Vukile Property Fund (VKE) H1 2025 earnings summary

Executive summary

• Achieved strong operational and financial results in both South Africa and Spain, with assets under management totaling ZAR 40 billion, split 60% Spain and 40% South Africa, and earnings roughly 50/50 between the two regions.

• Geographic diversification enhanced by entry into Portugal through the acquisition of three shopping centres post-period.

• Strategic redeployment of capital from asset disposals, including Fairvest and Lar España, into new acquisitions and PV projects.

• Focus on customer centricity, data-driven decisions, and prudent financial management.

• Significant corporate activity included new share issuances, asset disposals, and strategic acquisitions.

Financial highlights

• Funds from operations (FFO) increased by 15% to R1,013 million compared to H1 FY24.

• Interim dividend per share up 6% to 55.2 cents (R679 million in aggregate).

• Group loan-to-value (LTV) reduced to 35.4% (from 40.7% at March 2024), with ZAR 6.4 billion liquidity, including ZAR 5.1 billion in cash.

• Net property income in South Africa grew by 9.6% year-over-year.

• NAV per share decreased 1.8% to R21.17, mainly due to Rand/Euro FX movements.

Outlook and guidance

• Guidance for FY25 maintained: FFO per share growth of 2–4% and dividend per share growth of 4–6%.

• Positive outlook supported by strong balance sheet, recent capital raises, and funded pipeline of acquisitions.

• Guidance does not include potential acquisitions of two additional Portuguese assets; includes a 25bps rate cut.

• Benefits from lower base rates expected to materialize in H2 FY25.

• Dividend reinvestment plan (DRIP) to be offered for the interim dividend.