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Unaudited summarised consolidated interim results for the six months ended 30 September 2024 and Group prospects
Vukile Property Fund Limited
(Incorporated in the Republic of South Africa)
(Registration number: 2002/027194/06)
JSE share code: VKE
ISIN: ZAE000180865
Debt company code: VKEI
NSX share code: VKN
(granted REIT status with the JSE)
(Vukile or the group or the company)
Unaudited summarised consolidated interim results and prospects for the Group for the six months ended 30 September 2024
A strong first half comprising outstanding operating results positions us well for continued growth
DISCIPLINED OPERATIONAL MANAGEMENT DELIVERS SUSTAINED PERFORMANCE ACROSS SOUTH AFRICAN PORTFOLIO
- Like-for-like retail NOI growth of 4.6%
- Annualised trading density growth of 4.2%
- Retail vacancies contained at 1.9%
- Cost-to-income ratio decreased to 15.1% (lowest level in a decade)
- Like-for-like retail portfolio value increased by 3.7%
EXCEPTIONAL RELATIONSHIPS WITH TENANTS ENSURE CASTELLANA MAINTAINS MARKET-LEADING METRICS
- Normalised like-for-like NOI growth of 2.1%
- Portfolio occupancy of 98.6%
- Positive rental reversions of 45.5%
- 95% of retail space let to international and national tenants
- Lowest-in-the-market occupancy-cost ratio of 9.5%
PRUDENT BALANCE SHEET MANAGEMENT SECURES STRONG LIQUIDITY OF R6.4 BILLION
- Significant available cash balances of R5.1 billion and undrawn debt facilities of R1.3 billion
- LTV reduced to 35.4%
- Interest cover ratio (ICR) increased to 2.5 times
- c.R2 billion raised from new share issuances
- Hedge ratio increased to 91% and Castellana's Aareal syndicated loan refinanced with a fixed-term
interest rate
- Corporate long-term credit rating of AA(ZA) was reaffirmed by GCR, with the outlook being upgraded
from stable to positive
STRATEGIC CORPORATE AND ACQUISITION ACTIVITY POSITIONS US WELL FOR TRANSFORMATIVE GROWTH
- Sold remaining interest in Fairvest for c.R141 million
- Accepted offer to dispose of 28.8% interest in Lar Espana at EUR8.30 per share, for c.EUR200 million
- Acquired an 80% controlling interest in three shopping centres in Portugal, valued at c.EUR176.5
million
- Active pipeline of deals currently under consideration
GROWTH STRATEGY DELIVERS 6% INCREASE IN DIVIDEND PER SHARE
- Funds from operations (FFO) of 82.40 cents per share
- Interim dividend of 55.2 cents per share (R679 million in aggregate), up 6% on the prior period
FINANCIAL PERFORMANCE
Unaudited Unaudited
interim results interim results
30 September 2024 30 September 2023 % change
Gross property revenue (Rm) 2 120 2 003 5.8
Operating profit before finance costs (Rm) 1 765 1 216 45.1 (1)
Profit for the period attributable to owners (Rm) 1 244 1 174 6.0
Basic earnings per share (cents) 109.82 113.43 (3.2)(2)
Headline earnings per share (cents) 87.40 83.00 5.3
Gross dividend per share (cents) 55.18051 52.0742 6.0
(1) Operating profit includes dividend income from Lar Espana of R378 million for H1 FY25. No dividend
from Lar Espana was included in H1 FY24, since there was no dividend declared by Lar Espana during the
prior period. Interest received in the current period was higher than in the prior comparable period,
due to interest received on the cash proceeds from new equity issuances and due to higher interest rates
during the period.
(2)The slight decrease in basic earnings per share is mainly as a result of dilution from the issue of
125.2 million new shares during the period.
A separate announcement regarding the dividend, including details relating to the taxation treatment of
the dividend, will be released on SENS.
Unaudited
interim results Audited
30 September 2024 31 March 2024 % change
Net asset value (NAV) (R per share) 21.17 21.55 (1.8) (1)
Direct property investments (Rm) 36 433 36 612 (0.5) (1)
Indirect listed property holdings (Rm) 3 732 3 680 1.4
(1)The slight decrease in NAV per share and direct property investments is due to a strengthening of
the Rand/Euro exchange rate from R20.37/Euro at 31 March 2024 to R19.24/Euro at 30 September 2024.
PROSPECTS FOR THE GROUP
Over the past six months, Vukile continued to deliver strong operational results and solid trading
metrics in South Africa and Spain. The business is well positioned to execute on our growth strategy,
both from an operational and financial perspective.
The global economic environment is starting to see green shoots and access to capital in recent months
has allowed us to pursue further potential deals that are accretive and aligned to our strategic
objectives. Post the reporting period, Castellana concluded its first acquisition in Portugal, acquiring
three landmark shopping centres and significantly increasing the group's exposure to the Iberian Peninsula.
Supported by a strong balance sheet, we enter the second half of the financial year positive and
optimistic about the group's continued growth prospects.
We remain well on track to keep guidance for the full year ending 31 March 2025 unchanged, with growth
in FFO per share of between 2% to 4% and growth in dividend per share of between 4% to 6%. The forecast
assumes an average exchange rate of R19.05/EUR for the remainder of the year.
We will be offering shareholders the option of a dividend reinvestment plan (DRIP) for the upcoming
interim dividend.
ABOUT THIS ANNOUNCEMENT
This results announcement is the responsibility of the directors of the company. This announcement is
only a summary of the consolidated interim results and does not contain full or complete details.
Any investment decision by investors and/or shareholders should be based on consideration of the
consolidated interim results.
The consolidated interim results are available on the company's website at
https://www.vukile.co.za/financial-results/?interim and on the JSE's website at
https://senspdf.jse.co.za/documents/2024/jse/isse/vke/HY2025.pdf. Copies of the consolidated
interim results 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 Tuesday, 26 November 2024 to Wednesday, 4 December 2024.
On behalf of the board
NG Payne LG Rapp
Chairman Chief Executive Officer
Houghton Estate
26 November 2024
Sponsor
Java Capital
www.vukile.co.za
Date: 26-11-2024 07:05:00
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