In spite of the challenging market conditions, Vukile was able to negotiate renewal rentals on expiries at rates that were, on average higher than the expiry rentals and, in some instances, substantially higher
Vukile Property Fund was expecting a 'reasonable' increase in distributions for the year to March and that it could even be slightly higher than originally anticipated.
Vukile has reported that its headline earnings per linked unit for the 6 months ended September 2009 are at 49.60c compared to the 46.22c reported for the same period in 2008.
Property loan stock company Vukile grew its distribution to its linked unit holders for the six months ended 30 September 2009 by 6.6%
Vukile announced that it had concluded agreements with the Sanlam group to acquire a portfolio of 13 commercial properties for R775m.
Vukile Property Fund has raised R250m through Vukile Investment Property Securitisation to reduce the cost of funding its commercial property investment.
Vukile posted a 9,5% increase to R289,9m in net profit for the year to March following firm control of costs and a strong performance.
Vukile Poperty Fund posted a 9.6% increase in distribution to R130.3 million or 44.1c per linked unit for the six months to September compared with 40.25c a year ago.
Since June 2008 listed property loan stock companies have staged a comeback, says Gerhard van Zyl, Chief Executive of Vukile Property Fund which is a member of the Property Loan Stock Association of South Africa
Property loan stock company Vukile should be able to report reasonable growth in distributions in the twelve months to March next year because property fundamentals should remain fairly strong in spite of adverse market conditions.
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