Vukile Property Fund Limited · JSE:VKE
Vukile Property Fund — FY2009 Earnings Presentation
36 slides from Vukile Property Fund's earnings presentation, May 25, 2009
Slide 1: Planning future growth on firm foundations
Slide 2: Highlights
Highlights Distribution for 6 months up 12% compared to corresponding 6 month period Distribution for 12 months up 10.9% compared to previous year Successful completion of expansions to Courier IT Warehouse, Nelspruit Truworths and Oshakati Game Centre Improvement in recurring cost to property reven
Slide 3: Salient features of results
Salient features of results Net profit available for distribution up 9.6% from R264.6 million to R289.9 million Net asset value per linked unit (NAV) up to 907 cents from 890 cents end March 2008 (+1.9%) Increase in group finance costs from R114.8 million to R122.6 million Distribution for 6 months
Slide 4: Distribution history
Distribution history VUKILE PROPERTY FUND LIMITED
Slide 5: Growth in distribution
Growth in distribution VUKILE PROPERTY FUND LIMITED
Slide 6: Condensed group income statement
Condensed group income statement March 2009 March 2008 Cents per Cents per linked unit linked unit Group net rental income 150 139 N t finance Net fi costs t (41) (39) Other (including taxation) (10) (9) H dli earnings Headline i 99 91 Increase over previous 12 month period excluding straight-line r
Slide 7: Make-up of increase in distribution
Make-up of increase in distribution 2009 2008 Cents per Cents per linked unit linked unit Contributions to increased rental income Reduction in vacancies and increased rentals 13.9 13.7 Additional rentals from property acquisition 3.4 4.2 Additional municipal service recoveries and other 3.4 2.0 20.
Slide 8: Group debt structure
Group debt structure Maturity and interest rate profile of long- term debt at 31 March 2009 VUKILE PROPERTY FUND LIMITED
Slide 9: Group balance sheet
Group balance sheet VUKILE PROPERTY FUND LIMITED
Slide 10: Group net cash flow
Group net cash flow VUKILE PROPERTY FUND LIMITED
Slide 11: NAV bridge
NAV bridge VUKILE PROPERTY FUND LIMITED
Slide 12: Linked unit price performance
Linked unit price performance VUKILE PROPERTY FUND LIMITED
Slide 13: Trading volumes
Trading volumes VUKILE PROPERTY FUND LIMITED
Slide 14: Property portfolio
Property portfolio Number of properties 74 GLA 920 232 m² m (911 907 m²) m) Valuation – Total p portfolio Directors’ valuation R4.53 billion – up p R213 million (4.9%) from 31/3/08 – External valuation R2 568.1 million compared to R2 436.5 million director’s valuation (R131.6 million or 5.4% higher
Slide 15: Property portfolio – largest properties
Property portfolio – largest properties Area Value % of (m²) (R’m) total Durban Phoenix Plaza S/C 24 162 356.6 7.9 Randburg Square S/C 51 370 250.9 5.5 Durban Embassy Offices 32 346 209 0 209.0 46 4.6 Pinetown Pinecrest S/C (50%) 40 485 195.1 4.3 Bellville Louis Leipoldt Hospital 22 311 156.9 3.5 D
Slide 16: Sectoral valuation of portfolio
Sectoral valuation of portfolio VUKILE PROPERTY FUND LIMITED
Slide 17: Expansions / Revamps
Expansions / Revamps Value Yield (R’m) (%) Expansions Oshakati Game Centre 24.3 7.5 Courier IT Warehouse 14.3 9.6 Nelspruit p Truworths 8.7 9.5 47.3 8.5 Revamps Dobsonville Shopping Centre 16.7 Durban Phoenix Plaza 27.3 44 0 44.0 VUKILE PROPERTY FUND LIMITED
Slide 18: Portfolio geographical profile
Portfolio geographical profile % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 19: Portfolio sectoral profile
Portfolio sectoral profile % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 20: Portfolio vacancy profile
Portfolio vacancy profile % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 21: Individual properties vacancy profile
Individual properties vacancy profile m² vacant VUKILE PROPERTY FUND LIMITED
Slide 22: Portfolio lease expiry profile
Portfolio lease expiry profile % of GLA VUKILE PROPERTY FUND LIMITED
Slide 23: Portfolio tenant profile
Portfolio tenant profile % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 24: Individual properties: weighted average gross rentals (Retail)
Individual properties: weighted average gross rentals Retail - R/m² VUKILE PROPERTY FUND LIMITED
Slide 25: Individual properties: weighted average gross rentals (Industrial)
Individual properties: weighted average gross rentals Industrial - R/m² VUKILE PROPERTY FUND LIMITED
Slide 26: Individual properties: weighted average gross rentals (Commercial)
Individual properties: weighted average gross rentals Commercial - R/m² VUKILE PROPERTY FUND LIMITED
Slide 27: Historical sectoral rental escalation
Historical sectoral rental escalation Average annual escalation - actual vs contractual % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 28: Rental escalation profile
Rental escalation profile Average annual escalation - % of gross rentals VUKILE PROPERTY FUND LIMITED
Slide 29: Gross recurring cost to property revenue ratio
Gross recurring cost to property revenue ratio VUKILE PROPERTY FUND LIMITED
Slide 30: Portfolio – new leases and renewals
Portfolio – new leases and renewals New leases and renewals for 12 months ended 31 March 2009 – Total contract value R418 million – Total rentable area 186 960 m² Contract value l (R’m) (R’ ) Behr Engine Cooling – Valley View 24.3 The Hub – Durban Phoenix Plaza 15.2 Masstores – Kokstad Game Centre 1
Slide 31: Strategic priorities for previous year
Strategic priorities for previous year Retain tenants – 80% of leases that expired were renewed Manage bad and doubtful debts – Contained to less than 1% of gross rental income Maintain properties – Ongoing F h revamps/upgrades/expansions Further / d / i off existing i i properties i – Projects prev
Slide 32: Insourcing of asset management function
Insourcing of asset management function 3 March 2009 – Board approval to internalise asset management services 27 March 2009 – General meeting approval of extension of asset management contract by six months Proposed acquisition – IT infrastructure / software / furniture & equipment / employees – In
Slide 33: Strategic priorities for coming year
Strategic priorities for coming year Implement transaction with Sanlam Properties Retain tenants Manage bad and doubtful debts F th revamps/upgrades/expansions Further / d / i off existing i ti properties ti Manage energy situation VUKILE PROPERTY FUND LIMITED
Slide 34: Prospects
Prospects N Negative ti ffactors t – Slowdown in economic growth – Slowdown in retail sales – Negative sentiment – Increased vacancies – Slower rental growth Positive factors – Declining interest rates – Healthy fundamentals – Little new stock – Infrastructure spending Property cycle lag economy by
Slide 35: Acknowledgements
Acknowledgements Board Service providers – Sanlam Properties – JHI – Hermans & Roman – Kuper Legh – Old Mutual Investment Group Property Investments Brokers and developers Tenants Investors Funders VUKILE PROPERTY FUND LIMITED
Slide 36: Questions
Questions ? VUKILE PROPERTY FUND LIMITED