The property company’s financial year results ending 31 March 2014 indicated that the company had performed well due to its improved quality and lower risk profile.
[DATA VKE: Vukile Property Fund Limited]’s net profit available for distribution increased by 25 per cent to 693.9 million rand from 556.4 million rand in 2013.
“The retail sector continued to outperform the other sectors while the industrial sector started showing signs of improvement,” noted Vukile Property Fund Limited.
“The commercial sector still battled with high vacancies in selected properties due to an oversupply of space in those nodes.”
The property holding and investment company’s properties consists of 79 properties with a total market value of 10.3 billion rand.
The company also credited its strategic acquisition of 50 per cent of East Rand Mall for R1.1 billion, Sovereign Tenant portfolio and successful re-launch of the revamped Randburg Square Shopping Centre for its growth prospects.
The company’s earnings per linked unit was down by 16 per cent to 229 cents while, headline learnings per linked unit went up by twenty per cent to 163 cents.
The group is positive about the future partly aided by the company’s improved quality and experience.
“Our gearing is conservative with high levels of interest rate hedging, which puts us in a defensive position ahead of an expected rising interest rate cycle. Our portfolio is solid with its improved quality and lower risk profile. Our team benefits from excellent skill, knowledge and experience,” noted the group.
“We’ve battened down the hatches for what could be a more challenging time for the sector. But, we remain vigilant for opportunities to grow the fund with value-adding transactions, whether they be in direct property investments or other listed funds strategically aligned to Vukile,” added the property company.