Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — H1 FY2011 Earnings Presentation
25 slides from Vukile Property Fund's earnings presentation, November 2010
Slide 1: Rising to the Next Level: Interim Group Results
RISING TO THE NEXT LEVEL INTERIM GROUP RESULTS for the six months ended 30 September 2010
Slide 2: Highlights
Highlights Distribution for six months up 7.5% compared to comparable p p period Rentable area exceeds one million m² R756 million new leases and renewals concluded Refinancing of R462 million debt Acquisition of R538 million property portfolio 2
Slide 3: Distribution history
Distribution history @ Interim @ Total ® Final @ Growth (%) 120 07.9 100 97.9) 68.3) 80 768 = 685 3 61.5 < 60 “ 60.9 . sas 505) a 7) 48.0 47.0 tad 444 3 40 41.0 03 36.0 368 0.0 [515 we 20 15.0 11.4 i120 10.9 10.2 2005 2006 I 2007 2008 I 2009 || 2010 April - Sept 2010 VUKILE PROPERTY FUND LIMITED
Slide 4: Growth in distribution
Growth in distribution 14 14.3 Percentage 11.4 13.9 12.0 12.6 174 15.0 9.6 12.4 10.9 @ Interim @ Final @ Total 6.6 13.2 10.2 7.5 | 2006 2007 2008 2009 2010 VUKILE PROPERTY FUND LIMITED
Slide 5: Condensed group income statement
Condensed group income statement for six months ended 30 September 2010 Sept 2010 Sept 2009 Cents per Cents per % linked unit linked unit change Group net rental income 81.0 76.4 6.0 Net income from asset management 7.1 - >100 100 b i business Net finance costs (21.8) (21.2) (2.8) Other (including t
Slide 6: Make-up of increase in distribution
Make-up Make up of increase in distribution Cents per li k d unit linked it Contributions to increased rental income 11.2 Increased rentals 5.8 Higher recoveries of electricity and rates and taxes 4.0 Other 1.4 Less: Increase in property expenditure (2.0) Higher electricity and rates and taxes charg
Slide 7: Components of growth in income and distribution
Components of growth in income and distribution 7
Slide 8: Group debt structure
Group debt structure Maturity and interest rate profile of interest bearing debt at 30 September 2010 8
Slide 9: Group balance sheet
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Slide 10: Group net cash flow
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Slide 11: NAV bridge
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Slide 12: Linked unit price performance
Linked unit price performance 12
Slide 13: Trading volumes
Trading volumes @ 2009 @ 2010 Ao’! i 3.7 ee as = 14 June ii 5.5 aby; 3.9 August is 5.6 September iy 7.4 October i Ty 5.4 November iy 2.8 December 2.2 Janay EE 4.6 Febua) EE Ts 73 Merch 6.1 A’! EE i 7.1 Vy Ds of Jue DE 5.6 Jy DEE 5.2 Aust EE EE 5.1 September EE TT as 6.0 Millions of linked units VUKI
Slide 14: Property portfolio
Property portfolio Number of properties 82 (74 on 31/3/2010) GLA 1 010 152 m² m (918 833 m² m on 31/3/2010) Valuation – Directors Directors’ valuation R5.78 R5 78 billion – up R892 million (18%) from 31/3/2010 (incl. new acquisitions) – External valuation R2 387.7 million compared to di t ’ valuatio
Slide 15: Property portfolio: properties larger than R120 million
Property portfolio Properties larger than R120 million Area Value % of (m²) (R’m) total Durban Phoenix Plaza 24 342 433.8 7.5 Belville Louis Leipoldt 22 311 254.2 4.4 Randburg Square 51 370 223.3 3.9 Pine Crest (50%) 20 101 207.2 3.6 Dobsonville Shopping Centre 23 145 194.5 3.4 Durban Embassy 32 346
Slide 16: Portfolio sectoral profile
Portfolio sectoral profile % of gross rentals 16
Slide 17: Portfolio vacancy profile
Portfolio vacancy profile % of gross rentals 17
Slide 18: Portfolio lease expiry profile
Portfolio lease expiry profile 18
Slide 19: Portfolio - new leases and renewals
Portfolio - new leases and renewals New leases and renewals for six months ended 30 September 2010 Total area 106 374m² Total contract value R756 million Gross Contract rental value Tenant (R/m²)) (R/m (R’m) (R m) Louis Leipoldt Mediclinic 71.71 502.0 Arivia.com Midrand T-Systems 75.50 46.0 Victoria
Slide 20: Acquisition
Acquisition of R538 million property portfolio from Initially R775 million Final transaction – nine properties – R537.8 R537 8 million Funded: – R201.8 million debt (8.13%) – R100.3 million cash – R235.7 million equity (18 994 341 units at R12.41) Transfer on 3 September 2010 20
Slide 21: Refinancing
Refinancing of R462 million securitisation debt First tranche of original R770 million – five year notes = R462 million Refinanced through “tap” on 8 November 2010 All in cost of 9 All-in 9.66% 66% - 0.54% 0 54% lower than previously Issue was 2.7 times oversubscribed 21
Slide 22: Strategic priorities for coming year
Strategic priorities for coming year Exercise option for R500 million Appoint new CEO Retain tenants Control vacancies Manage and control bad debts Manage energy situation Continue with upgrades/revamps of existing properties 22
Slide 23: Prospects
Prospects Recovery will take longer than expected Stable and low interest rates Some indications that economy is slowly recovering Next six months will remain tough Reasonable growth in distributions (not audited!) 23
Slide 24: Acknowledgements
Acknowledgements Board Service providers – JHI – Hermans & Roman – Kuper Legh – Old Mutual Investment Group Property Investments Brokers and developers Tenants Investors Funders 24
Slide 25: Questions
Questions ?
Vukile Property Fund — H1 FY2011 Earnings Presentation on 6ix