Vukile Property H1 distribution up 5% to 54.81c per unit

Vukile Property (VKE) has reported a 5% rise in its distribution per linked unit to 54.81c for the six months ended September 2013 from 52.20c a year ago.

The group’s net profit available for distribution amounted to R343.8m for the period — 28% higher than the comparable period.

The company said the portfolio had changed dramatically over the past year‚ with highlights during the six months under review including the relaunch of Randburg Square following a three-phase R207m upgrade; the completion of the R1.04bn Encha transaction in which Vukile acquired four government-tenanted properties; the acquisition of 50% of East Rand Mall for R1.1bn; the acquisition of Hammarsdale Junction for R194m; and the sale of R287m worth of higher-risk properties.

CE Laurence Rapp said significant progress had been made in the past six months in developing a better-quality and lower-risk portfolio.

“This can be seen by our strong retail (52%)‚ sovereign tenant (10%) and hospital (3%) assets now representing the lion’s share (65%) of the overall portfolio‚” he said.

Net profit from property operations‚ excluding straight-line rental accruals‚ increased by 17.6% to R406.9m‚ with the portfolio showing like-for-like growth of 8.1%. Vacancies‚ measured as a percentage of gross rentals‚ decreased to 6.7% from 7.1% in March 2013. The acquisitions and disposals have also improved the lease-expiry profile of the portfolio.

“The business is in good shape and we are confident of meeting our distribution growth guidelines for 2014 of between 4% and 6% off a normalised base of 120.44c per linked unit and thereafter seeing a healthy increase in distribution growth for 2015‚” said Rapp.

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