Vukile Property Fund produces 7% growth in FY distributions
JSE-listed real estate investment trust (Reit) Vukile Property Fund grew its distributions for the year ended March 31 by 7% to 146.35c a share. Locally, most of Vukile’s activity was inward focused, improving vacancies across its portfolio from 4.6% to 3.9% of gross lettable area.
In addition, rental reversions were positive across the entire portfolio, at 9.1%, and strong for retail, at 12.3%. Vukile contained its ratio of net recurring costs to property revenue at 15.8%, compared with 15.5% in the prior year, despite government administered expenses for utilities, rates and taxes increasing faster than inflation.
The Reit had direct property assets valued at R15.6-billion and total assets of R16.7-billion. Retail centres now comprised 70% of its portfolio. “We’re pleased to report a positive set of results that are on target and show an impressive operational performance. We continue to build a high-quality portfolio of assets for lasting success,” CEO Laurence Rapp said at a presentation of the company’s results on Thursday.
He added, however, that the Reit expected a very difficult environment going forward. Looking ahead, the Reit would continue to invest in its core retail sector. “Our goal is to craft our direct South African assets into a specialist retail property fund.”