Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — FY2008 Earnings Presentation
32 slides from Vukile Property Fund's earnings presentation, May 2008
Slide 1: Moving ahead, staying on course
Moving ahead, AUDITED GROUP RESULTS staying on course 2008 for the year ended 31 March 2008
Slide 2: Highlights
Highlights Distribution for 6 months up 17% compared to corresponding 6 month period Distribution for 12 months up 15% compared to previous year Successful completion of Moratiwa Crossing Shopping Centre and Allandale mini-factory and warehousing developments Dual listing in Namibia Improv
Slide 3: Salient features of results
Salient features of results Net profit available for distribution up 23.2% from R214.8 million to R264.6 million Net asset value per linked unit (NAV) up to 890 cents from 803 cents end March 2007 (+10.8%) Reduction in group finance costs from R126.9 million to R114.8 million Distribution fo
Slide 4: Condensed group income statement
Condensed group income statement March 2008 March 2007 Cents per Cents per linked unit linked unit Group net rental income 139 137 Net finance costs (39) (46) Other (including taxation) (9) (8) Headline earnings 91 83 Increase over previous 12 month period excluding straight-line rental income 23.2%
Slide 5: Make-up of increase in distribution
Make-up of increase in distribution Cents per linked unit Contribution to increased rental income Reduction in vacancies and increased rentals 17.8 Additional rentals from property acquisitions 4.2 Other 2.0 24.0 Less: Increase in property expenditure (4.4) Income foregone on properties sold in prio
Slide 6: Group debt structure
Group debt structure Maturity and interest rate profile of long- term debt at 31 March 2008 VUKILE PROPERTY FUND LIMITED
Slide 7: Group balance sheet
Group balance sheet VUKILE PROPERTY FUND LIMITED
Slide 8: Group net cash flow
Group net cash flow VUKILE PROPERTY FUND LIMITED
Slide 9: NAV bridge
NAV bridge VUKILE PROPERTY FUND LIMITED
Slide 10: Linked unit price performance
Linked unit price performance VUKILE PROPERTY FUND LIMITED
Slide 11: Trading volumes
Trading volumes VUKILE PROPERTY FUND LIMITED
Slide 12: Property portfolio
Property portfolio Number of properties 74 (71 on 31/3/07) GLA 911 907 m² (898 351 m²) Valuation – Total portfolio Directors’ valuation R4.32 billion – up R455 million (11.8%) from 31/3/07 – External valuation R2 451.1 million compared to R2 290.6 million director’s valuation (R160.5 million o
Slide 13: Property portfolio – largest properties
Property portfolio – largest properties Area Value % of (m²) (R’m) total Durban Phoenix Plaza S/C 24 162 350.7 8.1 Randburg Square S/C 51 370 255.0 5.9 Durban Embassy Offices 32 339 195.8 4.5 Pinetown Pinecrest S/C (50%) 40 492 185.6 4.3 Bellville Louis Leipoldt Hospital 20 479 145.1 3.4 Dobsonville
Slide 14: Sectoral valuation of portfolio
Sectoral valuation of portfolio VUKILE PROPERTY FUND LIMITED
Slide 15: Acquisitions and developments
Acquisitions and developments Value Yield (R’m) (%) Development of Moratiwa Crossing (86.5% share) 61.5 9.5 Development of Allandale mini-factories 17.2 10.4 Acquisition of West Street, Houghton offices 33.5 9.2 Acquisition of BPI House Windhoek offices 110.0 9.1 Acquisition of Lynnwood Pretoria off
Slide 16: Disposals
Disposals Directors’ Purchase valuation Net sales price 31 March 08 price (R’000) (R’000) (R’000) Hallmark Building 80 693 66 997 78 046 VUKILE PROPERTY FUND LIMITED
Slide 17: Portfolio geographical profile
Portfolio geographical profile % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 18: Portfolio sectoral profile
Portfolio sectoral profile % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 19: Portfolio vacancy profile
Portfolio vacancy profile % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 20: Individual properties vacancy profile
Individual properties vacancy profile % of GLA VUKILE PROPERTY FUND LIMITED
Slide 21: Portfolio lease expiry profile
Portfolio lease expiry profile % of GLA VUKILE PROPERTY FUND LIMITED
Slide 22: Portfolio tenant profile
Portfolio tenant profile % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 23: Individual properties: weighted average gross rentals
Individual properties: weighted average gross rentals % of GLA VUKILE PROPERTY FUND LIMITED
Slide 24: Historical sectoral rental escalation
Historical sectoral rental escalation % of gross rentals Average annual escalation - actual vs contractual VUKILE PROPERTY FUND LIMITED
Slide 25: Rental escalation profile
Rental escalation profile % of gross rentals Average annual escalation VUKILE PROPERTY FUND LIMITED
Slide 26: Gross cost to income ratio
Gross cost to income ratio VUKILE PROPERTY FUND LIMITED
Slide 27: Portfolio – new leases and renewals
Portfolio – new leases and renewals New leases and renewals for 12 months ended 31 March 2008 Total contract value R516 million Total rentable area 201 630m² Contract value (R’m) Arivia.kom – Arivia.kom building 34.4 Spar – Moratiwa Crossing 23.4 Subaru – Supra Hino building 21.2 Wesbank – Embas
Slide 28: Strategic priorities for previous year
Strategic priorities for previous year Growth – New acquisitions – R177.5 million – Further expansions/revamps/upgrades – R81.5 million Cost cutting – Procurement - savings of R2.3 million – New property management contracts – savings of R0.5 million BEE – Leverage existing shareholders – numb
Slide 29: Strategic priorities for coming year
Strategic priorities for coming year Retain tenants Manage bad and doubtful debts Maintain properties Further revamps/upgrades/expansions of existing properties Manage energy situation VUKILE PROPERTY FUND LIMITED
Slide 30: Prospects
Prospects Negative factors – Slowdown in economic growth – High interest rates and inflation – Electricity crisis – Slowdown in retail sales – Negative sentiment Although more risk, property fundamentals remain fairly strong Expected growth not as good as previous year Still expect reasonabl
Slide 31: Acknowledgements
Acknowledgements Board Service providers – Sanlam Properties – JHI – Kuper Legh – Old Mutual Investment Group Property Investments Brokers and developers Tenants Investors VUKILE PROPERTY FUND LIMITED
Slide 32: Questions
Questions ? VUKILE PROPERTY FUND LIMITED