Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — FY2006 Earnings Presentation
20 slides from Vukile Property Fund's earnings presentation, March 2006
Slide 1: Audited group results – Highlights
Audited group results FOR THE YEAR ENDED 31 MARCH 2006 Highlights Distribution up 14.3% on strong property performance, savings in debt costs and excellent contribution from MICC Overall portfolio vacancy reduced to 3.6% of gross income R230 million of new investments approved (yield ± 9.75%) Introd
Slide 2: Salient features of results; Group income statement
Salient features of results Net profit up by 30% from R172 million to R223 million Net asset value up to 670 cents per linked unit from 586 cents per linked unit at March 2005 (+ 14.3%) Distribution for 6 months up 14.3% (36.0 cents vs 31.5 cents) Distribution for 12 months up 11.4% (68.5 cents vs 6
Slide 3: Group income statement (cont'd); Group balance sheet
Group income statement (cont’d) Cost of finance Audited group results for the year ended 31 March 2006 Group balance sheet Audited group results for the year ended 31 March 2006 3
Slide 4: Performance since listing; Trading volumes
Performance since listing Date Price As at 31 March 2006 of listing Listing 31/03/06 Yield + Appreciation MICC # 9 Oct 03 398 987 17.2% 148.8% Vukile 24 Jun 04 500 987 13.7% 97.4% # Assuming conversion to Vukile at 126 per 100 + Current historical yield on listing price (68.5 cents) THANK YOU FOR YO
Slide 5: Trading volumes; The property portfolio
Trading volumes Audited group results for the year ended 31 March 2006 The property portfolio Vukile: 53 properties – GLA of 689 378 m² (Parktown Oakhurst property acquired and transferred during period) MICC: 39 properties – GLA of 390 896 m² (Concor House Mt Edgecombe property sold and transferred
Slide 6: Acquisitions and Disposals
Acquisitions Vukile – R230 million Expansions to Phoenix/Dobsonville – R80 m – 10.7% Acquisition of Parktown Oakhurst – R36.4 m – 10.5% Acquisition of 50% of Kings Rd, Pinetown – R28 m – 10.3% Acquisition of 50 Sixth Rd, Hyde Park – R57.2 m – 9.7% 50% of development of mini warehouses in Allandale P
Slide 7: The Vukile portfolio – geographical and sectoral profile
The Vukile portfolio Geographical profile - % of gross rentals Audited group results for the year ended 31 March 2006 The Vukile portfolio Sectoral profile - % of gross rentals Audited group results for the year ended 31 March 2006 7
Slide 8: The Vukile portfolio – lease expiry profiles
The Vukile portfolio Retail lease expiry profile - % of gross rentals Audited group results for the year ended 31 March 2006 The Vukile portfolio Industrial lease expiry profile - % of gross rentals Audited group results for the year ended 31 March 2006 8
Slide 9: The Vukile portfolio – commercial lease expiry and vacancy
The Vukile portfolio Commercial lease expiry profile - % of gross rentals Audited group results for the year ended 31 March 2006 The Vukile portfolio Vacancy profile - % of gross rentals Audited group results for the year ended 31 March 2006 9
Slide 10: The Vukile portfolio – vacancy profile
The Vukile portfolio Vacancy profile of individual properties - % of GLA Audited group results for the year ended 31 March 2006 The Vukile portfolio Vacancies – impact of Randburg / Bloemfontein With Randburg excluded, overall vacancy of portfolio drops to 1.7% of gross rentals With 3 400 m² lease c
Slide 11: The Vukile portfolio – rentals, new leases and renewals
The Vukile portfolio Weighted average gross rentals as at 31 March 2006 Audited group results for the year ended 31 March 2006 The Vukile portfolio New leases and renewals (12 months ended 31 March 2006) Total contract value R238 million Total rentable area 151 013 m² Includes: Durban Embassy Bedfor
Slide 12: The MICC portfolio – geographical and sectoral profile
The MICC portfolio Geographical profile - % of gross rentals Audited group results for the year ended 31 March 2006 The MICC portfolio Sectoral profile - % of gross rentals Audited group results for the year ended 31 March 2006 12
Slide 13: The MICC portfolio – lease expiry profiles
The MICC portfolio Retail lease expiry profile - % of gross rentals Audited group results for the year ended 31 March 2006 The MICC portfolio Industrial lease expiry profile - % of gross rentals Audited group results for the year ended 31 March 2006 13
Slide 14: The MICC portfolio – commercial lease expiry and vacancy
The MICC portfolio Commercial lease expiry profile - % of gross rentals Audited group results for the year ended 31 March 2006 The MICC portfolio Vacancy profile - % of gross rentals Audited group results for the year ended 31 March 2006 14
Slide 15: The MICC portfolio – vacancy profile
The MICC portfolio Vacancy profile of individual properties - % of GLA Audited group results for the year ended 31 March 2006 The MICC portfolio Vacancies – impact of Randburg Hillview, 9 Fredman Drive and Durban Overport City With Hillview excluded, overall vacancy of portfolio drops to 4.7% of gro
Slide 16: The MICC portfolio – rentals, new leases and renewals
The MICC portfolio Weighted average gross rentals as at 31 March 2006 Audited group results for the year ended 31 March 2006 The MICC portfolio New leases and renewals (12 months ended 31 March 2006) Total contract value R148 million Total rentable area 94 460 m² Includes: Hillfox Qualbert Centre Au
Slide 17: Vukile and MICC portfolios together (Group)
Vukile and MICC portfolios together (Group) Number of properties 92 GLA 1 080 274 m² Market value R3.66 billion Vacancy (% of gross rentals) 4.4% Sectoral spread (% of gross rentals): Retail 55.5% Commercial 30.7% Industrial 13.8% Audited group results for the year ended 31 March 2006 Vukile and MIC
Slide 18: Strategic priorities for previous year; Acquisition of MICC
Strategic priorities for previous year Upgrade existing properties – Phoenix/Dobsonville, Allandale Improve debt funding structure – R770 m securitisation – debt cost reduced from 11.16% to 10.0% – overall saving of approximately R9 million for full year Improve liquidity of linked units – no signif
Slide 19: Strategic priorities for coming year; Prospects
Strategic priorities for coming year Full assimilation of MICC, especially reduction of debt costs Develop opportunities brought by BEE credentials Maintain focus on upgrades/expansion of existing properties Grow portfolio through value adding acquisitions Increase liquidity of linked units Audited
Slide 20: Questions
Questions ? Audited group results for the year ended 31 March 2006 20