Vukile Property Fund reports strong annual results and forecasts higher growth for 2026
Image: Supplied
Vukile Property Fund, the specialist retail estate investment trust, has upgraded its guidance by 8% for 2026 as it produced a robust set of results for the financial year ended March 31 2025.
Delivering on its market guidance, Vukile achieved 3% growth in full-year funds from operations per share and increased its dividend per share by 6%.
Laurence Rapp, the CEO of Vukile Property Fund, said, 'We are pleased to report strong results in a transformative year, distinguished by accretive strategic growth and capital rotation. This outstanding performance validates Vukile's strategy, expands its earnings base and positions the business for compounding future growth.'
Vukile's, with total property assets now exceeding R50 billion, is evolving into a more international business with growing exposure to hard currency earnings emanating from blue-chip tenants and well diversifed across macro-economic drivers.
Rapp explained the year had been transformative after Vukile exited its listed share exposure in Fairvest and sold remaining stake for R141 million and redeployed into accretive solar projects and exited Spain's Lar España thus generating a capital gain of €82 million (R1.7 billion),.
Lar España sale proceeds together with proceeds from R1bn equity raise in February 2024 and a R1.5bn capital raise in September 2024, allowed Vukile to acquire three assets in Portugal for €176.5m. It acquired 50% of Alegro Sintra in Lisbon for €83.4m and also acquired the Bonaire shopping centre in Valencia, Spain for €305m.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Next
Stay
Close ✕
This meant that Vukile has expanded its Iberian direct asset base by nearly 60%, consolidating its footprint across two of Europe's most resilient consumer economies. Now, 65% of the group's assets, and an expected 60% of its net property income is derived offshore. Now, 65% of the group's assets, and an expected 60% of its net property income is derived offshore
Vukile closed the year with an investment portfolio of 33 urban, commuter, township and rural malls in South Africa,15 shopping centres and retail parks in Spain and five shopping centres in Portugal.
In Spain and Portugal, portfolio occupancy stood at 98.4% with 95% of retail space let to international and national tenants. It saw like-for-like gross rental income growth of 5% and net operating income growth of 6.4%.
Rapp said in South Africa, Vukile's robust operating platform "yet again delivered outstanding results".
Valued at R16.7 billion, Vukile's defensive, dominant South African retail portfolio delivered strong performance and growth. The value of its retail portfolio rose by 8.5%, while like-for-like net operating income increased by 6.4%. Vacancies remained exceptionally low at 1.7%, supported by active letting, with positive rental reversions of 2.4%. Notably, 85% of leases were signed at the same or higher rental levels, with tenant retention at 91%.
The total portfolio recorded trading density growth of 5.2% - with its township and rural portfolio outperforming at 6.7% - driven by Vukile's shopper-first approach, which continues to boost footfall and sales. The portfolio's cost-to-income ratio was 15.3% - its lowest level in a decade – reflecting proactive cost management, with the benefit of solar energy contributing to significant efficiency gains.
In South Africa in April 2024 Vukile acquired 50% of Mall of Mthatha, previously known as BT Ngebs, for R400 million and invested a further R113 million to upgrade and refurbish the centre.
Vukile said the Mall of Mthatha has delivered a "strong early performance", with the vacancy rate dropping from 16% when acquired to just 2%, adding that the highly accretive project is set for completion in September 2025.
The comprehensive R141million Bedworth Centre strategic upgrade in Vanderbijlpark, delivered a high-convenience, community-focused retail destination with enhanced tenant mix, aesthetics, amenities, access and security.
Meanwhile, looking at Vukile's solar PV rollout in South Africa, over the year, solar capacity grew by 67%, with 14.4MWp added to the existing 21.6MWp. Solar power now supplies 27% of the portfolio's energy needs. Vukile said it has identified a further 10.6MWp of solar projects for 2026 and is finalising the agreements for two wheeling projects totalling 2MWp.
The balance sheet remained sound with significant available cash balancesof R2.1 billion and undrawn debt facilities of R2.5 billion.
BUSINESS REPORT
Visit: https://businessreport.co.za/
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The South African
20 hours ago
- The South African
Could it be you? R124m Powerball winner has NOT claimed cash
A single individual who won the R124 million Powerball lotto has been urged to come forward to claim their winnings. According to Ithuba, the winning ticket was bought via the Absa banking app. The winning numbers are 10, 32, 34, 40, 48, and the bonus ball was 14. According to Ithuba, the winner of the R124 million Powerball lotto has yet to confirm their winnings. Ithuba's Michelle van Trostenburg told the SABC: 'We have circumstances where people don't check their tickets. As part of the process, the winner was from an Absa bank, which means that they would have been contacted by the bank if they answered a call. Appealing to the public, she continued: 'If you bought a Powerball ticket on Tuesday evening and see a call coming through from Absa, please take it. It's to tell you to come through to the Ithuba offices to claim the R124 million'. Winners have 365 days to claim their winnings. The cash will be deposited into the bank account tax-free within 72 hours. If you purchase a ticket via your banking app, your bank will notify you of your winnings. For those who purchase physical tickets, they can take the ticket to any retail outlet to verify it. Winners who earn a substantial amount of cash, like the Powerball, will be directed to the Ithuba head office. Winners have to provide a valid identity document, proof of address, and banking details. Ithuba has a winner support system for those who win substantial amounts of cash, particularly over R50 000. 'It's important for them to understand how they're going to manage this kind of windfall. They will walk you through the entire process. According to Ithuba, lost or stolen tickets must be reported immediately. The organisation will collaborate with law enforcement to investigate and honour valid claims within 365 days of the draw. One lucky South African woke up R124.6 million richer after winning the PowerBall jackpot. Image via Pexels. Damaged tickets will be subject to verification. Fraudulent or tampered tickets will be declared void. Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
The Citizen
3 days ago
- The Citizen
Lillydale power puzzle: Eskom's payment demand for electricity that does not exist
Lillydale power puzzle: Eskom's payment demand for electricity that does not exist Eskom has sent a mysterious bill to Swikoxeni Waste Management (PTY) LTD, demanding the payment of R49 330 despite the premises having no installed electricity at all. The company is situated on a piece of land between Justicia and Lyllidale trusts in the Bushbuckridge municipality. ALSO READ: Bullets fly as robbers storm church near Hazyview It uses a solar panels to generate electricity to power lights at night and the company owner says he was very shocked to receive the bill. Since I received the bill a few days ago, I started to have sleepless nights. There is not a single Eskom pole on the premises. But Eskom has the guts to send me a bill of almost R50 000. This is ridiculous. I do not doubt that other people may be experiencing the same challenges as well,' said Bethuel Mashele, the owner of Swikoxeni Waste Management. The letter of demand, a copy of which Mpumalanga News is in possession of, says the payment is due on August 22. Despite the due date being just over 15 days away, the letter contains a threat demanding that the money should be paid immediately. 'Total outstanding debt must be settled immediately. This is subject to disconnection without further notice,' reads the letter. Mashele said he was mystified as to what there was to disconnect. 'Maybe this means Eskom will come and disconnect the electricity that is not connected. I am stunned and confused about this bizarre payment demand,' said Mashele. When contacted for comment, Eskom's communication and stakeholder management practitioner, Lazarus Muthimba, simply appreciated that the matter had been brought to Eskom's attention 'Thank you for bringing this matter to our attention. Please be informed that the customer will be contacted by our customer services team in order to resolve the matter,' said Muthimba.
TimesLIVE
3 days ago
- TimesLIVE
Pick n Pay Group turnover lifted by Boxer, on course for break even
Grocery retailer Pick n Pay on Tuesday reported a 4.3% increase in group turnover, buoyed mainly by strong growth in its discounter business Boxer, which it spun out and listed last year. Like-for-like sales, which exclude the impact of store openings, closures, conversions or acquisitions, rose 3.8% during the period, the group said in a trading statement for the 17 weeks ended June 29. Boxer, majority-owned by Pick n Pay, was listed separately on the Johannesburg Stock Exchange in November 2024 and competes with Shoprite's Usave and Spar's SaveMor in smaller towns, townships and rural areas. The discounter reported a 12.1% increase in turnover, with like-for-like sales rising 3.9%. "The group views this as a creditable performance in the context of a highly constrained consumer and continued subdued food price inflation," Pick n Pay said. Its subsidiary Pick n Pay South Africa recorded 3.6% growth in like-for-like sales, despite planned store closures and conversions under its store estate reset plan. It said it was making progress with its store reset and business restructuring plans, which are aimed at helping its core supermarket business break even in the medium term. At its annual results presentation in May the group said a trading loss in the Pick n Pay business narrowed by R1bn to R549m and it anticipated the business to break even by 2028. Pick n Pay, the second-largest grocery retailer in southern Africa by turnover, also announced the appointment of Grant Pattison as an independent non-executive director designate. Pattison, a former CEO of Edcon and Massmart Holdings, will join the board in 2026 after completing his current commitments.
