Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — H1 2007 Earnings Presentation
29 slides from Vukile Property Fund's earnings presentation, September 2006
Slide 1: Unaudited interim group results
Unaudited interim group results FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2006
Slide 2: Highlights
Highlights Distribution up 10% on strong property performance, savings in debt costs Total return to unitholders for 12 months – 34.4% NAV per linked unit increases by 12.7% MICC debt restructured creating savings of ± R4 million per annum Unaudited interim group results for the six months ended 30
Slide 3: Salient features of results
Salient features of results Net profit available for distribution up by 13.4% from R87.2 million to R98.9 million Net asset value up to 710 cents per linked unit from 630 cents per linked unit at September 2006 (+ 12.7%) Distribution for six months up 10% (35.75 cents vs 32.50 cents) Valuation of Vu
Slide 4: Group income statement
Group income statement Sept 2006 Cents per linked unit Vukile net rental income 48.0 MICC net rental income 18.8 Net finance costs (25.2) Other (including taxation) (4.6) Headline earnings 37.0 Increase over six months prior period excluding straight-line rental income 13.4% Unaudited interim group
Slide 5: Group income statement (cont’d)
Group income statement (cont’d) Cost of finance Unaudited interim group results for the six months ended 30 September 2006
Slide 6: Group balance sheet
Group balance sheet Unaudited interim group results for the six months ended 30 September 2006
Slide 7: MICC contribution to Vukile
MICC contribution to Vukile Six months Six months to to Percentage 30 Sept 05 30 Sept 06 difference MICC distribution (cents) 45.0 40.5 - 10.0% Vukile’s share of MICC 75.0% 98.9% + 31.9% MICC’s contribution to Vukile (Rmillion) 22.6 26.8 + 18.6% Annualised yield on cost of acquisiton of MICC (R455 m
Slide 8: Trading volumes
Trading volumes Unaudited interim group results for the six months ended 30 September 2006
Slide 9: Trading volumes
Trading volumes Trading volume as % of “Free Float” Unaudited interim group results for the six months ended 30 September 2006
Slide 10: The property portfolio
The property portfolio Vukile: 52 properties – GLA of 669 331 m² MICC: 27 properties (39 at 30/09/06) – GLA of 286 816 m² (390 897 m² at 30/09/06) Vukile portfolio valuation: Directors – R2 574.8 million total portfolio External valuer (±50%) – R1 194.9 million Directors (±50%) – R1 064.5 million Di
Slide 11: Acquisitions / Upgrades
Acquisitions / Upgrades Vukile Expansions to Phoenix/Dobsonville – R80 m – 10.7% (Nov 06) Acquisition of Parktown Oakhurst – R36.4 m – 10.5% (Apr 06) Acquisition of 50% of Kings Rd, Pinetown – R28 m – 10.3% (Nov 06) Acquisition of 50 Sixth Rd, Hyde Park – R57.2 m – 9.7% (Jul 06) Total – R201.6 milli
Slide 12: Disposals (Transferred)
Disposals (Transferred) Vukile – R71.0 million (R57.5 million) [+23.5%] OK Bazaars Phalaborwa – R26.0 m (R22.5 m) OK Bazaars West St Durban – R45.0 m (R35.0 m) MICC – R245.0 million (R200.3 million) [+22.3%] 9 Fredman Drive Sandton – R60.3 m (R60.1 m) Overport City Durban – R45.0 m (R33.2 m) Hoskens
Slide 13: Disposals (Approved to be sold)
Disposals (Approved to be sold) Vukile – R27.9 million (R25.5 million) [+9.4%] Johannesburg Market Street Bradlows – R7.9 m (R10.9 m) Johannesburg Wynberg 57 Andries Street – R6.2 m (R2.9 m) Orkney Shopping Centre – R13.8 m (R11.7 m) MICC – R65.6 million (R66.3 million) [-1.1%] Johannesburg Denver R
Slide 14: The Vukile portfolio
The Vukile portfolio Geographical profile - % of gross rentals Unaudited interim group results for the six months ended 30 September 2006
Slide 15: The Vukile portfolio
The Vukile portfolio Sectoral profile - % of gross rentals Unaudited interim group results for the six months ended 30 September 2006
Slide 16: The Vukile portfolio
The Vukile portfolio Lease expiry profile - % of gross rentals Unaudited interim group results for the six months ended 30 September 2006
Slide 17: The Vukile portfolio
The Vukile portfolio Vacancy profile - % of gross rentals Unaudited interim group results for the six months ended 30 September 2006
Slide 18: The Vukile portfolio
The Vukile portfolio New leases and renewals (six months ended 30 September 2006) Total contract value R142 million Total rentable area 91 491 m² Includes: Bloemfontein Plaza Randburg Trevallyn Germiston Route 24 Randburg Square Dobsonville Unaudited interim group results for the six months ended 30
Slide 19: The MICC portfolio
The MICC portfolio Geographical profile - % of gross rentals Unaudited interim group results for the six months ended 30 September 2006
Slide 20: The MICC portfolio
The MICC portfolio Sectoral profile - % of gross rentals Unaudited interim group results for the six months ended 30 September 2006
Slide 21: The MICC portfolio
The MICC portfolio Lease expiry profile - % of gross rentals Unaudited interim group results for the six months ended 30 September 2006
Slide 22: The MICC portfolio
The MICC portfolio Vacancy profile - % of gross rentals Unaudited interim group results for the six months ended 30 September 2006
Slide 23: The MICC portfolio
The MICC portfolio New leases and renewals (six months ended 30 September 2006) Total contract value R48 million Total rentable area 36 300 m² Includes: Meadowdale Mall Roodepoort Robertville Randburg Tungsten Oshakati Shopping Centre Unaudited interim group results for the six months ended 30 Septe
Slide 24: Vukile and MICC portfolios combined (Group)
Vukile and MICC portfolios combined (Group) Number of properties 79 GLA 956 146 m² Market value R3.49 billion Vacancy (% of gross rentals) 4.1% Sectoral spread (% of gross rentals): Retail 51.6% Commercial 32.7% Industrial 15.7% Unaudited interim group results for the six months ended 30 September 2
Slide 25: Vukile and MICC portfolios combined (Group)
Vukile and MICC portfolios combined (Group) Group lease expiry profile - % of gross rentals Unaudited interim group results for the six months ended 30 September 2006
Slide 26: Acquisition of MICC
Acquisition of MICC At 30 September 2006 Vukile owned 98.9% of MICC Vukile invoked provisions of S440 of Companies Act Linked unitholder owning 9 825 linked units (0.01%) filed motion opposing compulsory acquisition Vukile will oppose the application Hearing date to be confirmed Unaudited interim gr
Slide 27: Strategic priorities for coming year
Strategic priorities for coming year Grow portfolio through value adding acquisitions Full integration of MICC Develop opportunities brought by BEE credentials Increase liquidity of linked units Maintain focus on upgrades/expansion of existing properties Unaudited interim group results for the six m
Slide 28: Prospects
Prospects Expect further good performance from existing portfolio, although limited scope for further reductions in vacancies Acquisitions will start contributing Full benefits of securitisation Benefits of restructuring of MICC debt Growth for full year broadly in line with growth at interim stage
Slide 29: Questions
Questions ? Unaudited interim group results for the six months ended 30 September 2006