Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — FY2011 Earnings Presentation
40 slides from Vukile Property Fund's earnings presentation, Mar 31, 2011
Slide 1: Audited Group Results for the year ended 31 March 2011
VUKILE PROPERTY FUND LIMITED VUKILE AUDITED PROPERTY FUNDGROUP RESULTS LIMITED 1 AUDITED GROUP RESULTS for the year ended 31 March 2011 Measuring our success Vukile was ranked as the best performing property share on the JSE during the 2009 calendar year. In 2010, Vukile was ranked as the second bes
Slide 2: Highlights
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 2 Highlights Distribution for 12 months up 9% Successful acquisition of R541 million property portfolio Successful re-financing of R462 million securitisation debt at 9.76% Vacancies contained at 5.1% (4.1% March 2010 and 5.3% September 2010) Furthe
Slide 3: Salient features of results
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 3 Salient features of results Net profit available for distribution up 26.2% from R323.3 million to R408.1 million Net asset value per linked unit up to 1 003 cents from (adjusted) 932 cents (+ 7.6%) Increase of R23.2 million in group finance costs
Slide 4: Distribution history
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 4 Distribution history
Slide 5: Growth in distribution
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 5 Growth in distribution
Slide 6: Simplified income statement
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 6 Simplified income statement March 2011 March 2010 % R’m R’m Variance Group net rental income 542.5 475.0 14.2 Net income from asset management business 44.9 3.1 1 348.4 Net finance costs (147.4) (124.2) (18.7) Corporate administration costs (25.5)
Slide 7: Make-up of increase in distribution
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 7 Make-up of increase in distribution 2011 2010 Cents per Cents per linked unit linked unit Contributions to increased rental income Reduction in vacancies and increased rentals 10.3 15.7 Additional rentals from property acquisition 12.8 - Additiona
Slide 8: Group debt structure
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 8 Group debt structure Maturity and interest rate profile of interest bearing debt at 31 March 2011
Slide 9: Group balance sheet
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 9 Group balance sheet
Slide 10: Group net cash flow
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 10 1 0 Group net cash flow
Slide 11: NAV bridge
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 11 1 1 NAV bridge
Slide 12: Linked unit price performance
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 12 1 2 Linked unit price performance
Slide 13: Linked unit price performance
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 13 1 3 Linked unit price performance Indexed to 100 on 1 April 2010
Slide 14: Trading volumes
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 14 1 4 Trading volumes
Slide 15: Property portfolio
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 15 1 5 Property portfolio Number of properties 74 GLA 919 688 m² Valuation Total portfolio Directors’ valuation R5.35 billion – up R462 million (9.4%) from 31 March 2010 External valuation R181 million (6%) higher than directors’ valuations of 56.5%
Slide 16: Property portfolio largest properties
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 16 1 6 Property portfolio 10 largest properties Area Value % of m² (R’m) total Durban Phoenix Plaza 24 342 414 222 7.7 Belville Louis Leipoldt 22 311 218 317 4.1 Randburg Square 51 370 209 272 3.9 Dobsonville Shopping Centre 23 177 194 375 3.6 Pine
Slide 17: Sectoral valuation of portfolio
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 17 1 7 Property portfolio Sectoral valuation of portfolio
Slide 18: Acquisitions completed
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 18 1 8 Property portfolio Acquisitions completed Total rentable Price Property Region area (m²) (R’m) Amanzimtoti Jeffels Rd Warehouse KwaZulu-Natal 22 645 62 007 Kimberley Kimpark Northern Cape 10 494 47 915 Nelspruit Sanlam Centre Mpumalanga 13 93
Slide 19: Future acquisitions
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 19 1 9 Property portfolio Future acquisitions Giyani Plaza Located 90 km east of Makhado (Louis Trichardt) in Limpopo Rentable area 9 443 m² Anchored by Pick n Pay (1 804 m²) 80% national tenants R71.9 million 10.2% initial yield
Slide 20: Disposals
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 20 2 0 Property portfolio Disposals Sales price Property (R’000) Randburg Hillcrest Centre 16 750 Pongola City Shopping Centre 31 300 Pretoria 227 Andries Street 43 131 Johannesburg Atlas Road Complex 28 700 Benoni Kleinfontein Offices: Erven 36 to
Slide 21: Geographical profile
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 21 2 1 Property portfolio Geographical profile
Slide 22: Sectoral profile
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 22 2 2 Property portfolio Sectoral profile
Slide 23: Vacancy profile
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 23 2 3 Property portfolio Vacancy profile
Slide 24: Individual properties vacancy profile
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 24 2 4 Property portfolio Individual properties vacancy profile
Slide 25: Lease expiry profile
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 25 2 5 Property portfolio Lease expiry profile
Slide 26: Tenant profile
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 26 2 6 Property portfolio Tenant profile
Slide 27: Weighted average gross rentals - Retail
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 27 2 7 Property portfolio Weighted average gross rentals - Retail
Slide 28: Weighted average gross rentals - Industrial
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 28 2 8 Property portfolio Weighted average gross rentals - Industrial
Slide 29: Weighted average gross rentals - Offices
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 29 2 9 Property portfolio Weighted average gross rentals - Offices
Slide 30: Lease renewals: escalation on expiry rentals
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 30 3 0 Property portfolio Lease renewals: escalation on expiry rentals
Slide 31: New leases concluded: rental concluded/budgeted
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 31 3 1 Property portfolio New leases concluded: rental concluded/budgeted
Slide 32: Contracted rental escalation profile
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 32 3 2 Property portfolio Contracted rental escalation profile
Slide 33: Gross recurring cost to property revenue ratio
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 33 3 3 Property portfolio Gross recurring cost to property revenue ratio
Slide 34: Gross recurring cost to property revenue ratio (excl electricity and rates and taxes)
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 34 3 4 Property portfolio Gross recurring cost to property revenue ratio (excl electricity and rates and taxes)
Slide 35: New leases and renewals
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 35 3 5 Property portfolio New leases and renewals (for 12 months ended 31 March 2011) Total contract value R945.5 million Total rentable area 204 795 m² Tenant retention (including renewals in process) 82% (90% previous year) Contract value (R’m) Me
Slide 36: Strategic priorities for previous year
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 36 3 6 Strategic priorities for previous year Complete acquisition of R531 million property portfolio √ Exercise option for R500 million portfolio x Focus on vacancies, bad debts and tenant retention √ Energy management √ Procurement √ Transformatio
Slide 37: Strategic priorities for coming year
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 37 3 7 Strategic priorities for coming year New CEO Further acquisitions of retail properties in selected low income areas Broadening of shareholder base Revamps Tenant retention Re-financing of R450 million MICC loans
Slide 38: Prospects
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 38 3 8 Prospects Slow global growth (with risks) Indications that SA economy has turned corner – slow growth Property sector “lags” economy Trading conditions remain tough – no further deterioration Slow improvement next six to 12 months Vukile well
Slide 39: Acknowledgements
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 39 3 9 Acknowledgements Colleagues Board Service providers JHI Hermans & Roman Kuper Legh Old Mutual Investment Group Property Investments Brokers and developers Tenants Investors Funders
Slide 40: Questions and Answers
VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS VUKILE PROPERTY FUND LIMITED AUDITED GROUP RESULTS 4 0 40 Questions and Answers