Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — H1 2010 Earnings Presentation
26 slides from Vukile Property Fund's earnings presentation, November 2009
Slide 1: Interim Results 2009: Planning future growth on firm foundations
Slide 2: Highlights
Highlights Distribution for six months up 6.6% compared to comparable period Vacancies increased – still relatively low R185 million new leases and renewals concluded Bad debts higher but still under control Conclusion of agreements with Sanlam Properties Announcement of R775 million property portfo
Slide 3: Distribution history
Distribution history VUKILE PROPERTY FUND LIMITED
Slide 4: Growth in distribution
Growth in distribution VUKILE PROPERTY FUND LIMITED
Slide 5: Condensed group income statement
Condensed group income statement for six months ended 30 September 2009 Sept 2009 Sept 2008 Cents per Cents per % linked ed u unitt linked ed u unit cchange a ge Group net rental income 76.4 70.3 8.7 Net finance costs (21.2) (20.2) (5.0) Other (including taxation) (5.5) (3.9) (41.0) Headline earning
Slide 6: Make-up of increase in distribution
Make-up of increase in distribution Cents per linked unit Contributions to increased rental income 12.2 Increased rentals 8.5 Higher recoveries of electricity and rates and taxes 37 3.7 Less: Increase in property expenditure (5.4) Higher electricity and rates and taxes charges (5.9) Fewer refurbishm
Slide 7: Components of growth in income and distribution
Components of growth in income and distribution VUKILE PROPERTY FUND LIMITED
Slide 8: Group debt structure
Group debt structure Maturity and interest rate profile of long- term debt at 30 September p 2009 VUKILE PROPERTY FUND LIMITED
Slide 9: Group balance sheet
Group balance sheet VUKILE PROPERTY FUND LIMITED
Slide 10: Group net cash flow
Group net cash flow VUKILE PROPERTY FUND LIMITED
Slide 11: NAV bridge
NAV bridge VUKILE PROPERTY FUND LIMITED
Slide 12: Linked unit price performance
Linked unit price performance VUKILE PROPERTY FUND LIMITED
Slide 13: Trading volumes
Trading volumes VUKILE PROPERTY FUND LIMITED
Slide 14: Property portfolio
Property portfolio Number of properties 74 GLA 911 907 m² m Valuation – Directors Directors’ valuation R4.45 R4 45 billion – up R16.8 R16 8 million (0.4%) from 31/3/09 – External valuation R2 334.8 million compared to directors’ valuation for same properties of R2 146.7 million (8.8% difference on 4
Slide 15: Property portfolio
Property portfolio Properties larger than R110 million Area Value % of (m²) (R’m) total Durban Phoenix Plaza 24 162 362.6 8.0 Randburg Shopping Centre 51 370 208.4 4.6 Pine Crest Centre 40 485 200.3 4.4 Durban Embassy Office 32 339 197 1 197.1 43 4.3 Belville Louis Leipoldt Hospital 22 311 165.1 3.6
Slide 16: Portfolio sectoral profile
Portfolio sectoral profile % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 17: Portfolio vacancy profile
Portfolio vacancy profile % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 18: Portfolio lease expiry profile
Portfolio lease expiry profile VUKILE PROPERTY FUND LIMITED
Slide 19: Portfolio – new leases and renewals
Portfolio – new leases and renewals New leases and renewals for six months ended 30 September 2009 – Total area 76 486 m² m – Total contract value R185 million Gross Contract t l rental value l Building Tenant (R/m²) (R’m) Barlows Audi Kenilworth Audi 88.00 19.2 Sony Midrand Sony 72.90 10.8 Sony Mid
Slide 20: Portfolio - growth in rentals
Portfolio - growth in rentals Contracts expired during six months ended 30 September 2009 (gross rentals)) (g Average Average Growth rental on renewal in rental expiry i (R/m²) (R/ ²) rental t l (R/m²) (R/ ²) (%) Industrial 26.99 28.92 7.1 Retail 67.82 75.86 11.9 Commercial 70.28 79.05 12.5 VUKILE P
Slide 21: Insourcing of asset management function
Insourcing of asset management function Contract with Sanlam Properties expired on 30/9/09 Vukile responsible for own asset management from 1/10/09 Vukile employed six employees S Smooth th ttransition iti VUKILE PROPERTY FUND LIMITED
Slide 22: Proposed transaction with Sanlam Properties
Proposed transaction with Sanlam Properties Acquire asset management business relating to Sanlam property portfolio Obtain call option to acquire R500 million properties Obtain right of first refusal on majority of remaining Sanlam properties Linked unitholders’ meeting early in December 2009 Propos
Slide 23: Proposed acquisition: R775 million property portfolio
Proposed acquisition: off R775 million illi property t portfolio tf li ffrom Direct result of discussions with Sanlam Related party transaction Subject to normal regulatory approvals and funding E i Envisage 50 50:50 50 equity it and dddebt bt Propose to implement early 2010 VUKILE PROPERTY FUND LIM
Slide 24: Strategic priorities for coming year
Strategic priorities for coming year Implement asset management transaction with Sanlam Properties Implement property acquisition transaction Retain tenants C t l vacancies Control i Manage and control bad debts Manage energy situation Continue with upgrades/revamps of existing properties VUKILE PRO
Slide 25: Prospects
Prospects Tough trading conditions Vacancies increasing, increasing still fairly low Limited new stock on market Stable interest rates (?) Some indications that economy is slowly recovering Property sector lags general economy Next six months will remain tough Even so – we expect reasonable growth i
Slide 26: Questions
Questions ? VUKILE PROPERTY FUND LIMITED