The property investment fund saw revenue increase from 112 million rand for the six months ended 31 December 2012 to 126 million rand for the same period in 2013.
“The interim results are attractive given the stagnant economy and VPIF was able to maintain its high rating in all of its Key Performance Indicators due to tight, focussed management. The growth in distribution per linked unit of 5.26 per cent underplays the fund’s performance as 48.5 million units, an increase of 40 per cent, were issued during the period,” [DATA VPF:Vunani Property Investment Fund] (VPIF) said.
“Refurbishment of existing stock continues to enhance earnings as do new acquisitions. Volatility in the property sector has assisted sellers to be more realistic in their price expectations and the fund has a solid acquisition pipeline that will deliver value to its unit holders. We anticipate that the next reporting period will see a material increase in our acquisitions, but not at the expense of yield and quality.”
Investment property income rose 16.4 per cent from 106 million rand in the 2012 period to 124 million rand in 2013 and net property income increased by 10.4 per cent from 75 million rand to 82 million rand.
Profit before income tax however, decreased from three million rand in 2012 to two million rand in 2013, net asset value was up by 18.2 per cent and headline earnings per linked unit increased from 37.51 cents to 47.00 cents.
“On 23 August 2013, VPIF successfully concluded its rights offer and issued 48.5 million new linked units, raising 455 million rand. The proceeds were used to settle the acquisition price of the Greenstone Hill Office Park properties and to settle existing variable debt to the extent of 180 million rand,” it said.
“Despite the difficult economic climate, the portfolio has performed well over the past six months and is on track to deliver on the guidance previously provided to the market. The board will continue to focus on its strategy of growing the Fund with yield-enhancing assets without compromising on quality.”