Latest news with #Vukile
Zawya
2 days ago
- Business
- Zawya
South Africa: From local to international, Vukile's impressive 2025 earnings leap
Vukile Property Fund has emerged from a transformative year with more than 60% of its income now derived offshore, a result of bold expansion into Portugal and strategic capital rotation in Spain — moves that have cemented its presence in two of Europe's most resilient consumer economies. Backed by operational excellence and a clear capital strategy, the group delivered strong financials for the year ended 31 March 2025. Laurence Rapp, chief executive officer of Vukile Property Fund, said he was pleased with the results in what he described as "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,' he said. Delivering on its market guidance, Vukile achieved 3% growth in full-year funds from operations (FFO) per share and increased its dividend per share (DPS) by 6%. This mainly due to its superior dealmaking, ongoing operational excellence, and decisive and disciplined capital deployment. Furthermore, it announced upgraded FY26 guidance, forecasting growth of at least 8% in both FFO per share and DPS. It's total property assets now exceed R50bn, reflecting an ambitious yet tightly focused investment strategy. Iberian expansion accelerates During the year, Vukile grasped a golden window of opportunity that 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. Vukile entered Portugal during the year through its 99.6% held Spanish subsidiary Castellana Properties. The fully-funded multi-asset entry capitalises on Portugal's strong economic growth and fragmented retail property sector that is ripe for consolidation, mirroring opportunities seized in Spain. Continuing its creative dealmaking, in Spain Vukile exited its investment in Lar España with a capital profit of €82m, concurrently redeploying the proceeds into acquiring the Bonaire Shopping Centre in Valencia with a cash-on-cash return exceeding 8% thereby enhancing sustainable earnings. Retail portfolio resilience 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 South Africa, Vukile's robust operating platform yet again delivered outstanding results,' notes Rapp. Valued at R16.7bn, 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 remain 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%. Growth, efficiency, sustainability 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. Vukile's solar PV rollout in South Africa has been highly successful, boosting margins and advancing its path to carbon neutrality. 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 has identified a further 10.6MWp of solar projects for FY26 and is finalising the agreements for two wheeling projects totalling 2MWp. Adding value to its South African portfolio through acquisitions and developments, Vukile's R113m redevelopment of Mall of Mthatha (formerly BT Ngebs), in which Vukile acquired a 50% stake in May 2024, has delivered strong early performance, with the vacancy rate dropping from 16% when acquired to just 2%. The highly accretive project is set for completion in September 2025. The comprehensive R141m Bedworth Centre strategic upgrade in Vanderbijlpark, delivered a high-convenience, community-focused retail destination with enhanced tenant mix, aesthetics, amenities, access and security. Vukile's well-established investment in Spain, together with its new investment in Portugal has clearly cemented Castellana's position as a market leader, capitalising on the advantages of the region's status as a European growth powerhouse. The Economist ranked Spain as Europe's top-performing economy in 2024, with GDP growth of 3.2% and forecasts of 2.3% in 2025. The country's economic growth is fuelled by strong household spending. Disposable income rose by 8.7%, supported by higher salaries, employment and savings levels. Additionally, tourism hit a record €126bn with 94 million visitors. Portugal's economy outperformed expectations with 1.9% growth in 2024, driven mainly by household consumption, with record-high employment levels, real wages increasing and high disposable income. Private consumption rose 3.2% in 2024. Growth is forecast at 2.3% in 2025. Like Spain, Portugal is benefiting from easing inflation, projected to fall to 2.3% in 2025. Castellana's R32.9bn, 20-asset Iberian portfolio remains effectively fully let, with marginal vacancies of around 1% and 95% of space let to blue-chip international and national tenants. Portfolio like-for-like net operating income grew 6.4%. It achieved high positive rental reversions and new lettings of 17.31%. The portfolio has a weighted average lease expiry of 8.8 years. Excellent trading metrics featured across the portfolio, with footfall up 2.4% and sales increasing by 4.3%. 'Castellana's on-the-ground presence and expertise has added substantial value to the Iberian portfolio. This year has been one of rapid growth in the region, and our priority is to crystalise potential in our newly acquired assets and deepen value within our existing footprint.' says Rapp. Strength, stability, strategy Vukile's balance sheet remains exceptionally strong, with a stable LTV of 40.95% and an increased ICR of 2.9-times. The REIT enters FY26 with a well-hedged balance sheet and minimal debt maturities of less than 2% of group debt in FY26, as well as a very healthy liquidity position, with cash and undrawn facilities of R4.6bn. Vukile has an AA(ZA) corporate rating reaffirmed by GCR with a positive outlook. Fitch has awarded Castellana an international investment-grade credit rating of BBB- also with a positive outlook. Over the year, Vukile increased its green and sustainability-link debt by 69% from R1.3bn to R2.2bn, aligning its funding strategy with its continued commitment to ESG goals. Rapp concludes, 'Vukile is in a strong position, underpinned by a clear strategy, a proven operating platform, a strong balance sheet, high-quality assets and disciplined capital management. "It is well placed to deliver sustainable real growth by maintaining operational excellence, advancing value-added projects within existing portfolios and pursuing further opportunities in our core markets. We are committed to our proven scalable consumer-led model to create value for all our stakeholders.' All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
IOL News
3 days ago
- Business
- IOL News
Vukile Property Fund reports strong annual results and forecasts higher growth for 2026
Laurance Rapp is the CEO of Vukile Property Fund. 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. 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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:
The Citizen
12-05-2025
- Business
- The Citizen
WATCH: Bedworth Centre gets a makeover
VEREENIGING – The Bedworth Centre between Vereeniging and Vanderbijlpark has undergone a R141m redevelopment, transforming it into a modern, community-centric retail destination. The project, completed by Vukile Property Fund, introduces national retailers and essential services to better serve the local population. Strategically located at the corner of Ascot-on-Vaal Road and the R42, the centre now boasts over 41 stores, including new anchors Boxer and Shoprite, which opened in late 2024. These additions enhance the variety and convenience of shopping options for residents of Bedworth Park, Sharpeville, Bophelong, and students from the Vaal University of Technology and North West University Vaal Campus. The redevelopment focused on improving aesthetics, layout, access, and security. Notable new tenants include Hungry Lion, Big Joe Pies, Fish & Chips Co, Factory 88, Jam Clothing, Bellama, Blooming Beauty, Pep Home, OK Furniture, and Volpes. A standout feature is Pepkor Group's Home. Tech. Sleep concept store, the second of its kind in South Africa, offering integrated home solutionshttps:// across 1 570 square meters. Further enhancing the centre's role in the community, a SARS Client Service Centre has been added, providing residents with closer access to essential government services. This integration of retail and public services underscores Vukile's commitment to creating spaces that serve the broahttps:// community. Vukile's approach combines deep local insight with data analytics to curate tenant mixes that resonate with the unique needs and aspirations of the community. This redevelopment not only upgrades the physical space but also strengthens Bedworth Centre's position as a cornerstone of convenience and connection in the area.' At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
Zawya
03-04-2025
- Business
- Zawya
South Africa's Vukile expands aggressively in Europe, signals more growth
South Africa's well-known specialist retail real estate investment trust, Vukile Property Fund delivered a strong pre-close trading update for its financial year ended 31 March 2025, underscoring its dealmaking dexterity, strategic expansion and robust operational delivery. Vukile confirmed it is on track to meet its full-year guidance of 2% to 4% growth in funds from operations (FFO) per share and 6% growth in dividends per share (DPS). Reflecting strong business momentum and high-quality earnings, Vukile also provided preliminary guidance on FFO and dividend per share growth for FY26 of at least 6%, based on conservative assumptions and without anticipating any need for new equity capital. The transformative year has been underpinned by strategic execution. Driven by disciplined dealmaking and decisive capital deployment, Vukile's gross asset value now exceeds R50bn. Through its 99.5%-held Spanish subsidiary Castellana Properties, Vukile grew its asset base in Spain and Portugal by nearly 60%. It exited its investment in Lar España at an impressive profit of €82m, swiftly redeploying capital to acquire the iconic Bonaire Shopping Centre in Spain's Valencia province at a compelling cash-on-cash return of over 8%, avoiding cash drag and securing sustainable earnings from a top-quality asset. Adding a new engine of growth to its strategy, Vukile entered Portugal with four high-quality retail acquisitions. A fifth deal is well advanced and already fully funded. All-in-all, the Iberian portfolio grew around 60% over the 12 months, cementing Vukile's dominant position across two of Europe's strongest economies − Spain and Portugal. Approximately two-thirds of Vukile's assets and 60% of earnings are now offshore. Strategic growth and optimisation In South Africa, Vukile acquired a 50% stake in Mall of Mthatha (formerly BT Ngebs) in May 2024, where early turnaround performance has exceeded expectations. The mall's vacancy rate has decreased dramatically from 18% to just 1.8%. These assets were acquired at a favourable point in the cycle, expanding Vukile's footprint and growing its Iberian portfolio with strategically aligned, high-performing assets that are delivering strong cash flows with further upside through targeted asset management. 'We've come through a phase of explosive growth. Now, we're focused on integration, optimisation and crystallising value from these assets. Vukile remains open to opportunities but will prioritise deepening value within its current footprint, and for the time being we don't expect to raise capital,' confirms Laurence Rapp, chief executive officer of Vukile Property Fund. Operational strength has stood out across Vukile's portfolio of high-performance, strategically located shopping centres, with limited exposure to new competition and strong pricing power. In South Africa, like-for-like net property income (NPI) grew 6.4%, vacancies remain below 2%, and 84% of rental reversions were positive or flat. The portfolio has recorded growth in both sales and footfall. The cost-to-income ratio reduced to 15%, with ongoing progress in solar and water initiatives enhancing sustainability metrics and efficiencies. In the Iberian portfolio, like-for-like NPI increased by almost 2% and with various value-add projects now complete, significant upward momentum can be expected in the year ahead. Vacancies in both portfolios remain below 2%. Positive rental reversions were a standout 23.6% in Spain and 6.15% in Portugal. Sales grew 4.3% in Spain and 6.7% in Portugal. 'With a well-hedged balance sheet, minimal near-term debt expiries of just 2% maturing in FY26 and strong liquidity, Vukile is closing FY25 in an exceptionally positive position,' says Rapp.
