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Unaudited condensed consolidated interim results
for the six months ended 30 September 2022
HIGHLIGHTS FINANCIAL PERFORMANCE
Gross property revenue increased from R1.7 billion for the period ended 30 September 2021
ROBUST OPERATING RESULTS AND to R1.8 billion for the period ended 30 September 2022. Operating profit before finance costs
DEFENSIVE FINANCIAL POSITION 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
SOUTH AFRICAN PORTFOLIO CONTINUES earnings reduced to 61.57 cents per share (30 September 2021: 71.31 cents per share) as a result
TO OUTPERFORM WITH POSITIVE TRADING of the decrease in operating profit before finance costs, as well as the impact of additional
METRICS AND OPERATIONAL RESULTS
shares issued. In addition, pre-acquisition dividends received from Lar España of
Like-for-like annualised NOI growth of 4% c.€6.6 million was accounted for as a reduction of the carrying value of the investment as
opposed to investment income.
Vacancies reduced to 2.3%
Rental reversion cycle turned positive to +1.6% from -2.4% The group’s net asset value per share at 30 September 2022 was R19.10 per share, increasing
Annualised trading densities increased by 7%
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.
Like-for-like retail valuations increase of 3%
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
CASTELLANA LEADS THE MARKET 30 September 2022 (31 March 2022: R1.8 billion), following additional shares purchased in
WITH ACTIVE ASSET MANAGEMENT AND
IMPRESSIVE OPERATIONAL RESULTS
Lar España Real Estate SOCIMI. This was offset by a further reduction in Vukile’s interest in
Fairvest Limited.
Normalised NOI growth of 7.5%
A gross dividend amounting to 47.32125 cents per share has been declared for the six months
Vacancies maintained at 1.6% ended 30 September 2022 (30 September 2021: 40.55865), an increase of 16.8%. A separate
Positive reversions of +4.6% announcement in this regard, including details relating to the taxation treatment of the dividend,
Rent collection rate at 99.03% will be released on SENS.
Portfolio WALE of 12.1 years PROSPECTS FOR THE GROUP
Footfall and sales growth trends outperform national benchmarks 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.
BALANCE SHEET DEFENSIVELY POSITIONED
IN A RISING INTEREST RATE CYCLE 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
87% of group interest-bearing debt hedged profile and high hedging percentage, especially in Spain, which effectively eliminates refinance
No debt maturities in Castellana until FY26 risk for the next four years.
Interest cover ratio (ICR) of 2.9 times and Notwithstanding the strong strategic, operational and financial state of the company, we need
LTV maintained at 43% to remain cautious, given the challenging macro environment. However, we are pleased to keep
GCR upgraded Vukile’s corporate long-term credit rating to AA(ZA) 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.
88% of debt expiring in FY23 has already been repaid, refinanced or renegotiated
Undrawn debt facilities increased to R3.6 billion 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
OPTIMAL CAPITAL ALLOCATION THROUGH based on consideration of the full announcement.
ACTIVE ASSET ROTATION
The full announcement is available on the company’s website
Sale of direct property assets of c.R280 million in South Africa (https://www.vukile.co.za/cmsAdmin/uploads/interim_results_2023.pdf)
Further sale of Fairvest shares, realising R46.6 million and on the JSE website at https://senspdf.jse.co.za/documents/2022/jse/isse/vke/HY2023.pdf.
Acquisition of Pan Africa Shopping Centre for c.R421 million, Copies of the full announcement may be requested by emailing Johann Neethling at
expected to be concluded by Q4 FY23 Johann.Neethling@Vukile.co.za or the company’s sponsor, Java Capital at
Agreement reached to acquire 50% undivided share in BT Ngebs City for R400 million sponsor@javacapital.co.za from Tuesday, 29 November 2022 to Wednesday, 7 December 2022.
Castellana acquired a further 4% in Lar España for c.€15.9 million, On behalf of the board
increasing total shareholding to 25.7%
INCREASE IN CASH DIVIDEND NG Payne LG Rapp
Chairman Chief executive officer
Interim dividend of 47.32 cents per share, up 16.8% Houghton Estate
on the corresponding prior period
29 November 2022
Total FFO of 80.8 cents per share
Sponsor
Java Capital
www.vukile.co.za
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 NSX share code: VKN (Granted REIT status with the JSE) (Vukile or the group or the company)
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
