moving ahead, staying on course audited group results 2008 for the year ended 31 march 2008

Moving ahead,staying on course

AUDITEDGROUP RESULTS

2008for the year ended

31 March 2008

VUKILE PROPERTY FUND LIMITED

Highlights

Distribution for 6 months up 17% compared to corresponding 6 month period

Distribution for 12 months up 15% compared to previous year Successful completion of Moratiwa Crossing Shopping Centre and

Allandale mini-factory and warehousing developments Dual listing in Namibia Improvement in cost to income ratio to 34.1% (from 35.4% previous

year) Cost saving of R2.3 million per annum from procurement exercise Additional annual income of ±R6 million from billboard/signage

contracts Acquisition of three ‘A’ grade earnings enhancing properties


Salient features of results

Net profit available for distribution up 23.2% from R214.8 million to R264.6 million

Net asset value per linked unit (NAV) up to 890 cents from 803 cents end March 2007 (+10.8%)

Reduction in group finance costs from R126.9 million to R114.8 million

Distribution for 6 months up 17% (48.0 cents vs 41.0 cents)

Distribution for 12 months up 15% (88.25 cents vs 76.75 cents)


Condensed group income statement

March 2008

Cents per

linked unit

March 2007

Cents per

linked unit

Group net rental income 139 137

Net finance costs (39) (46)

Other (including taxation) (9) (8)

Headline earnings 91 83

Increase over previous 12 month period excluding straight-line rental income 23.2% 15.6%


Make-up of increase in distribution

Cents per

linked unit

Contribution to increased rental income

Reduction in vacancies and increased rentals 17.8

Additional rentals from property acquisitions 4.2

Other 2.0

24.0

Less: Increase in property expenditure (4.4)

Income foregone on properties sold in prior year (4.1)

Net increase in group property revenue 15.5

Net finance costs reduction 4.1

Increased administrative expenses (3.5)

Adjustment for lower weighted average number of units (4.6)

Net increase in distribution 11.5


Group debt structure

Maturity and interest rate profile of long-term debt at 31 March 2008


Group balance sheet


Group net cash flow


NAV bridge


Linked unit price performance


Trading volumes


Property portfolio

Number of properties 74 (71 on 31/3/07)

GLA 911 907 m² (898 351 m²)

Valuation– Total portfolio Directors’ valuation R4.32 billion – up R455 million

(11.8%) from 31/3/07– External valuation R2 451.1 million compared to R2 290.6 million

director’s valuation (R160.5 million or 7.0% higher on 53% of total portfolio)


Property portfolio – largest properties

Area Value % of (m²) (R’m) total

Durban Phoenix Plaza S/C 24 162 350.7 8.1Randburg Square S/C 51 370 255.0 5.9Durban Embassy Offices 32 339 195.8 4.5Pinetown Pinecrest S/C (50%) 40 492 185.6 4.3Bellville Louis Leipoldt Hospital 20 479 145.1 3.4Dobsonville Shopping Centre 23 124 143.5 3.3Roodepoort Hillfox S/C 36 103 125.7 2.9Bloemfontein Plaza S/C 38 438 118.9 2.8Midrand Arivia.kom Offices 15 634 115.7 2.7Oshakati Shopping Centre 21 591 114.7 2.7Germiston Route 24 Industrial Park 34 977 114.1 2.6Daveyton Shopping Centre 16 983 111.4 2.6Windhoek BPI House Offices 12 915 100.5 2.3

368 607 2 076.7 48.1


Sectoral valuation of portfolio


Acquisitions and developments

Value Yield

(R’m) (%)

Development of Moratiwa Crossing (86.5% share) 61.5 9.5

Development of Allandale mini-factories 17.2 10.4

Acquisition of West Street, Houghton offices 33.5 9.2

Acquisition of BPI House Windhoek offices 110.0 9.1

Acquisition of Lynnwood Pretoria offices 34.0 8.6

256.2 9.2


Disposals

Directors’

Purchase valuation Net sales

price 31 March 08 price

(R’000) (R’000) (R’000)

Hallmark Building 80 693 66 997 78 046


Portfolio geographical profile% of gross rentals


Portfolio sectoral profile% of gross rentals


Portfolio vacancy profile% of gross rentals


Individual properties vacancy profile% of GLA


Portfolio lease expiry profile% of GLA


Portfolio tenant profile% of gross rentals


Individual properties: weighted average gross rentals % of GLA


Historical sectoral rental escalation% of gross rentals

Average annual escalation - actual vs contractual


Rental escalation profile% of gross rentals

Average annual escalation


Gross cost to income ratio


Portfolio – new leases and renewals

New leases and renewals for 12 months ended 31 March 2008 Total contract value R516 million Total rentable area 201 630m²

Contractvalue

(R’m)

Arivia.kom – Arivia.kom building 34.4Spar – Moratiwa Crossing 23.4

Subaru – Supra Hino building 21.2

Wesbank – Embassy building 20.5

Edgars – Moratiwa Crossing 17.4

Unisys – Barlow Place building 15.2


Strategic priorities for previous year

Growth– New acquisitions – R177.5 million– Further expansions/revamps/upgrades – R81.5 million

Cost cutting– Procurement - savings of R2.3 million– New property management contracts – savings of R0.5 million

BEE– Leverage existing shareholders – number of prospects under

investigation– Further initiatives re Code of Good Practice on BEE – procurement

exercise increased % of BEE spend, rating to commence shortly


Strategic priorities for coming year

Retain tenants

Manage bad and doubtful debts

Maintain properties

Further revamps/upgrades/expansions of existing properties

Manage energy situation


Prospects

Negative factors– Slowdown in economic growth– High interest rates and inflation– Electricity crisis– Slowdown in retail sales– Negative sentiment

Although more risk, property fundamentals remain fairly strong

Expected growth not as good as previous year

Still expect reasonable growth in distributions


Acknowledgements

Board

Service providers– Sanlam Properties– JHI– Kuper Legh– Old Mutual Investment Group Property Investments

Brokers and developers

Tenants

Investors


Questions

?

moving ahead, staying on course audited group results 2008 for the year ended 31 march 2008

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