 million
(31 March 2022: R2 251 million), while the profit for the year attributable to
owners of the parent increased to R1 932 million (31 March 2022: R1 909 million). FOR THE YEAR ENDED
Basic earnings per share decreased marginally to 197.10 cents per share
(31 March 2022: 199.10 cents per share). Headline earnings increased marginally
to 134.72 cents per share (31 March 2022: 134.25 cents per share).
31 MARCH 2023 AND CHANGES
The group’s net asset value per share at 31 March 2023 was R20.48 per share,
increasing by 14.3% from R17.92 per share at 31 March 2022.
TO THE BOARD OF DIRECTORS
earned a dividend yield on its average initial acquisition price in respect of its
The group’s direct property investments amount to R34.6 billion at 31 March 2023 investment in Lar of c. 12%.
(31 March 2022: R30.8 billion), located in South Africa and Spain. 56% of the group’s
direct property investments are located in Spain, acting as a strong Rand hedge. The total dividend for the year ended 31 March 2023 increased by 6.2% to
112.43357 cents per share (31 March 2022: 105.84518 cents per share). A final
Total indirect property holdings (listed property investments) increased to dividend amounting to 65.11232 cents per share has been declared for the year
R2.3 billion at 31 March 2023 (31 March 2022: R1.8 billion), following additional ended 31 March 2023 (31 March 2022: 65.28653 cents per share). A separate
shares purchased in Lar España Real Estate SOCIMI (Lar). This was partially offset announcement in this regard, including details relating to the taxation treatment of
by a further reduction in Vukile’s interest in Fairvest Limited. Castellana has the dividend, will be released on SENS.
EXCELLENT OPERATING RESULTS AND STRONG FINANCIAL POSITION
South African portfolio continues to deliver Castellana consistently outperforms and Strong balance sheet metrics leads to credit
stellar results delivers market-leading results rating upgrade
• Like-for-like annualised NOI growth • Normalised NOI growth of 9.0% • 89% of group interest-bearing debt hedged
of 5.4% • Negligible vacancies at 1.3% • No debt maturities in Castellana until FY26
• Vacancies reduced to 2.0% from 2.6% • Positive reversions of +3.3% (Excluding • Interest cover ratio (ICR) of 3.1 times and
• Rental reversions +2.3%, up impact of indexation) LTV reduced to 42.6%
from -2.4% • Rent collection rate at 99.2% • GCR upgraded Vukile’s corporate long-term
• Annualised trading densities increased by • Portfolio WALE of 12.6 years credit rating to AA (ZA)
6.2% Strong liquidity with cash and undrawn
• 94% of retail space let to international/ •
• Like-for-like retail valuations increase national tenants debt facilities of R3.9 billion
of 5.8% • R700 million equity raise post year-end
Optimising capital allocation by executing on core strategy 6.2% increase in cash dividend
• Sale of direct property assets of c.R309
million in South Africa (2.7% premium to book value) • Final dividend of 65.1 cents per
• Further sale of Fairvest shares, realising R50.8
million share
• Total dividend for the year of
• Acquired a 33% investment in ALT Capital Partners and a c.15% investment in
REimagine Social Impact Retail Fund 112.4 cents per share
(R1.14 billion), up 6.2% on the
• Acquired 50% undivided share in BT Ngebs City (R400 million), expected to transfer in prior year
Q1 2024 • Total FFO of 144.5 cents
• R350 million investment in SA sustainable backup power (at an accretive yield) per share, up 6.0% on
• Castellana acquired a further 4% in Lar España for c.€15.9 million, increasing total the prior year
shareholding to 25.7%
PROSPECTS FOR THE GROUP The board welcomes Mr Kodisang and looks forward to his future contribution to
the company.
We are confident that with our strong operating platform, clear strategic direction
and solid balance sheet, Vukile is well positioned to manage the global macro- Effective 2 January 2024, the role of group CFO will be split, with Lizelle Pottas
economic headwinds, dampened consumer confidence and specific South being appointed to the board as Financial Director. Laurence Cohen will remain in
African-related challenges, such as load shedding and sluggish economic growth. his current position as full-time Executive Group CFO. Lizelle has been with Vukile
Whilst we have been expecting pressure on the consumer for the better part of the for five years and currently serves as Group Head of Finance. Lizelle is a CA(SA)
last 18 months, it has not materialised to the extent that we anticipated. It now and holds a BCom Accounting (cum laude) and BCom Accounting Honours degree.
appears that higher interest rates are negatively impacting consumer spending in Lizelle will continue to report to Laurence Cohen. Laurence will retain most of his
South Africa. We believe that our business is well insulated against reduced current responsibilities, but will be more focused on strategic finance, corporate
spending, both through the defensive nature of our tenant mix and because of the finance, corporate activity, group treasury and deal execution. Lizelle will take full
annuity income nature of our rental income. Some 99% of rental income is responsibility for group reporting, IFRS compliance, JSE compliance and internal
contractual in nature and provided by the strongest retail covenants in Spain and and external audit. We wish Lizelle well in her new role.
South Africa. A healthy WALE in both markets should comfortably see us through a
short to medium term cyclical downturn. ABOUT THIS ANNOUNCEMENT
As we come closer to the peak of the interest rate cycle, Vukile and Castellana This short-form announcement is the responsibility of the directors of the company.
remain well hedged. The business is further insulated with a relatively long loan The announcement is only a summary of the full announcement and does not contain
expiry profile and a strong liquidity position. full or complete details. Any investment decision by investors and/or shareholders
should be based on consideration of the full announcement. The annual financial
We continue to focus on sustainable growth as we execute on our focused strategy statements were audited by PricewaterhouseCoopers Inc., who expressed an
to be a consumer-focused, retail real estate business. unqualified opinion thereon. The auditor’s opinion also includes communication on key
We expect to deliver growth in FFO per share of between 3% to 5% and growth in audit matters. Key audit matters are those matters that, in the auditor’s professional
dividend per share of between 7% to 9% for the year ending 31 March 2024, judgement, were of most significance in their audit of the consolidated financial
assuming: statements for the year ended 31 March 2023.
• SA interest rates of 3-month JIBAR of 8.50% The full announcement and the full audited consolidated financial
• European interest rates of 3-month Euribor of 3.75%
statements, incorporating the auditor’s opinion thereon, are available
• ZAR/EUR exchange rate of R19,29
on the company’s website at https://www.vukile.co.za/financial-results/
• a similar pay out ratio to the current year
and on the JSE’s website at
This will equate to a full-year dividend per share of between 120 and 123 cents https://senspdf.jse.co.za/documents/2023/jse/isse/vke/FY2023.pdf.
(FY23: 112.4 cents) to be paid with an interim dividend and a final dividend.
Copies of the full announcement may be requested, and obtained at no charge, by
The forecast assumes no material adverse change in trading conditions, emailing Johann Neethling at Johann.Neethling@Vukile.co.za or the company’s
contractual escalations and market-related renewals. The forecast also assumes sponsor, Java Capital at sponsor@javacapital.co.za from Monday, 12 June 2023 to
no material further change in interest rates and exchange rates from the levels Tuesday, 20 June 2023.
indicated above.
On behalf of the board
The forecast has not been reviewed or audited by the company’s external auditors.
CHANGES TO THE BOARD OF DIRECTORS
Effective 1 April 2023, Mr Ben Kodisang was appointed to the board as a
non‑executive director and will also join the property and investment committee.
Mr Kodisang currently serves as the CEO of ALT Capital Partners, a property NG Payne LG Rapp Houghton Estate
private equity business and asset manager, in which Vukile has a 33% interest. Chairman Chief Executive Officer 12 June 2023
CORPORATE INFORMATION
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 Namibian Stock Exchange NSX share code: VKN (granted REIT status with the JSE) (Vukile or the group or the company)
Executive directors: LG Rapp (Chief Executive Officer), LR Cohen (Chief Financial Registered office: 4th Floor, 11 Ninth Street, Houghton Estate, 2198
Officer), IU Mothibeli (Managing Director: South Africa) Company secretary: J Neethling JSE sponsor: Java Capital NSX sponsor: IJG Group, Windhoek, Namibia
Non-executive directors: NG Payne (Chairman)*, SF Booysen*, RD Mokate*, Transfer secretaries: JSE Investor Services (Pty) Ltd, Braamfontein, Johannesburg
AMSS Mokgabudi*, GS Moseneke, B Ngonyama*, H Ntene*, BM Kodisang Investor and Public relations: Marijke Coetzee: Director – Marketing and Communications, 4th Floor,
* Independent 11 Ninth Street, Houghton Estate, 2198. Tel: +27 11 288 0000, investorenquiries@vukile.co.za
