Vukile resumes dividend, eyes more acquisition opportunities

Vukile Property Fund, a retail-focused property group, has announced plans to resume its growth strategies in South Africa and abroad, citing a positive outlook on the ongoing recovery in both regions. The company made this announcement as it resumed dividend payments, with headline earnings per share surging to 71.3 cents, a significant increase from 27.9 cents in the previous six months. Lawrence Rapp, the CEO of Vukile Property Fund, joined CNBC Africa to discuss the company's performance and future plans. Rapp highlighted the strong recovery in sales and footfall in South Africa and Spain, indicating that these metrics are not only returning to pre-pandemic levels but surpassing them. In South Africa, trading density growth reached 4.7 percent, while in Spain, footfall exceeded 96 percent of pre-COVID levels. Rapp attributed this robust recovery to the resilience of retail real estate and the confidence displayed by retailers and tenants through expansion plans. Despite concerns surrounding the new COVID-19 variant, Rapp remains optimistic, drawing on previous experiences in Spain, where high vaccination rates cushioned the impact of subsequent waves. He emphasized the importance of vaccinations in sustaining economic activity and expressed confidence in the eventual recovery from the current wave. Addressing the issue of unemployment, Rapp acknowledged the challenges faced by South Africa, with 7.6 million individuals unemployed. However, he noted that Vukile's malls cater to essential needs and low-income shoppers, whose frequent visits contribute to sustained footfall. Rapp called for collaboration between the government and businesses to boost job creation and alleviate unemployment. Regarding the mandatory vaccination debate, Rapp expressed Vukile's support for the initiative, citing advice from medical experts like Professor Barry Schoub, who advocates for vaccination and other preventive measures. Looking ahead, Rapp revealed Vukile's intentions to capitalize on the favorable market conditions by acquiring new malls in South Africa and potentially in other locations. Despite weathering challenges like COVID-19 and civil unrest, Vukile's strong operating performance and robust balance sheet position the company to pursue growth opportunities with confidence.